CHAPTER 5

TRANSPORTATION MODELS AND WAREHOUSING

SERVICES

Mã học phần: 010401602101

Giảng viên : Sa Hoang
Email : [email protected]
CONTENTS
MODEL OF TRANSPORT
C1: Overview of Supply 5.1 Road
chain management (SCM)
5.2 Railway
C2: Overview of Logistics
5.3 Airline
C3: IT in Logistics and SCM
5.4 Pipeline
C4: Key stakeholders in the
5.5 Waterway
supply chain
5.6 Multi-modal transportation
C5: Transportation
5.7 Future transport model
models and
warehousing services
C6: E-commerce and E-
Logistics

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CONTENTS
ROAD TRANSPORT
5.1 Road
Road freight transportation (also known as road transport) is a method of
5.2 Railway moving goods using various types of vehicles such as trucks, semi-trailers,
containers, tankers, container trucks, trailers, cars, and 2- or 3-wheeled
5.3 Airline motorbikes... This mode of transport is the most prevalent today due to its
5.4 Pipeline flexibility, convenience, and cost-effectiveness.

5.5 Waterway Road transportation accounted for the highest share of

5.6 Multi-modal freight traffic, approximately 75.6%, with inland waterway
transport as the second most chosen mode at about
transportation 17.8%. Thus, "Road transport is considered the backbone
of the nation's transport and logistics supply chain"
5.7 Future transport (according to the Ministry of Transport of Vietnam). A
model study by the Institute of Transportation Strategy and
Development highlights that due to Vietnam’s diverse and
extensive terrain, road transport is the most feasible
method for reaching remote areas where maritime and
air transport coverage is limited.

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CONTENTS
ROAD TRANSPORT
5.1 Road
5.2 Railway Strengths and Weaknesses:
5.3 Airline Strengths:
5.4 Pipeline
• Variety of means of transport
5.5 Waterway • High flexibility
• Time control
5.6 Multi-modal • Cost and personnel savings
transportation
Weaknesses:
5.7 Future transport
• Transportation infrastructure
model • High accident rate.
• Difficult to transport large goods.

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CONTENTS
Classification of Vehicles by Road
5.1 Road
5.2 Railway
5.3 Airline
5.4 Pipeline
5.5 Waterway
5.6 Multi-modal
transportation
5.7 Future transport
model

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CONTENTS
Classification of Vehicles by Road
5.1 Road
Mini Truck:
5.2 Railway Also known as micro trucks are usually lightweight trucks that come with a rear-wheel drive
or a 4-wheel drive. Mini trucks are mainly used in intra-city deliveries and travel that covers
5.3 Airline smaller distances with light loads. Some of the daily use cases observed are postal and courier
services, shipment of home appliances, and furniture from dealer to customer address.
5.4 Pipeline
Small Commercial Vehicle:
5.5 Waterway The small commercial vehicle (SVC) usually consists of vehicles with less than 1000cc engine
and carries a maximum of 3.5 ton. These vehicles are practical for intra-city usage and offer
5.6 Multi-modal more affordable, durable, and sustainable use cases. Similar to the mini truck, they are used
by postal and courier companies, and delivery companies that offer single-day turnaround.
transportation
Pick-up Truck:
5.7 Future transport A pick-up truck also known as a light-duty truck consists of an enclosed cabin with
the rear end having a cargo bed with walls enclosed from three sides without any
model roof cover.

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CONTENTS
Classification of Vehicles by Road
5.1 Road Vans: Vans are vehicles that can be used to transport
5.2 Railway goods and people. They are usually bigger than a
5.3 Airline pickup truck and the common car.

5.4 Pipeline Box Truck: A box truck is somewhat similar to a van

but is of a larger size. The major difference being a
5.5 Waterway
van consists of a unibody frame, while a box truck has
5.6 Multi-modal
a separate cargo box added to the chassis
transportation
Tow Truck: A tow truck comes in different names like
5.7 Future transport
wrecker, breakdown truck, or recovery vehicle. They
model are used to tow/ move disabled, impounded, or
improperly parked vehicles. In most cases, tow trucks
are operated by private businesses.
Flatbed Truck: A flatbed truck has an open cargo
carrier attached to the driver cabin. 7
CONTENTS
Classification of Vehicles by Road
5.1 Road Heavy Truck
5.2 Railway These trucks are classified by the Federal Highway
Administration (FHWA), in groups of classes 7 and 8.
5.3 Airline • Trailer Trucks: The majority of long-haul
logistics is carried out using trailer trucks.
5.4 Pipeline
5.5 Waterway • Cement Mixer: Modern construction sites use
concrete transport trucks to mix concrete and
5.6 Multi-modal deliver it to the construction site.
transportation • Dump Truck: Need help with cleaning debris?
5.7 Future transport A dump truck is your ideal solution.

