“The process of moving an item from point A to
point B.”
“Safe , efficient , reliable , and sustainable
movement of persons and goods over time and
space.”
TRANSPORTATION IN LOGISTICS :
The operation of transportation determines the efficiency of moving
products.
Transportation takes a crucial part in the Logistics Operation.
The progress in techniques and management principles improves the
moving load, delivery speed, service quality, operation costs, the
usage of facilities and energy saving.
Therefore, transportation is the base of efficiency and economy in
business logistics and expends other functions of logistics system.
IMPORTANCE OF TRANSPORTATION
Without well developed transportation system, logistics
could 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 systems.
FUNCTONS OF TRANSPORTATION
1)Temporal:- Positive amount of time
is spent in transporting material.
During the time product is locked
up costs are incurred in proportion
of time.
2) Financial:- Administration costs,
salaries, maintenance costs are
expended.
3) Environmental:- Fuel costs are
high[ Creates air pollution,
congestion, noise pollution.]
1) When unloading and loading is more
expensive then storage.
2)When storage space is limited[
situation when inventory levels are
high]
TYPES OF TRANSPORTATION
Rail Transport
1)Advantages of Rail transport:-
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.
2)Disadvantages of Rail transport:-
It is relatively expensive for carrying goods and passengers over short distances.
It is not available in the remote part of the economy.
It involves heavy losses of life as well as goods in case of accident.
Road Transportation
1)Advantages of Road transportation:-
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 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.
2) Disadvantages of Road transportation:-
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.
Water Transportation
1) Advantages of Water transportation:-
It is relatively economical mode of transport for bulky and heavy goods.
It is a safe mode of transport with to occurrence of accidents.
The cost of maintaining and constructing routes is very low most of them are naturally
made.
It promotes international trade.
2) Disadvantages of Water transportation:-
The depth and navigability of rivers and canals vary thus, affect operations of different
transport vessels.
It is adversely affected by weather conditions.
Sea transport requires large investment on ships and their maintenance.
It is a slow moving mode of transport and therefore not suitable for transport of
perishable goods.
Air Transport
1)Advantages of 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.
2) Disadvantages of Air transport:-
It is relatively more expensive mode of transport.
It I not suitable for transporting heavy and bulky goods.
It is affected by adverse weather conditions.
In case of accidents, it results in heavy losses of goods, property and life.
TRANSPORTATION IMPACTS
The speed, cost, and capabilities of available
transportation have a significant economic impact on
an area….
Highway, rail, freight, transit, shipping
Countries with better/advanced transportation
networks and services are leaders in industry and
Commerce.
WHAT ARE CURRENT
TRANSPORTATION PROBLEMS ?
Financing
Congestion
Infrastructure
Safety
Population
Increased truck weights.
MULTIMODAL TRANSPORTATION
Meaning combination of two or more modes of movement of
goods, such as, road, air, rail, or sea. Also called combined
transport.
Definition
It means carriage of goods by at least two
different modes of transport on the basis of a multimodal
transport contract from a place in one country at which the
goods are taken in charge by the multimodal transport
operator to a place designated for delivery situated in a
different country.”
BENEFITS OF MULTIMODAL
TRANSPORTATION
Easy documentation as confined to one document.
Carriage cost is reduced.
Cost of product is reduced.
Quick delivery
Easy for handling
No need of physical clearance at each point.
CONCLUSION
Transportation plays an important role in logistics
system and its activities appear in various sections of
logistics processes.
Without the linking of transportation, a powerful
logistics strategy cannot bring its capacity into full play.
Since transportation contributes the highest cost among
the related elements in logistics systems, the
improvement of transport efficiency could change the
overall performance of a logistics system.
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