transportation-part-2

1. Logistics Management
(Part of ORL)
BBA (Semester 4)
Faculty : Ravi Kumar Singh, International School of management Patna
Lecture-5 : Transportation

2. Lecture-5 : Transportation
Topics to be covered :
Advantages and disadvantages of
● Railways
● Airways
● Waterways and
● Pipeline
ISM Patna/Logistics_1_Ravi_K_Singh

3. Recap of Lecture-4
ISM Patna/Logistics_1_Ravi_K_Singh
1. Importance of Transportation in Logistics
as well as in the Economy
2. Modes of Transportation
3. Advantages and Disadvantages of
Roadways

4. RAILWAYS : ADVANTAGES
• Suitable for larger / Bulky loads
• Suitable for long distance transportation.
• It can transport all types of goods
Example-Coal, Iron ore, Cement, Fertilizers,
Petroleum, Heavy Machineries, Raw materials,
Finished products, live cattle etc.
• Economical mode of transportation
• Safe and Secured

5. RAILWAYS : DISADVANTAGES
● Slow speed due to consolidation of wagons
● Route / service limitations
● Monopoly of Indian Railways
● Delay due to Tracks and weather

6. Airways : Advantages
● Fastest mode of transportation
● Risk of damage is less
● Ideal for items which are of high value density
● Ideal for export / Import perishable and valuable items
● Ideal for export / Import medicines, organs etc
● Ideal to meet urgent requirement

7. ● Costliest mode of transport
● Weather Disturbance
● Limited route
● Not suitable to bulky items
Airways : Disadvantages

8. 1. Lowest Cost
2. Larger Capacity
3. Can transport materials in any form
4. Safety is higher than any other mode
5. Useful in flood
Waterways : Advantages

9. ● Slow Speed (longer lead/delivery time)
● Limited area of operation
● Unsuitable for small business
● Perils of sea (weather and other natural calamities, Pirates
etc)
Waterways : Disadvantages

10. Advantage-
● Available all the time
● Lower variable or operating cost
● Highest Protection from theft, pilferage, damage etc
Disadvantage-
● Limited to routes
● Limited with respect to commodities
● Highest investment cost or fixed cost
Pipeline: Advantages & Disadvantages

11. ● In which situation we can use-
Railways, Airways, Railways and pipeline
● What are the important limitations.
Summary of This Lecture