Transportation City of Boston Essay Example for Free

Transportation City of Boston Essay Internet practices in the year 2000 were the elements that brought new challenges to the field of logistics. People started to expect more from the customer service field and from the quality and value that corporations provided. With these high expectations, the importance of transportation and logistics became a way to make firms more competitive by understanding their customers’ needs and the additional value that they are looking for. At this time, logistics continued to develop elements such as electronic-businesses; globalization; business alliances; and technological advancements. Technology is a logistical core competence with increasing importance, especially for the service providers. Most companies nowadays conduct their businesses through the internet. They use different Internet applications including websites for marketing purposes, tracking and tracing tools, information gathering, procurement, order entry and credit management. With the use of technology, companies even have the possibility of automating the logistics system; â€Å"a customer’s order can be generated automatically, transmitted via electronic data interchange (EDI) to a supplier’s computer, which then directs the required amount of the needed product be pulled automatically from the warehouse and shipped to the customer† (Gourdin, 2001, p.13). Furthermore, Gourdin (p.14) states that technology makes processes â€Å"without human intervention and with virtually no waiting time.† In addition, Internet and electronic-commerce are also important factors in developing the logistics system. The Internet has quickly become the easiest method for supplying information for both companies and customers. It has also become the choice of transmission device for exchanging forecasts, orders, inventory status, products updates and shipment information. Logistics is an important element in the field of electronic-commerce because firms have to reassess their logistics systems to make sure that their clients can get their products in an expeditious manner. Globalization, on the other hand, has also hastened the growth of logistics, especially in the areas of national, political and economic settings. Global operations need information technology integration to route orders and manage inventory requirements around the world and will need alliances that are essential in international commerce. This is also essential in providing market access and expertise to reduce the inherent risks of global operations associated with distance, demand, diversity, and documentation of international commerce. What role did transportation play in the economic development of the United States? Is this role of transportation still important today? The role that transportation played in the economic development of the United States economy was immense. The transportation revolution in the first decade of the 19th century halted the western isolation, during the period wherein United States experienced an economic growth known as â€Å"Era of Good Feelings†. During the 1800s, natural waterways were the only trade route for the Americans. After a century and with years of development, railroads and tracks were established. In the late 1920s, regional airlines opened and began regular operations for scheduled passenger flights. By the dawn of 1960s, the introduction of transportation through containers changed the way freights were traveled towards different countries and around the globe. Improvements and innovations in the transportation system developed through the years. Having a good transportation system meant economic and social opportunities for the people and such opportunities are later transmitted to benefits that are reflected in the economy. Transportation is a very visible element of logistics. The economy is largely dependent on the state of transportation in every nation. As such, without a reliable system of transportation, most commercial activities could not function. In the United States alone, more than 60 percent of total logistic cost is related to transportation services. Efficient transportation systems render economic and social opportunities that could benefit the society and give people the opportunity to penetrate into larger markets and also save time and costs. Mobility and the development of a good system of transportation have already created numerous opportunities to the people in the United States that were later translated to economic benefits by generating employment and boosting the national income. The transportation sector alone provided jobs for about 7.5 percent of the American workforce. With the development of the country’s infrastructure, the transportation system and its services must also be supported and maintained. For example, the federal government, through the taxes paid by the people, must allot funds to build and maintain railroad tracks, roads, bridges and highways. The transportation system in the United States has indeed developed over the years. People are now equipped with a number of alternatives of transportation methods to choose from that they find the most effective in terms of their necessities. However, even with these developments, people have not yet stopped on devising new transportation methods that will better cater the needs of the people in the future. Technology plays an important role in the transportation system. People rely on technology in order to enhance the efficiency of the existing transportation system. References Ballou, D. H. (1999). Business Logistics/Supply Chain Management. New Jersey: Pearson Education. Bowersox, D. J., Closs, D. J., Cooper, M. B. (2007). Supply Chain Logistics Management. New York: McGraw Hill International. Coyle, J. J., Bardi, E. J., Novack, R. A. (2005). Transportation. Ohio: Thomson South-Western. Gourdin, K. N. (2001). Global Logistics Management. Boston: Blackwell Publishing. Williams, A. ( 2001). The Role of Logistics in Internet Commerce. Retrieved August 08, 2008, from http://findarticles.com/p/articles/mi_qa3766/is_200110/ai_n8958764/pg_1?tag=artBody;col1