The Critical Role of Transportation in Business and the Economy

Feb 7, 2014

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Definitive Guide to Transportation, The: Principles, Strategies, and Decisions for the Effective Flow of Goods and Services

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Summary

These final observations illustrate the many and diverse ways that transportation impacts our lives. Transportation is a major contributor to the economy and a competitive force in business. It is the activity that physically connects the business to its supply chain partners, such as suppliers and customers. Furthermore, the service rendered through transportation activity is a major influence on the customer’s satisfaction with the company.

Key takeaways from this chapter include:

Transportation helps to fulfill the economic utilities of place and time.
The cost and service aspects of transportation decisions must be balanced with the inputs of inventory, warehousing, order processing, information, and customer service policies to serve customers at the lowest possible cost.
Transportation provides the links that connect nodes in the supply chain network, linking a focal company to its suppliers and customers.
Transportation is a major contributor to economic prosperity for a nation. The more efficient the transportation system, the easier it is to conduct commerce.
Although transportation is an essential activity in any economy, it presents several hazards to society, including risks of accidental injury and death, greenhouse gas emissions, environmental impact, and terrorist activity.

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