Logistics and Transportation Part 13.pptx

Important Dates
▶ Assignment 2/13/2024
▶ Midterm 2/15/2024
▶ Assignment 2/22/2024
▶ Final 2/27/2024
This Photo by Unknown Author is licensed under CC BY-SA-NC

Logistics Economic
Impact
▶ An effective logistics system is one that meets
the desired objectives and goals of the
organization. On the other hand, an efficient
logistics system is one that achieves these
objectives and goals with minimal waste of
resources such as time, money, and effort.
Therefore, a logistics system can be effective but
not efficient if it meets the desired objectives and
goals but does so with a significant waste of
resources. For example, a company may use
premium and expedited methods of transportation
to meet customer delivery requirements, which
increases transportation costs.
Logistics is the process of planning, implementing,
and controlling the movement of goods and
services from the point of origin to the point of
consumption. Logistics contributes to time utility by
recognizing that different products have different
sensitivities to time. For example, a three-day- late
delivery of bananas likely has more serious
consequences than a three-day late delivery of a
box of pencils. As for place utility, logistics
contributes by making products or services
available in locations that allow consumers to easily
access them. Transportation adds value to the
goods by providing time and place utility.

Possession, Form,
Time, and Place Utility.
• Possession utility: This refers to
the value or usefulness that comes
from a customer being able to take
possession of a product and can be
influenced by the relevant payment
terms.
• Form utility: This refers to a
product’s being in a form that (1)
can be used by the customer and
(2) is of value to the customer.
• Time utility: This refers to having
products available when they are
needed by customers.
• Place utility: This refers to having
products available where they are
needed by customers.

The Purpose of
Logistics Is To Meet
Customer
Requirements.
▶ Logistics management is the process of
managing the activities that are required to
transport goods from its source to the final
customer. The purpose of logistics
management is to find more efficient and
effective ways to move resources and
products from conception to completion and,
finally, to the customer. The driving force of
these actions is to meet customer demand
and provide the best service possible to
retain customers and maintain their
satisfaction by meeting their requirements.
Therefore, meeting customer requirements
is a crucial aspect of logistics management
as it ensures that the right product is
delivered at the right time, in the right
quantity, and at the right place. By meeting
customer requirements, logistics
management can help businesses gain a
competitive advantage by providing better
customer service, reducing costs, and
improving efficiency.

Logistics Management
– Charitable
Organizations
▶ Logistics management is the process of
planning, implementing, and controlling
the movement of goods and services
from the point of origin to the point of
consumption. It is a critical component of
supply chain management that ensures
that products are delivered to customers
in a timely, efficient, and cost-effective
manner.
For charitable organizations, logistics
management can be relevant in several
ways. For instance, it can help them to
manage their inventory more effectively,
reduce waste, and ensure that donations
are distributed to those who need them
most. Additionally, logistics management
can help charitable organizations to
optimize their transportation networks,
reduce shipping costs, and improve
delivery times.

Logistics Management
– Charitable
Organizations
▶ One example of how logistics
management can be relevant to
charitable organizations is through
product philanthropy. This is a process of
donating unwanted items to nonprofits
that can also result in significant tax
deductions for companies with a lot of
excess inventory. Companies such as
Walmart are known for delivering
truckloads of overstocked goods to
nonprofits with which they work.
Another way logistics management can
be relevant to charitable organizations is
through charitable supply logistics.
Logistics companies can do charity work
in a more direct way by pairing up with
organizations who need their support.
American Logistics Aid Network (ALAN)
is a supply chain network that connects
disaster relief organizations with
providers of the services they needed

Economic Regulations
▶ First, it provided companies
with the ability to implement
the tailored logistics
approach in the sense that
companies could specify
different logistics service
levels and prices could be
adjusted
accordingly. Second, the
increased pricing flexibility
allowed large buyers of
transportation services to
reduce their transportation
costs by leveraging large
amounts of freight with a
limited number of carriers.

Logistical Implications
▶ The increased emphasis on convenience
in a family’s shopping experience has
several logistical implications. For
instance, retailers need to ensure that
they have adequate inventory to meet the
demand for products. This requires
efficient supply chain management, which
involves coordinating with suppliers,
distributors, and other stakeholders to
ensure that products are delivered on
time and in the right quantities.
Moreover, retailers need to ensure that
they have the necessary infrastructure to
support the convenience of their
customers. This includes having
extended store hours, home delivery of
purchased items, and ready-to-eat or
ready-to-cook food product. However,
these conveniences can also create
logistical complexities. for example,
retailers need to deal with issues such as
the optimal delivery period for
replenishment vehicles and when to
replenish products.

Logistical Implications
▶ In addition, retailers need to
ensure that they have the
necessary technology to support
their logistics operations. This
includes using logistics software
to manage inventory levels,
track shipments, and optimize
delivery routes.
Overall, the increased emphasis
on convenience in a family’s
shopping experience requires
retailers to adopt a more
customer-centric approach to
their logistics operations. This
involves investing in technology
and infrastructure that can
support the convenience of their
customers while also ensuring
that their logistics operations are
efficient and cost effective.

Logistical
Management
Technology
• Shipment tracking system Customers
can now access shipping and tracking
systems 24/7, which enhances the
user experience and saves time and
money for the company.
• Internet of Things (IoT) and Radio
Frequency Identification (RFID): IoT is
opening many opportunities for the
supply chain, such as reducing costs
and delays by avoiding risks. Sensors
are built into cabs, cargo ships, trains,
etc., and connect to an alarm system
or dispatcher that is monitoring and
tracking. These sensors process and
transmit the information to the crew
who then gain insight into hidden risks
and knowledge. RFID technology is a
popular labor-saving way companies
can track their inventory.

Logistical
Management
Technology
• Artificial intelligence: AI can help
optimize logistics operations by
predicting demand, optimizing
routes, and reducing delivery
times.
• Blockchain: Blockchain
technology can help improve
transparency in the supply chain
by providing a secure and
tamper-proof record of
transactions.
• Automation: Automation can
help reduce errors, increase
efficiency, and lower cost in
logistics management.

Logistical Trendsetters
▶ Big-box retailers are considered
as logistical trendsetters
because they explicitly
recognize superior logistics as a
critical component of their
corporate strategy. Brands that
sell inside big-box retailers must
adhere to strict logistical
practices, which often
necessitate the use of electronic
data interchange (EDI) for
invoices and documents. Big-
box retailers are also turning
into warehouses, which has led
to the development of new
logistics strategies. Small
companies must elevate their
logistics to provide a sufficient
supply of their products to their
big-box retailer partner.

Systems Approach
▶ The system's approach to problem
solving is an approach that considers a
situation or problem holistically and as
part of an overall system which is more
than the sum of its parts. It seeks to
understand the underlying structure of the
system, the interrelationships between its
components, and how it functions as a
whole. This approach is used in various
fields such as environmental science,
organizational change management, and
geopolitics.
In logistics management, the systems
approach can be applied to identify and
address problems in the supply chain. It
recognizes that logistics is a complex
system with many interdependent parts,
including transportation, warehousing,
inventory management, and information
technology. By taking a system thinking
perspective, logistics managers can
identify the root causes of problems and
develop long-term solutions that address
the entire system rather than just
individual components.

Materials Management
and Physical
Distribution
• Materials management refers to
the movement and storage of
materials into a firm.
• Physical distribution refers to
the storage of finished product
and movement to the customer.
• Physical distribution focuses on
the outbound side of logistics
(plant to market).
• Materials management focuses
on inbound logistics.
• Movement and storage of raw
materials is different from the
movement and storage of
finished goods.

Total Cost Approach
▶ The total cost approach is a logistics
management strategy that aims to
minimize the overall cost of the supply
chain while maintaining the desired
level of customer service. It involves
analyzing all the costs associated with
the logistics process, including
transportation, inventory, warehousing,
and packaging. By taking a holistic view
of the supply chain, companies can
identify areas where they can reduce
costs without compromising on quality
or service.
For example, a company may choose to
use a more expensive mode of
transportation that reduces inventory
holding costs and improves delivery
times. Alternatively, they may decide to
invest in better packaging materials that
reduce damage rates during
transportation and storage. By
considering all the costs associated with
logistics, companies can make informed
decisions that optimize their supply
chain and improve their bottom line.

Cost Trade-Off
▶ Cost trade-off is defined as changes to one
logistics activity, causing some costs to
increase and others to decrease. This concept
is workable because the correlation of two
activities could bring more success to a
company. Sometimes you have to lose one to
gain a few more.
This concept is commonly used in business,
engineering, and project management, where
it is necessary to consider the impact of a
decision on all relevant variables. The
interrelationship among system variables in a
cost trade-off is crucial. In most systems, there
are multiple variables that can be adjusted to
achieve a desired outcome. For instance, in
manufacturing, the production output can be
increased by either adding more labor or
investing in more advanced equipment.
However, each of these options has different
costs associated with it. Adding more labor
may be cheaper initially, but it may increase
costs in the long run due to training and
management costs. On the other hand,
investing in more advanced equipment may be
expensive initially, but it may reduce costs in
the long run by increasing efficiency and
reducing the need for manual labor. The
decision to choose between the two options
above involves a cost trade-off

Cost Trade-Off
▶ Whether this concept is workable or
not depends on various factors such
as the nature of the problem,
available resources, and the goals
of the decision-maker. In general,
cost trade-offs are workable when
they are based on accurate data
and analysis of all relevant
variables. However, if the data used
for analysis is inaccurate or
incomplete, or if some variables are
ignored, then the cost trade-off may
not be workable. Additionally, if
there are external factors that affect
the outcome of a decision, such as
changes in market conditions or
regulations, then a cost trade-off
may not be workable. Therefore, it is
important to consider all relevant
factors before making a decision
based on a cost trade-off analysis.

