Research Project: The Role of Transportation in Logistics, S4608958

This research project investigates the pivotal role of transportation within logistics management. The study begins by defining logistics and its significance, then explores the crucial relationship between transportation and logistics, highlighting its impact on supply chain efficiency and cost. It identifies current transport challenges faced by logistics managers, such as those related to cost, efficiency, and global supply chains. The report emphasizes the importance of strategic planning and effective risk management in mitigating these challenges, offering insights into mitigation and contingency strategies. The research utilizes a comprehensive literature review, drawing on various sources to provide a detailed understanding of the topic. The project aims to assist logistics managers and students in understanding the role of transportation in logistics and supply chain management, ultimately proposing strategies to enhance efficiency and reduce costs within the transport sector. The study also provides a background on the global impact of logistics and transportation, referencing statistics on the industry's contribution to the GDP. The report concludes with recommendations for addressing transport challenges and improving overall supply chain performance.

Running head: RESEARCH PROJECT 1
Research Project
Student Name
Institution Affiliation

RESEARCH PROJECT 2
Research Project
Abstract
The research covers the role of transportation can be used to help logistics managers and suggest
some improvements and compare different points of views of different types of Logistics
Business and researches. The research gives the background on what is logistics, which is the
base of this research. The research, also discusses the link between transportation and logistics
and the importance that transportation have in logistics. The common and current transport
challenges in logistics are discussed to give logistics managers an understanding of the
challenges. The research then focuses on how planning and risk management can help in
reducing and resolving the transport challenges in logistics. The research is based on the large
pull of information on online library and sources. The transport is associated with risks making it
crucial to implement risk management approaches. This research will give logistic manager
students and practitioners an understanding of the role played by transport in logistics and the
entire supply chain.

RESEARCH PROJECT 3
Table of Contents
Abstract............................................................................................................................................2
Introduction......................................................................................................................................4
Background......................................................................................................................................6
3 Literature Review:........................................................................................................................9
3.1 What is Logistics.....................................................................................................................10
3.2 Relationship between Transportation and Logistics................................................................12
3.3 Theoretical Framework of Study.............................................................................................17
4 Research Problems......................................................................................................................17
Research Methodology..................................................................................................................20
Research Significance....................................................................................................................21
3.3 Risk Management in Transport and Logistics.........................................................................22
Mitigation Strategy....................................................................................................................23
Contingency Strategies..............................................................................................................24
Conclusion.....................................................................................................................................25
References......................................................................................................................................27
Retrieved from: https://www.procurement-academy.com/current-transportation-challenges/#...28

RESEARCH PROJECT 4
Introduction
Those who lead in the supply chain will perfectly understand that transportation is
indispensable to most businesses. Logistic and supply chain management has advanced
drastically since the 1950s prompting several types of research in this area. In the contemporary
business world, globalization and nationalization have become popular. These new trends in the
business environment have made logistic management an essential element in the management
of the supply chain. Logistic management promotes optimized production and operation of the
business organization by using management strategies. This increases the efficiency of business
organizations enabling them to gain a competitive advantage in the highly competitive business
environment (Yu, Wang, Zhong, and Huang, 2016). Transport is a key element in logistics
management as it joins the separate supply chain activities. Logistic management and transport
systems have an interdependent relationship that must be understood by logistic managers in
order to carry out their duties and responsibilities. Transportation systems account for roughly a
third of the logistic costs, therefore, making it a crucial component of logistic management. For
the case of manufacturing, transport is involved from the acquisition of raw materials all the way
to the delivery of products to the final consumer.
The past decade has witnessed considerable changes in transportation, which questions
the current efficacy of transportation and its usefulness. Transportation usually represents the
single largest logistics cost for most companies. Efficient transportation systems will reduce
transportation costs and delay time. Consequently, this will increase the efficiency of the supply

RESEARCH PROJECT 5
chain- which is the main aim of logistic managers. In 2015, United-States logistics accounted for
7.85% of the Gross Domestic Product (GDP). Therefore, in total, $1.4 trillion was spent on
logistics, with transportation representing 63% of it (Procurement Academy, 2017). The figures
provide a glimpse of how the various modes of transport are important to the supply chain. Since
most of the logistic costs are incurred from transport, improving the efficiency of transport
systems will have a significant impact on the entire supply chain. Therefore, it is important for
supply chain managers to have to apply their management knowledge and skills to formulate and
implement strategies that improve the efficiency of the transport system and the supply chain at
large.
This research covers the role of transportation that can be used to help logistics managers
and suggest some improvements and compare different points of view of different types of
Logistics Business and researches. In doing this, the literature will be reviewed focusing on the
definition of logistics, the link between logistics and transportation, the role that logistic can
potentially play in achieving business objectives, and finally, some current issues that Logistics
has at the present moment and how can it be fixed or improve but observing what other
companies do on their day-to-day. The role of transport in logistics management is a topic that
has been handled by several pieces of research. The research will analyze the concepts of
previous research works to develop a detailed, comprehensive report. The research will exploit
the weaknesses and strengths of previous research work on the topic and provide a
comprehensive case that can be used as a basis for future research.
The main goal of this research is not only to understand what the role of transportation
but also see what the common problems faced on a day-to-day basis are. This is achieved by
gathering massive information from different types of businesses and researching what the most

