Chapter no 12 Transportation management SUPPLY CHAIN MANAGEMENT

1. TRANSPOTATION MANAGEMENT
Sartaj ghani
Touheed Ullah
Sajid Ali
Safeer Ullah
Haseeb Ullah
Umar Shehzad
Abdur Rehman

2. Introduction
• Transportation makes products available to the
final consumer.
• Its stimulates new demands by extending the
variety of goods.
• It facilitates production by moving Different
means of production.
• Transportation encourages regional
specialization for competitive advantage
• Basically transportation is the movement of
goods and other resources through various
means.

3. Position of transportation in SCM
Transportation plays a significant role in SCM
process because products are rarely produced and
consumed in the same location.
Transportation has become a key component of
any successful SC system due to growing need for
speeder and time delivery of goods.

4. Elements Of Transportation Cost
• Tariff Of Transport Mode
• Transit Time Cost
• Transit Insurance Cost
• Miscellaneous Cost
• Protective Packing Cost

5. MODES OF TRANSPORTATION
AIRWAYS:
It is a most preferred mode of transportation for
perishable goods or for emergency services like
spare parts during breakdown of machines.
SEAWAYS:
Due to globalization of world market seaways
have large potential for foreign trade.it has
acquired high position due to being cheapest
having larger capacity and flexibility.

6. ROADWAYS:
Most of logistical operations of corporate
enterprises largely depend on this mode of
transport.
It ensures flexibility in service for better customer
responsiveness.

7. RAILWAYS:
Railways had accounted for the largest
percentage of freight cargo in most of the
countries.
Major advantage is that it efficiently transport
large quantities of goods over long distances.

8. PIPELINES:
This mode of transport is very significant one but
a very restricted scope.
Primarily it is used for shipment of liquid and gas
like crude and petroleum and refined and natural
gas.

10. A case of Dabbawala

11. Introduction
1. The origin of the Dabbawalas' lunch delivery
service dates back to the 1890’s during the
British raj.
2. MahadeoHavajiBacche (Mahadeo), a
migrant from North Maharashtra.
3. Mumbai Dabbawala - carrying and delivering
freshly made food from home in lunch boxes
to office workers.

12. What is NMTBSA?
Nutan Mumbai Tiffin Box Supplier Association
• Started in 1980.
• Registered in 1956.
• 8th grade schooling.
• Total area coverage 60 to 70 kilometers.
• Employee's strength 50000.
• No of Tiffin's every day 200000 and 400000
transactions.
• Time taken 3hours.

13. Structure
• Three tier structure:
–Executive committee
–Mukadams
–Dabbawalas

14. Operations motto(Error is Horror)
Principles
• Shakti aur bakthi.
• Work is worship.
• Manav seva me bhagwan seva milti hai.
• unity is power.
• Time is money.

15. Supply chain management of
Dabbawala

16. Success Factors
• Low cost delivery
– Rs. 500-600
• Delivery reliability
– Entrepreneurs, not employees
– No strikes
– Flat structure
– Referrals from friends and relatives
– No dilution of service culture

17. Success Factors
• Decentralization
• Perceived equality
• Suburban Railway Network

18. Multi Model Transportation System
• Multi Model transport is defined as the
carriage of goods by at least two different
modes of transport on the basis of some
mutually agreed contract to move products
from one place to another place for delivery.

19. Piggyback
Piggyback is the best known and most widely
used inter-model transportation system, which is
an out come of the coordination between
railways and roadways.

20. Fishyback
• This Inter Model transportation system is
achieved by coordination of road and water
modes of transport.

21. Tranship
• Tranship refers to a inter-model transportation
system which is the combination of railways
and waterways for the bulk movement of
freight cargo.

22. Airtruck
• As the name itself says, this inter-model
transportation system is the out come of the
coordination Between airways and roadways.

23. Transportation Decision
• Economic Factors
• Shipper Factors
• Carrier Factors
• Alternative pricing startegies

24. Economic Factors
Distance
volume
Density
Handling
• Distance
Distance is one of the most basic economics factors which
determine the total transportation cost. Variable cost, labor , fuel, and
maintenance.
• Volume
The second economic factor is load volume, which influence the
transportation cast. Transportation per unit cost decreases with the increase in the
load volume.

25. Shipper Factors
• Transportation cost paid to carriers for the shipment
of goods go to the customers.
• The cost of holding inventory by the shipper supply
chain network.
• Customer service mission of the shipper to meet
delivery commitment and competitive advantage.

26. Carrier Factors
• Cost of procurement of Vehicle
• Fixed operational cost like salaries of drivers,
registration, taxes etc.
• Trip related cost, such as cost of fuel, labour,
road permit etc.
• Value added cost, such as tracking of
shipment, point to point information.

27. Fleet Management
• Fleet Management refers to improvement of
efficiency of transportation resources and
system as well as enhancement of customer
service quality. It includes routing and
scheduling of transport vehicle, appropriate
vehicle size selection, and number of drivers
per vehicle.

28. Routing and Scheduling of Transport
vehicle
• Understanding detailed handling
requirements of orders and unique customer
receiving conditions and methods.
• Ability to scheduling routs within time
framework to meet customer requirements.
• Ability to split loads for the same destination
between vehicles or spread loads over several
days.

29. Direct Shipment Network

31. Direct shipment via distribution Centre

32. Number of drivers per vehicle
• Nowadays most of the transport companies
are using double drivers per vehicle instead of
one.
• Data from the industry had revealed that
transit time is almost double is case of single
driver per vehicle.
• The time spent on the rest is much higher in
case od single driver truck than double driver.

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