Finance and Logistics
▶ The finance department is
often in charge of capital
budgeting decisions that
would affect logistics, such
as materials handling and
packaging equipment.
Another potential area of
finance and logistics
interface is with respect to
inventory.

Finance and Logistics
▶ Finance tends to view.
• Capital budgeting decisions: The
finance department is often responsible
for making capital budgeting decisions
that would affect logistics, such as
materials handling and packaging
equipment.
• Inventory management: Finance tends
to view inventory as a liability, while
logistics views it as an asset. Therefore,
finance and logistics departments can
work together to optimize inventory
levels.
• Transportation costs: Finance can help
logistics departments reduce
transportation costs by identifying
opportunities for cutting costs through
discounts or less expensive vendors.
• Freight payment processes: Freight
payment processes, services, and
technology can be used to streamline the
supply chain and reduce costs.

Postponement
Concept
▶ The postponement concept is a supply
chain strategy that involves delaying
the final stages of production until the
product is purchased by the customer.
This strategy is used to reduce
uncertainty and operational risk by
delaying the differentiation of products
until customer commitments have
been obtained. There are five types of
postponement: labelling, packaging,
assembly, manufacturing, and time.
Each type donates the point in the
process at which postponement
occurs. Example, manufacturing
postponement for a car manufacturer
would mean that a basic model of the
car would be produced. The car was
left in that state until it was ready to be
customized at another point in the
supply chain. The car would be
shipped out in its state to its market
and customized according to customer
requirement.

Postponement
Concept
▶ Postponement can be used to
reduce inventory levels by only
producing and stocking the
components and raw materials
needed to meet current demand. It
is an alternative logistics strategy to
the more traditional strategy of
forecasting demand. Firms
manufacture identical standardized
products, like blank picture frames,
which are shipped out. Once an
order is made, the product is
customized according to the
specifications of the customer and
shipped to the customer.
Postponement can also be used to
reduce costs by allowing firms to
take advantage of economies of
scale while still meeting customer
demand for customized products.

Landed Cost
▶ A landed cost is the total cost
incurred while transporting a
product from the supplier to its
intended destination. This cost
includes the product’s price and
any other expenses incurred
directly in obtaining the product,
including the shipping and freight
charges. If you are importing
goods, the landed cost will also
include expenses such as costs
involved in customs clearance,
duties, insurance, taxes, storage
requirements, and others. In this
case, the landed cost is the total of
all these additional expenses and
fees. The land cost is calculated
per unit and reflects the total cost
of each unit instead of the entire
shipment. The unit can be defined
as per the individual products,
volume, and weight of the items.

Landed Cost
▶ The landed cost is important for
pricing decisions because it helps
entrepreneurs have a clear idea
about the landed cost of their
products in advance. This can help
them make the right business
decisions. If entrepreneurs plan to
import products and sell them in the
local market, they must have clarity
on the landed cost of the products to
affix their selling price and make a
decent profit. Understanding the
landed cost of imported products will
also allow entrepreneurs to take a
call on the capital that has to be
invested in purchasing and
delivering the goods to the desired
location. When entrepreneurs have
an exact figure that include all
expenses and other components,
they can calculate the total cost
price and then decide on applying
the right selling price to avail
maximum profits.

Marketing and
Logistics
▶ The interface between marketing and
logistics is critical for any business. The
two departments need to work together to
ensure that products are designed,
packaged, distributed, and sold efficiently
and effectively. Logistics plays a unique
role as a boundary spinning interfaces
between marketing, production, and new
product development, which can be a
potential source of competitive advantage.
One possible interface between marketing
and logistics in terms of product decisions
is the marked increase in product offerings.
Marketers like this increase because it
allows for more customers choice, but
these additional choices create logistical
challenges in terms of identification,
storage, and tracking. Another possible
interface is the use of logistics to support
marketing efforts. For example, logistics
can be used to ensure that products are
delivered on time and and in good
condition to customer.

Marketing and
Logistics
▶ In addition, logistics can help
marketing by providing information
about customer preferences and
behavior. this information can be
used to develop new product or
improve existing ones. Logistics
can be also help marketing by
providing information about the
availability of products and the
status of orders
Overall, the relationship between
marketing and logistics is complex
and multifaceted. It requires close
collaboration between the two
departments to ensure that
products are designed, produced,
and delivered in a way that meets
customer needs while maximizing
profitability.

Ownership,
Negotiations,
Financing, Promotions,
and Logistics
Channels
• Ownership: Ownership refers to the legal
rights and responsibilities of owning a
business or property. It can be owned by an
individual, a group of individuals, or a
corporation. The owner has the right to make
decisions about the business or property and
is responsible for its success or failure.
• Negotiations: Negotiations are discussions
between two or more parties to reach an
agreement. It can be used in various contexts
such as business, politics, and personal
relationships. Negotiations involve give-and-
take, compromise, and finding common
ground.
• Financing: Financing refers to the process of
obtaining funds for a business or project. It
can be done through various means such as
loans, investments, and crowdfunding.
Financing is essential for businesses to start,
grow, and expand

Company Logistic
Department Activities
1. Order processing: This involves
receiving and processing orders
from customers, ensuring that
payment and delivery terms are
met, and placing orders with the
warehouse. The commercial team
is usually responsible for this
activity.
2. Material Handling: This involves
the movement of goods within the
warehouse can process order
efficiently
3. Warehousing: This involves
managing inventory in the
warehousing, ensuring that goods
are stored safely and securely, and
tracking inventory levels.

Company Logistic
Department Activities
4. Inventory control: This
involves managing inventory
levels, ensuring that there is
enough inventory to meet
demand, and minimizing excess
inventory.
5. Transportation: This involves
the movement of goods from the
warehouse to the customer or
distributor, ensuring that goods
are delivered on time and in
good condition.

Terminal Learning
Objectives
▶ To discuss how rates are
determined
▶ To learn about modal and
carrier selection
▶ To distinguish among various
transportation documents
▶ To illustrate select activities
associated with making and
receiving shipments
▶ To learn about transportation
service quality

Importance Of Transportation
In Supply Chain
Management
▶ The importance of
transportation in supply chain
management cannot be
overstated, as it plays a critical
role in ensuring the smooth flow
of goods from manufacturers to
consumers.
Transportation is a critical
component of supply chain
management, with profound
implications for businesses and
the economy. By optimizing
transportation operations,
companies can enhance
customer service, reduce costs,
expand market reach, and
contribute to sustainable
economic development.

Importance Of Transportation In
Supply Chain Management
▶ Here are some key points highlighting
its significance and impact on
businesses and the economy:
• Connectivity: Transportation links
various stages of the supply chain,
connecting suppliers, manufacturers,
distributors, retailers, and consumers. It
facilitates the movement of raw
materials, components, and finished
products across different geographical
locations, enabling businesses to reach
wider markets and meet customer
demands.
• Timeliness: Efficient transportation
ensures timely delivery of goods, which
is essential for meeting customer
expectations and maintaining
competitive advantage. Delays in
transportation can disrupt production
schedules, lead to stockouts, and result
in dissatisfied customers, ultimately
impacting sales and profitability.

▶ Here are some key points highlighting its
significance and impact on businesses
and the economy:
• Cost Management: Transportation costs
typically account for a significant portion
of a company's logistics expenses.
Effective transportation management
strategies, such as route optimization,
mode selection, and freight consolidation,
can help businesses reduce
transportation costs and improve overall
supply chain efficiency, contributing to
higher profitability.
• Inventory Management: Transportation
influences inventory management
practices by affecting lead times, order
quantities, and inventory levels. Faster
transportation modes, such as air freight,
enable companies to maintain lower
inventory levels and respond quickly to
changes in demand, reducing holding
costs and improving cash flow.

and the economy:
• Market Access: Transportation enables
businesses to access distant markets and
expand their customer base. It allows
companies to sell products globally,
tapping into new opportunities for growth
and revenue generation. Improved
transportation infrastructure and logistics
capabilities can enhance market
penetration and competitiveness on a
global scale.
• Supply Chain Resilience: Effective
transportation management is essential
for building resilient supply chains
capable of withstanding disruptions and
unforeseen events. By diversifying
transportation modes, routes, and
suppliers, companies can mitigate risks
associated with transportation-related
disruptions, such as natural disasters,
strikes, or fuel shortages.

and the economy:
• Economic Growth: Transportation
infrastructure investments contribute to
economic growth by facilitating trade,
commerce, and investment. Efficient
transportation networks reduce
transaction costs, increase market
efficiency, and stimulate business
activities, leading to job creation, income
generation, and overall economic
development.
• Environmental Sustainability:
Transportation impacts the environment
through carbon emissions, energy
consumption, and pollution. Sustainable
transportation practices, such as using
fuel-efficient vehicles, optimizing
transportation routes, and promoting
intermodal transportation, can help
mitigate environmental impacts while
supporting long-term business
sustainability goals.

Transportation
Management
▶ Transportation management plays a
crucial role in the broader context of
logistics and supply chain
management by ensuring the
efficient movement of goods from
suppliers to customers.
Transportation management is a
vital function within logistics and
supply chain management,
responsible for ensuring the
efficient, cost-effective, and
customer-centric movement of
goods from suppliers to customers.
By optimizing transportation
operations and integrating
transportation with other supply
chain processes, businesses can
enhance their competitiveness,
profitability, and sustainability in
today's dynamic business
environment.

