SlideShare a Scribd company logo
Distribution Management
7th Semester – B.B.A
By
Navin Raj Saroj
M.b.A. (Marketing)
Transportation
TRANSPORTATION
 Very important in the logistics function:
• Movement across space or distance adds value to
products
• Transportation provides time and place utility
TRANSPORTATION - GENERAL
 Very important in the logistics function:
o Movement across space or distance adds value to products
o Transportation provides time and place utility
The role of transport in national economy is very crucial. The
physical distribution component of a major project, including
transportation of raw materials, project materials, machinery
and equipment, and such infrastructure facilities as roads,
vehicles etc. usually accounts for 20 – 30% of total capital
cost.
Transportation bottlenecks and resulting delays due to non-
receipt of equipment, machinery, raw materials etc.,
generally cause delays which may run into months.
TRANSPORTATION PRINCIPLES
 Continuous flow
Optimize unit of cargo – stackability
Maximum vehicle unit – capacity utilization
Adaptation of vehicle unit to volume and nature of
traffic
Standardization
Compatibility of unit load equipment
Minimum of dead weight to total weight
Maximum utilization of capital, equipment and
personal
The role that transportation plays in logistics system is more
complex than carrying goods for the proprietors. Its
complexity can take effect only through highly quality
management. By means of well-handled transport system,
goods could be sent to the right place at right time in order to
satisfy customers’ demands. It brings efficacy, and also it
builds a bridge between producers and consumers. Therefore,
transportation is the base of efficiency and economy in
business logistics and expands other functions of logistics
system.
In addition, a good transport system performing in logistics
activities brings benefits not only to service quality but also to
company competitiveness.
ROLE OF TRANSPORTATION IN PHYSICAL
DISTRIBUTION
TRANSPORTATION COST ELEMENTS
Following are the vital elements of transportation to be taken
into account:
1. Transport mode
2. Inventory Costs
3. Transit Capital
4. Obsolescence
5. Packaging
6. Insurance
7. Breakages
8. Pilferage (To steal things)
9. Deterioration (to become worse)
10. Transport costs
CONCEPT OF TRANSPORTATION
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.
Transportation is the movement of products, materials
and services from one area to another, both inbound
and outbound.
9
FACTORS AFFECTING TRANSPORTATION
PERFORMANCE
Transportation performance
Cost Speed Consistency
A. Cost of transportation
- The payment for movement between two geographical
locations and expenses related to administration and and
maintaining in-transit inventory.
B. Speed of transportation
- The time required to complete a specific movement.
- Transport firms capable of providing faster services
normally charge higher rate.
- The faster the transportation services, shorter is the time
interval during which the inventory is in transit and
unvailable.
10
FACTORS AFFECTING TRANSPORTATION
PERFORMANCE Cont….
11
C. Consistency of transportation
- Refers to variations in time required to perform a
specific movement over a number of shipments.
- Consistency is a measure of dependability of
transportation.
- Inconsistency in transportation leads to inventory
safety stocks required to protect against
unpredictable service breakdowns.
Speed and consistency combine to create quality
aspect of transportation.
FACTORS AFFECTING TRANSPORTATION
PERFORMANCE Cont….
FUNCTIONS OF TRANSPORTATION
1. Growth of Industries whose product requires quick
marketing,
2. Increase in the demand of goods,
3. Transport creates time utility
4. Transport helps in stabilization of price
5. Transport ensures even flow of commodities
6. Transport enables the consumers to enjoy the
benefits of goods not produced locally
7. Transport identifies competitors to reduce the price
8. Transport increases mobility of labor and capital
OBJECTIVE OF TRANSPORTATION
 Select appropriate mode of transport to minimize
transit time and save cost.
 Reduce Inventory by delivering the stock in
markets
 Continuous demand fulfillment
SECTION OF MODES OF TRANSPORTATION
Given below are the various mode of transports
1. By Road
2. By Railways
3. Water ways
4. Airways
5. Pipeline and others
ROAD TRANSPORT
Road transport is an integral and
essential part of any transport activity,
whether by rail, sea or air. To a lesser
or larger extent road transport is
essential as a supplementary and
complementary mode of transport to
complete the movement carried out
by other modes of transport.
Transport activity is broadly of two
types;
o Motorized or powered transport,
and
o Non-motorized or Non-powered
transport
AIR TRANSPORT
With the introduction of wide
– bodied aircraft, freighter
services and containerization,
a new dimension has been
added to air transport. The
industry now thinks of
distribution in terms of speed,
frequency and efficiency.
