Process of a Transportation Company

What Is The Process Of A Transportation Company?

What is the process of transportation, shipping, and logistics?

Shipping is an often-used word, but what exactly does it mean? The common understanding of shipping is the transportation of goods, but the shipping process consists of many steps, and several modes of transportation can be used in shipping. Here we’ll discuss how the shipping process works step-by-step so you’ll get a better understanding of the many considerations it involves.

What is shipping?

Shipping is simply the transport of goods from one place to another. More specifically, it is the transport of goods from a company’s warehouse and into the hands of its customers.

The shipping process consists of several individual processes or steps that involve internal and external interactions. These processes, steps, and interactions are managed through shipping logistics. 

Modes of transportation

While the most important objective of shipping is moving goods from company to customer, shipping, and in particular shipping logistics is really about bridging distances in an economically efficient way, in terms of cost and delivery time

To accomplish this, goods can be shipped via several modes of transportation, depending on which is the most efficient for a particular set of circumstances. The four primary modes of transportation in logistics are:

Road shipment

Road, or shipments by truck, is one of the most common modes of transport for goods worldwide because it’s efficient, effective, and less expensive than the other modes, particularly air. It also allows for better accessibility, because most companies have access to a major highway system, and it offers nearly limitless options. The downsides are speed, unpredictable conditions, and control of handling.

Rail shipment

Rail, or shipments by train, is one of the oldest modes of transportation that is suitable for conveying heavy, bulky goods and large quantities over long distances. Rail transport provides a fast and reliable service because trains run on their own tracks and are timed to minimize the chance of congestion and delay. The downsides are that rail is typically slower than road and air, and accessibility to railroad tracks is often limited.

Ocean shipment

Ocean, or shipments by ship, is sometimes called ocean freight forwarding. It involves goods being packed into shipping containers and onto oceangoing ships. It is an important part of cross-border trade that lets companies move goods in massive quantities and large sizes and weights between countries. The downsides are that it can be significantly slower than all the other modes.

Air shipment

Air, or shipments by plane, is the most valuable form of transport when shipping or transporting goods in the fastest time around the globe. Air cargo can be sent from commercial or passenger aircraft gateways to any location where a plane can fly and land. The downsides are that it is often the most expensive mode and there can be limits on size, weight, and other product restrictions.

Each of these modes of transportation has its own unique benefits and determining which method is right for your business requires careful consideration. Which shipping model is ultimately chosen depends on several factors.

Choosing the best mode of transportation

In today’s world, fast, accurate, expedited shipping is not a luxury, it is an expectation. So choosing the right type of logistics transportation for your company is critical to the success of your business, the safety and security of your product, and the delight of your customers.

  • Product characteristics: What are the dimensions? What is the weight? Is it hazardous, perishable, or challenging to handle? 
  • Origin location: Where are you shipping from? Is it near ports, railroads or airports?
  • Destination location: Where are you shipping to? Mileage and stops must be considered.
  • Customer type: Are you shipping to an individual or a business? This can affect speed and mode of transport.
  • Budget available: How much can you afford to spend? Staying within your budget is critical for long-term operations.
  • Urgency of delivery: Express? Next day? Same day? 
  • Border crossing: Will the goods travel across state or country borders? Knowing all applicable laws is essential to prevent delays, such as at customs.
  • Mode of transportation: Road, Rail, Ocean, and Air all have their own costs and characteristics.

 

Shipping and logistics processes

Shipping consists of numerous individual process steps, workflows, and interactions that have their own individual procedures, and shipping logistics are essential to successfully manage them. Standard shipping procedures include the following:

  • Packing list and shipping paperwork creation
  • Picking the goods
  • Packing for transport
  • Selection of best mode of transport
  • Loading of the goods
  • Management of returns if applicable

 

Shipping is a complex process that consists of several individual processes and takes numerous factors into account, with time and costs two of the main criteria. Shipping logistics is essential in planning and managing successful transportation of goods between company and customer.

Partner with the experts

When you need fast, efficient, safe transportation for your company’s goods, you need I-Way Transport. We offer unique solutions for freight transport in Canada that are driven by stats, backed by data, and customized to fit the needs of your business. I-Way Transport offers all modes of shipping, has warehouse facilities across Canada, and provides a full range of logistics services. 

We will partner with you to build a transportation program that is optimized to your needs, allowing you to focus on growing other areas of your business. Contact I-Way Transport today to learn more about the logistics transportation solutions we offer. 

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