Transportation
Management
▶ Here's a detailed explanation of its
role:
• Facilitating Movement:
Transportation management is
responsible for coordinating the
physical movement of goods
throughout the supply chain network. It
involves planning, organizing, and
executing transportation activities to
ensure the timely delivery of products
to their intended destinations.
• Linking Suppliers and Customers:
Transportation serves as the bridge
between suppliers, manufacturers,
distributors, retailers, and end
customers. It enables the seamless
flow of materials and products
between different stages of the supply
chain, ensuring that goods are
available when and where they are
needed.

Transportation
Management
▶ Here's a detailed explanation of its role:
• Inventory Management: Transportation
decisions have a direct impact on
inventory management practices. By
optimizing transportation routes and lead
times, businesses can minimize inventory
holding costs while ensuring sufficient
stock levels to meet customer demand.
Timely transportation also reduces the
risk of stockouts and backorders,
enhancing customer satisfaction.
• Cost Optimization: Transportation
represents a significant portion of logistics
costs for many businesses. Effective
transportation management strategies,
such as route optimization, mode
selection, and freight consolidation, can
help minimize transportation expenses
and improve overall supply chain
efficiency. By reducing transportation
costs, businesses can enhance their
competitiveness and profitability.

Transportation
Management
▶ Here's a detailed explanation of its role.
• Customer Service: Transportation
management plays a crucial role in
delivering superior customer service.
Timely and reliable transportation
ensures that orders are delivered
according to customer expectations,
leading to higher satisfaction levels and
repeat business. Transportation also
influences factors such as delivery speed,
flexibility, and visibility, which are key
drivers of customer loyalty.
• Risk Management: Transportation
management is essential for mitigating
risks associated with transportation-
related disruptions, such as delays,
accidents, and capacity constraints. By
diversifying transportation modes,
carriers, and routes, businesses can
enhance supply chain resilience and
minimize the impact of disruptions on
operations and customer service.

Transportation
Management
▶ Here's a detailed explanation of its role.
• Information Integration: Effective
transportation management involves the
integration of transportation-related data
and information with other supply chain
processes. By leveraging transportation
management systems (TMS) and logistics
technology, businesses can optimize
transportation operations, track shipments
in real-time, and communicate proactively
with stakeholders, improving overall supply
chain visibility and coordination.
• Sustainability: Transportation
management plays a crucial role in
promoting environmental sustainability
within the supply chain. By adopting eco-
friendly transportation practices, such as
using fuel-efficient vehicles, optimizing
routes to reduce emissions, and promoting
intermodal transportation, businesses can
minimize their carbon footprint and
contribute to sustainability goals.

Objectives of
Transportation
Management
▶ The objectives of transportation
management encompass
several key goals aimed at
optimizing the movement of
goods within the supply chain.
Here's an explanation of each
objective:
Cost Reduction: One of the
primary objectives of
transportation management is to
minimize transportation costs
while maintaining service levels.
Transportation costs can
represent a significant portion of
overall logistics expenses for
businesses.

Objectives of
Transportation
Management
▶ Therefore, effective transportation
management strategies seek to
identify opportunities for cost
reduction through various means
such as:
• Route Optimization: Analyzing
transportation routes to identify the
most efficient and cost-effective
paths for shipments, considering
factors like distance, traffic, tolls,
and fuel consumption.
• Mode Selection: Evaluating
different transportation modes (e.g.,
road, rail, air, sea) to determine the
most economical option based on
factors like distance, transit time,
cargo volume, and cost per unit.

Objectives of
Transportation
Management
▶ Therefore, effective transportation
management strategies seek to
identify opportunities for cost
reduction through various means
such as:
• Freight Consolidation: Combining
multiple smaller shipments into
larger, more economical loads to
reduce per-unit transportation costs
and minimize empty space in
vehicles.
• Carrier Selection and Negotiation:
Assessing carrier options and
negotiating favorable rates and
contracts to secure competitive
pricing and maximize cost savings.

Objectives of
Transportation
Management
▶ Efficiency Improvement: Transportation
management aims to enhance the
efficiency of transportation operations by
streamlining processes, reducing transit
times, and maximizing resource
utilization. Key strategies for improving
transportation efficiency include:
• Route Planning and Scheduling:
Developing optimized transportation
routes and schedules to minimize
detours, idle time, and unnecessary
mileage, thereby improving vehicle
productivity and reducing overall transit
times.
• Load Optimization: Maximizing the
utilization of transportation capacity by
efficiently packing and loading shipments
to minimize empty space and reduce the
number of trips required.

Objectives of
Transportation
Management
• Inventory Management
Integration: Aligning
transportation schedules with
inventory management practices
to ensure timely deliveries while
minimizing excess inventory
holding costs.
• Technology Adoption:
Leveraging transportation
management systems (TMS),
route optimization software, GPS
tracking, and other technological
tools to automate processes,
improve visibility, and enhance
decision-making capabilities.

Objectives of
Transportation
Management
▶ Service Enhancement: Transportation
management also focuses on enhancing
customer service levels by ensuring
reliable, timely, and responsive
transportation services. Providing
superior service to customers helps
businesses differentiate themselves from
competitors and build customer loyalty.
Key strategies for service enhancement
include:
• On-time Delivery: Ensuring that
shipments arrive at their destinations
according to agreed-upon schedules,
minimizing delays, and meeting customer
expectations for delivery reliability.
• Real-time Tracking and Visibility:
Providing customers with visibility into the
status and location of their shipments
through real-time tracking systems,
allowing them to monitor progress and
anticipate delivery times.

Objectives of
Transportation
Management
▶ Service Enhancement:
• Proactive Communication:
Keeping customers informed of
any delays, disruptions, or
changes to delivery schedules in
advance, and providing
alternative solutions or
accommodations when
necessary.
• Customization and Flexibility:
Offering flexible transportation
options and customized services
to meet specific customer
requirements, such as expedited
shipping, special handling, or
delivery time windows.

Transportation
Management Key
Components
▶ Transportation management
encompasses several key
components that collectively
ensure the efficient and
effective movement of goods
within the supply chain. By
effectively managing these
key components,
organizations can optimize
transportation operations,
reduce costs, improve
service levels, and enhance
overall supply chain
performance.

Transportation
Management Key
Components
▶ Here are the main components:
Transportation Planning:
Transportation planning involves
forecasting demand, determining
transportation requirements, and
developing strategies to meet those
requirements. Key activities include:
• Demand Forecasting: Estimating
future transportation needs based on
historical data, market trends, and
customer demand patterns.
• Route Planning: Identifying the most
efficient transportation routes
considering factors such as distance,
traffic conditions, road infrastructure,
and delivery schedules.
• Mode Selection: Evaluating different
transportation modes (e.g., road, rail,
air, sea) based on factors like cost,
transit time, reliability, and cargo
characteristics.

Transportation
Management Key
Components
Carrier Selection and Management:
Carrier selection involves identifying and
contracting with transportation providers
(carriers) that can meet the organization's
transportation requirements. Key
activities include:
• Carrier Evaluation: Assessing carriers
based on criteria such as service quality,
reliability, safety record, coverage area,
and cost.
• Contract Negotiation: Negotiating
transportation contracts with selected
carriers to establish rates, terms, and
conditions that meet the organization's
needs while ensuring cost-effectiveness.
• Performance Monitoring: Monitoring
carrier performance against established
key performance indicators (KPIs) such
as on-time delivery, transit time, and
service reliability.

Transportation
Management Key
Components
Freight Consolidation: Freight
consolidation involves combining
multiple smaller shipments into larger,
more economical loads for
transportation. Key activities include:
• Order Consolidation: Aggregating
individual customer orders or shipments
into consolidated loads to reduce
transportation costs and improve
efficiency.
• Pool Distribution: Combining
shipments from multiple suppliers or
origins into shared distribution networks
to achieve economies of scale and
minimize transportation expenses.
• Cross-Docking: Transferring inbound
shipments directly to outbound
transportation vehicles with minimal or
no storage time, reducing handling and
storage costs.

Transportation
Management Key
Components
Freight Rate Negotiation: Freight rate
negotiation involves negotiating
transportation rates and contracts with
carriers to secure favorable pricing and
terms. Key activities include:
• Rate Analysis: Analyzing historical
transportation data, market rates, and
industry benchmarks to establish
negotiation targets and benchmarks.
• Rate Negotiation: Negotiating rates,
discounts, and contract terms with
carriers based on factors such as
volume commitments, service
requirements, and market conditions.
• Contract Management: Managing
transportation contracts, including rate
updates, amendments, and compliance
monitoring, to ensure adherence to
agreed-upon terms and conditions.

Transportation
Management Key
Components
Performance Measurement and
Optimization: Performance measurement
and optimization involve tracking,
analyzing, and improving transportation
performance to enhance efficiency and
effectiveness. Key activities include:
• Key Performance Indicators (KPIs):
Establishing and monitoring KPIs such as
on-time delivery, transit time, cost per mile,
and carrier performance to assess
transportation performance and identify
areas for improvement.
• Continuous Improvement: Implementing
process improvements, technology
enhancements, and best practices to
optimize transportation operations, reduce
costs, and enhance service levels.
• Data Analysis: Analyzing transportation
data and metrics to identify trends,
patterns, and opportunities for optimization,
such as route optimization, mode
optimization, and load optimization.