RESEARCH PROJECT 6
common practices within the business are. The study analyzes and discovers what managers
face and what their main problems can be or are during their period as managing a logistic
business. Also, coordinating the transport system is important in realizing the objectives of
logistics managers. Coordinating the transport system involves putting together several
components in the sector so that they work together efficiently. The researchers will interested to
see what this research bring and how helpful the researcher will be in gathering all the data. Like
any other research, the research aims at having a positive impact on logistics management
studies and business management at large.
Furthermore, the research methodology that will be used in this study to get a deeper
understanding of the topic at hand. The research methodology will involve data collection and
handling methods used during the research. The methodology used is directly correlated to the
quality of the results obtain; thus, it is crucial to select the most appropriate methodologies and
procedures in a given research. The significance of the findings and the data collected will be
discussed. Data analysis techniques will be used to have a comprehensive analysis of the
information and data collected so as to help understand the role of transport in logistics
management. An overall plan on how the transport challenges can be resolved as per the current
issues in logistics management recommendations will be given at the end of the report to
emphasize the topic.
Background
The role of transport in logistics is a topic that has been a topic of concern among
scholars since time immemorial. There are several documented research papers, books, journals,
and articles that discuss this topic giving different perspectives and approaches to the topic.
Several research papers on how dwelled on how to transport flexibility affect the supply chain.

RESEARCH PROJECT 7
According to Mohammed, Potter, Mason, and Bateman (2016), the flexibility of the transport
system has a crucial impact on the supply chain. In this research titled, "The role of transport
flexibility in logistics provision," the authors outline the importance of rationalizing transport
flexibility. Using a framework to categorize transport flexibility into deferent categories will help
in having a comprehensive understanding of the transport flexibilities. This will allow in
determining the role of every type of flexibility in delivering specific logistic outcomes. This is
also essential in this research in acknowledging how to transport flexibilities that contribute to
logistics management and supply chain.
Supply chain management is involved with the efficient movement of goods and
products. Raw materials have to be outsourced and moved efficiently to the manufacturing plants
for production to take place. Also, the finished products have to be delivered efficiently to the
final consumers. Management strategies and principles can be used to ensure reduced operation
cost, management of storage facilities, and improved transportation of raw materials and delivery
of services. Transport plays a key role in the supply chain and logistic (Tseng, Yue, and Taylor,
2005, October). The research on the role of transport in logistic helps logistics managers and
supply chain managers to come up with a framework producing strategy that will ensure
efficiency in transport and logistics operations.
Some researchers have gone further to link the relationship of information systems in
transport to logistics. The impact of technology and information system in the modern world
cannot be overloked. Technology and information systems play a role in almost all spheres
human life in the transport sector not excluded. Technology determines the advancement in the
different modes of transport hence determining the time taken in transporting goods and services.
Also, information systems are concerned with the sending of information from one end to

RESEARCH PROJECT 8
another (Grabara, Kolcun, and Kot, 2014). Communication is crucial in ensuring that
transportation and logistics operations are efficient, thus improving the overall efficiency of the
supply chain. Logistic managers should have a good understanding of how technology and
information systems impact transport and the supply chain. This will help them in coming up
with the various strategies to implement in improving the transport systems.
A sustainable supply chain is a trend that has gained momentum all over the world.
Sustainable supply chain aims to achieve efficient utilization of the limited resources to meet our
needs while ensuring that the needs and demands of future generations are not in jeopardy.
Logistic managers and supply chain managers should be at the forefront in advocating for the
sustainable supply chain. There are several strategies that focus on aligning the supply chain of
every enterprise in the world towards sustainability (Fahimnia, Bell, Hensher, and Sarkis, 2015).
Green freight management is one of the strategies to ensure sustainable transportation systems.
For instance, the energy sources used in the transportation systems should produce minimum
waste that does not cause pollution to the environment. Since sustainability is a modern trend in
transport and logistics, it has become an essential area of logistic knowledge manager and supply
chain managers.
Supply chain management is composed of three major components, namely transport,
manufacturing, and purchasing. Logistic management is a supply chain management element
involving the decisions and activities of getting raw materials, intermediate products, and
delivering the finished goods to the end-users. Also, in case the final products have faults and
recalled, or they need an upgrade. The logistics management ensures they are delivered well to
the business organization. Globalization is a current trend in business, allowing business
enterprises to run their operations in several countries. Many business organizations desire to

