Centralized Cargo Transportation
Centralized Cargo Transportation
Cargo transportation, where a logistics company (TC) provides a full range of services for delivering goods, is called centralized transportation.
Centralized vs. Decentralized Cargo Transportation: Similarities and Differences
However, alongside centralized transportation, there is also decentralized transportation, where the consignee takes on part of the transportation responsibilities.
Why does this happen? This way, the recipient gains more control and can choose the time and place of delivery that is convenient for them. However, this significantly increases the cost of transportation, as additional expenses are incurred for:
- Extra time and transport;
- Services of accompanying personnel;
- Labor of loaders.
Therefore, unless it involves particularly valuable cargo, recipients usually prefer centralized transportation.
Efficiency of Centralized Transportation
Centralized transportation is efficient when there is a stable flow of large-volume shipments, as it allows for maximum standardization of the transportation process.
Advantages: Saving money, time, and nerves, as the recipient only needs to inspect the cargo and accept it if it is delivered intact. In case of damage, a special report is drawn up in the presence of the logistics company’s employees, after which the company compensates for the damage.
In decentralized transportation, responsibility is shared between the logistics company and the recipient.
Advantages of Centralized Transportation
First and foremost, it is a full range of transport and logistics services. This means one client, one carrier, and a clear distribution of responsibilities:
- Loading – the sender;
- Transportation – the logistics company;
- Unloading – the recipient.
Preparation Process for Centralized Transportation
A clear, standardized shipment requires maximum concentration of management in the hands of a single center—usually the logistics company. When offering such a service, a large-scale study of cargo flow is typically conducted, the required number of vehicles is calculated, and the form and procedure for payment for transportation are determined.
