FACTORS IN INCREASING TRANSPORTATION DEMAND

Transportation is important in logistics network. It plays a role in the spatial relations between geographic points and also affects transportation system. The basic function of transportation is to provide the market with access to the resultant products. Without transportation, supplier cannot supply the raw material to the manufacturer/ production and also cannot deliver the goods to the customer.

1. Special handling requirements. Transportation has their special handling in order to handle the goods that perishable, easy to stolen, break bulk the goods and other than that.  For example quay crane that uses to handle the container from the bigger ship into truck.

2. Globalization. Company will produce their product and sell the product with customers international. Many companies today manage worldwide production and distribution systems, and national economies are increasingly being integrated into a global economy. Transportation has been affected because of the distances involved both inbound to manufacturing from foreign sourcing and outbound for additional manufacturing or delivery to customers. For example, increasing imports from Asia eventually may warrant containership service directly from India that would operate through the Suez Canal to the East Coast of the United States. These containers would then be transported inland from the East Coast, instead of from the West Coast as currently is the case. 

3. New and advanced technology. A number of significant technological advances in equipment and information systems over the past three decades have had a profound impact on transportation in logistics. The most notable equipment advances include containerization, double-stack technology, automation and robotics, handling and interchange systems, automated terminals, and conveyance design. The significant price reductions for powerful computer equipment have helped bring about better inventory control, better equipment scheduling, and more efficient rating of transportation movements and so on.

4. Quality of service. For all types of transport, quality of service is an important matter because customers will feel satisfied with the service and the service provided. if there are problems such as loss of goods before they reach customer hands, this could not increase transport demand from customers. Also dropping a country's economy if this problem continues unabated. This problem often occurs due to lack of security in the care of the goods. 

5. New inventory concept. In transportation, new inventory concept that increases the transport demand is just-in-time (JIT). Just-in-Time is the shipment of materials for the production lines should arrive at the plant “just in time“ as needed. Also means as the product that customers order should arrive to them as the scheduled. JIT is exercising stringent control over suppliers and carriers to produce a continuous flow of small quantities into the production plant so as to minimize the amount of working inventory on hand.