Rate (Pricing)
Considerations
▶ Rate Determination:
As we have seen throughout this
text, logistics has discipline-specific
terminology. To this end, one key
responsibility of transportation
managers involves rate
considerations, with rate being the
logistics term that signifies the price
charged for freight transportation
(“fare” refers to the prices charged
for passenger transportation). Rate
determination is essential to
calculating the appropriate
transportation cost, according to the
following formula:
Weight x rate = transportation charge

Rate (Pricing)
Considerations
▶ Moreover, transportation rates are
based on three primary factors—
product, weight, and distance—which
will be discussed next:
• Relationships between different
products in terms of their handling
characteristics, for example, the
difference between carrying 2,000
pounds of ballpoint pens and 2,000
pounds of live chickens
• Relationships between shipments of
different weights, for example,
shipments of 10 pounds each versus
shipments of 1,000 pounds each
versus shipments of 10,000 pounds
each
• Relationships between different
distances the products are carried, for
example, from Boston, Massachusetts,
to Albany, New York, versus from
Atlanta, Georgia, to Spokane,
Washington

Rate (Pricing)
Considerations
▶ Rate determination has to define all
three relations in numeric form and
then has to devise methods of tying
those numbers into a rate for a
specific shipment. One approach to
rate making is to determine one
specific rate for every possible
combination of product, weight, and
distance—in other words, a
commodity rate. When you consider
that the transportation rate structure
dates to the time of economic
regulation in the late 1800s—a time
when “office automation” might have
meant a manual typewriter—it
becomes clear that the
transportation community needed a
way to simplify rate determination.
This was accomplished through the
class rate system, which simplified
each of the three primary rate
factors—product, weight, and
distance.

Rate (Pricing)
Considerations
▶ Transportation pricing can vary
significantly depending on
several factors such as
distance, mode of transport
(e.g., truck, train, ship, plane),
weight, volume, urgency, and
any additional services required
(e.g., tracking, insurance).
Businesses need to evaluate
their transportation needs
carefully and consider both cost
and service quality when
selecting transportation
providers. It's also essential to
regularly review and optimize
transportation strategies to
minimize costs and maximize
efficiency.

Rate (Pricing)
Considerations
▶ Here's a breakdown of some key
considerations:
• Distance: Longer distances typically
incur higher costs due to fuel,
maintenance, and labor expenses.
• Mode of Transport: Different modes
have different cost structures. For
example, shipping by sea is generally
cheaper but slower compared to air
freight, which is faster but more
expensive.
• Weight and Volume: Carriers often
charge based on weight or volume,
whichever is greater. Larger or heavier
shipments will cost more to transport.
• Urgency: Expedited or express
services command higher prices due
to prioritization and tighter delivery
windows.

Rate (Pricing)
Considerations
considerations:
• Seasonality and Demand: Prices
can fluctuate based on supply and
demand dynamics. Peak seasons
may see increased rates due to
higher demand.
• Fuel Costs: Fluctuations in fuel
prices can impact transportation
costs, especially for modes like
trucking and air freight.
• Additional Services: Tracking,
insurance, packaging, and
specialized handling requirements
can add to the overall cost.
• Negotiated Rates: Larger
companies or those with frequent
shipments may negotiate contracts
with carriers for discounted rates.

Rate (Pricing)
Considerations
considerations:
• Customs and Duties: For
international shipments, customs
duties and taxes can significantly
impact the total cost.
• Route Complexity: Some routes
may involve tolls, border crossings, or
difficult terrain, which can affect
pricing.
• Packaging: Proper packaging
ensures the safety of goods during
transit and can affect pricing if
specialized packaging is required.
• Regulatory Compliance:
Compliance with regulations and
standards may add to costs,
particularly for hazardous materials or
goods subject to specific handling
requirements.

Page from National
Motor Freight
Classification
▶ Figure 13.1 shows a page of the
National Motor Freight
Classification; note the detail.
NOI stands for “not otherwise
indexed by number” (i.e., one
cannot find a definition that fits
more closely). Packages are
referred to by number; they are
described in great detail in the
classification document.

Page from National
Motor Freight
Classification
▶ The National Motor Freight
Classification (NMFC) is a standard
that provides a uniform system for
classifying goods transported by
motor carriers in the United States.
It categorizes freight based on its
density, handling, stowability, and
liability for damage. The
classification system is
administered by the National Motor
Freight Traffic Association
(NMFTA).
The NMFC classification system is
used by carriers to determine
shipping rates and charges. The
classification of freight, along with
factors such as distance, weight,
and additional services, helps
carriers calculate the cost of
transportation.

Page from National
Motor Freight
Classification
▶ Here's how the NMFC system
works:
• Classification: Freight is classified
into one of 18 different classes,
ranging from Class 50 to Class
500, based on its characteristics.
• Density: The density of the freight,
measured in pounds per cubic foot,
is a key factor in determining its
classification. Generally, the higher
the density, the lower the class and
vice versa.
• Handling: Items that are difficult to
handle or require special care may
be classified at a higher class.

Page from National
Motor Freight
Classification
▶ Here's how the NMFC system
works:
• Stowability: Freight that is easy
to load, stack, and secure may
receive a lower classification.
• Liability: Items that are more
susceptible to damage or theft
may have a higher
classification.
• Commodity Descriptions:
Each classification includes
detailed descriptions of the
types of goods that fall within
that class.

Page from National
Motor Freight
Classification
▶ It's important for shippers to
accurately classify their
freight according to the
NMFC guidelines to ensure
fair and consistent pricing.
Incorrect classification can
lead to disputes, delays, and
additional charges. Shippers
can consult the NMFC book
or online database to find the
appropriate classification for
their goods.

Rate (Pricing)
Considerations
▶ Four factors are used to determine a
product’s freight classification, namely,
density, stowability, ease of handling,
and liability to damage and theft.
Density, which refers to how heavy a
product is in relation to its size, is
viewed as the primary factor for setting
a product’s classification, in part
because of the opportunity costs
associated with it. Stowability refers
to how easy the commodity is to pack
into a load, and possible
considerations involve the
commodity’s ability to be loaded with
hazardous materials and ability to load
freight on top of the commodity. Ease
or difficulty of handling refers to
challenges to handling that might be
presented by a commodity’s size,
weight, and so on. Finally, the liability
for loss and damage considers, among
others, a commodity’s propensity to
damage other freight, its perishability,
and its value.

Example of the Class
Rate System
▶ An example of transportation
charges using the class rate
system is presented in Table
13.1. Shipment 1 in Table 13.1
will serve as our reference point
for looking at transportation
charges based on commodity
classification, weight, and
distance. As shown in Table
13.1, the commodity
classification is the only
difference between Shipment 1
(class 100) and Shipment 2
(class 200). Because a higher
class rating takes a higher rate,
Shipment 2’s transportation
charges ($1,245.87) are
noticeably higher than Shipment
1’s transportation charges
($666.52).

Rate (Pricing)
Considerations
▶ With respect to the class rate system and
weight, Shipment 1 weighs 500 pounds
versus 1,500 pounds for Shipment 3. The
transportation charges in Table 13.1 point
out some important considerations with
respect to class rates. First, a
commodity’s classification (e.g., Class
100 versus Class 200) can noticeably
impact transportation expenses and one
can see why shippers should be
cognizant of a particular commodity’s
classification. Second, heavier shipments
of a particular commodity generate higher
transportation expenses than do lighter
shipments. Third, while longer distance
shipments (Shipment 4) are more
expensive than shorter distance
shipments (Shipment 1), the difference in
cost—Shipment 4 is approximately 1.25
more expensive than Shipment 1—is not
proportional to the increase in distance—
Shipment 4 travels more than twice the
distance of Shipment 1. As such,
transportation managers should try to
avoid purchasing transportation in short
distance movements.

Motor Carrier
Classification Docket
Proposal for Changing
the Classification of
Soft Contact Lenses
▶ A commodity’s freight classification is
developed and maintained by the
Commodity Classification Standards
Board, which consists of at least three,
but no more than seven, full-time
employees of the National Motor Freight
Traffic Association. There is often a
natural tension between shippers and
carriers with respect to a product’s
classification; shippers tend to prefer a
lower classification number (which
translates into a lower rate), whereas
carriers tend to prefer a higher
classification number. Transportation
managers can appeal a commodity’s
classification, and Figure 13.2 shows a
proposal for a reclassification of
magnesium rakes..

Rate and Service
Negotiations
▶ As pointed out earlier in this
chapter, the contemporary
transportation manager is much
less constrained by rate and
service regulations and thus has
the opportunity to assume a
proactive role in rate and
service negotiations. This rate
and service flexibility allows
transportation managers to take
advantage of trade-offs between
price and service, and these
price and service trade-offs are
limited only by the transportation
manager’s creativity and
ingenuity.

Domestic Terms of
Sale
▶ One consideration in rate and
service negotiations involves the
terms of sale, or when the freight
charges are paid for a particular
domestic shipment. In addition to
establishing the point at which title
for a shipment passes from buyer to
seller, the FOB location term also
establishes which party is
responsible for arranging
transportation for a shipment as well
as which party is responsible for
filing freight claims (a topic that will
be discussed later in this chapter).
OB origin and FOB destination are
typically qualified by modifying
terms, the most common of which
are freight collect, freight prepaid,
and freight prepaid and charged
back.

Domestic Terms of
Sale
▶ This results in six possible domestic terms of
sale, which are described below.
• FOB origin, freight collect: The buyer pays
freight charges, owns the goods in transit, and
files loss and damage (L&D) claims, if needed.
• FOB origin, freight prepaid: The seller pays the
freight charges; the buyer owns the goods in
transit and files L&D claims, if needed.
• FOB origin, freight prepaid and charged back:
The seller pays the freight charges in advance
but bills the buyer for them; the buyer owns the
goods in transit and files L&D claims, if needed.
• FOB destination, freight collect: The buyer pays
the freight charges; the seller owns the goods in
transit and files L&D claims, if needed.
• FOB destination, freight prepaid: The seller pays
the freight charges, owns the goods in transit,
and files L&D claims, if needed.
• FOB destination, freight prepaid and charged
back: The seller pays the freight charges in
advance but bills the buyer for them; the seller
owns the goods in transit and files L&D claims, if
needed.