model • Refrigerator Truck: Goods that need to be

preserved at low temperatures to maintain
quality, such as perishable foods and
pharmaceuticals, require refrigerated
containers equipped with advanced cooling
systems to maintain a stable temperature
throughout transit.
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CONTENTS
Classification of Goods Transported by Road
5.1 Road
Containerized Cargo
5.2 Railway This is the most common form of transport today, utilizing
standardized containers for packaging goods. Containers are made
5.3 Airline from durable materials, standardized in size, which facilitates
5.4 Pipeline efficient loading and unloading.
Example: Container trucks are ideal for transporting large
5.5 Waterway consignments such as machinery, electronic equipment, imported
fertilizers, and industrial crops.
5.6 Multi-modal Over-Dimensional and Heavy Cargo (Oversized and overweight
transportation vehicles)
This category includes machinery, industrial equipment, and
5.7 Future transport construction materials that exceed standard size and weight limits.
Transporting such cargo requires specialized vehicles, modern
model lifting equipment, and special permits.
Example: Over-dimensional and heavy-duty trucks are suited for
transporting large industrial equipment or bulky construction
materials.

https://www.youtube.com/watch?v=Qhsx5S6nUvw&t=1s
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CONTENTS
Classification of Goods Transported by Road
5.1 Road
Fragile Goods
5.2 Railway Products such as glassware, ceramics, and electronics that are prone to damage if not
carefully handled. These items need to be packed securely using shock-absorbing
5.3 Airline materials and transported in vehicles with shock-absorbing systems.
5.4 Pipeline Example: Trucks equipped with shock-absorbing systems are suitable for transporting
glassware and ceramics.
5.5 Waterway Hazardous Goods
This category includes substances that are flammable, explosive, or toxic and requires
5.6 Multi-modal high safety measures during transportation. Vehicles transporting hazardous materials
transportation must be specially designed, drivers must be professionally trained, and strict
regulations must be adhered to.
5.7 Future transport Example: Specialized trucks are designed for transporting flammable, explosive, or
hazardous chemicals.
model Agricultural Products
Fresh agricultural products are sensitive to temperature, humidity, and impacts. To
maintain quality, these goods need to be refrigerated, properly packed, and
transported using specialized vehicles to minimize transit time.

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ROAD TRANSPORT

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CONTENTS
RAILWAY
5.1 Road
Railway, or rail transport, is a type of transport/transport of passengers and goods by
5.2 Railway wheeled vehicles designed to run on a special type of road, a railway.
5.3 Airline
5.4 Pipeline
5.5 Waterway
5.6 Multi-modal
transportation
5.7 Future transport
model

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CONTENTS
RAILWAY
5.1 Road
Strengths and weaknesses of railways:
5.2 Railway
Strengths:
5.3 Airline - low fares
- stable fares over long periods
5.4 Pipeline - Transport heavy goods over long distances
5.5 Waterway - High safety
- Less affected by weather and climate conditions
5.6 Multi-modal - Trains always follow a fixed schedule
transportation
Weaknesses
5.7 Future transport - Only operates on existing rail systems
- The payback period of the railway industry is quite slow.
model
- The initial investment capital is relatively large.
- Low flexibility, low profit margin.

