Transportation is a component of logistics, which extends to the operations of transportation of raw materials, stocks, unfinished and finished goods from their sources to points of their consumption, as well as their storage.
Depending on the type of cargo to be carried, the cost of transportation can make above 40 % of the total cost of the goods, as regards, for example, construction units of relatively low cost and large-size products. It is recognized normal for the transport expenses not to exceed 10 % of the relevant product purchasing costs.
The logistic system of transportation management involves the performance of the following functions:
- choice of transportation method;
- choice of type of transport;
- assessment of purpose of transport facility;
- choice of carrier and logistic carriage mediators;
- optimization of transport process parameters .