June 12, 2012

Role And Importance Of Transportation

Transportation is the means to carry people and goods from one place to another. This has become very important in each stage of human civilization. If the present means of transportation were not developed, situation of the world would be totally different.

Transportation has contributed much to the development of economic, social, political and cultural fields and uplifting their condition. Speedy industrialization is impossible without development of transportation. It is unavoidably necessary to promote transport system for the proper development of agricultural sector and rural areas. Without development of transportation neither mass production nor distribution is possible.

Transportation helps in mass production. Whether it is to purchase and bring raw materials or it is to distribute finished goods, one or the other means of transport is necessary. This expands old markets and creates new ones. As a result, demands for goods increases and production should also be increased.

The contribution of transportation is very important to transport commodities to nooks and crannies of the world in a little time. If the development of transportation was not made, market would be limited in local areas and production would be limited to meet local needs only. As a result, economy of each country would remain in undeveloped condition.
Transportation helps much to the development of different industries, which produce perishable goods, such as fisheries, poultry firms, horticulture, dairy etc. Transport carries the perishable goods produced by such industries to the consumers living in different distant places in time. Otherwise such products would not be possible to supply to the consumers.

The role and contribution of transportation is very important in marketing. The functions of transport in marketing can be discussed as follows:

1. Physical Supply Of Products

Transportation carries necessary raw materials to factory for production of goods and supplies finished goods to consumers. It creates place and time utility of goods by transporting from one place to another. It easily carries finished to the hands of those who need and use them. This significantly increases aggregate sales of goods. In fact, transport is such a key of marketing, which helps in carrying goods to the scattered consumers in different places, narrows the gap between producers and consumers and facilitates to distribute goods to the consumers at minimum cost and time.

importance of transportation

2. Specialization

Transportation facility encourages division of labor and specialization on geographical or regional basis. Transportation cost highly affects localization of industries. Production of goods may center at such place where the environment is the best and production cost is minimum. This makes maximum utilization of local resources possible, which is both economically and socially necessary.

3. Mobility Of Labor And Capital

Transportation facility provides mobility to labor and capital. If more labor force is available at any place, transport helps to carry it economically to necessary place. The means of transport carry labors from one place to another. This encourages labor and capital to use and invest in more productive sectors.

4. Stabilization In Price

Transportation helps to bring stability in price of different products. It transports goods from more supplied places to scarcely supplied areas. This establishes coordination between demand and supply, and brings stability in prices. It helps to supply necessary goods regularly to the consumers. Besides this, consumers get necessary goods at lower prices, because it encourages competition among producers and makes mass production at lower cost possible.
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5. Other Importance

Beside economic importance, transportation has also social, political and cultural importance. It establishes social and utility by narrowing geographical distance. It consolidates social and cultural utility and strengthens national integration. It helps to establish relationship with foreign countries. Transportation also helps widen knowledge and skill in different sectors. In this way, it helps establish social utility, uniformity and integrity and strengthens national security.

So, transportation plays an important role in physical distribution system. It has also an important role in marketing function. In the lack of transportation, neither mass production nor distribution is possible. Transportation is important in social, economic, political and cultural aspects.