Movement of Goods

Posted in Operations and Supply Chain Terms, Total Reads: 1524

Definition: Movement of Goods

Movement of Goods is the process by which goods are transferred from one place to another. This is a term referring to the logistics industry where goods are transferred from the source to the destination which can be from one factory to a port to another in case a company orders a raw material or the other way round when a manufactured product is transferred from our company to some other company. This is a very important step as the timely delivery of all materials out and into a plant is very essential for the smooth functioning of the plant / organization. Goods are generally transferred by one of the following media:

• Air

• Rail

• Water

• Road

As per the quality of the material and the lead time acceptable by the company, a medium of transport is chosen so as to cater to the specific needs of the company. Every day goods are transferred from different companies to other locations using air, road, water or rail in planes, trains, trucks or ships. Logistics as we know is the lifeline of the industry and movement of goods is what logistics does.

For example: 500 bikes were manufactured by Hero Honda in Gurgaon and were ordered by a company in Bangalore. The bikes are transferred to the distribution centre in Karnataka and then sent to the company’s headquarters in Bangalore. This entire process is known as Movement of Goods.

Hence, this concludes the definition of Movement of Goods along with its overview.


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