RESEARCH PROJECT 9
increase their market share in the emerging markets, although this comes with logistics
challenges transport systems included. The formulating and execution of an economic,
responsive transport network is important for logistics managers (Eyefreight, 2018). Such a
transport network allows logistic managers to implement the supply chain in order to improve
customer service and reduce transportation costs.
The first strategy to ensure a responsive transport system is to establish and maintain end-
to-end network visibility. Visibility in the transport system helps logistics managers to ensure
minimum disruptions in the supply chain, thus improving service delivery to the customers.
Also, visibility in the transport system allows logistics managers to monitor and manage
inventory levels because uncertainties in the systems are reduced significantly. Uncertainties in
the supply chain are a concern for supply chain managers that can be resolved through improving
the visibility in the transport network. On the other hand, an economical transport system begins
with a shift in attitude. Logistic managers should strive to eradicate the negative culture that
exists in many business enterprises. Transport is perceived by many businesses as an inevitable
source of risks and costs in the supply chain (Eyefreight, 2018). Changing this perspective will
be the basis for formulating strategies that promote an economical transport system.
3 Literature Review:
The main objectives of the literature review of this study are: (i) to explore existing body
of relevant knowledge in the field, and (ii) to synthesize a theoretical framework that guides the
data collection and data analysis of the study in the next semester (NEF6002). Based on this
argument the review is provided in the following sections. In 3.1 logistic concepts in the modern
business environment are introduced, followed by a discussion on the complex and entwined
relationship between logistics and transport in supply chain management in 3.2. The chapter ends

RESEARCH PROJECT 10
with a review of the literature on the importance of standardization of transportation systems in
supply chain network in 3.3
3.1 What is Logistics
This Council of Logistics Management (1991) defined that logistics is 'part of the supply
chain process that plans, implements, and controls the efficient, effective forward and reverse
flow and storage of goods, services, and related information between the point of origin and the
point of consumption in order to meet customers' requirements'. Johnson and Wood's definition
(cited in Tilanus, 1997) uses 'five important key terms,' which are logistics, inbound logistics,
materials management, physical distribution, and supply-chain management, to interpret.
Logistics describes the entire process of materials and products moving into, through, and out of
the firm. Logistic in general is concerned with how transport is connecting the organization to
the suppliers and the customers. Inbound logistics covers the movement of material received
from suppliers. Once the raw materials and equipment are received into the business
organizations, they have to be stored well and moved to the various work stations or even
branches within the organization. All these internal activities have to be done efficiency through
good inbound logistics practices. Materials management involves the movement of materials and
components within a firm. Physical distribution refers to the movement of goods outward from
the end of the assembly line to the customer. This element of logistic directly influences the
quality of service delivered to the customers. Finally, supply-chain management is somewhat
larger than logistics, and it links logistics more directly with the user's total communications
network and with the firm's engineering staff.
Furthermore, without logistics, the world would probably stop. Think about it logistic is
everywhere we go, affecting our lives in one way or another. It is easy for a person to
underestimate the role of transport and logistics but having a critical assessment; we will realize

RESEARCH PROJECT 11
logistics and transport are part and parcel of our life. For instance, if you go shopping, you can
see how things are organized, the stock, products get there most likely via truck. If you go to a
Wholesale like Costco, you can see pallets and more pallets everywhere. This is part of logistics.
When you travel, let say either by bus or airplane there is a logistics behind it and also means of
transportation. So when you start to think about what is logistics is easy to see how massively
important it is. How it affects us, and we don't even know or realize what is being done in the
background so we can buy our groceries, shop online, get or mail, and many other things.
Without logistics or transport, we would be in a very different world. Therefore, it is important to
have a research on the role of transport in logistics management.
Logistics and supply management are terms that are confused by many people. Others
use logistics and supply chain management interchangeable. However, logistics and supply chain
management are two different but related terms. Logistics, as defined above, strictly deals with
the movement of products in a business organization, from suppliers and to the customers
(Mangan and Lalwani, 2016). On the other hand, supply chain management is a wide network of
outside organizations working together to deliver goods and services to the customers. Supply
chain management involves various stakeholders, including warehouse providers, call centers,
transportation providers, vendors, suppliers, among many others. It is clear that transport systems
and logistics are just under the larger supply chain management. The supply chain manages the
complex and interdependent relationships of the stakeholders to ensure that the efficient delivery
of products and services as well as achieve customer satisfaction.
Logistics is an essential element of every business organization. A business enterprise
may concentrate on the design and production of quality products, but if the products do not
reach the customers and at the right time, all the effort in production is wasted. The business will

