TRANSPORTATION
IN LOGISTICS MANAGEMENT
By: Richa Manjhi
Concept
Transportation Management is the selection of an appropriate mode of transportation for the shipment.
Which in turn affect:
1. 2.
3.
4.
Pricing Profitability Delivery Performance Condition of Goods
Various Modes
Roadways Railways Airways Waterways Pipeline Internet
Roadways Carriers
Accounts for more than 60% of actual tonnage. Flexibility in routing and time schedule. Faster than Railroads.
Efficient for short hauls of high-value merchandise.
Railroad Carriers
Accounts for 31% of total tonnage. Most cost-effective mode for shipping bulk products.
Appropriate for goods like coal, sand, minerals, farm and forest products. Developing more services like flatcars, diversion and processing of goods en route.
Air Carriers
Accounts for 5% of total tonnage. Most costly transportation mode. Ideal when speed is needed and markets are distant. Reduces inventory levels, packaging costs and warehouse costs. Appropriate for goods which are perishable, high valuable and low-bulk items.
Water Carriers
Accounts for 11% of total tonnage. Low transportation cost. Very slow among all transportation modes.
Appropriate for shipping bulky, low-value, nonperishable products.
Pipelines
Accounts for 16% of total tonnage. High fixed costs but lowest variable cost. Slow but dependable (No whether, traffic disruptions) No flexibility with regard to products.
Internet Carriers
Used for carrying digital products through moving information bits. Faster in comparison to traditional transportation system. (in case of digital products) Lower product distribution costs. Growing market.
Intermodal Transportation
It is the combination of two or more modes of Transportation with an aim to achieve an effective combination of cost, delivery time and service quality. Following are some examples1.
Piggy-back Fishy-back
2.
3.
Train-ship
Air-truck.
4.
Conclusion
A shipper must consider things like speed/time, dependability, availability, cost, nature of commodity while making choice for a mode of transportation.