Principles of Logistics and Freight Transport

The success of any business is not only limited to how a certain company is able to
efficiently make products and sell it to the market. It is also important that business organizations
are able to assess different business theories that would ensure their competence. In light of this
assertion, this paper will seek to discuss the principles of logistics and the importance of freight
transportation. Aside from that, the application of these concepts will be provided using the
Apple Company.

Business Logistics

The movement and storage of products and information are important in determining the
success of business. Without which, a business organization or company will have a hard time in
efficiently using its raw materials so that it is able to provide its consumers the goods and
services it produces. This is where business logistics enter the scene. It is believed that business
logistics is a new term in the modern day vocabulary, but is already existent even during World
War II (Reference for Business 2016). This is because during that time, mobilizing personal and
material was vital to the war. The term itself is associated with others as it evolved. Terms
physical distribution, materials management, and supply were common in the 1960s (Reference
for Business 2016). These terms involved the process of production of goods until it is delivered
to the consumers.
It is believed that business logistics as a term has evolved because of the complexity of
the business operation, from the production of goods and the shipping out of the same (Aveta
Business Institute 2016). It is important that business corporations are able to not only have the
right products, but also have the appropriate quantity in the right time and place so that
consumers are motivated to avail what a particular company has to offer.
Understanding the principles of logistics is one of the key factors in order to make
businesses successful. For one, logistics enable a company to meet the demands of its customers
at a low cost (Administrator 2014). Aside from that, logistics give an edge to a certain company
over its competitors. Specifically, delivery is made faster, thus, a company is able to create
customer value (Administrator 2014). Also, business activities are made efficient when cost
advantage is provided (Administrator 2014).

The Apple Company

In order to fully understand the principles of logistics, this part of the paper will discuss
how Apple Inc. became successful by using the concept provided in the preceding section.
Undeniably, the innovative technology and world-class marketing strategy of the Apple
Company created loyal customers who did not only patronized their products, but also made it
the most iconic. This success can be attributed to how Apple was able to create an outstanding
supply chain management. Banker (2012) believed that this gives Apple a great advantage in
making demand management easier. This explains why Apple does not have to forecast for a new
product from its rivals because as long as it produces hot new products, it continues to have loyal
customers who clamor and wait for the new devices they introduce to the market. As a matter of
fact, some of Apple's customers line up for hours in various stores just to by its product (Banker
2012).
 According to Banker (2012), Apple usually asks a supplier for a price quote. At the same
time, it also demands a detailed accounting with regards how the price quote was determined.
Aside from that, Apple also determines the labor and materials costs of a product it seeks to
produce, and the projected profit once it is introduced to its customers (Banker 2012). Apple's
manufacturing process is also highly innovative (Strategos 2016). This way, the company is not
only profitable but also flexible. As such, it is able to reconfigure for new products of good
quality which are loved by its customers. All of these are made possible through the aid of
logistics.

The Freight Transport

Goods and services are delivered through various modes of transportation. The process
involved thereby is referred to as freight transportation. Freight transportation involves road
solutions and deliveries through air and land (wiseGEEK 2016). Aside from that, waterways are
also used to move the freight from the point of origin to the place where it is should be delivered
(wiseGEEK 2016). It can be noted that in freight transportation, movement of the goods over the
land is always involved. As a matter of fact, there are two ways of accomplishing this: either
through the use of long haul trucking or the short haul or through rail freight transport
(wiseGEEK 2016). In the long or short haul trucking, a company truck is tasked to pick up the
goods, and deliver the same to a specific place. On the other hand, transport of freight through
rail involves railways so that goods are efficiently moved from one place to another (wiseGEEK
2016).
Freight transportation is also vital in the efficiency of production and distribution.
Through this, production locations are optimized, and a particular company is able to become
more reliable as they deliver their goods and services to their customers (Envision Freight 2016).
Freight transportation can actually complement the widespread adaptation of a company's
inventory management. As a matter of fact, transport in freight is seen to have been effective in
improving the overall efficiency of the logistics process (Envision Freight 2016).

Apples Transport of Freight

The freight transport of Apple involves a full service of trucking that transports large
quantities of raw material. As a matter of fact, Apple Freight Inc. wishes to expand its operation
to California and Indiana (Apple Freight Inc. n.d.). Aside from that, Apple products have also
entered the air cargo industry to the point that airlines were left with no choice but to charter of
extra planes and cancelled some scheduled routes just to accommodate the company (Neate
2012). According to Worstall (2013), Apple is the biggest freight customer of Cathay Pacific. He
believed that Apple prefers to move its products by air instead of boat because aside that it is
quick, it is also cheaper.

Conclusion

Knowing the principles of logistics and the importance transportation are important in
making any type of business to succeed. Through business logistics, a company is able to meet
the demands of its customers at a low cost. Aside from that, it gives the company an edge over its
competitors. Through logistics, business corporations are able to produce the right products, at
the right time and place. This is true to the Apple Company. Undeniably, Apple Inc. has loyal
customers who clamor and wait for the new devices they introduce to the public. The freight
transport is also important in the delivery of goods and services. Through this, production and
distribution is made efficient. Transportation may be through land, air and water. In the case of
Apple Inc.,it uses full service of trucking transportation through the different states in America.
Aside from that, the company also utilizes the air cargo industry, which it finds cheaper
compared to other modes of transportation. The Apple Company is an example of how a business
can succeed, as long as it is able to use the principles of logistics effectively, and complement it
with the use of freight transportation.

References

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