RESEARCH PROJECT 12
definitely have to incur huge losses. Therefore, logistics and transportations have to link the
production to the end-users of the products. Also, logistic ensure raw materials are purchased,
transported, and stored to ensure timely manufacturing of products. Poor coordination of the
delivery of materials negatively affects the productivity of any business enterprise. Furthermore,
logistics management directly affects the level of customer satisfaction. If the customers cannot
get the products or services in time, their expectations will not be met. Also, the products must
be availed to the customers as per the demand. Therefore, it is important for logistics managers
to understand the concept of inventory management in order to ensure customer satisfaction is
achieved. There are several inventory management strategies that can be used to ensure that
goods and services reach the customers on time and at the required quantity. Again, logistic
involves material handling. The handling of the products during transportation is important in
ensuring the quality of the products is not jeopardized. Logistic management ensures that the
products are packed well so that they arrive at the final consumers in good condition as required.
Customer satisfaction has become a very important element that can help a business to gain a
competitive advantage over its competitors, promoting business sustainability and development.
3.2 Relationship between Transportation and Logistics
Transport and logistics are two inseparable components in supply chain management.
Transportation plays a vital role in Logistics. Logistics could not have the full potential to
achieve its functionalities without input from transportation. Better supply chain management is
achieved by strengthening the relationship between transportation and logistics. Transportation
involved the activities that can save a lot of time, money, and make an overall process a lot easier
for every company involved. Transportation is a key part of Logistics since, without it, the entire
supply chain network is not as fluid or cost effective as it could be. Also, the choice of the means

RESEARCH PROJECT 13
of transport chosen affects the bottom cost of a logistics operation. This is because at the end of
the day time is money, and the longer it takes to accomplish a task, the worst it would be for the
company.
There are many challenges on the day to day of a logistics company. We will discuss
some of the most common challenges in the modern world of logistics. Some of the current
issues posing as a challenge in business include customer service, transportation cost control,
planning and risk management, supplier and partner relationships, and government and
environmental regulations. All these concerns are in one way or another entwined with logistic
operations and transport systems. It is important for logistics managers to understand the role of
transport so as to enable then come up with strategies to handle the current issues in logistics and
the entire supply chain network.
Customer Service concerns is a common trend among modern business organizations
cutting across the large organization and small enterprises. Customer services entail a wide range
of activities involving the services an organization offers to the customers before, during, and
after purchasing goods and services (Hill and Alexander, 2017). Organizations strive to provide
good services to create a good lasting experience and meet customer expectations. Good
customer service results in having satisfied customers, thus promoting the sustainability and
development of any business organization. Customer service is the main driving force in the
competitive business world. Bad customer service in an organization will lead to complaints and
resentment of the products and services offered by the organization. This directly impacts the
revenue collected and the profit margins. Both transportation and logistics are key factors in
determining the quality of customer services. There are several strategies that logistic managers
must implement to promote quality customer services.

RESEARCH PROJECT 14
One way to achieve quality customer services in an organization is to create and
maintain a strong bond between the organization and its customers. The employees in the
organization and their interaction with the customers determine the relationship between the
organizations and customers. Hiring employees with qualifications and training them the
communication culture of the organization will help improve customer service (Dabholkar,
2015). If the employees are not properly trained, they won't be able to communicate with the
customers. The second strategy is to provide the right product to the customers and at the right
time. The design and production of products should be centered on customer needs and wants to
ensure that the right products are offered to the customers. Here, transport and logistics play a
significant role. Logistic should ensure the materials required in the production are purchased,
and the finished goods are stored well after production to maintain the quality requirement of the
customers. Transportation, on the other hand, should ensure that the products are delivered to the
customers and in good condition. Packaging and handling of the products should also be done
well to preserve the quality of products. Honesty and transparency should be maintained through
the production, purchase and delivery of goods, and services. Transparency and honesty build
trust among customers hence retaining customers as well as attracting new customers. Customer
service is essential in business; thus, many logistics companies are investing in Customer Service
training for their employees.
Many business organizations aim at reducing the operation cost without affecting the
quality of service and products delivered to the customer. Transportation Cost Control is one of
the strategies that logistic managers implement to manage the cost of transportation. Although
organizations try to regulate the transportation costs in logistics, some external factors which
cannot be controlled by the organization come into play. Factors such as the volatility of the oil

RESEARCH PROJECT 15
and energy prices cannot be regulated by logistics managers, and they contribute significantly to
the transportation costs in logistics. For instance, in Australia fuel prices frequently fluctuate
within a week or even within the same day. This becomes challenging for logistic mangers to
predict transportation costs (Wilson, Zeithaml, Bitner, and Gremler, 2016). However, logistic
managers can make transportation decisions that will determine the transportation cost, such as
selecting the mode of transport of goods and services. Also, logistic managers make decisions on
whether t outsources transport systems or invest in the systems. All in all, the cost of
transportation directly impacts the logistics operations within the organization, including the
resources used to ensure goods and raw materials are transported.
Planning and Risk Management is essential for effective and efficient operations of any
business organization. Logistics and transportation networks involve several elements working
together to ensure products are produced and delivered to the customer. Like any other
interdependent systems, there are risks involved. Any negative fluctuation in the system may
force a business organization to incur huge losses. Since the probability of risks can be
calculated, it is important for logistics managers to be able to calculate risk probabilities to plan
for future operations. Planning and risk management is crucial to achieving an efficient and
effective transportation system and logistic. Since some businesses are having a higher turnover
of employees is always good to get different perspectives on where the business can improve in
both areas.
Risk assessment models and techniques can be used by logistic managers to control the
several risks associated with logistics operations. The logistic risks in an organization can be
internal as well as external. The logistic risks in an organization may be caused by several factors
not limited to the reduction in capacity freight, decrease demand for transport services, the rising

