What is logistic?
The total management of the key operational function in the supply chain which is procurement, production and distribution.
Procurement includes purchasing and product development. The production function includes manufacturing and assembling, while distribution function involves warehousing inventory, transport and delivery.
The range of activities involved are: 1) Freight forwarding 2) Customs brokerage 3) Freight auditing and payment 4) Vehicle control and communication 5) Product identification and tracking 6) Information system (optimization in management) 7) Transportation services / brokerage 8) Transportation equipment / leasing 9) Private fleet assets / management 10) Warehousing 11) Order management and fulfillment 12) Cross docking 13) Value added, assembly and configuration 14) Site location

Transport principles in logistic

The larger the capacity transportation vehicles are less costly per unit of freight than smaller capacity vehicle in economy of scale. In the economy of distance the decrease of transportations coast per unit of weight as distance increase. However, to maximize the size of load and the distance being shipped while still meeting the customer expectation.

Land logistic
Land logistics is a very important link in logistics activities. It extends the delivery services for air and maritime transport from airports and seaports. The most positive characteristic of land logistics is the high accessibility level in land areas. The main transport modes of land logistics are railway transport, road freight transport and pipeline transport.

However there are same advantages and disadvantages of these transports mode. For example: Railway transport has advantages like high carrying capacity, lower influence by weather conditions, and lower energy consumption while disadvantages as high cost of essential facilities, difficult and expensive maintenance, lack of elasticity of urgent demands, and time consumption in organizing railway carriages. Second, Road freight transport has advantages as cheaper investment funds, high accessibility, mobility and availability. Its disadvantages are low capacity, lower safety, and slow speed. Third, is the pipeline, the advantages of pipeline transport are high capacity, less effect by weather conditions, cheaper operation fee, and continuous conveyance, the disadvantages are expensive infrastructures, harder supervision, goods specialization, and regular maintenance needs.

The extreme usage of land transport also brings many problems, such as traffic jams, pollution and traffic crashes. In the future, to improve the land transport in transport efficiency and reliability, a revolution of transport policies and management is required, e.g. pricing.