WHY DO LOGISTICS AND TRANSPORT MATTER FOR DEVELOPMENT

Nedelescu-Ionescu Daniela () and Rujan Ovidiu ()
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Nedelescu-Ionescu Daniela: ASE Bucuresti, Facultatea de Relatii Economice Internationale,
Rujan Ovidiu: SE Bucuresti, Facultatea de Relatii Economice Internationale,

Annals of Faculty of Economics, 2014, vol. 1, issue 1, 34-39

Abstract: In face of the challenges of global competition, business firms are concentrating more on the needs of customers and seeking ways to reduce costs, improve quality and meet the ever-rising expectation of their customers. To these ends, many of them have identified logistics as an area to build cost and service advantages. Logistical activities have always been vital to organizations, and therefore business logistics and supply chain management represents a synthesis of many concepts, principles, and methods from the more traditional areas of production, purchasing, transportation, economics, as well as from the disciplines of applied mathematics, and organizational behaviour. It concentrates on important activities of management such as planning, organizing, and controlling, and also on a three-way relationship of related transportation, inventory, and location strategies, which are at the heart of good logistics planning and decision making. Selecting a good logistics strategy may yield a competitive advantage. Transportation provides the flow of materials, products and persons between production facilities, warehouses, distribution centers, terminals and customer locations. The progress in techniques and management principles improves the moving load, delivery speed, service quality, operation costs, the usage of facilities and energy saving. A strong system needs a clear frame of logistics and a proper transport implements and techniques to link the producing procedures. The transportation takes a crucial part in the management of logistic. Without well-developed transportation systems, logistics could not bring its advantages into full play. A good transport system in logistics activities could provide better logistics efficiency, reduce operation cost, and promote service quality. The process determines the efficiency of moving products and energy saving. Improvements in transportation and logistics make valuable contribution to production and consumption activities.That's why the objective of this paper is to define and clarify the role of transportation in logistics and of logistics in development, for the reference of further improvement.The present study was undertaken to define and understand the elementary views of logistics and its various applications and the relationships between logistics and transportation.

Keywords: logistics; transports; inter-relationships; costs reduction; development (search for similar items in EconPapers)
JEL-codes: F10 R40 (search for similar items in EconPapers)
Date: 2014
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