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Transportation Logistics and its technologies

The goal of transport logistics – delivering the right and intact product, on the promised date, in the right place, at the lowest possible cost – is quite a challenge!

It involves complex processes, and many actions must be absolutely aligned and on schedule.

That´s why, transportation is one of the main logistical functions: through it, the product leaves the production starting point to the final destination, the consumer.

In addition to representing, on average, 60% of logistics expenses, it is a competitive differential, often determinant for consumer satisfaction.

In this globalized world, where online shopping is growing and consumers are increasingly demanding, logistics and, in particular, transportation, are essential for business growth.

After all, what’s the point of producing high-quality, fair-priced products and having an efficient sales channel if it doesn’t reach the consumer on time?

So it is seen that transport logistics is fundamental for every company that needs to make its products reach customers, be it B2B, B2C, at the right time, without setbacks or losses.

Considering that delayed deliveries or the integrity of goods can jeopardize a company’s reputation and success, transportation and logistics functions go beyond material handling and become an extremely highly valued management tool .

“Therefore, to make the logistics operation successful, it is necessary to enable product quality, process automation, fleet management and agility in delivery.

What is transportation logistics?

“Displacement of goods from one point to another of the logistics network, respecting the restrictions of load integrity and reliability of deadlines. It does not add value to the products, but it is essential for them to reach their point of application, in order to ensure the best performance of the investments of the various economic agents involved in the process”, says FIESP (Federation of State Industries São Paulo) on transport logistics.

In fact, transportation logistics is a logistics segment that evaluates each delivery and determines which is the most economical, agile and safe way to meet consumer demands.

To achieve this goal, it considers:

  • operation costs;
  • risks involved;
  • stipulated deadlines;
  • types of cargo;
  • types of product transported;
  • most suitable vehicle;
  • volume transported;
  • distance;
  • route traveled;
  • travel time;
  • ideal modal

Advantages of transportation logistics

1 – Time optimization

By defining the best way to deliver a particular cargo, in addition to planning and tracking the route from start to finish, you can reduce delivery time.

2 – Reduction of goods breakdowns

It is part of efficient transport logistics to consider the specific care that each type of merchandise requires, such as adequate equipment to carry out the transport, so that it arrives intact to the destination.

In addition to minimizing malfunctions In addition to minimizing breakdowns during delivery without compromising costs, expenses can still be reduced in the long run.

Technology in transport logistics

Uncountless technological innovations, which allow the exchange of information in real time and make the transport of goods even safer and more agile, have been embraced by transport logistics.

Some systems perform the management of the logistics process, from receiving the request of the orderto the delivery to the client, assisting in the organization of processes, planning, monitoring and control.

Digital tools have transformed the transportation segment, functioning as a true ally in transportation logistics, improving processes and reducing costs .

Technology has paved the way for transportation logistics, generating:

  • increased productivity;
  • improvement in processes;
  • cost reduction;
  • Real-time monitoring: screen monitoring allows key control items to be easily accessed and interpreted;
  • cargo tracking: the possibility of tracking the entire path of a product, from its shipment to its delivery to the buyer, allows you to follow the route: traffic, speed and time spent in the traffic, speed and time spent at the stops. Catalog, monitor and tracking the load brings security and helps create a great relationship of trust with the customer;
  • Radio frequency identifier: the installation of chips not only tracks vehicles, but also goods in real time, avoiding loss, theft and loss.
  • load routing: based on route and traffic analysis, route planning is a technological tool that uses digital maps to determine the best route alternatives;
  • telemetry: analog or digital, is a system that provides information and controls related to vehicle performance (distance traveled, sudden braking, fuel consumption, speed), driver and operation, through various sensors installed in the vehicle;
  • TMS system: Transport Management System is an application focused on planning, control and management of all processes related to cargo transportation;
  • business intelligence: provides access to strategic information that facilitates logistics management.

By land, by sea, or by air

The choice of modal or multimodal is very strategic in transport logistics.

It is necessary to evaluate which type of transport – road, rail, air, waterway, pipeline – offers the best cost/benefit, also considering safety, time available, type of product, etc.

In Brazil, road transport is the most used, despite the low infrastructure of roads, safety with regard to thefts and thefts of cargo, in addition to the oscillation in the price of fuels.

Some companies, such as Sequoia, invest in distribution centers in strategic regions to be closer to customers and reduce costs.

Main modals:

1 – Road

Most used modal transport in Brazil, responsible for 76% of all logistics distribution in the country, is the most suitable for different types of distances and can be used to transport the most varied types of merchandise.

2 – Rail

Although it is a cheap means of transport, Brazil has few railways. In addition, the routes are fixed, it is not possible to make the route more flexible as in the road modal. It is suitable for loads of large volumes over longer distances.

3 – Air

Faster means of transport and able to travel the longest distances, it is indicated to carry products that require more safety and have emergency delivery between distant destinations. Due to the cost, it is a great option for lightweight products.

4 – Waterborne

Also known as waterway, it is able to carry large volume and weight parts over large distances, however, it is a slightly slower modal.

5 – Pipeline

The entire operation is done through underground or subsea ducts and pipes. It is often used in the transport of dangerous cargo, which refer to products that may pose risks to the health, the environment or the safety of the population, such as chemicals, flammables, toxics, natural gas, oil and firearms.

Integrated logistics

For more comprehensive management, logistics functions are no longer seen in isolation and are now seen as a strategic operational component in integrated logistics.

That is, it is the integration of the entire logistics process, the origin of the products at the hands of the final consumer.

If logistics was responsible for processes such as inventory management and transportation, it gained more effective management of purchasing activities, production process and all stages of transport. Can also track the activities of suppliers and partners, integrating processes and sharing information along the chain.

The main benefit that integrated logistics provides is control over the flow of products and processes. With the integration of the areas and companies involved in the logistics chain, you can follow a sales flow from the moment the supplier releases the products to the last tip, which is delivery to the final customer.

This, in most cases, represents:

  • better productivity rates;
  • cost reduction throughout the chain;
  • increased profitability; • value creation;
  • increased competitive advantage.

Thus, transportation plays a key role in various strategies in the logistics network, such as inventory and customer service.

Integrated logistics for customer service

Customer Service is a fundamental component of Integrated Logistics. The impact of transportation on Customer Service is one of the most significant and the main market requirements are linked to the punctuality of the service, the ability to provide a door-to-door service; flexibility with regard to the handling of a wide variety of products; management of risks associated with theft, damage and malfunction and the ability of the carrier to offer more than a basic transport service, making it able to perform other logistical functions.

Largest logistics operator of e-commerce and technology in the country, with expertise in complete and integrated logistics solutions, has expanded its operations in the express delivery sector, keeps its technology solutions updated and conquers the market with services of excellence in execution and B2B and B2C transport, Sequoia offers the best solutions according to the needs of each company.

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