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RAILWAY

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CONTENTS
AIRLINE – AIR FREIGHT
5.1 Road
• Air freight is another term for air cargo that is, the shipment of goods
5.2 Railway
through an air carrier. Air transport services are the most valuable when it
5.3 Airline comes to moving express shipments around the globe. Just like the
5.4 Pipeline commercial or passenger airlines, air freight flies in the same gateways.
• Air freight, on the other hand, means the amount to be paid for the
5.5 Waterway
transportation of goods by air. When goods are shipped from one place to
5.6 Multi-modal the other, the amount paid for the movement of the goods is called freight.
transportation Therefore, air freight means the charges paid for air transport.
5.7 Future transport
model

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CONTENTS
AIRLINE – AIR FREIGHT
5.1 Road
Strengths and Weaknesses:
5.2 Railway
Strengths:
5.3 Airline • Saves transportation time
5.4 Pipeline • Ensures high safety
Weaknesses:
5.5 Waterway
• High transportation costs
5.6 Multi-modal • Lack of variety of goods
transportation • Often interrupted by weather
• Subject to stricter transportation management
5.7 Future transport
• Impact of high risks
model

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AIRLINE – AIR FREIGHT

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CONTENTS
PIPELINE
5.1 Road
Pipeline transport is the process of continuously transporting goods across
5.2 Railway
various terrains from the point of origin to the point of destination using a
5.3 Airline system of pipelines that are connected from one country to another.
5.4 Pipeline
5.5 Waterway
5.6 Multi-modal
transportation
5.7 Future transport
model

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CONTENTS
PIPELINE
5.1 Road
5.2 Railway
Strengths and weaknesses of pipeline transport:
5.3 Airline Strengths:
• Pipeline transport has a large transport volume
5.4 Pipeline
• It does not hinder other modes of transport
5.5 Waterway • Pipeline transport is suitable for transporting liquids and gases, suitable for
mines located in remote areas with complex terrain
5.6 Multi-modal • Does not pollute the environment during transport and does not occupy too
much land area.
transportation
5.7 Future transport Weaknesses:
• This method can transport less goods
model • The investment capital to build a large pipeline system,
• The cost of building hydraulic pumping stations is quite expensive;
• It is difficult to control the security and safety of the pipeline transport system.

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CONTENTS
WATER FREIGHT TRANSPORT
5.1 Road
5.2 Railway Water freight transport is the movement of cargo and products through rivers,
canals, ocean and other waterways. It is a cost-effective, energy-efficient, and
5.3 Airline environmentally friendly alternative to road and rail transport
5.4 Pipeline
5.5 Waterway
5.6 Multi-modal
transportation
5.7 Future transport
model

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CONTENTS
WATER FREIGHT TRANSPORT
5.1 Road Strengths and weaknesses:
5.2 Railway Strengths:
• Allows simultaneous transportation of large-sized and heavy packages.
5.3 Airline • Easy to combine with other means of transport, equipment and supporting
5.4 Pipeline tools during the transportation process.
• Cost savings compared to other modes of transport.
5.5 Waterway • High safety with a clear maritime traffic system and few moving vehicles.
• Ability to move widely without limitation.
5.6 Multi-modal
transportation Weaknesses:
• The speed of the ship is slow, so the transportation time to the destination is
5.7 Future transport quite long.
model • Risks from natural disasters
• Risks from accidents during the transportation process

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Ocean freight Incidents

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CONTENTS
OCEAN FREIGHT
5.1 Road
Ocean freight shipping is the method of transporting containerised cargo loaded
5.2 Railway onto vessels by sea. Over 90% of all the world’s trade is carried by sea. If you want
to ship your freight around the world, ocean freight is the most convenient option.
5.3 Airline
5.4 Pipeline As a general rule, shipments weighing more than 100kg – or consisting of multiple
cartons – will be sent by sea freight. The containers are designed and built for
5.5 Waterway intermodal freight transport. That means the containers can be used across various
5.6 Future transport transportation modes – from ship to rail to truck – without unloading and reloading
the cargo.
model

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CONTENTS
OCEAN FREIGHT
5.1 Road
5.2 Railway
Means of ocean freight
5.3 Airline - Tàu chở hàng rời (Bulk carrier)
5.4 Pipeline - Tàu lạnh (Refrigerated ship)
- Tàu Container (Container ship)
5.5 Waterway
- Tàu Roro (Roll-on/roll-off ship)
5.6 Multi-modal - Tàu chở chất lỏng (Tanker)
transportation - Sà lan (Barge)