RESEARCH PROJECT 16
cost of fare and taxes in the transport system and increased cost of transport services. The delay
of products is a risk that is associated with the transport systems. This may affect the relationship
between the suppliers and the organization as well as between the organization and customers.
Supplier and Partner Relationships are a vital component of any business organization in all
corners of the world — a poor relationship between a business organization and its supplier
disadvantages both parties. Poor supplier relationship leads to order delays, price increase, and
bad customer services. It is important that both the business organization and the suppliers have a
good relationship for efficient transactions and avoid unnecessary delays. Since both the
suppliers and the business organization are mutually benefiting from a cordial relationship, it is
up to all the parties to collaborate in creating a favorable business environment.
Government and Environmental Regulations contribute significantly to logistic
operations and transport systems. The concept of green logistics is a trend that is gaining
momentum every day in global business. Government and international organizations are
formulating and implementing policies that regulate transport and logistics to achieve
sustainability. Greenness in logistics aims at establishing and maintaining an efficient and
environmentally friendly transport and distribution system. Environmental regulations are meant
to control the supply chain to ensure that the freight distribution has a reduced environment and
energy footprint (Monios, 2016). Government regulation varies from country to country or even
from state to state, but it is very important for logistics managers to ensure the regulations are
upheld. Violating government regulations usually invite lawsuits that may see the business
organization a huge loose amount of money or some individuals in the organization to serve a
jail term. Logistic managers should always keep an eye on any new regulations and prepare
accordingly.

RESEARCH PROJECT 17
3.3 Theoretical Framework of Study
Transport systems and logistic are to concepts that cannot be separated. Transportation
system has a critical impact in logistics and supply chain management at large. Transport
constitutes about a third of the logistic costs thus controlling the transportation system will have
a significant impact on the logistic efficiency. It is important for transport systems to be
standardized all over the world to eliminate any unforeseen logistic risk in the supply chain
(Maciej and Adam, 2016). Based on the above argument, the research problem of the study is
formalized in the next section.
4 Research Problems
Transportation accounts for a huge amount of expenses in the supply chain logistics
overall cost and thus stands for the largest element in it. The backbone of any sustainable supply
chain relies on a performing and reliable transportation network. Transportation has been a major
component enabling trade for centuries. Its processes are a significant contributor to every supply
chain as it makes its way from the beginning of the supply chain to the end-user's hands.
However, transportation challenges have become the most addressed matters considering the
rapid evolution of technology, manpower, demand, and supply, amidst others.
Nowadays, the world is talking about implementing responsive transportation which will allow a
more effective and economical transportation network. Also, this system will enable executing
strategic decisions with the intention of increasing customer service. Nevertheless, the future of
transportation is influenced by some challenges which require immediate attention.
To respond to the above problem, this study provides an overview of the role of
transportation in achieving business objectives, the current transport challenges in logistic, and
how to overcome some of the above issues and challenges. Logistic managers are mandated to

RESEARCH PROJECT 18
understand the transport systems they operate in and come up with strategies to resolve the
challenges to ensure efficient operations.
Transport plays a crucial role in the business as it creates a wider market base. Transport
allows business organizations to transport commodities from where they are manufactured to the
end-users. Without the physical supply and distribution of products, the market of products
would only be confined within their area of production. Also, the raw materials needed for the
production would not reach the manufacturing plant. Therefore, transport allows the physical
transportation of both raw material and products, which is an important logistics operation.
Also, transport promotes specialization, stabilization of prices and mobility of labor, and capital.
Through transportation facilities, specialization, and division of labor on a regional or
geographical basis can be achieved. Transport allows production in the areas with favorite
conditions such as availability of raw materials or enabling government policies. This reduces
the production costs, thus maximizing the profit margins. The products can then be distributed to
the customers. Transport allows the movement of capital or labor from one place to another
economically. Transport also brings stability to the prices of prices if commodities are supplied
from more supplied areas to less supplied areas to harmonize customer demand. Apart from the
economic role of transport in logistics, it also helps in creating socials and political environments
conducive for operation (Bogoviz, 2016). It strengthens national integration and corporation,
thus promoting business among international organizations.
Transportation has brought several challenges to logistics and supply chain management.
The current transport challenges in logistics include sharp fuel price fluctuations shortage of
drivers, expansion in third and fourth-party providers, increasing regulation, and expanding the
use of technology. The Organization of the Petroleum Exporting Countries (OPEC) determines

