The transportation of goods is a lucrative business for many, although the pandemic and Brexit have made it more difficult for some. Nevertheless, many industries rely on transportation services, meaning that it is one of the steadiest businesses.
Supply Chain Project in Armenia. Photo: Asian Development Bank / Flickr
Photo: Asian Development Bank / Flickr. Licence: CC BY-NC
That being said, there are some things to be considered logistically in the running of a transportation business. These factors can cement your place in the supply chain and fulfil your customer's needs. Read on for more information.
Type of Products
The product itself is the most important factor. Whether it is perishable like a food item or non-perishable such as machinery, this factor influences all others and is the start of the planning process. Although these products are not necessarily finished, they can also be raw materials needed at another location.
The flow of goods can be divided into three categories—first, inbound logistics, which is the flow of raw materials transported for manufacturing purposes. Second is internal logistics which is the flow of goods and raw materials between different departments of a single business. Third and lastly is outbound logistics which is the transportation of finished products. Identifying the product that is being shipped within these categories removes any bottlenecks or potential problems and makes it easier to prioritise.
The goods' weight and volume then need to be calculated as it determines the optimal mode for transportation. For example, low weight, high volume goods need more vehicles; high weight, low volume goods need stronger vehicles.
The Transportation Itself
Where are the goods coming from, and where do they need to go? It could be within the country, or it could need exporting out. This information is crucial as it can help estimate how long it will take to transport. It can also help to predict other factors such as weather and accessibility, which is important. If the goods need to cross borders, they may require special documentation; it is essential that these are in place as otherwise there will be long delays which can affect the quality of the goods.
Any vehicles used in the transportation of commercial goods over 3.5 tonnes need to be fitted with a tachograph to remain compliant with legal structures. All vehicles must have one; it may also be worth investing in digital tachograph download software to aid in the transition of data and make it easier to read and understand. FleetGo offers this software enabling the business to stay legal and safe.
The last consideration is the cost of the transportation itself. How viable a mode of transportation is as well as the cost should be calculated before committing to that particular method. These costs can vary depending on destination, time, mode of transport and quantity of goods need transportation, among other things.
In Conclusion
Although the transportation of commercial goods is an excellent business to be in as it remains a key industry for many societies. When operating a transportation business, it is important to take into consideration the above factors to maximise potential profit.
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