Saving logistics transportation costs in the era of globalization for firms

Abstract

The paper of the conference is focused of transportation costs and their saving for firms in the era of globalization. Transportation requires the use of resources—labor, equipment, fuel, and infrastructure. The cost of transportation is the use of these resources. Some of these resources are purchased directly by the users of transportation—for example, fuel purchased by households for automobile travel. Many resources are purchased by firms that provide transportation services—for example, labor purchased by a railroad or fuel bought by a trucking company. In addition, governments (federal, state and local) provide most of the transportation infrastructure, such as highways. The main body of the paper is orientated to practical study of transportation logistic costs and optimization. In this case, we are considering the supply in logistic chain as follows: supplier → carrier → manufacturing company. The supplier represents the semi-product producer. The aim of this paper is to compare classic approach, when every part tracks its costs isolated a try to minimize them, with the system (logistic) approach, where the whole supply chain is optimized. Logistics costs are understood as expenses incurred from performing logistics activities, and from having the infrastructure, capacity or the readiness to perform logistic activities during a certain period of time.