RESEARCH PROJECT 19
the price of fuel based on the prices of fuel based on the production with rises and falls
frequently. This leads to frequent fuel pricing, thus making it difficult for logistics managers to
precise plan for transportation costs. The truck driver shortage is also a challenge that is
threatening the current logistic operations. The low wages and poor working conditions force
truck drivers to change to favorable careers. This challenge can be solved by offering drivers
competitive wages as well as improve the working conditions (Dubey and Gunasekaran, 2015).
Third and fourth parties providing logistics services to complete the supply chain also charge
higher prices. This leads to high operation costs for an organization. Logistics managers should
only outsource logistics services only when it is unavoidable; otherwise, they should manage the
entire logistics in the supply chain. Regulations change, causing disruption in the supply chain
operations. Regulations determine the hours of service, accountability, and safety requirement,
and once they change businesses should align their operations accordingly. It is important for
logistics managers to be alert for any regulation change and implement organizational change to
align the business organization with the new regulations. Technology is a good thing, but it is
equally a challenge in the transport and logistics sector. The technology advancement is so fast
that it has become difficult for business organizations to keep up with the current technology
trends in logistics. Some companies are very rigid and slow in responding to technology changes.
Technology will definitely transform the supply chain in the coming years; hence, it is important
for logistics managers to understand the role of technology in supply chain management.
Understanding the organizations' logistic needs and adapting the appropriate technology will
help an organization to gain a competitive advantage over their competitors.

RESEARCH PROJECT 20
Research Methodology
Transport and logistics are two wide areas of studies that researchers have based on for so
long. There are unlimited books, journals, periodicals, and articles on these two topics. We will
base our research on the large pull of online materials on the two topics. Using the order research
work to get the background on the topic and offer a basis for advancing our research. Then we
will focus on the current research work those touches on the current issues and challenges in
transport and logistics management (Markham and Stavrova, 2016). Also, the internet and online
library services allow us to access a large pool of information on the topic, which will help us in
shaping our research.
Based on the above introduction, the research methodology of this study is qualitative
research with critical review of the relevant literature being the main data collection method. In
next semester I also plan to collect data from experts in the field, that makes the data collection
of the study is a mixed interview and document study. The experts of the field are planned to
provide their opinions about the findings of the study. These experts will be identified and
approached through LinkedIn.
After going over with a background of this research and showing some of the common
areas where transportation and logistics have, some are of more concern than others. We choose
to dig a bit deeper into planning and risk management, as all of the others are common problems,
but they are, in my opinion, not as many issues. We are going to do our research based on a
qualitative methodology to see how transportation and logistics could be improved.
It is clear that even though Logistics and Transportation have been working together for
years, we can still have some improvements and with technology moving so fast and also means
of transport evolving daily (Ceniga, and Sukalova,2015). It is interesting to see where the thing

RESEARCH PROJECT 21
can not only improve, but what those implementations and methodology can be used. We can
only see what we have at the moment; this is a topic that has many promises as technology
evolves on a daily basis.
Research Significance
The contribution that we hope to achieve in this research is to see what other people in
the field think about the planning and risk management as it is an essential part of our day today.
Most people don't even notice how important logistics is on our life; we hope with this we can
come to a conclusion of the best type of practice that needs to be achieved to add anyone that
could have access to this paper an important insight on transport and logistics.
The research will help logistic, supply chain management, and general managers have a
deeper understanding of planning and risk management in a business organization. Maybe
experiences professionals in the industry have tried the strategies and not succeed in the practical
point of view. In handling transport and logistics problems, there are several alternatives that
may be considered by a student from their point of view and theoretical knowledge, but the
implementation on the ground may not deliver the expected results. Not all the strategies
outlined in theories will necessarily be practical since they have their limitations, and also some
unconsidered factors that may arise during the implementation. However, it is important to
understand all the logistic strategic to become a good logistic manager.
3.3 Risk Management in Transport and Logistics
Supply chain management is a cumbersome mandate considering that business
organizations operate in a complex and dynamic business environment. There are numerous
interdependent factors and systems that come in to play in logistic and supply chain