Domestic Terms of
Sale
▶ The transportation responsibilities
associated with FOB origin and FOB
destination have important
implications for transportation
management. For example, an
advantage of FOB destination from
the seller’s perspective is that the
seller controls transportation and
can assure a more uniform
transportation outcome for each
buyer. Alternatively, a disadvantage
of FOB destination from a seller’s
perspective is that the seller’s
organization must have a thorough
knowledge of transportation
management (e.g., rate and service
negotiations, modal and carrier
selection, and so on) and this
knowledge is not learned in a short
period of time.

Transportation Cost
Analysis
▶ Another consideration in rate and
service negotiation involves
transportation cost analysis, which
can be especially valuable in the
shipment consolidation decision.
Transportation cost analysis
continues to be facilitated by
advances in information
technology. Some trucking
companies, for example, can
examine inbound or outbound
deliveries for a representative
period of time using data gathered
from a customer’s paid freight
bills. This can allow both the
carrier and the customer to
determine whether individual
shipments or shipment patterns
can be improved.

Documentation
▶ The definition of logistics presented in
Chapter 1 refers to the management of
information and the documents
associated with transportation
shipments, or documentation, are
one important source of logistics
information. Transportation
documentation serves both a practical
function (e.g., what, where, and how
much is being transported) as well as
potentially providing legal recourse if
something goes awry with a particular
shipment.
The transportation department is
responsible for completing all the
documents needed to transport the
firm’s products. Today, many carriers
provide software or secure websites
that enable the shipper to generate all
the commonly used documents. Some
shippers also have their own order-
processing software that is capable of
generating transportation documents.

Bill of Lading
▶ The most important single
transportation document is the bill of
lading, which is the basic operating
document in the industry. The bill of
lading functions as a delivery receipt
when products are tendered to
carriers.
There are two types of bills of lading:
the straight bill of lading and the order
bill of lading. On a straight bill of
lading, which is printed on white paper,
the name of the consignee is stated in
the appropriate place, and the carrier
is under a strict legal obligation to
deliver the freight to the named
consignee and to no one else.
Ownership of the goods is neither
stated nor implied. On the order bill of
lading, which is printed on yellow
paper, the name of the consignee is
not specified. For example, assume
that a lumber company in Washington
State has loaded a boxcar of plywood
that it has not yet sold.
This Photo by Unknown Author is licensed under CC BY-SA

Bill of Lading
▶ An additional classification for bills of lading
is the specific form: long, short, or
preprinted. The long-form bill of lading,
which may be either an order or straight bill,
contains the standard information on the
face of the bill (see Figure 13.3), and on the
reverse side it contains the entire contract
between carrier and shipper. The reverse
side is printed in extremely small print.
Because of the difficulty of reading the long-
form contract and the printing costs of
including the contract on all bills, in 1949 the
railroads and motor carriers adopted the
short-form bill of lading. The short form has
the following statement on its face: “Every
service to be performed hereunder shall be
subject to all the terms and conditions of the
Uniform Domestic Straight Bill of Lading.”
Another kind of bill of lading—which may be
long, short, order, or straight—is preprinted.
In theory, the bill of lading is prepared and
issued by the carrier. In fact, however, most
shippers buy their bills of lading and then
have them preprinted with a list of the
products they regularly ship. A few shippers
are adopting their own bills of lading, which
carriers may be reluctant to accept because
the carriers may be subject to new liabilities
specified in the documents.

Freight Bill
▶ Another basic document that the
transportation manager must be familiar
with is the freight bill, which is an invoice
submitted by the carrier requesting to be
paid. Often, the transportation manager
must approve each freight bill before it is
paid, and carriers must be paid within a
specific number of working days. In an
attempt to meet these time limits, many
transportation managers now participate
in automated freight bill-paying services.
One continuing issue with freight bills
involves companies being charged too
much (overcharges) for transportation
services. To detect current errors that
result in overcharges and to correct these
errors in the future, shippers conduct
internal audits (work is performed by
employees of the company) of their
freight bills. Some shippers also conduct
external audits (work is performed by an
independent third party) of their freight
bills.
This Photo by Unknown Author is licensed under CC BY-NC

Freight Claims
▶ Another key documentation issue involves
freight claims, which refers to a document
that notifies a carrier of wrong or defective
deliveries, delays, or other delivery
shortcomings. Filing claims against carriers
is a routine matter, and many carriers post
filing information and sample claim forms on
their websites. One of the most difficult and
challenging aspects of claim work is the
determination of the exact dollar amount of
the damage. Another difficult area for
shippers and carriers alike involves
concealed loss or damage, which refers to a
situation where loss or damage is not
apparent until after a shipment has been
unpacked and inspected.
Transportation experts suggest that
receivers/consignees follow five tips for
managing concealed loss and damage: (1)
inspect the freight as soon as possible; (2)
break down the shipment as soon as
possible; (3) note issues that look out of the
ordinary in the proof of delivery (e.g., broken
pallets, punctured packaging); (4) document,
document, document; (5) have the shipper
take photos when the freight is being
shipped out and the receiver take photos
when the freight is received.
This Photo by Unknown Author is licensed under CC BY-ND

Consolidating Small
Shipments
▶ Small shipments, often defined as those
that weigh more than 150 pounds and
less than 500 pounds, represent one of
the most challenging situations faced by
the transportation manager. The nature of
transportation costs is that it costs less on
a per-pound basis to ship a larger
quantity because certain costs (fixed,
administrative, or terminal) are the same
per shipment. When the shipment is
larger, such costs can be allocated over a
larger weight. The transportation
manager faces the decision of whether
and when to consolidate large numbers of
small shipments into small numbers of
large shipments. Some shipment
consolidation activities are shown in
Figure 13.4

Consolidating Small
Shipments
▶ Smaller shipments are
problematic for several reasons.
From a carrier perspective,
there may be reluctance to
accept small shipments
because they tend to require a
high degree of manual labor,
thus increasing labor costs. In
addition, there is a belief by
some carriers that they lose
money on small shipments
because the revenues from
them do not sufficiently reflect
cost considerations. Potential
solutions for consolidating small
shipments involve consolidation
across time or place.

Demurrage and
Detention
▶ Demurrage is a penalty payment made
by the shipper or consignee to a
railroad for keeping a railcar beyond the
time when it should be released back to
the carrier. Demurrage is also collected
by inland water carriers if their barges
are kept by the shipper or consignee for
a longer period than allowed. Pipelines
are involved with demurrage if oil stored
in tanks at destination is not removed
within specified time limits. Detention is
basically the same concept as
demurrage, except that it usually refers
to the trucking industry. Both demurrage
and detention operate on a “free-time”
principle; that is, shippers or consignees
are permitted a specified amount of
time to load or unload freight before
monetary penalties are levied Many
carriers currently offer averaging
agreements, where an accounting
system of debits and credits is
established, for demurrage and
detention..
This Photo by Unknown Author is licensed under CC BY-SA-NC

Routing
▶ Routing can be defined as the
“process of determining how a
shipment will be moved between
origin and destination.”13 One
example of routing is a routing
guide, which is a document that can
provide a variety of shipment-related
information such as shipment
preparation, freight invoicing, a list
of preferred carriers, and a list of
which carrier or carriers to use for
shipments moving between two
points. Routing guides are intended
to standardize various aspects
associated with transporting
shipments and can simplify
modal/carrier selection (e.g., modes
and/or carriers may be explicitly
identified), reduce transportation
costs (e.g., via volume discounts),
and improve supply chain
performance (e.g., reduced cycle
times).

Tracking and
Expediting
▶ Tracking refers to determining a
shipment’s location during the course of
its move, and the ability to track
shipments directly affects expediting,
which involves the need to rapidly move a
shipment to its final destination. Today,
many transportation carriers have
information systems that provide real-time
information about shipment status, and
this information is widely available to
customers through the Internet and smart
phones, thus making it fast and easy to
trace shipments. Air transportation and
motor carriers are the two most prominent
modes involved in expediting, and both
modes played key roles in alleviating
supply chain problems, such as
congestion and delays, that arose with
U.S. West Coast water port labor issues
in late 2014 and early 2015.
This Photo by Unknown Author is licensed under CC BY

Transportation Service
Quality
▶ We will conclude this chapter with a look at
transportation service quality. Chapter 7
pointed out that macroenvironmental
changes, such as globalization and
advances in technology, have caused
organizations to demand higher levels of
service quality, and this is particularly true
for transportation services. For example,
when one of the authors worked in the
trucking industry in the late 1970s and early
1980s, shipment tracking was a laborious
manual process that might take multiple
days before information was provided to a
transportation manager about a particular
shipment. Today, by contrast, the
combination of real-time information systems
and global positioning systems allows for
virtually instantaneous tracking of a
shipment, and this tracking information is
increasingly provided to the transportation
manager on mobile devices such as a
laptop, tablet, and/or smart phone. A number
of organizations utilize transportation
performance scorecards that contain a list of
relevant attributes (perhaps the same
attributes used to select carriers) and an
evaluation of each carrier on every attribute.

