Modes of transportation

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Modes of transportation

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

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