5.7 Future transport - Phà (Ferry)

- Tàu khách (Post-boat)
model
……

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CONTENTS
OCEAN FREIGHT
5.1 Road
5.2 Railway
Maritime Transport Development Trends:
5.3 Airline
- Reducing Carbon Emissions in Maritime Transport
- Low Sulfur Fuel
5.4 Pipeline
- Scrubbers
5.5 Waterway
- Shore-to-ship Power
5.6 Multi-modal
- Digital Transformation
transportation
5.7 Future transport
model

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WATER FREIGHT TRANSPORT

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CONTENTS
INLAND WATERWAYS
5.1 Road
5.2 Railway Inland waterway transport is a service activity in
5.3 Airline which the service provider transports goods from
5.4 Pipeline
one place to another in a water area where the
5.5 Waterway
starting and ending points in the transportation
process do not go outside the territory of a country.
5.6 Multi-modal
transportation
5.7 Future transport
model

27
CONTENTS
INLAND WATERWAYS
5.1 Road
5.2 Railway Strengths and Weaknesses of Inland Waterways
Strengths:
5.3 Airline - Low transport costs
5.4 Pipeline - Many natural routes
- Low maintenance and improvement costs
5.5 Waterway - Can transport many types of goods
- Can transport large volumes of goods
5.6 Multi-modal
Weaknesses:
transportation - Depends heavily on weather factors
- Transport cannot reach the destination
5.7 Future transport - Ship speed is still low
model - Difficulty in preserving goods

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CONTENTS
INLAND WATERWAYS
5.1 Road
5.2 Railway Strengths and Weaknesses of Inland Waterways
Strengths:
5.3 Airline - Low transport costs
5.4 Pipeline - Many natural routes
- Low maintenance and improvement costs
5.5 Waterway - Can transport many types of goods
- Can transport large volumes of goods
5.6 Multi-modal
Weaknesses:
transportation - Depends heavily on weather factors
- Transport cannot reach the destination
5.7 Future transport - Ship speed is still low
model - Difficulty in preserving goods

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CONTENTS
INLAND WATERWAYS
5.1 Road
5.2 Railway
Means of inland waterway
5.3 Airline - Tàu chở hàng rời (Bulk carrier)
5.4 Pipeline - Tàu lạnh (Refrigerated ship)
- Tàu Container (Container ship)
5.5 Waterway
- Tàu chở chất lỏng (Tanker)
5.6 Multi-modal - Sà lan (Barge)
transportation - Phà (Ferry)

5.7 Future transport - Tàu khách (Post-boat)

……
model

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CONTENTS
MULTI-MODAL TRANSPORTATION
5.1 Road
5.2 Railway
There are many definitions given to explain the two words “intermodal
5.3 Airline transportation” and “multimodal transportation” under the name of
5.4 Pipeline Multimodal TransportThe United Nations (UN) has given some definitions
and transport terms in the Multimodal Transport Handbook published in
5.5 Waterway 1995 as follows:
5.6 Multi-modal – Mode of transport is the method of transport used to move goods, for example: rail, road,
water, air;
transportation – Means of transport: the type of vehicle used for transport, for example: ship, car, plane;
– Type of means of transport: the type of vehicle used during the transport process, for
5.7 Future transport example: aircraft with a wide body diameter of 5-6m and two aisles such as Airbus 380);
model – Single-modal transport: transport using a single mode of transport, the carrier issues its
own transport documents (B/L, AWB, consignment note);
– Combined transport of goods in one type of loading and unloading unit combining
different modes of transport.

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FUTURE TRANSPORT TRENDS
Skyway

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FUTURE TRANSPORT TRENDS

Hyperloop

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FUTURE TRANSPORT TRENDS

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CONTENTS
WAREHOUSING SERVICES
C1: Overview of Supply
Definition
chain management (SCM)
C2: Overview of Logistics • Warehouse: a system of warehouses (private warehouses, public
C3: IT in Logistics and SCM warehouses, warehouses, etc.) built according to standards for the purpose
C4: Key stakeholders in the
of storing and preserving goods for individuals/businesses. Usually,
supply chain
warehouses are built closed, have a roof system, etc.
C5: Transportation
• Yard: areas used to gather and store goods and vehicles. Some yards can
models and
be understood as outdoor "warehouses" for storing bulky goods that do not
warehousing services
require complicated storage conditions.
C6: E-commerce and E-
Logistics

