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Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
Third lecturer
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Third lecturer

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  • 1. Transportation Management
  • 2. Transportation Management  It is used for better movement of goods from one location to another location.  Objective of logistics and supply chain management is to make available the right quantity of right product at the right time and place at least cost.  Share of transportation cost is 40% of total logistics cost.
  • 3. Cont…  Rapid innovation in the field of information and communication technologies, their has been a phenomenal growth in E-commerce and online selling which need more specific and value-added transportation services like tracking of shipment, in order to meet delivery commitment.
  • 4. Mode of Transport 1) Airways 2) Seaways 3) Railways 4) Roadways
  • 5. Airways  Goods are transported by air.  Prefer for perishable goods or for emergency services.  Quick delivery of product.  Cost is very high.
  • 6. Seaways  Goods are transported through the water medium by ship.  Used for foreign trade.  This mode has acquired for cheapest, having a larger capacity and flexibility
  • 7. Railways  To efficiently transport large quantities of goods over long distance  Tariff of railways is very low, which encourage large shipment for longer distance, product like fertiliser, cement, food grains and petroleum product.
  • 8. Roadways  The reliability and economy of this mode is gradually increasing due to continuous improvement in the quality of motor vehicles and the condition of road.  This mode used by supplier to deliver goods in a cost effective manner and best suited for short distance.  Average damage is the matter of negative marks in this mode. For example - infrastructure and professional.
  • 9. Multi – Model Transport  Multi-modal transport is defined as the carriage of goods by at least two different mode of transport on the basis of some mutually agreed contract to ship product from one place to another place.  Multi-model transport, an old concept is a term used to describe the linking of transport responsibilities, documentation and liability in the movement of goods.
  • 10. Frame work of Multi-mode Transport RAIL ROADS WATER AIR Piggyback Fishy back Tranship Air truck RAIL ROADS WATER AIR Piggyback Fishy back Tranship Air truck RAIL ROADS WATER AIR Piggyback Fishy back Tranship Air truck
  • 11. Functional requirement and transportation Functional Req. Location Preferred mode Production scheduling Vendor to plant Rail / Road Balancing stock Warehouse to warehouse Road Distribution service Warehouse to customer Road Export / import Country to country Sea / Air Emergency service Plant to customer Air
  • 12. Selection of transportation mode  The strengths and weakness of the firm in term of financial and production resources.  Market information including the competitive scenario, geographical structure.  Product features and suitability to various modes of transportation such as Weight, size, shape.
  • 13. Cont…  Quantity to be transported each time.  Distance to be covered.  Total transportation cost of various mode of transportation.  Carrier performance in term of speed, availability, frequency, reliability and safety.
  • 14. Transportation Network  Transportation network is a development of shipment plan focusing on the maximisation of vehicle utilisation and cost efficiency.  This planning must address customer order, availability of transport resources, the volume of product to be shipped, geographical location and cost of transportation.
  • 15. Transportation network design Plant 1 customer 1 Plant 2 customer 2 Elimination of warehousing infrastructural facilities. High degree of coordination between supplier and customer. This is used by only company (cement, fertiliser) who has customer near to production plant. Direct shipment network
  • 16. Direct shipment VIA Distribution center Plant 1 Plant 2 Distribution Center Customer A Customer B Customer B Plant 3 Lower plant to warehouse transportation cost by bulk transportation Better customer service by lowering inventory requirement at customer’s end resulting into better return to them. Higher logistical cost due to inventory carrying cost
  • 17. Warehouse Management
  • 18. Warehouse  Warehouse are the space for keeping and storing goods in scientific and systematic manner to maintain their value, quality and usefulness.  It served as a static unit in the material and product pipeline, necessary to match products in a timing sense with consumers.
  • 19. Cont…  In logistics and SCM perspective, the role of the warehouse is more as a switching facility and less as a storage facility.  Warehouse is expected to provide superior logistical customer service in terms of regular availability of product, zero defect delivery, information sharing, consistency and reliability of services.
  • 20. Function of warehouse  Function of warehousing can be properly discussed in two heads, namely, 1) Economic function 2) Operational function
  • 21. Economic functions  Consolidation  Break-Bulk  Stockpiling  Value-added service
  • 22. Operational functions  Receiving of goods  Up-to-date recording of goods showing stock position  Storing of goods at an appropriate place and in minimum area.  Proper handling of goods, especially loading and unloading  Order receiving, processing.  Dispatching of goods  Preparation of goods
  • 23. Types of warehouse  On the basis of ownership 1) Private warehouse 2) Public warehouse  On the basis of service 1) Bonded warehouse 2) Field warehouse 3) Cold storage 4) Distribution warehouse 5) Export and import warehouse
  • 24. Factor for the selection of number and location of warehouse  Number of geographical location of the market targeted by the firm.  Location and facilities of the production centers.  Transportation infrastructure facilities  Nature, quality and quantity of goods to be stored  Availability of financial resources  Management philosophy
  • 25. Thank You

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