Dispatching and routing decisions are important aspects of supply chain management. Dispatching involves setting activities in motion according to planned times and routes, while routing aims to create the most cost-effective route by minimizing distance or travel time. There are two types of routing: dynamic routing allows for adjustments based on traffic or weather, while static routing uses pre-configured routes with no deviations. Common modes of transportation for goods include air, rail, water and road, with each having advantages and disadvantages depending on factors like speed, cost, and cargo type.

1. Dispatch and Routing Decisions
Leema Joy

2. Transportation refers to the movement of product from
one point to another as it moves from the beginning of a supply
chain management.
• Any supply chain’s success is closely linked to the appropriate
use of transportation.
• Logistics companies effectively use responsive transportation
systems to lower overall costs.

3. Dispatching is the routine of setting productive
activities in motion through the release of orders
and necessary instructions according to pre-
planned times and sequence of operations
embodied in route sheets and loading schedules.
Routing is defined as the process of creating the
most cost effective route through minimization of
distance or travel time necessary in order to reach
a set of planned stops.

4. Dynamic vs
Static Routing
Dynamic Routing Static Routing
• Routes are created from scratch
using a given set of orders and
also allow adjustments based on
traffic-related or weather issues.
• Sending deliveries through pre-
configured routes with no
deviations allowed.
• These routes are fixed.

5. Routes of Goods

6. Air:
• Rapidly growing segment of transportation industry.
• Lightweight, small items.
• Quick, reliable, expensive.

7. Rail:
• Low cost, high-volume.
• Improving flexibility.

8. Water:
• One of oldest means of transport.
• Low-cost, high-volume, slow.
• Bulky, heavy and/or large items.
• Standardized shipping containers improve service.
• Combined with trucking & rail for complete systems.

9. Road:
• Most used mode.
• Flexible, small loads.
• Trucks can go door-to-door as opposed to planes and trains.