7. Transportation’s Role in Logistics and Supply Chain Strategy

Transportation can factor into logistics and supply chain strategy in numerous ways. Succinctly, when transportation capabilities are lacking, the role of transportation is diffused through longer lead times for customer orders or more inventory held. When transportation is fast, safe, and reliable, however, it can serve as an important basis of competition through reduced and consistent lead times, undamaged order delivery, and reduced costs in other areas of the business, including inventory. This chapter reviews different logistics and supply chain strategies in which transportation factors significantly, including the pursuit of lean logistics; vendor-managed inventory (VMI); ...

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