Thailand Express Logistics: What Factors Affect the Rationalization of Transportation

Logistics transportation is the result of the interaction of economic, technological, and social factors. So, what factors will affect the rationalization of transportation?

1. Transportation cost: Freight accounts for a large proportion of all logistics costs and is an important indicator for measuring the economic benefits of logistics. It is also one of the main purposes of organizing reasonable transportation.

The level of transportation costs not only affects the economic accounting of logistics companies or transportation departments, but also impacts the cost of selling goods. In fact, reducing transportation costs is an important goal for shippers and logistics companies to achieve rational transportation. The determination of freight volume is also one of the final criteria for evaluating the effectiveness of various rationalization measures.

2. Transportation tools: Each type of transportation tool has its own advantages in use. Optimizing the selection of transportation modes requires using different transportation methods such as railway, water transportation, and automobile according to the characteristics of different products, selecting the best transportation route, making reasonable use of transportation capacity, and fully utilizing the role of transportation modes.

3. Transportation distance: Several technical and economic indicators of transportation, such as transportation time, transportation damage, freight, vehicle turnover rate, etc., have a certain proportional relationship with transportation distance. The length of transportation distance is one of the most fundamental factors determining whether transportation is reasonable. Therefore, logistics companies should first consider the transportation distance and optimize the transportation path as much as possible when organizing the transportation of goods.

4. Transportation process: Due to transportation business activities, loading and unloading, transportation, packaging, and other work are required. Adding another step will increase the starting and total shipping costs. Therefore, reducing transportation links, especially for similar modes of transportation, can promote the rationalization of transportation.

5. Transportation time: Transportation is a time-consuming part of the logistics process, especially long-distance transportation. Short transportation time throughout the entire logistics process is beneficial for accelerating the turnover of transportation vehicles, fully utilizing transportation capacity, improving the capacity of transportation routes, facilitating the capital turnover of shippers, and greatly promoting the rationalization of transportation.

The above factors are not only interrelated, but also mutually influential, and some are contradictory. The transportation time is short, but it may not necessarily save costs, which requires comprehensive analysis to find the best solution. Generally speaking, fast transportation time and low transportation costs are key factors in considering reasonable transportation, as these two factors reflect the economic benefits in the logistics process.