LOGISTICS AND TRANSPORTATION INDUSTRY

1. LOGISTICS AND TRANSPORTATION INDUSTRY by OLUWADARE ISOLA

3. HISTORY • During the World War II logistics gained importance in army operations covering the movement of supplies, men and equipment across the borders • Today, it has acquired the wider meaning and it is used in the business for the movement of material from the suppliers to manufacturers and finally the finished goods to consumers • Spending in the U.S. logistics and transportation industry totaled $1.4 trillion in 2016 (7.5 percent of U.S. GDP that year).

4. Early Supplier Involvement (ESI) Definition Early Supplier Involvement (ESI) is a form of vertical collaboration between supply chain partners in which the manufacturer involves the supplier at an early stage of the product development process (Mikkola and Skjott-Larsen, 2006; Van Weele, 2010)

5. Electronic data interchange (EDI) Electronic data interchange (EDI) is an electronic communication system that provides standards for exchanging data via any electronic means. By adhering to the same standard, two different companies, even in two different countries, can electronically exchange documents (such as purchase orders, invoices, shipping notices, and many others).

6. AN EXAMPLE ON SUPPLY CHAIN MANAGEMENT FROM THE AUTOINDUSTRY

10. Green innovation • It is generally perceived that green innovations help to enhance environmental performance, minimize waste and achieve cost savings, and consequently promote efficiency and synergy among business partners and their lead corporations.

11. INDUSTRY SUBSECTORS Air and express delivery services (EDS): Firms offer expedited, time-sensitive, and end-to-end services for documents, small parcels, and high-value items. An $87 billion industry in the United States, EDS firms also provide the export infrastructure for many exporters, particularly small and medium-sized businesses that cannot afford to operate their own supply chain

12. FREIGHT RAIL • High volumes of heavy cargo and products are transported long distances throughout the United States via rail network. Each day, this 140,000-mile system delivers an average of 5 million tons of goods and serves nearly every industrial, wholesale, retail, and resource-based sector of the economy. Freight rail moves more than 70 percent of the nation's coal, about 58 percent of its raw metal ores, 1.6 million carloads of wheat, corn, and other agricultural products, and  13.7 million intermodal containers and trailers that transport consumer goods.

13. Just-In-Time Concept • An inventory supply system that operates with very low inventories and requires fast, on-time delivery

14. MARITIME • This subsector includes carriers, seaports, terminals, and labor involved in the movement of cargo and passengers by water. Water transportation moves nearly 70 percent of all U.S. international merchandise trade, including 72 percent of U.S. exports by tonnage.

15. Quick Response • An inventory management system designed to reduce the retailer’s lead time, thereby lowering its inventory investment, improving customer service levels, and reducing logistics expense

16. TRUCKING • Over-the-road transportation of cargo is provided by motor vehicles over short and medium distances. According to the American Trucking Associations, trucking revenues were $676.2 billion in 2016. That year, trucks moved more than 10 billion tons of freight.

17. LOGISTICS REQUIRE THAT EVERYTHING AND EVERYBODY HAS TO PROVIDE THE: • RIGHT AMOUNT OF MATERIAL • AT THE RIGHT PLACE • AT THE RIGHT TIME • IN THE RIGHT SEQUENCE • IN THE RIGHT POSITION • IN THE RIGHT CONDITION AND • AT THE RIGHT COST

19. Level of ICT adoption and influencing factors • Rising interest in ICT applications such growing interest from the research community has come with increased (though not yet complete) awareness of the role of ICT applications for transportation in company decision makers. In fact, the pace of adoption has accelerated in the latest years.

20. BIBLIOGRAPHY • “Logistics and Transportation Spotlight.” Travel, Tourism & Hospitality Industry Spotlight | SelectUSA.gov, www.selectusa.gov/logistics-and-transportation-industry-united-states. • Laporte, John. “Topic: Logistics Industry in the U.S.” Statista, www.statista.com/topics/1417/logistics-industry-in-the-us/ • “Events.” The Machinery & Equipment Industry in the United States, selectusa.github.io/events/industry-snapshots/logistics-and-transportation-industry-united-states.html. • Cerasis_IT. “What Is Transportation and Logistics Management and Are They the Same Thing?” Transportation Management Company | Cerasis, 11 Oct. 2018, cerasis.com/2013/08/13/transportation-and-logistics-management/. • “Transportation, Supply Chain & Logistics Industry Market Research.” Plunkett Research, Ltd., www.plunkettresearch.com/industries/transportation-supply-chain-logistics-industry-market-research/. • Perego, Alessandro, et al. “ICT for Logistics and Freight Transportation: a Literature Review and Research Agenda.” International Journal of Physical Distribution & Logistics Management, vol. 41, no. 5, 2011, pp. 457–483., doi:10.1108/09600031111138826 • Isaksson, Karin. “Logistics Service Providers Going Green : A Framework for Developing Green Service Offerings.” 2014, doi:10.3384/diss.diva-106783