Example of a Carrier
Performance
Scorecard
▶ Table 13.3 illustrates how a carrier
performance scorecard might work;
in this example, the transportation
manager has selected five
performance attributes that will be
used to evaluate individual carriers.
The performance scorecard can be
used as a diagnostic tool; if an
individual carrier’s performance is
rated as lower than, say, 70, then
the carrier might be put on probation
for a certain time period. There are
also more “positive” manifestations
of transportation service quality. A
number of organizations now
officially recognize (e.g., a press
release, an awards recognition
dinner, a plaque) transportation
carriers that provide superior
service.

Conclusion
▶ This chapter covered transportation
management, which refers to the buying
or selling of transportation services by a
shipper or consignee. This chapter
analyzes several of a transportation
manager’s primary responsibilities. Rate
considerations are one prominent
responsibility, particularly in terms of rate
determination. A transportation manager
is also responsible for modal and carrier
selection, and an emerging selection trend
involves a focus on transportation metrics
as opposed to transportation mode.
Documentation is another responsibility of
a transportation manager, and the chapter
discussed key documents such as the bill
of lading, freight bill, and freight claims.
Another key area of decision making in
transportation management is making and
receiving shipments, which includes
activities such as shipment consolidation,
demurrage, and detention, among others.
The chapter concluded by looking at
transportation service quality.

Terminal Learning
Objectives
▶ To compare and contrast
transportation infrastructures in
several countries
▶ To identify the five modes of
transportation and learn about
their respective characteristics
▶ To discuss intermodal
transportation
▶ To describe several types of
transportation specialists
▶ To explain how different types of
regulation impact transportation
▶ To identify the legal classification
of transportation carriers

Transportation
▶ Transportation, which can be
defined as the actual,
physical movement of goods
and people between two
points, is pivotal to the
successful operation of any
supply chain because it
carries the goods, literally, as
they move along the chain.
Transportation influences, or
is influenced by, the logistics
activities discussed in
previous chapters.

Transportation
▶ These include:
1. Transportation costs are directly affected by
the location of the firm’s plants, warehouses,
vendors, retail locations, and customers.
2. Inventory requirements are influenced by the
mode of transport used. High-speed, high-
priced transportation systems require
smaller amounts of inventories in a logistics
system, whereas slower, less-expensive
transportation requires larger amounts of
systemwide inventory.
3. The transport mode selected influences the
packaging required, and carrier classification
rules dictate package choice.
4. The type of carrier used dictates a
manufacturing plant’s materials handling
equipment, such as loading and unloading
equipment and the design of the receiving
and shipping docks.
5. An order-management philosophy that
encourages maximum consolidation of
shipments between common points enables
a company to give larger shipments to its
carriers and take advantage of volume
discounts.
6. Customer service goals influence the type
and quality of carrier and carrier service
selected by the seller.

Introduction
Transportation involves the physical movement of goods
between origin and destination points.
The transportation system links geographically separated
partners and facilities in a company’s supply.
Transportation facilitates the creation of time and place
utility in the supply chain.
Transportation also has a major economic impact on the
financial performance of businesses.

Role of Transportation in Supply Chain Management
Transportation provides the critical links between these organizations,
permitting goods to flow between their facilities.
Transportation service availability is critical to demand fulfillment in the
supply chain.
Transportation efficiency promotes the competitiveness of a supply chain

Challenges to Carrying out This Role
supply chain complexity
competing goals among supply chain partners
changing customer requirements
limited information availability
synchronizing transportation with other supply chain activities

Challenges to Carrying out This Role
Transportation capacity constraints pose a challenge.
Rising transportation rates present another major concern for
organizations.
The transportation industry is impacted by governmental
requirements that affect cost structures and service capabilities.
Regulation is growing in areas where the transportation industry has
the potential to impact the quality of life, the safety of citizens, and
the growth of commerce.

Comparing and
Contrasting
Transportation
Infrastructure
▶ Because many readers of this
text reside outside the United
States, it would be helpful to
present a brief comparison of
the transportation infrastructure
that exists in five highly
populated countries located on
various continents. These
infrastructure data, shown in
Table 12.1, indicate wide
disparities in the various
infrastructures; at a minimum, a
lack of infrastructure makes it
difficult to use that mode in
domestic (within-country)
transportation.

Comparing and
Contrasting
Transportation
Infrastructure
▶ The relevant infrastructure statistic for
air transportation in Table 12.1 is the
number of paved runways over 3,047
meters (approximately 10,000 feet).
This length is significant because a
10,000-foot runway has generally been
viewed as adequate for accommodating
the largest existing wide-body aircraft;
wide-body aircraft are essential to long-
haul international movements of both
freight and passengers. According to
Table 12.1, the United States by far has
the most airports with paved runways of
at least 10,000 feet, an indication that
the United States is well positioned to
participate in long-haul international
movements. Although China currently
reports over 70 airports with 10,000 foot
runways, this number is expected to
increase because the country plans to
construct nearly 40 new commercial
airports by 2020.

Comparing and
Contrasting
Transportation
Infrastructure
▶ The infrastructure statistics for
highway, pipeline, and water,
presented in kilometers (1 kilometer
is equivalent to approximately .62
miles), provide some interesting
findings. For example, although
Brazil and China are approximately
the same geographic size, China
currently has about 16 times more
paved highway kilometers than
Brazil. (It’s worth noting that China
has added over 1,800,000
kilometers of paved highways since
2010.) The data also indicate that oil
pipelines are much more prevalent
in the United States, and that China
has much more extensive inland
waterways, relative to the four other
countries listed in Table 12.1

Comparing and
Contrasting
Transportation
Infrastructure
▶ The Table 12.1 information on rail gauge
(the distance between the inner sides of two
parallel rail tracks) is also enlightening. The
United States uses only one size—
standard—rail gauge (1.435 meters) in its
rail infrastructure. Brazil and China, by
contrast, use broad gauge (1.676 meters),
standard gauge, and narrow gauge (1.000
meter) in their rail infrastructure, whereas
Nigeria primarily uses narrow gauge rail—
with Nigeria’s narrow gauge measured at
1.067 meters rather than 1.000 meter. The
data on rail gauge are important because
nonuniform rail gauge within a country, or
between neighboring countries, means that
shipments moving by rail will need to be
transferred from one vehicle to another,
which adds to both delivery time and costs.
For example, China and India share a
common border; while China primarily uses
standard rail gauge, India, by contrast,
primarily uses broad rail gauge

Transportation Modes
▶ Each of the five modes of
transportation exists because of
certain attributes that provide one
or more advantages over the
other modes of transportation.
The attractiveness of a particular
mode depends on the following
attributes:
• Cost (price that a carrier charges
to transport a shipment)
• Speed (elapsed transit time from
pickup to delivery)
• Reliability (consistency of
delivery)
• Capability (amount of different
types of product that can be
transported)
• Capacity (volume that can be
carried at one time)
• Flexibility (ability to deliver the
product to the customer)

Modes of Transportation
primary modes of transportation
• truck
• rail
• air
• water
• pipeline
• intermodal transportation

moves approximately 19.5 billion tons valued at nearly $13 trillion
Modal breakdown:
Trucking 80.0 %
Rail 06.7%
Air 04.7%
Water 04.6%
Pipeline 01.2%

Motor Carriers
widely used mode of transportation in the domestic supply chain
573,469 private, for hire, and other U.S. interstate motor carriers
economic structure of the motor carrier industry contributes to the vast
number of carriers in the industry
comprised of for-hire and private fleet operations
Truckload carriers.
Less-than-truckload (LTL)
Small package carriers
Low fixed cost, high variable

Railroads
7 Class I railroads revenues in excess of $290 million
Activity levels have been achieved despite a lack of direct accessibility to all
parts of the supply chain
Railroads are “natural monopolies”
Two carrier types:
Linehaul
Shortline carriers
High fixed, low variable

Water
Major facilitator of international trade
81% international freight movement
19% coastal, inland, and Great Lakes traffic
High variable and low fixed cost
Two primary carrier types
Liner
Charter
Options include
Container ships
Bulk carriers
Tankers
General cargo ships
Roll-on, roll-off (RO–RO) vessels

Air Carriers
491 air cargo carriers
Combination carriers
Air cargo carriers
Integrated carriers
Nonintegrated carriers
Domestic market is dominated by 14 major carriers
High variable and low fixed cost

Pipeline
Unique mode of transportation as the equipment is fixed in place
and the product moves through it in high volume
174 operators of hazardous liquid pipelines that primarily carry
crude oil and petroleum products
Three primary types
Gathering lines
Trunk lines
Refined product pipelines
High fixed versus low variable

Intermodal Transportation
Use of two or more different modes in movement
Greater accessibility
Overall cost efficiency
Facilitates global trade
Development of standardized containers that are compatible with
multiple modes.
Product-handling characteristics
Containerized freight
Transload freight

Decision to Outsource Transportation
Firms choose between “make” or “buy”
Commercial carriers “buy”
Private fleets “make”
External experts move the freight and/or manage the transportation
process “buy”
Third-party logistics (3PL) “buy”

Modal Selection
Accessibility
Accessibility advantage: Motor carriage
Accessibility disadvantage: Air, rail, and water
Transit Time
Transit time advantage: Air and motor carriage
Transit time disadvantage: Rail, water, and pipeline
Reliability
Reliability advantage: Motor carriers and air carriers
Reliability disadvantage: Water carriers and rail carriers

Modal Selection
Product Safety
Safety advantage: Air transportation and motor carriage
Safety disadvantage: Rail and water
Cost
Cost advantage: The cost of transportation service varies greatly between
and within the modes
Cost disadvantage: Motor carriage and air transportation

Modal Selection
The nature of a product—size, durability, and value
Durability
Product value
Shipment characteristics—size, route, and required speed

Modal Selection
Modal selection refers to the process of choosing the most appropriate
transportation mode or combination of modes to move goods or people
from one location to another. This decision involves considering various
factors such as cost, transit time, distance, cargo characteristics,
infrastructure availability, environmental impact, and specific logistical
requirements.

