Transport Logistics in the 21st Century

Warehouse, Green Logistics Co., Kotka, Finland

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Many things have changed over the last few centuries, and transport logistics is only one of them. What used to be a function of employees of a company has become one that involves choosing the most efficient and cost effective method of transport logistics.

The process of transport logistics has evolved from one that involved customers picking up their orders or choosing delivery by the company’s truck to making the choice between in house transport logistics or outsourcing. With the middle rung of the ladder there is also the possibility of having in house production and warehousing but contracting a trucking firm to make the deliveries.

Things have evolved over the centuries and many companies today are choosing to eliminate their in house transport logistics and other supply chain management functions and contract with outsourcing firms for the entire supply chain management/logistics functionality. Once the orders come off the production line, they are picked up by the outsourcing company that either delivers the products to the customers or stores them in a warehouse until the customer is ready for delivery. While most people think of outsourcing transport logistics as something small companies do, it is actually an area in which larger companies are becoming involved due to the cost savings.

Many things have changed even in the areas of order fulfillment with some companies choosing to outsource those functions as well. They may hire people to handle everything from taking the orders to shipping and storing the orders until the customers are ready for delivery. Many companies are taking transport logistics functions and either outsourcing them or contracting them to trucking firms. These changes make the jobs more efficient and cost effective for the companies–if the savings is substantial enough, they may be able to pass that savings along to their customers.

Things will continue to change throughout time in supply chain management and ultimately transport logistics. While some companies still have their own fleets of delivery vehicles, many are resorting to outsourcing or contracting those services in order to avoid the problems associated with managing a fleet of trucks. Likewise, many are choosing to outsource the entire fulfillment process thus avoiding the need for having a warehouse. Whether this trend will continue into the future is uncertain, but for the present anyway the cost savings makes it worthwhile for both new and established companies.