FACTORS FOR TERMINAL LOCATION OF ROAD TRANSPORTATION

Terminal locations are known as a centre which covers a lot of logistics activities. It does play roles as a centre where changing trucking happens, packaging and labelling, pickup and delivery and many others that related with distribution. It provides with many facilities into serving their best to ease the user around the area. Do you know how the process of the product being delivered from the manufacturer until it goes through break-bulk situation and arrived safely at the destination? By multiple of manufacturer of different area the product will be offloading at the distribution centre and value added activities will occur such as packaging and labelling. Then it will uploading back and distribute to another location where it will go through another process. Next, we will discuss on the factors for terminal location such as accessibility and flexibility, strategic place, infrastructure and last but not least market area.

ACCESIBILITY

Accessibility had becoming one of the most important facets in locating terminal. It can be said that it must be locate at the strategic place thus there will be more advantage which worth for the service provider. This terminal was known as a distribution centre which determining the type of shipment that will be used based on the characteristics of product itself. Therefore, as it those truck bring so many kind of product demanding from different cost in Malaysia. Thus it wills definitely that these terminals are in a good accessibility. In fact, the distribution centre also involved the activity of pickup and delivery. This terminal can be located at one place surrounding by much type of manufacturing plants. This is because of definitely all those manufacturing will give high requested for delivering their products. So it will give a benefit to those terminals as they don’t have to worry, while the finished goods are highly available for distribute to many location requested. Other else, these terminal must be ensure they are accessible nearer to the highway. All of this, because it will become so much easier for those terminal to deliver their shipment are faster through the highway. Port also one of important facets that should have to give more concern, as it such a place who control the procedure for coming in and out of so many kind of products around the Malaysia as well.

FLEXIBILITY

While, in terms of flexibility, as firms are closer with so many accessibility factors, thus those firms become more flexible in order to fulfil request for delivering product to the location stated. In fact, firm must choose a very suitable and such a strategic place which will continuously worth to the terminal itself. Therefore, the firm are able to provide 24 hours services as they we currently closer to many accessibility.

MARKET AREA

In terms of market area there are many factors that involve for terminal location. So, to build the terminal we must alert about the market area for the terminal location. In terms of market area, the terminal should be nearer with customer and supplier. It is much easier for them to allocate the communication between customer and supplier. Thus, it will results a better customer services and deliver value towards the both party. In fact, the geographic significant could be one of the factors of locate the terminal at the location. The main purpose of looking on this perspective is to ensure that the terminals will be convenience for both customer and supplier. For example, usually any firms will definitely try to evade from building up the terminal near at the risky centre such as at the inaccessible area, forest, and volcano area. On the other side, customer satisfaction is directly being a big concerned for any company whom trying to maximized their profit. As terminal is known as the distribution centre where it needs to deliver the value added activities in the warehouse and distribute those product towards the customer. Thus, it needs to be close to the customer. Then only the value of an efficient and effective customer service will be provided towards the customer.

INFRASTRUCTURE

 The growth and development of the transportation does affects towards the country whereas we are able to seen assorted of infrastructure such as warehouse, terminals and distribution centre. Therefore, for the next factors for terminal location in the view of road transportation we are going to look more on infrastructure perspective. Let us look on the first view which is the distribution centre should be located at the place where it is facilitate with transportation. The beneficial that a firm’s could gain was they are able to deliver to anywhere and anyone by locating their centre at a place where it is facilitate with transportation. In fact, by having a good infrastructure, the pickup and delivery process can results well in terms of efficient management. Next, the infrastructure of the distribution centre should be complete with the material handling where it will directly easy to handle those break-bulk items and pickup the items. These will gives an efficient and effective delivery of the items.

STRATEGIC PLACE

If we want to buy a house, we have to choose the best strategic place. That wills same goes to the terminal, if we meant to build terminal. It must have strategic place to make the transportation run efficiently and smoothly. The terminal must near with demand. The reason is to reduce the cost such as fuel when coming to break bulk activity. It also can lower the level of transit time. Transit can be in low level and will be improved the customer services. For example, most of the distribution centres are located in the area of Pasir Gudang, Johor. Another factor was it must near with factory development. If the freight which we hold was defects, therefore the factory that near with the terminal can be repaired and packaging back when it comes to the goods, we don’t know what will happen during the journey. By using this ideas it can be a good benefit to the company.