Modal Selection
Here's a breakdown of the steps involved in modal selection:
1. Define Transportation Needs: Clearly outline the requirements of the transportation task,
including the type of goods or passengers, volume, weight, dimensions, origin, destination, and
any special handling or delivery considerations.
2. Identify Available Modes: Determine the transportation modes that are suitable for the given
task. Common modes include road, rail, water (maritime or inland), air, pipeline, and
intermodal combinations.
3. Evaluate Mode Characteristics: Assess the characteristics and capabilities of each
transportation mode based on the following criteria:
• Cost: Consider transportation costs, including freight rates, fuel expenses, tolls, and other
associated fees.
• Transit Time: Evaluate the speed of each mode and its ability to meet delivery deadlines.
• Reliability: Assess the mode's reliability in terms of scheduling, frequency, and on-time
performance.
• Capacity: Determine the mode's capacity to handle the volume and size of the shipment or
passenger demand.
• Accessibility: Consider the accessibility of transportation infrastructure at both origin and
destination points.
• Flexibility: Evaluate the mode's flexibility to accommodate changes in demand, routing, or
scheduling.
• Environmental Impact: Assess the environmental footprint of each mode, including emissions,
energy consumption, and sustainability considerations.
4. Analyze Trade-offs: Compare the advantages and disadvantages of each transportation mode,
considering factors such as cost-effectiveness, speed, reliability, and environmental impact.

Modal Selection
Here's a breakdown of the steps involved in modal selection:
5. Consider Intermodal Options: Explore the possibility of using multiple transportation
modes in combination (intermodal or multimodal transport) to leverage the strengths
of each mode while minimizing weaknesses. This could involve a combination of road,
rail, water, or air transport depending on the specific requirements of the shipment or
passenger movement.
6. Evaluate Risk Factors: Assess potential risks associated with each transportation
mode, such as weather-related disruptions, infrastructure constraints, security
concerns, and regulatory compliance issues.
7. Select Optimal Mode: Based on the evaluation criteria and trade-offs, determine the
most suitable transportation mode or combination of modes that best aligns with the
transportation needs, budgetary constraints, and logistical requirements.
8. Plan and Coordinate: Develop a transportation plan that outlines the chosen mode(s),
route(s), scheduling, and other logistics. Coordinate with transportation providers,
suppliers, and other stakeholders to ensure smooth execution of the transportation
task.
9. Monitor and Adjust: Continuously monitor the performance of the chosen
transportation mode(s) and make adjustments as necessary to optimize efficiency,
address any issues, and adapt to changing conditions or requirements.

Carrier Selection
selecting the individual transportation service providers within the mode
major difference between modal and carrier selection is the number of options
difference is the frequency of the decision
type of service provided within a mode impacts carrier selection
most carriers have the capabilities to provide a similar level of service
Core carrier
limited number of carriers
leverage its purchasing dollars

Carrier Selection
Carrier selection refers to the process of choosing the most suitable
transportation or shipping company to transport goods from one location to
another. This process involves evaluating various carriers based on factors such
as cost, reliability, transit time, service quality, coverage area, and specific
transportation requirements.

Carrier Selection
Here are some key steps involved in carrier selection:
1. Identify Transportation Needs: Determine the specific requirements of the shipment,
including the type of goods being transported, dimensions, weight, and any special
handling or delivery instructions.
2. Research Carriers: Research and compile a list of potential carriers that operate in the
relevant geographic area and offer the services needed. This research can be
conducted through online searches, industry directories, referrals, and trade
associations.
3. Evaluate Carrier Options: Assess each carrier based on factors such as:
• Cost: Compare rates, fees, and surcharges to ensure competitiveness.
• Reliability: Consider the carrier's track record for on-time deliveries, transit time
consistency, and handling of cargo.
• Service Quality: Evaluate customer reviews, testimonials, and reputation for customer
service.
• Coverage Area: Verify that the carrier serves the desired origin and destination
locations.
• Specialized Services: Determine if the carrier offers any specialized services required
for the shipment, such as temperature-controlled transport or hazardous materials
handling.
4. Request Quotes: Contact selected carriers to request quotes for the transportation
services needed. Provide detailed information about the shipment to ensure accurate
pricing.
5. Negotiate Terms: Negotiate pricing, service levels, payment terms, and any other
relevant terms and conditions with the carriers to secure the best possible
arrangement.

Carrier Selection
Here are some key steps involved in carrier selection:
6. Review Contracts: Carefully review the terms of the contract or
service agreement provided by the selected carrier to ensure
alignment with expectations and requirements. Pay attention to
liability limits, insurance coverage, and dispute resolution
procedures.
7. Perform Due Diligence: Verify the carrier's credentials, licenses,
insurance coverage, and compliance with relevant regulations and
industry standards.
8. Select Carrier: Based on the evaluation criteria and negotiations,
choose the carrier that best meets the transportation needs while
providing the optimal balance of cost, reliability, and service quality.
9. Establish Communication: Maintain open communication with the
selected carrier throughout the shipping process to address any
issues, provide instructions, and ensure smooth coordination.
10.Monitor Performance: Continuously monitor the carrier's
performance to assess adherence to service levels, identify any
areas for improvement, and make adjustments as needed.

Rate Negotiations
centralized freight rate negotiations
developing contracts with carriers for a tailored set of transportation
services at a specific price
leveraging volume with a small set of carriers

Rate Negotiations
Rate negotiations refer to the process of discussing and agreeing
upon the price or rates for goods or services between two parties.
This process commonly occurs between buyers and sellers,
service providers and clients, or employers and employees.
Successful rate negotiations require preparation, effective
communication, flexibility, and a focus on creating value for both
parties. By approaching negotiations with a collaborative mindset
and a willingness to explore creative solutions, you can increase
the likelihood of achieving a favorable outcome.

Rate Negotiations
Effective rate negotiations involve several key steps:
1. Preparation: Before entering negotiations, it's essential to thoroughly
research market rates, understand the value of the goods or services
being provided, and clarify your own objectives and constraints.
2. Setting Goals: Determine your ideal outcome and your bottom line.
Define what you are willing to accept and what you consider a fair price or
rate based on your research and analysis.
3. Understanding the Other Party's Perspective: Consider the needs,
priorities, and constraints of the other party. Understanding their
perspective allows you to tailor your negotiation strategy and find mutually
beneficial solutions.
4. Effective Communication: Clearly articulate your position, including the
value you provide and any relevant factors that support your desired rate.
Listen actively to the other party's concerns and interests and address
them thoughtfully.
5. Creative Problem-Solving: Explore alternative solutions or concessions
that could satisfy both parties' interests. This might include adjusting

Rate Negotiations
Effective rate negotiations involve several key steps:
6. Building Rapport: Establishing a positive and respectful relationship with
the other party can facilitate negotiations and increase the likelihood of
reaching a mutually satisfactory agreement.
7. Flexibility: Be open to compromise and flexible in your approach. While
it's important to advocate for your interests, rigid positions can impede
progress and lead to a breakdown in negotiations.
8. Negotiating Tactics: Employ negotiation tactics such as anchoring
(setting the initial offer), making concessions strategically, and using time
pressure judiciously to influence the negotiation process.
9. Documenting Agreements: Once an agreement is reached, ensure that
the terms are clearly documented in a written contract or agreement to
avoid misunderstandings or disputes in the future.
10. Follow-Up: After reaching an agreement, maintain open communication
and fulfill your commitments promptly. Building trust through reliable
performance can lay the foundation for future negotiations.

Shipment Preparation
corporate transportation routing guide
last-minute, cost-saving decisions
consolidate freight
coordinate shipment deliveries
take full advantage of container capacity
an accurate freight count should be taken

Freight Documentation
bill of lading
originates the shipment
provides all the information the carrier needs
stipulates the contract terms, including carrier’s liability for loss
and damage
acts as a receipt for the goods the shipper tenders to the carrier
in some cases, shows certificate of title to the goods

Freight bill
carrier’s invoice for carrier charges
lists:
shipment
origin and destination
consignee
items
total weight
total charges

Freight claims form
Filed with the carrier to recoup monetary losses resulting if carrier fails
to protect the shipment.
Carriers are not liable for freight claims if the damage is attributable to:
Natural disaster or some other “act of God”
Military attack or similar “act of public enemy”
Government seizure of freight or “act of public authority”
Failure to adequately package the freight or other negligent “act of the
shipper”
Extreme fragility, perishability, or similarly problematic “inherent nature of
the goods”

Maintain In-Transit Visibility
manage key events as product moves across the supply chain
technology facilitates the ability to monitor product
visibility tools must be linked to other capabilities and processes to have
an impact on supply chain event management

Monitor Service Quality
analyze the outcome of all their transportation strategy, planning, and
decision-making
key requirement for service quality monitoring is information

Transportation Metrics
key performance indicators (KPIs)
can be used to evaluate
current performance versus historical results
internal goals
carrier commitments
challenge lies in narrowing down metrics available to monitor performance
to a manageable number of KPIs
primary categories of transportation KPIs include service quality and
efficiency

Transportation Management Systems (TMS)
Critical applications include the following:
Routing and scheduling
proper planning of delivery routes has a major impact on customer
satisfaction, supply chain performance, and organizational success
Load planning
effective preparation of safe, efficient deliveries
Load tendering
Status tracking
Appointment scheduling

Without question, transportation is a very dynamic activity and a critical supply chain
process. Not only is it the largest logistics cost component in most supply chains, but it
also directly impacts fulfillment speed and service quality. By providing the physical links
between key participants across domestic and global supply chains, transportation
facilitates the creation of time and place utilities. Organizations with highly efficient and
effective transportation processes can differentiate their product in the marketplace
through lower landed costs and greater inventory availability.
Managing the transportation process for maximum supply chain impact requires
considerable knowledge of transportation options, planning, decision making, analytical
skills, and information sharing capabilities.
Transportation is a key supply chain process and must be included in supply chain strategy
development, network design, and total cost management.
Numerous obstacles—global expansion of supply chains, rising costs, limited capacity, and
government regulation—must be overcome to synchronize transportation with other
supply chain processes.
Fulfillment of supply chain demand can be accomplished through five modal options or
the intermodal use of truck, rail, air, water, and pipeline transportation.

