Understanding freight is essential for businesses of all kinds. It involves how things literally get from A to B, whether supplies coming to the business or finished products being shipped to the customer. So, what are the principles of freight, how complex does the process get and how are decisions made about how best to transport goods?
What is freight?
Simply put, freight is the movement of goods from one place to another. It could be raw materials that have not been produced yet, such as material for construction or manufacturing, or it could be finished items that are en-route to customers to buy. It can mean the disposal of waste products, a courier delivering a parcel or ingredients being delivered to a restaurant. It can be a tiny parcel to a huge shipment of vehicles and the process uses all methods of transport, including aircraft, vans, trains, boats and lorries. If you want your business to offer a Same day Courier Service, visit ALLABOUTFREIGHT
What is logistics and supply chains?
Almost every movement of freight is planned through logistics and forms part of a supply chain. Even the transportation of the simplest of items will be part of a bigger and more complex series of goods movements. Transport is just one element of the supply chain and other links in the chain include handling, storage and processing of the freight.
A supply chain is a fluid entity, forever evolving and adapting to include economic, technological and organisational factors that affect the sourcing, cost and availability of certain goods. Every business will have different and unique supply chains that change over time.
How is freight and the economy linked?
Freight employs thousands of people and contributes to the economy in its own right in that respect. It also plays a major part in nearly all economic activity in the UK. Freight is the industry that enables the economy to function, to grow and operate and it has an impact on economic performance and is impacted by the current needs of the economy. It also has an effect on the cost of goods.
How do businesses make freight decisions?
The decisions surrounding when and where to move freight are influenced by a great many factors. They could be affected by the consumer or recipient of the goods, the person selling the goods, freight forwarding companies or the transportation company itself. There is a lot of logistical planning involved, all affected by variables such as service level, cost, frequency, reliability and availability.