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Air Transportation

Alexis Vasavilbazo

Nov 9,2001

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Up until the 1990’s the primary focus of logistic management was reduction in transportation costs, but now with all the competition, the focus now is not only to reduce these costs, but also provide good customer service, which sometimes comes at a high transportation cost.

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Present of Air Transportation

  • Air transportation is a very important part of any company’s strategy today, because it helps in giving them a competitive advantage and also helps to reduce inventory costs by not having to keep as much safety stock; thus having an impact in the overall organization’s performance.

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Back in the 90’s

  • Primary focus was the reduction in transportation costs.

  • Long transportation lead-times

  • Air shipments (lowering lead-times)

  • Safety stock reduction

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  • Good customer service

  • Right balance (Transportation costs, inventory levels and customer service)

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We can expect to see an increased air transportation in the future, because companies have realized the importance to provide good and prompt customer service and have learned the how important it is to lower inventories as much as possible.