2. What is transportation
Transport refers to the activity that facilities
physical movement of goods as well as individual
from one place to another.
4. Importance of transportation
Transportation contributes to the overall
economic activity and provides opportunity for
growth under competitive condition the more
efficient the lower the transaction cost of the
companies operating in the economy.
It support greater reach And availability for the
products in the market place.
5. Importance of transportation
The wider the product distribution and reach
greater the role for transportation and more
the number of opportunities for companies to
exporit the economic scale.
Transportation is significant cost infulencer and
has more than 25%of the share is the total
logistics.
6. Modes of transportation
In order to transport material form one place to another logistics.
Managers are using rail,road , air,water,& pipelines as the modes
of transportation
Railways
Roadways
Waterways
Pipelines
Airways
7. Railways
Used for delivery of wide range of goods
including coal,iron,ore, cement, food,grains,
fertilizers, steel, petroleum products and
other heavy goods.
8. Roadways
Used by suppliers to deliver goods in a cost
effective manner and best suited for short
distance many transportation companies
have expertise for fast delivery packaging
etc., For making schedule delivery.
9. Airways
Used mostly for delivery of high value and
low volume goods from distant supplies
usually not connected by any other modeof
transportation it is also suitable for
emergent items Tobe imported for some
specific requirements.
10. Waterways
Used by firms for delivery of goods from
distant supplies. Mostly conducted in
containers of varied size . This mode is ideal
for transportation of heavy and bulky
goods and suitable for product with long
lead times
11. Pipelines
Used by oil sector companies for Mass
movement of petroleum products including
gases. Due to quite low operation cost it is
one of the preferred modes of
transportation.
12. Function of transportation
Growth of industries whose product requires
quick Marketing
Increase in the demand of goods
Transport creates times utility
Transport ensure even flow of commodities
Transport Increase mobility of labor and capital
13. Transportation decisions
Five parties influence the transportation as
transaction,as given in
The shipper
The consignee
The carrier
The government
The public
14. The shipper
The objective is to move the goods from origin
to destinations within a prescribed time as the
lowest cost.
Service expecation include specified pickup and
delivery times predictable transit time,zero loss
and demages, accurate and timely exchange of
information and invoicing.
15. The consignee
Service expecation include specified Pickup
and delivery time predictable transit time
zero loss and damage accurate and timely
exchange of information and invoicing.
16. The carriers
Objectives is to maximize their revenue associated
with the transaction while minimizing the cost
necessary to complete the transaction.
To achieve the above objectives the Carriers
desires flexibility in pickup and delivery time to
allow individual loads to be consolidate into
economic moves.
17. The government
Desire a stable and efficient transportation
environment to sustain economic growth.
Government involvement may take the form of
regulations promotion or ownership
Government control can have major impact on
the economic success of region industries or
firms.
18. The public
Concerned with the transportation accessibility
expense and effectiveness as well as
environmental and safety standards.
Considers trade off between the above parties
lead to regulations and restrictions of
transportation services.
19. Transport economics
Transport economics is influence by the following elements:
Distance
Volume
Density
Stowability
Handling
Liability
Market factors
20. Distance
Cost curve does not begin at the origin
because of the fixed costs associated with
the shipment pickup and delivery
regardless of distance.
Cost curve increase at a decreasing rate as
function of distance..
21. Volume
Fixed cost of pickup and delivery as well as
administrative Costs get spread over
additional volumes.hences the small loads
must be consolidate into larger loads to
take advantage of scale economies.
22. Density
Higher density products allow relatively fixed
Transport costs to be spread than by weight as
a result of which product are assessed at a
lower transport cost per unit. Therefore an
attempt is made to increase product density so
that more can be loaded in a vechile to utilize
capacity better.
23. Stowability
Refers to product dimensions and impact of
the same on vehicle space utilize. Off sizes
and shape as well as excessive weight or
length generally do not stow well and
typically waste space.
24. Handling
Special handling equipment may be
required for loading or uploading
trucks,trains or ships . The manner in which
the product are grouped such as taped
boxesd or palletized affect handling cost.
25. Liability
Liability refers to the product
characteristics that affect the risk of
damage and the resulting claims. These
characteristics are susceptibility to damage
to theft and susceptibility to combustion or
explosion.
26. Market factors
Back – haul vechile must return back to point of
origin with load.
Deadhead to be avoided because empty return
incur labour fuel and maintenance costs.
This logistic system design must take these
factors into account and add back- haul
movement wherever possible.
