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Logistics is part of supply chain that manages and controls the production and storage of goods and services |
| from the point of origin to the point of consumption in order to meet customers' needs. |
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A key component of logistics system is transportation. |
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Transportation is required to deliver raw material to the factory and from the factory to |
| the warehouse and from the warehouse to the distribution points |
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Logistics performance depends heavily on the efficiency of transportation services. |
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Logistics infrastructures include warehouses, transport and communication, financial and human resources and |
| packaging materials. |
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Around one third to two third of logistics expenses are spent on transportation. |
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The transportation cost includes the means of transportation, corridors, containers, pallets, terminals, labors, fuel |
| and time. |
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Transportation managers should understand transport system operation thoroughly and plan effectively to |
| reduce transportation cost which result consequently in reducing logistics overall expenses. |
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Cost of transportation may vary depending on the industry. |