Transportation and warehousing is important for a company. The cost of a company might low when the company is doing well in this two important department. Transportation is the way that a company use for the purpose to shift or carry their goods or product from a place to another place. Warehousing is a place for company to store their good and stuff. Besides, there will be inbound and outbound for the transportation and warehousing.
For transportation, the inbound is meaning that the goods or partly goods are send to the company/ warehouse from other place. Inversely, the outbound is meaning that the goods are send to the retailer or the outlets from company. (Genco.com, 2014) For warehousing, the inbound and outbound is considering as a flow in and flow out of product in the warehouse. (Msdn.microsoft.com, 2014) (Msdn.microsoft.com, 2014)
There are various type of transportation such as sea, air, rail, road and pipeline. There will be different cost for different type of transportation. Therefore, choosing a right transportation for deliver the company goods will lower the cost of the company and there will be opposite if the company choose the wrong transportation. For example, the company should concern on the speed by choose the air transportation when transport the fresh fruit because the other transportation might not be quick enough and may cause the fresh fruit turn into bad condition. The company should choose the transportation mode depends on the size and weight of the product, time consume, cost, value of product and distance. For instance, the company can decide to handle the logistic by itself of outsource the work to a freight forwarder/ 3rd party logistic.
Moreover, there will be three type of warehousing setup. First, all the product will store or put in a place and only distributed to the outlet or client when they need which is called centralized. Second, some of the product might store in more than one warehouse which is
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