RESEARCH PROJECT 22
management. Any disruptions in the logistics and transport sector affect the entire supply chain
and consequently, the customer service delivery. Planning and risk management has become a
vital strategy to avoid the disruptions in the supply chain and ensure efficient operations of a
business organization (Giannakis and Papadopoulos, 2016)
Planning is important since it helps an organization to be well prepared for any
eventuality, thus improving the overall reliability. Planning and risk management are two sides
of the same coin, and they always come along together. Risk management can be divided into
two major categories, namely contingency strategy, and mitigation strategy. Mitigation strategy
involves focusing on the sources of the risks to ensure that the risks do not occur while the
contingency strategy focuses on how to manage the consequences of the risks such as their
imprint is not felt negatively. Organizations should understand the risks involved in transport and
logistics so as to prevent them from happening. However, in the event, the risk cannot be
prevented from happening; the organization should put mechanisms in place to ensure that the
impact of the risk is not felt but the organization. Therefore, it is important for logistics managers
to understand both mitigation and contingency risk management strategies.
Mitigation Strategy
A mitigation strategy is a planning action to prevent certain risks from happening. The
purpose of mitigation strategies ensures that the risk does not happen. The strategy should
always tailor a specific threat or disturbance in the organization. Also, the logistics managers
should realize that avoiding the risk from happening or lowering the impact of risks will require
an extra cost for the organization. The cost of risk management should always be insignificant
compared to the losses associated with the risk.
Enterprise risk management (ERM) provides various approaches that can be used to
avoid risks in logistics management. Mitigation strategies should include four main approaches,

RESEARCH PROJECT 23
namely accept, avoid, reduce, and share. The first step is to monitor the risk and accept that it
exists, and something has to be done. Then avoid the risk by pushing operations outside the risk
zone. Also, controls should be instituted to reduce the possibilities of the risk occurring. Finally,
the risk in business may be affecting more than one sector (Hajmohammad and Vachon, 2016).
For instance, a transport risk will affect logistics and the supply chain at large. Therefore, it is
important to share the risk among the concerned parties to come up with the most appropriate
mitigation approach.
For a mitigation strategy to be effective, it should be tailored towards a specific challenge
in transport and logistics. The source of threat has to be identified in the supply chain den using a
stress test to assess the vulnerabilities associated with the threat. There are several risk mitigation
strategies, but the choice to settle on a particular strategy depends on risk identification. The
enterprise business strategy decision also has an impact on the mitigation strategy. The business
strategy employed by an organization will have an impact on whether to chose mitigation or
contingency. Some organizations focus on efficiency while others base their competitive
advantage on their response to the market. The type of business strategy will determine the type
of mitigation strategy chosen by an organization.
Contingency Strategies
This strategy focuses on reducing the impact of business risk in the organization. This
allows an organization to quickly recover after it has been hit by risk as well as ensure reliability
in the delivery of goods and services to the customers. This reduces the cost implications of the
risk on the organization. There are some risks that cannot be avoided in a business organization.
For instance, in transport and logistics, the fluctuation of fuel prices is a risk that the organization
has absolutely no control over it. Therefore, in planning the logistics operations, they should
always ensure that the fuel price fluctuations do not disrupt the supply chain. Formulation and

RESEARCH PROJECT 24
implementation of a contingency plan is a crucial risk management approach in the dynamic
transport system and logistic (Wiengarten, Humphreys, Gimenez, and McIvor, 2016). For
instance, transport and logistics require putting inventory records and information. Some of the
inventory management technologies are bound to fail sometimes thus risking the organization
losing crucial information. It is important for logistics managers to ensure that they provide
backup systems so that if such a scenario occurs, not all the information will be lost.
Since a mitigation plan may also prevent the impact of a risk, a contingency strategy may
be seen as an extension of a mitigation strategy. A mitigation plan is responsible for ensuring the
cost of the contingency strategy will be as low as possible. The contingency strategy ensures that
the unavoidable risks do not produce much damage in an organization (Mohammaddust et al.
2017). Planning is very important in logistics management, as we have seen above that transport
brings a lot of risks and challenges in the supply chain. High-level management in an
organization plays a crucial role in the risk management process (Gani, 2017). The long-term
strategic plan of an organization should incorporate risk management to ensure that the
organization is well prepared for the future. Logistic managers can apply the planning and risk
management strategies to solve the challenges associated with transport in logistics.
Conclusion
Transport and logistics are closely connected aspects of the supply chain. Logistic and
supply chain management has advanced drastically since the 1950s prompting several types of
research in this area. In the contemporary business world, globalization and nationalization have
become popular. These new trends in the business environment have made logistic management
an essential element in the management of the supply chain. Logistic management promotes
optimized production and operation of a business organization by using management strategies.

RESEARCH PROJECT 25
This increases the efficiency of business organizations enabling them to gain a competitive
advantage in the highly competitive business environment. Transport is a key element in logistics
management as it joins the separate supply chain activities. Logistic management and transport
systems have an interdependent relationship that must be understood by logistic managers in
order to carry out their duties and responsibilities. Transportation systems account for roughly a
third of the logistic costs, therefore, making it a crucial component of logistic management. For
the case of manufacturing, transport is involved from the acquisition of raw materials all the way
to the delivery of products to the final consumer.
Logistics describes the entire process of materials and products moving into, through, and
out of the firm. Logistic in general is concerned with how transport is connecting the
organization to the suppliers and the customers. Logistics and supply management are terms that
are confused by many people. Others use logistics and supply chain management
interchangeable. However, logistics and supply chain management are two different but related
terms. Logistics, as defined above, strictly deals with the movement of products in a business
organization, from suppliers, and to the customers. On the other hand, supply chain management
is a wide network of outside organizations working together to deliver goods and services to the
customers. Supply chain management involves various stakeholders, including warehouse
providers, call centers, transportation providers, vendors, suppliers, among many others. It is
clear that transport systems and logistics are just under the larger supply chain management. The
supply chain manages the complex and interdependent relationships of the stakeholders to ensure
that the efficient delivery of products and services as well as achieve customer satisfaction.
Transport and logistics are two inseparable components in supply chain management.
Transportation plays a vital role in Logistics. Logistics could not have the full potential to