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CONTENTS
WAREHOUSING SERVICES
C1: Overview of Supply
Ingeneral,
chain management (SCM)
C2: Overview of Logistics Warehouse is the location where raw materials, supplies, goods, and finished
C3: IT in Logistics and SCM products are stored during the transfer process from the start to the end of the
C4: Key stakeholders in the
supply chain. Warehouses allow businesses to store, preserve, and prepare
supply chain
goods, ensuring that the quantity of goods is always supplied seamlessly in
C5: Transportation
both quality and quantity.
models and
warehousing services
C6: E-commerce and E-
Logistics

36
CONTENTS
WAREHOUSING SERVICES
C1: Overview of Supply
The role of warehouses in Logistics
chain management (SCM)
C2: Overview of Logistics  It can be said that warehouses are like "nodes" or "temporary transit points" for the
C3: IT in Logistics and SCM entire supply chain of the unit.
C4: Key stakeholders in the  Here, goods are stored and preserved to wait for consumption, or continue to be
supply chain
distributed to other points.
C5: Transportation  In addition, this is also the place where goods are packed/assembled, arranged
models and before being delivered to agents, customers, etc.
warehousing services  Depending on the complexity of the supply chain, the unit's Logistics warehouse can
C6: E-commerce and E- have one or many, covering many provinces and localities. In order to:
Logistics  Ensure continuity
 Optimize production costs
 Professionalize the business's services to customers
 Coordinate goods
 Ensure product quality 37
CONTENTS
WAREHOUSING SERVICES
C1: Overview of Supply
chain management (SCM)
Popular warehouse categories:
C2: Overview of Logistics
C3: IT in Logistics and SCM • General warehouse
C4: Key stakeholders in the • Self-storage warehouse
supply chain • Cold warehouse
C5: Transportation • Mini warehouse, kiosk
models and • E-commerce warehouse
warehousing services • Bonded warehouse
C6: E-commerce and E- • CFS warehouse
Logistics
• Tax-suspension warehouse
• Transit warehouse
• Distribution center

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CONTENTS
WAREHOUSING SERVICES
C1: Overview of Supply
chain management (SCM)
Main warehouse operations:
C2: Overview of Logistics
C3: IT in Logistics and SCM
• Receiving
C4: Key stakeholders in the
• Put-away
supply chain
• Order-picking
C5: Transportation
• Checking and packing
models and
• Shipping
warehousing services
C6: E-commerce and E-
Logistics

39
CONTENTS
WAREHOUSING SERVICES
C1: Overview of Supply
chain management (SCM) 1. Group A: These are high-value products that are slow to sell
C2: Overview of Logistics 2. Group B: These are medium-value products that are moderately priced
3. Group C: These are low-value products that are high in frequency
C3: IT in Logistics and SCM
4. A SKU is a unique identifier used to identify and track a specific product in a warehouse,
C4: Key stakeholders in the retail store, or inventory management system.
supply chain 5. Each product or product variant will have its own SKU to help manage and track them
easily.
C5: Transportation 6. A SKU typically includes the following information:
 Product code: This is a unique code for a specific product or product variant. It is
models and usually a string of numbers or characters.
warehousing services  Product description: Typically, a SKU also includes a short description of the product to
help warehouse or sales staff easily identify the product.
C6: E-commerce and E-
 Product Variant Information: If the product has variations such as different sizes,
Logistics colors, or versions, the SKU may include information about this variation.
 Product Price: The SKU may include the price of the product.
 Quantity in Stock: The SKU is often linked to information about the quantity of the
product remaining in stock, to track inventory updates.

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CONTENTS
WAREHOUSING SERVICES
C1: Overview of Supply
Basic principles in effective warehouse management:
chain management (SCM)
C2: Overview of Logistics
1. Design the management room close to the import-export area.
C3: IT in Logistics and SCM
2. Arrange goods neatly and scientifically.
C4: Key stakeholders in the
supply chain 3. Application of FIFO or LIFO & FEFO method

C5: Transportation 4. Establish optimal inventory levels.

models and 5. Check inventory periodically.

warehousing services 6. ABC priority group division.

C6: E-commerce and E- 7. Calculate inventory turnover

Logistics 8. Use inventory cards
9. Sorting goods using SKU code (Stock Keeping Unit)
10. Barcode and warehouse management software

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Amazon Warehouse

MSc. Huy Quang Le 42

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