Role of Logistics Today - Essay Example

The most realistic technique for businesses would be to come together and use single transportation to ship their goods. It would greatly facilitate in reducing the logistic costs. Indeed, in the current environment of recessive environment, forging alliance vis-a-vis for using common shipment of goods makes sense because it would not only cut the cost of logistics but it would also help companies to expand their business interests across geographical boundaries. Developing relationships based on transportation logistics would be the practical solution for small and medium businesses that are hit hard by the recession and rising oil prices.

The low-cost goods could still be sold at a premium in the United States through such an innovative business approach. Outsourcing of manufacturing goods could only be successful if the logistic costs remain stable. But as it is not possible in the current times, business relation that encourages the use of common shipment procedure amongst different business groups would be a credible alternative to restrain the rising cost of transportation logistics. (words: 253)