Mode of transportation in supply chain. This ppt explain the pros and cons of modes of transportation. In addition to this, which is the best mode to move goods from one place to another. We know transportation is core of any business.

2. MEANING
Transport or transportation is the
movement of people, animals and goods
from one location to another. Modes of
transport include air, rail ,road, water, cable,
pipelines and space. The field can be
divided into infrastructure, vehicles, and
operations. Transport is important since it
enables trade between peoples, which in
turn establishes civilizations

3. DEFINITION
Any device used to move an item from one
location to another. Common forms of
transportation include planes, trains,
automobiles, and other two-wheel devices
such as bikes or motorcycles.
The process of shipping or moving an item
from point A to point B

4. IMPORTANCE OF TRANSPORTATION
Without well developed transportation system,
logistics could not bring its advantages into full play.
A good transport system in logistics activities could
provide better logistics efficiency, reduce operation
cost, and promote service quality
A well-operated logistics system could increase both
the competitiveness of the government and
enterprises.
Transport system is the most important economic
activity among the components of business logistics
system

5. How Important is Transportation
Tranportation's Importance to GDP
Housing
24%
Health Care
15%
Food
12%
Other
24%
Education
7% Transportation
11%
Recreation
7%
Housing Health Care Food Transportation Education Recreation Other
Source: Bureau of Transportation Statistics, February 2002

6. Functions of Transportation

7. PRODUCT MOVEMENT
Transferring the required
products to desired locations is
product movement.

8. PRODUCT STORAGE
When unloading and loading is more
expensive then storage
When storage space is limited[situation
when inventory levels are high

9. Principles of Transportation
Economies
of Scale
Economies of
Distance
Principles of
Transportation

10. MODES OF TRANSPORTATION
Rail
Transport
Road
Transport
Water
Transport
Air
Transport

11. Transportation Modes
Rail
Nation’s largest carrier, cost-effective
for shipping bulk products, piggyback
Road / Truck
Flexible in routing & time schedules, efficient
for short-hauls of high value goods
Water
Low cost for shipping bulky, low-value
goods, slowest form
Pipeline
Ship petroleum, natural gas, and chemicals
from sources to markets
Air
High cost, ideal when speed is needed or to
ship high-value, low-bulk items

12. Rail Transport: Advantages
It is a convenient mode of transport for
travelling long distances.
It is relatively faster than road transport.
It is suitable for carrying heavy goods in
large quantities over long distances.
Its operation is less affected by adverse
weather conditions like rain, floods, fog
etc.

13. Limitations of Railway Transport
It is relatively expensive for carrying goods
and passengers 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.
It involves heavy losses of life as well as goods
incase of accident

14. Advantages : Road Transport
It is a relatively cheaper mode of transport as
compared to other modes.
Perishable goods can be transported at a faster
speed by road carriers over a short distance.
It is a flexible mode of transport as loading and
unloading is possible at any destination. It provides
door -to- door service.
It helps people to travel and carry goods from one
place to another, in places which are not connected
by other means of transport like hilly areas

15. 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.
Limitations : Road Transport

16. Advantages: Water Transport
It is a relatively economical mode of
transport for bulky and heavy goods.
It is a safe mode of transport with
respect to occurrence of accidents.
 The cost of maintaining and
constructing routes is very low most of
them are naturally made.
It promotes international trade.

17. Disadvantages: Water Transport
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

18. Advantages : Air Transport
It is the fastest mode of transport.
It is very useful in transporting goods and
passengers to the area, which are not
accessible by any other means.
It is the most convenient mode of
transport during natural calamities.
It provides vital support to the national
security and defence

19. Disadvantages : Air Transport
It is relatively more expensive mode of
transport.
It is not suitable for transporting heavy
and bulky good.
.It is affected by adverse weather
conditions.
It is not suitable for short distance travel.
 In case of accidents, it results in heavy
losses of goods, property and life.

20. Selection of Mode of Transport
Cost of
Transport
Speed
Distance
Size of
Shipment
Commodity
Value

21. ISSUES IN TRANSPORTATION
 SPEED AND DELIVERY TIMES
The most precious commodity in the transportation industry is time,
so it makes sense that automation tools addressing issues related to
time on the road will show the most promise in helping companies
achieve their logistics goals.
 Transportation Challenges
Transportation by road is the primary mode of freight cargo
transportation in India. Nearly 60% cargo moves by road. Owing to
over-saturated rail networks and high rail tariffs, a mere 32% cargo
moves by rail. Although majority of the supply chain moves by road, it
is not without a fair amount of hiccups. Road transportation proves to
be quite inefficient because of poor road infrastructure, multiple
checkpoints, and congestion.

