Why is transportation crucial in logistics?

Transportation is essential in logistics because it facilitates the movement of goods, enabling timely delivery to various destinations. Efficient transportation ensures that products are delivered to customers or retail locations when they are needed, which is critical in maintaining customer satisfaction and optimizing supply chain performance.

Timely delivery impacts inventory management, as it allows businesses to replenish stock as necessary without overstocking or running out of products. By connecting production facilities with distribution centers and end consumers, transportation serves as the backbone of logistics operations, ensuring that goods flow smoothly across the entire supply chain.

While other factors such as cost, warehousing, and direct supplier customer connections may play a role in logistics, the primary function of transportation is its ability to move goods efficiently and effectively, impacting overall logistics performance fundamentally.