Modes of transportation

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  • 1. Modes of Transportation in Supply Chain Trey Lynn Brigham Young University BusM 361 Professor S. Tom Foster
  • 2. Agenda• Transportation defined• Modes of transportation• Strengths and weaknesses of each mode• Pricing
  • 3. Transportation• means of conveyance or travel (of goods and services) from one place to another
  • 4. Modes of Transportation• Motor• Air• Rail• Water• Pipeline• Intermodal
  • 5. Motor (Trucking)• 1970’s – economic deregulation of interstate traffic• Lower costs• Accessibility• Small, frequent shipments
  • 6. Trucking• Disadvantages – Speed – Capacity – Range
  • 7. Air• Premium transportation• Speed delivery• Range
  • 8. Air• Disadvantages – Price – Non-direct points – Add-on charges – Necessary?
  • 9. Rail• Lowest overall cost per unit weight• Consistent time schedule• Recommended with most commodity types• Weather
  • 10. Rail• Disadvantages – Inflexibility – Potential damage of goods – Ineffective with small shipments
  • 11. Water (Ships)• Large volumes• Long distances• Slower than air travel• Limited access
  • 12. Pipeline• Transport of homogeneous materials• Lower transportation costs than other modes• Higher initial costs• Unable to transport a variety of materials
  • 13. Intermodal• Use of various transportation modes• Containers• More popular due to globalization
  • 14. Pricing• Handling characteristics• Distance freight is moved• Weight of freight• Costs inversely related to speed of service