TRANSPORT FUNDAMENTAL
Transportation usually represents the most important single
element in logistics costs for most firms. Freight movement has been observed
to absorb between one-third and two-thirds of logistics costs. Thus, the
logistician needs a good understanding of transportation matters. Although a complete discussion of transportation is not possible within the scope of
this text, this chapter highlights what is essential to the logistician for his
or her managerial purposes. The focus is on the facilities and services that
make up the transportation system and on the costs and performance of
the several transport services that a manager might select. Specifically, we
wish to examine the characteristics of the transportation service alternatives
that lead to optimal performance. It is performance that the user buys from the
transportation system.
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