Transportation and logistics belong to what is referred to as local business networks that offer a wide range of services such as warehousing, transportation, and freight forwarding. Additionally, the local business networks are responsible for retail distribution operations, distributions, and manufacturing services that attract various businesses where logistics is the backbone of their operations (Murti and Jankovi, 2019). Therefore, transportation and logistics management results in job creation by generating opportunities where the mentioned services have to be provided, and people are employed to offer them. Specific services surrounding ports create direct and indirect employment opportunities for thousands of people (Murti and Jankovi, 2019). While the business networks appear to involve relatively low-skill employment opportunities, the well-established patterns associated with transportation and logistics management generate a broad spectrum of white-collar and blue-collar and non-collar jobs.
Further, the local business network attracts other employment opportunity types and industries in manufacturing that require efficiency in transportation and logistics services. As such, associated business opportunities are generated for spawning sub-clusters like distribution centers for existing organizations. For example, due to transportation and logistics management, firms like Hewlett-Packard and Amazon, among others, have had to open up distribution centers for their products throughout the U.S. (Medina et al., 2018). Another way transportation and logistics management is responsible for opening business opportunities is that there has been the generation of services like refurbishing second-hand heavy equipment pieces through it. Teams of skilled mechanics are required to assemble the pieces and ship e products to the consumers.
Transportation and logistics management is also responsible for creating investment opportunities in several ways. In transporting temperature-controlled shipments, logistics serve an essential role in guaranteeing improved food security, limited carbon emissions, and economic prosperity (Kliewer et al., 2017). For example, in emerging market opportunities, the local business networks are responsible for the growth of service demands, enabling different organizations to invest in the options. By generating temperature-controlled logistics (TCL) market, attractive investment opportunities have been represented where third-party TCL have the infrastructure to support the agricultural sector (Kliewer et al., 2017). Further, the third-party TCLs find it possible to invest in higher-priced sectors such as pharmaceuticals and frozen food sectors due to infrastructure.
Transportation and logistics management entails a wide range of benefits and among them is the visibility associated with an organization’s supply chain. The government can quickly analyze various companies’ information through advanced transportation management systems while tracking down their real-time movement of goods and services provided (Triki and Crainic, 2018). Using the supply chain information, the government can monitor the revenue of different organizations, and through this, it can levy tax on the services provided by the firms. The visibility in how the companies operate offers an opportunity for the government to increase tax collection since it minimizes the losses associated with hidden information.
Lastly, transportation and logistics management has a role to play in the overall living standards of American citizens. The management results in inefficient control of inbound freight by ensuring inventories are maintained at optimal levels. Further, through transportation and logistics services, the flow of products is organized, and shipment is made to move on the appropriate modes of transportation. These forms of control associated with transportation and logistics have cut down costs and account for a decline in approximately 40 per cent of supply chain costs (Bulatov et al., 2020). When the prices are reduced, service delivery becomes cheap, and the effects trickle down to the citizens. Not only are services offered at a more affordable cost, but the flow of goods is improved.
Bulatov, N. K., Toilybayev, A. E., Suleyeva, N. Z., & Sarzhanov, D. K. (2020). Development
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