Transportation refers to the movement of products through the supply chain from production to consumption. It is an important part of logistics and supply chain management as products are rarely produced and consumed in the same location. There are various modes of transportation including road, rail, water, air, pipeline, and intermodal, each with their own advantages and costs depending on factors like speed, availability, dependability, cargo capabilities, frequency, and fixed versus variable costs. Transportation plays a crucial role in efficiently and economically distributing goods throughout the supply chain.

1. TRANSPORTATION

2. • Transportation refers to the movement of product from
one location to another as it makes its way from the
beginning of supply chain to the customer.
• Transportation is an important supply chain driver
because products are rarely produced and consumed in
the same location.
• “Safe, efficient, reliable, and sustainable movement of
persons and goods over time and space”.
Introduction of Transportation

3. Transportation in Logistics:
• The operation of transportation determines the efficiency of
moving products
• The progress in techniques and management principles improves
the moving load, delivery speed, service quality, operation costs,
the usage of facilities and energy saving.
• Transportation takes a crucial part in the Logistics Operation
• Therefore, transportation is the base of efficiency and economy in
business logistics and expands other functions of logistics system

4. Role of transportation in supply
chain management

5. Modes of Transportation
Air Water Surface intermodal
Package
Carrier
Inland
PipelineRailRoad
Oversea

6. • Trucking industry is divided into two parts i.e.
TL: Truck Load and LTL: Less than Truck load.
• TL: TL pricing display the economic of scale with respect the
distance travel. TL shipping suited for transportation between
manufacturing facilities and warehouses.
• LTL: LTL operations are priced to encourage shipments in
small lots, usually less than half a TL. LTL shipping is suites
for shipments that are large to be mailed as small packages.
Truck

7. Road Transport Advantages:
•It is a relatively cheaper mode of transport as compared to other
modes.
• It is a flexible mode of transport as loading and unloading is possible
at any destination. It provides door-to-door service.
• It helps to carry goods from one place to another, in places which are
not connected by other means of transport like hilly areas.
Limitations of Road transport:
•Due to limited carrying capacity road transport is not economical for
long distance transportation of goods.
• Transportation of heavy goods or goods in bulk by road involves high
cost.

8. • Air freighting is commonly used by companies who work with
short lead times, or advanced service levels.
• Air transportation is best suited for small, high- value items or
time sensitive emergency shipments that have to travel a long
distance.
• Air carriers normally move shipments that have high value but
light weight .
Air

9. Advantages of Air transportation:
• It is the fastest mode of transport.
• It is very useful in transporting goods to the area, which are not
accessible by any other means.
• Reduces lead time.
• Improved service levels
Disadvantages:
• It is relatively more expensive mode of transport.
• It is not suitable for transporting heavy and bulky goods.
•It is not suitable for short distance travel.

10. • Package carriers are transportation companies which carry
small packages. Examples: FedEx, UPS, DHL. Etc.
• Package carrier use air, truck and rail to transport the goods.
Packages carriers also provide other value added services that
allow shippers to inventory flow and track order status, shipper
can proactively inform the customer about their packages.
• Package carrier is suited for e- business.
Package Carrier

11. • Rail transport uses freight trains for the delivery of
merchandise. Freight trains are usually powered by diesel,
electricity and steam.
• Rail is suited for bulk shipment of products like fertilizer,
cement, food grains and coal etc. from the production plant to
the warehouses.
Rail

12. Advantages of Rail transportation:
• It is relatively faster than road transport.
• It is suitable for carrying heavy goods in large quantities over long
distances.
•Cost effective.
Limitations of Rail transportation:
• It is relatively expensive for carrying goods over short distances.
• It is not available in remote parts of the country.
• It provides service according to fixed time schedule and is not flexible
for loading or unloading of goods at any place.

13. • Water transport uses ships and large commercial vessels that
carry billions of tons of cargo.
• Water transport is used primarily for the movement of large
bulk commodity shipments and it is the cheapest mode for
carrying such load.
• Water transport is particularly effective for significantly large
quantities of goods that are non-perishable in nature and for
cities or states that have water access.
Water

14. Advantages of water transportation:
• It is a relatively economical mode of transport for bulky and heavy
goods.
• The cost of maintaining and constructing routes is very low most of
them are naturally made.
• It promotes international trade.
Disadvantages:
• The depth and navigability of rivers and canals vary and thus, affect
operations of different transport vessels.
• It is a slow moving mode of transport and therefore not suitable for
transport of perishable goods.
•It is adversely affected by weather conditions.
•Sea transport requires large investment on ships and their maintenance.

15. • A bill of lading (BL - sometimes referred to as BOL or B/L)
is a document issued by a carrier to a shipper, acknowledging
that specified goods have been received on board as cargo for
conveyance to a named place for delivery to the consignee
who is usually identified.
• A through bill of lading involves the use of at least two
different modes of transport from road, rail, air, and sea.
• The term derives from the verb "to lade" which means to load
a cargo onto a ship or other form of transportation.
• A bill of lading can be used as a traded object.

16. The BL must contain the following
information:
• Name of the shipping company;
• Flag of nationality;
• Shipper's name;
• Order and notify party;
• Description of goods;
• Gross/net/tare weight; and
• Freight rate/measurements and weight of goods/total freight

17. • Pipeline is used primarily for the transport of crude petroleum,
refined petroleum products and natural gas.
• It include a significant initial fixed cost in setting up the
pipeline and related infrastructure.
• Pipelines are not flexible and this scope is limited with respect
to commodities.
• Unable to transport a variety of materials
Pipeline

18. • Intermodal Transportation is use of more than one mode of
transport for the movement of shipment from origin to its
destination.
• Intermodal operation is used two or more mode of transport
to take the advantage of inherent
economies of each and thus
provide the integrated service at
lower cost.
For example: truck/water/rail.
Intermodal Transportation

19. Multimodal Transportation:

20. Relative Opening Characteristics by
Transportation Modes:
Operating
Characteristics
Rail Truck Water Pipeline Air Remarks
Speed 3 2 4 5 1 Air is the fastest
Availability 2 1 4 5 3 Road is the best since they
can drive from origin to
destination
Dependability 3 2 4 1 5 Pipeline ranks best-As the
service is continuous and
there is no stoppage due to
traffic or congestion
Capability 2 3 1 5 4 Sea is the best-Can handle
all types and size of cargo
Frequency 4 2 5 1 3 Pipeline is ranked best-As
the movement is
continuous
Composite Score 14 10 18 17 16 Lowest rank is the Best-

21. Cost Structure For Each Module:
Mode Fixed Costs Variable Costs
Rail High- Equipments, Terminals ,
Tracks ,etc
Low
Road Low-Highway provided by
government
Medium-Fuel , Maintenance, etc
Water Medium-Ships and Equipment Low-As capacity is huge
Pipeline Highest-Right of the way ,
construction, Equipment for
control station and Pumping
capacity
Lowest-Insignificant labour costs
Air Low-Aircraft and cargo
handling systems
High- Fuel, labour, Maintenance

22. Cost ratio of logistics items
Inventory Management Transportation Packaging Ordering Warehousing
Cost Ratio 17.5 11 29.5 11.9 5.5 17
0
5
10
15
20
25
30
35

23. • Therefore transportation plays very important role in the
supply chain to distribute the goods from one place to the
another place or we can say that to the customers.
Conclusion: