2. Introduction of Transportation
• Transportation refers to the movement of product from one
location to another as it makes its way from the beginning of
supply chain to the customer.
• Transportation is an important supply chain driver because
products are rarely produced and consumed in the same
location.
4. Key Drivers
• Shipper:
the party who wants to transport the product from
one place to another place.
• Carrier:
Carrier is company that moves the goods from one
place to another place.
For example: DHL, Fed Ex. Etc.
5. Components of Transportation decisions
• Design of Transportation Network
A Company must decide
whether Transportation from a supply source will be
direct to the demand point or will go through
intermediates consolidation points Design decisions
also include whether multiple supply or demand
points will be. included in a single run or not .. Direct
shipments are more effective when large quantities
are to be moved.
6. • Choice of transportation mode
Road
Air
Rail
Water
Pipeline
Intermodal
7. • Transportation related metrics
• Average inbound Transportation
• Average incoming shipment size
• Average outbound Transportation
• Average outbound shipment size
• Fraction Transported
8. Overall Trade off: Responsiveness
Versus Efficiency
The fundamental trade-off for transportation is
between the cost of transporting a given product and
the speed with which that product is transported.
9. Conclusion:
• Therefore transportation plays very important role in
the supply chain to distribute the goods from one
place to the another place or we can say that to the
customers.