22.  Bulk Order Intensity Ratio
Keeping up with bulk order timelines is a herculean task for
transportation companies. Every Indian Transportation Company in the
Logistic Sector has faced the exhausting issue of keeping up with the
supply-chain timeline in the event of receiving bulk load of orders. In the
instance of high volume of orders received, it often gets difficult to
prioritize and juggle orders and deliveries on an extremely tight timeline.
This challenge gets aggravated when the company has limited resources,
owing to the difficult payment cycles. Festival time is the best example of
mass delays in delivery schedules, when an overall failure of the ETA
mechanism can be observed.
 Hike In Fuel Cost
Fuel cost is one of the biggest challenges faced by the transportation
companies in the Indian logistic sector. The inflation in fuel prices results
in increase of transportation costs to the shippers. Rise in fuel prices
constantly increase the surcharges added to freight rates. This naturally
cuts down the revenue and earnings of truckers, as fuel prices increase.

23.  Unforeseen Delays in Transportation
Traffic congestions, multiple checkpoints, and toll stations add to the woes. This translates
into the Logistics companies losing out on a lot of time and money. In a nutshell, even after
taking into consideration extra delays, more unforeseen delays cannot be ruled out.
 Dearth of Skilled Personnel
The Indian Logistics sector faces an alarming lack of skilled manpower and specialized
personnel. With the advent of modern technology, there is a keen requirement for
technically skilled labor. However, the laborers are under-skilled, over-worked and lack the
desired skill-set to make the process efficient. Also, to save on capital, companies
compromise on the training and payment of their logistics staff. Resultantly, these
companies face the problem of high labor turnover, increased training costs and under-
performing human resource.
 Driver Shortages
Shortages of personnel or driver is a challenge for the cargo transportation industry. The
government has become stringent for companies in recruiting truck drivers. To avoid low-
performing hires, the compliance safety and accountability score (CSA) can negatively
impact the screening process. Further, driver shortages are arising due to high labor
turnover, leading to increased training costs for underperforming human resources.

24.  Environmental Sustainability
Environmental sustainability is one of the most criticized issues around the
world. Unsurprisingly, many companies face much pressure from both
government and society to adopt an eco-friendly system. They can apply
several methods to reduce carbon emissions, such as optimizing route & load,
increasing engine capability, creating emissions reports, and using alternative
fuels. Maximizing the business scale and reducing carbon emissions are two
opposite things. Nevertheless, the company’s ability to demonstrate vehicle
usage & fuel transparency becomes an alternative solution to maintain
environmental sustainability.

25. TRANSPORTATION DECISIONS
Modes of Transportation
Route
Schedule

26. Factors That Play a Key Role in Selecting Mode
of Transport Are
 Cost of Transport
When selecting the best and most suitable transport for exportation of
products, the budget is the most important consideration. Costs vary based
on the type and amount of goods needed to be transported. It is important to
keep in mind that the cost of transport influences the cost of goods.
 Reliability and Regularity of Service
The reliability and regularity parameters of different transport modes, differ
from each other. The urgency and speed by which the goods are to be
delivered, influences the decision as to which mode of transport to use. All
modes of transport, land, ocean and air, are affected by bad weather such as
heavy rains, snow, fog and storms, which may cause delays.
 Safety
Another crucial factor influencing the selection of a mode of transport is the
safety and security of goods in transit. Land transport is more preferred to
railway transport because the losses are less.

27. 4) Characteristics of goods
When selecting the mode of transport, the size and weight of goods play
a crucial role. Land and air transport primarily cater to fragile and small
shipments. Rail and sea transport are a more suitable option for heavy
shipments.
How dangerous, fragile or high value the products are, also influences
the selection of the transport mode. For breakable and fragile, high value
products, air and land transport are the best option.
5) Budget
Transportation costs are add-on cost on the sale price of a product.
The transport costs add to how much the goods can be sold for, to
make a profit. Hence budget requirements need to be considered
accordingly. The volume or weight of the goods play a key role in
determining which method of transport is the best value. Also the type
of good in terms of urgency of delivery, such as how perishable the
goods are, and how quickly they need to arrive, influences the choice of
mode of transport.

28. 6) Timescale
Air transport is the best option for long distances requiring urgent and
speedy transport, to meet deadlines or because the goods are
perishable or fragile. Motor transport is faster than rail transport for
short distance deliveries. However, for longer haul journeys rail is faster
and more economical.
7)Flexibility
The most flexible mode of transport is Motor or road transport, as it is
not constrained by factors such as flight times, shipping routes or pre-
scheduled timetables. Motor transport can operate day and night, at
personal convenience, to suit all time frames, and has the added
advantage of door-to-door delivery.

29.  ROUTING
Making best route by keeping in consideration the cost of trip
and other duties), distance, time, documentation formalities and
staff as well as stock.
 SCHEDULING
After route preparation next step is to prepare schedule.