RESEARCH PROJECT 26
achieve its functionalities without input from transportation. Better supply chain management is
achieved by strengthening the relationship between transportation and logistics. With
transportation involved, the activities can save a lot of time, money, and make an overall process
a lot easier for every company involved. Transportation is a key part of Logistics since, without
it, the entire supply chain network is not as fluid or cost effective as it could be. Also, the choice
of the means of transport chosen affects the bottom cost of a logistics operation. This is because
at the end of the day time is money, and the longer it takes to accomplish a task, the worst it
would be for the company.
Supply chain management is a cumbersome mandate considering that business
organizations operate in a complex and dynamic business environment. There are numerous
interdependent factors and systems that come in to play in logistic and supply chain
management. Planning and risk management has become a vital strategy to avoid the disruptions
in the supply chain and ensure efficient operations of a business organization. Risk management
is important for logistics managers to ensure efficient operations in the supply chain.

RESEARCH PROJECT 27
References
Bogoviz, A. V., Ragulina, Y. V., Lobova, S. V., Zhukov, B. M., & Stepanova, O. M. (2016).
Services infrastructure forming in the process of transport logistics stock movement.
International Review of Management and Marketing, 6(6S), 278-283.
Ceniga, P., &Sukalova, V. (2015). Future of logistics management in the process of
globalization. Procedia Economics and Finance, 26, 160-166.
Dabholkar, P. A. (2015). How to improve perceived service quality by increasing customer
participation. In Proceedings of the 1990 academy of marketing science (AMS) annual
conference (pp. 483-487). Springer, Cham.
Dubey, R., & Gunasekaran, A. (2015). The role of a truck driver on sustainable transportation
and logistics. Industrial and Commercial Training, 47(3), 127-134.
Eyefreight (2018). The role of Transportation in Supply Chain Management. Eyefreight

RESEARCH PROJECT 28
Fahimnia, B., Bell GH, M., Hensher A, D., & Sarkis, J. (2015). Green Logistics &
Transportation: A Sustainable Supply Chain Perspective.
Giannakis, M., & Papadopoulos, T. (2016). Supply chain sustainability: A risk management
approach. International Journal of Production Economics, 171, 455-470.
Grabara, J., Kolcun, M., &Kot, S. (2014). The role of information systems in transport logistics.
International Journal of Education and Research, 2(2), 1-8.
Hajmohammad, S., & Vachon, S. (2016). Mitigation, avoidance, or acceptance? Managing
supplier sustainability risk. Journal of Supply Chain Management, 52(2), 48-65.
Hill, N., & Alexander, J. (2017). The handbook of customer satisfaction and loyalty
measurement. Routledge.
Retrieved from
https://eyefreight.com/the-role-of-transportation-in-supply-chain-management/
Maciej Stajniak am Adam Koliński (2016). The impact of transport processes standardization on
supply chain efficiency. LogForum.DOI: 10.17270/J.LOG.2016.1.4.
Mangan, J., &Lalwani, C. L. (2016). Global logistics and supply chain management. John Wiley
& Sons.
Mohammaddust, F., Rezapour, S., Farahani, R. Z., Mofidfar, M., & Hill, A. (2017). Developing
lean and responsive supply chains: A robust model for alternative risk mitigation
strategies in supply chain designs. International Journal of Production Economics, 183,
632-653.
Monios, J. (2016). Institutional challenges to intermodal transport and logistics: governance in
port regionalization and hinterland integration. Routledge.
Naim, M. M., Potter, A. T., Mason, R. J., & Bateman, N. (2006). The role of transport flexibility
in logistics provision. The International Journal of Logistics Management, 17(3), 297-
311.
Procurement Academy (2017). What are the current transportation challenges in supply chain? .
Procurement Blog
Retrieved from: https://www.procurement-academy.com/current-transportation-
challenges/#
Tseng, Y. Y., Yue, W. L., & Taylor, M. A. (2005, October). The role of transportation in the
logistics chain. Eastern Asia Society foTransportation Studies.

RESEARCH PROJECT 29
Wilson, A., Zeithaml, V., Bitner, M. J., &Gremler, D. (2016). Services marketing: Integrating
customer focus across the firm.