Multiple planning activities occur prior to carrier and mode selection: who will be
responsible for managing the transportation function within the organization, what terms
of sale and payment will be used, and how goods will be transported must all be
determined with a strategic supply chain focus.
Mode selection is based on the relative strengths of each modal/intermodal option in
terms of accessibility, transit time, reliability, safety and security, transportation cost, and
the nature of the product being transported.
Carrier selection focuses on the type of service required (direct or indirect), geographic
coverage, service levels, and carrier willingness to negotiate reasonable rates.
Most commercial freight moves under contractual rates that are negotiated directly
between freight buyers and transportation companies for specific volumes of tailored
services at mutually agreed-upon prices.

Shipment routing guides help organizations ensure internal compliance with service contracts
and maintain centralized control over freight tendering decisions.
Freight documentation provides the details of each shipment, sharing critical information that
promotes uninterrupted flows of goods through the supply chain. Domestic transportation
documents include the bill of lading, freight bill, and freight claims, while international freight
requires additional paperwork such as a commercial invoice, shipper’s letter of instructions,
certificate of origin, and insurance certificates.
Organizations must continue to manage freight after it has been tendered to carriers by
maintaining in-transit visibility of shipments and monitoring carrier performance.
Numerous metrics are available to evaluate transportation service quality in terms of carrier
timeliness, freight protection, accuracy, and perfect deliveries. Service efficiency measures
focus on spending proficiency, asset utilization, and labor productivity.

Transportation management systems are widely used information
technologies that support the effective planning, execution, and analysis of
transportation processes. Emerging tools such as event management and RFID
have the potential to improve supply chain visibility and dynamic response to
potential challenges.

Transportation Modes
▶ It is important to recognize that public policy
can affect a mode’s performance on these
attributes. Railroads, for example, were the
dominant mode, as measured by ton miles
(the number of tons multiplied by the number
of miles transported) and revenues, in the
United States from the nineteenth century
through the middle part of the twentieth
century.
From a public policy perspective,
construction costs of the Interstate Highway
System were primarily paid for by the U.S.
government (90 percent), with the remaining
construction costs paid for by state
governments. This funding by both the
federal and state governments is significant
because U.S. railroads have been
responsible for the construction costs of their
track systems, whereas rail construction
costs in other nations are often covered by
the national government. As such, the U.S.
railroads have a substantial cost
disadvantage relative to motor carriers, and
this cost disadvantage must be captured in
railroad pricing practices.

Airfreight
▶ When one thinks of air transportation, one
immediately thinks of speed, particularly on
the line-haul (terminal-to-terminal movement
of freight or passengers); modern jet aircraft
can travel between 500 and 600 miles per
hour, a speed that far exceeds any other
form of transportation. Indeed, air is
generally the fastest mode of transportation
for shipments exceeding 600 miles although
some motor carriers now offer overnight
service of between 600 and 700 miles.
However, air transportation is a quite
expensive form of transportation, and the
line-haul cost of airfreight service is regarded
as its primary disadvantage; many
companies simply cannot afford to have their
shipments travel by air. Moreover, because
most shippers and consignees (receivers of
freight) are not located at an airport, this
requires transportation from the shipper to
the origin airport as well as from the
destination airport to the consignee. This
accessorial service (transportation service
that is supplemental to the line-haul) adds to
both transportation costs and transit time
and also increases the number of times a
shipment is handled (thus increasing
handling costs and the opportunities for loss
and damage).

Airfreight
▶ Examples of products that move by air
include:
• Auto parts and accessories
• Cut flowers and nursery stock
• Electronic or electrical equipment, such
as cell phones and iPods
• Fruits and vegetables
• Machinery and parts
• Metal products
• Photographic equipment, parts, and film
• Printed matter
• Wearing apparel
The reliability of airfreight is somewhat
problematic. On the one hand, air’s
tremendous speed relative to the other
modes offers the potential to “make up
lost time” that isn’t possible with the other
modes. Alternatively, because so much
airfreight is belly freight, the increasing
congestion and resultant delays
associated with air passenger
transportation mean congestion and
delays for airfreight. This Photo by Unknown Author is licensed under CC BY-SA

Motor Carriers
▶ The backbone of the U.S. highway
system is the Interstate Highway
System (its formal name is the
Dwight D. Eisenhower System of
Interstate and Defense Highways),
which was approved by federal
legislation in 1956. This nearly
47,000-mile, high-speed, limited-
access highway system has had a
profound impact on economic
development in the United States.
From a logistics perspective, many
companies began to locate
manufacturing, assembly, and
distribution facilities in close
proximity to interstate highways.
Indeed, accessibility to highways
consistently ranks as the most
important factor in annual surveys of
corporate location decisions.
This Photo by Unknown Author is licensed under CC BY-ND

Motor Carriers
▶ The most important business user of the
highway system is the motor carrier
(trucking) industry. One way of classifying
motor carriers is according to whether they
carry less-than-truckload (LTL) or truckload
(TL) traffic. Less-than-truckload (LTL)
shipments range from about 150 to 10,000
pounds; they are often too big to be
handled manually, yet they do not fill an
entire truck. Trucks that carry LTL freight
have space for and plan to carry shipments
of many other customers simultaneously.
Unlike TL carriers, LTL carriers operate
through a system of terminals (a facility
where freight is shifted between vehicles),
and from each terminal small trucks go out
to customers, delivering and picking up
shipments. These shipments are then
taken to a terminal, where they are loaded
aboard line-haul trucks, which are driven to
a terminal near the freight’s destination.
The goods are unloaded from the line-haul
carrier, move through the terminal, and are
loaded aboard a small truck for local
delivery. Prominent LTL carriers include
ABF Freight, FedEx Freight, UPS Freight,
and YRC Freight.

Motor Carriers
▶ Truckload (TL) carriers focus on
shipments of greater than 10,000 pounds,
and although the exact weight depends
on the product, it is close to the amount
that would physically fill a truck trailer. For
glassware, this might be 18,000 pounds;
for canned goods, it might be 40,000
pounds. Although LTL companies tend to
be limited in the type of freight that they
haul—primarily dry freight such as
apparel, books, and greeting cards,
among others—TL companies can carry
a plethora of freight types. Although U.S.
motor carriers can travel wherever there
are roads, their length of haul is mitigated
by several factors, such as speed limits
and hours-of-service (HOS) rules. Both
HOS and highway speed limits have long
been justified on the basis of safety
concerns, and several states (e.g.,
California, Oregon, Washington) mandate
a two-tier speed limit policy in which the
maximum speed for motor carriers is
lower than for automotive vehicles. This Photo by Unknown Author is licensed under CC BY

Motor Carriers
▶ Without question, the primary advantage
for motor carriers is flexibility, or the
ability to deliver the product to the
customer (or where the customer has
relatively easy access to it). For example,
if you bought this textbook at your
university’s bookstore, this book was
delivered there by some type of motor
carrier, perhaps an LTL carrier. As was
the case with airfreight, weather
considerations also affect the reliability of
motor carrier delivery, and relevant
weather considerations include ice, fog,
snow, flooding, and high winds (which
can affect bridge crossings). Although the
cost of motor carrier service is lower than
for airfreight, motor carriers tend to be
more costly than the remaining modes of
transportation. These cost variations
highlight the importance of understanding
the trade-offs between logistical
activities that have been discussed
throughout the text. For example,
suppose an organization manufactures
8,000 pounds of cat litter per day.

Pipelines
▶ Pipelines are a unique mode of
transportation because it is the only one
without vehicles, and this is significant
for several reasons. First, there is no
need for vehicle operators, an important
consideration given that some vehicle
operators, such as airplane pilots and
ship captains, can achieve annual
compensation in excess of $200,000. In
addition, vehicle operators sometimes
engage in work stoppages (e.g., strikes)
and can be the cause of accidents. The
lack of vehicles also means that
pipeline transportation is one way; other
modes have two-way transportation, a
fronthaul and a backhaul. The backhaul
is often a significant source of excess
capacity, or unused available space.
Pipelines’ lack of vehicles means that it
is the most reliable form of
transportation in part because there
aren’t vehicle-related disruptions (such
as accidents), and pipelines are virtually
unaffected by adverse weather
conditions.

Logistics and Transportation Part 13.pptx

Logistics and Transportation Part 13.pptx

Recommended

Recommended

More Related Content

Similar to Logistics and Transportation Part 13.pptx

Similar to Logistics and Transportation Part 13.pptx (20)

More from Sheldon Byron

More from Sheldon Byron (20)

Recently uploaded

Recently uploaded (20)

Logistics and Transportation Part 13.pptx