Apart from providing a high
level of customer service, air
cargo finds the right fits in the
marketing phenomenon,
particularly in savings in
distribution costs.
INLAND WATER TRANSPORT
Regular monthly Boat
service: owing to the
withdrawal of water from
rivers for irrigation and
competition from roads
and railways water
transport started
gradually losing traffic. It
has been established
because this mode of
transportation consumes
the least amount of
energy per tonne-km
ROPEWAYS TRANSPORT
The real economic and
technical value of a
ropeway system as a
mode of transport is
the fact that it can
connect two places
with a large
differential of altitude
without much difficult
PIPELINE MOVEMENT - TRANSPORT
A pipeline is an ideal
mean of transporting
a large quantity of
liquids and gases over
long distances. They
have also gains
importance in the
transportation of
solids, particularly of
coal, limestone, iron
ore and copper
concentrates.
RAIL TRANSPORT
With a network long distance,
railways in developing or
developed countries are the
largest system for transportation
of passengers and goods in the
country. They carry large amount
of country’s total freight traffic
and nearly 50 percent of
passenger traffic. i.e.
Indian railways are Asia’s largest
and the worlds, fourth largest rail
system; 61000 km networks.
Japan and China has fastest rail
service in terms of service and
space.
SEA TRANSPORT
A liner conference is a group
of two or more vessels
operating carriers which
provides international liner
services for the carriage of
cargo on a particular route or
routes with in specified
geographical limits on uniform
or common freight rates and
on other mutually agreed
conditions.
Ports provide – ships for
transportation
INTERMODAL & CONTAINER TRANSPORT
• 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 & CONTAINER TRANSPORT
INTERMODAL TRANSPORT
There are some common type of multimodal transport which is used
in the transportation system. They are:
1. Piggy Back: It is a combination of rail and road. For instance, the
containers are placed on railway flat-cars and transported by rail from
one terminal to another. After reaching the destination terminal, they
can be placed on trailers and transported by roads which are also
called TOFC (Trailer on Flat Car) or COFC (Container on Flat Car).
2. Fishy Back: It is a combination of road and water transport. Fishy
back / train ship / Containership are examples of the oldest mode of
the intermodal transport. They utilize waterways, which are one of
the least expensive methods for line- haul movement. The Fishy back,
concepts load a truck trailer, railcar, or container on to ship for the
line – haul move.
3. Birdy Back: It is a combination of road and airways and is generally
use in International shipments. Local cartage is a vital part of every air
movement because air fright must eventually transport from the
airport to the final delivery destination. Air-truck movements usually
provide service and flexibility comparable to straight motor freight.
4. Land Bridge: The Land Bridge Concept, which moves containers by a
combination of sea and rail. The land bridge concept is based on the
benefit of ocean and rail combination that utilize a single tariff, which
is lower than the total cost of the separate rates.
INTERMODAL TRANSPORT Cont…
MAJOR ADVANTAGES BY TRANSPORT MODE
• ROAD
– Speed of
delivery
– Diversity of
equipment
– Flexibility
– Frequency of
movement
– Transfer of
goods to other
carriers
– Convenient to
both shipper
and receiver
• RAILWAY
– Mass movement of goods
– Low unit cost of
movement
– Dependability
– Long-haul moving
– Wide coverage to major
markets and suppliers
– Many auxiliary services
(i.e., switching)
– Transfer of goods to
other carriers
– Specialized equipment
• INLAND
WATER
– Very low unit
cost of
movement
– Movement of
low-unit-value
commodities
– Long-haul
movement
– Mass movement
of bulk
commodities
MAJOR ADVANTAGES BY TRANSPORT MODE
• PIPELINE
– Lowest unit cost
of movement
– Mass movement
of liquid or gas
products
– Long-haul moving
– Large capacity
– Most dependable
mode
• AIR
– Frequent service
to major markets
– Large capability
– Overnight service
– Most rapid speed
of any carrier
• INTERMODAL
– Cost savings
– Lower loss and
damage claims
due to
containerization
– Service extended
to more shippers
and receivers
– Reduced handling
and storage costs
RECENT TRENDS IN TRANSPORTATION
• Capital wants transport - cheaper, faster and barrier free to
support the building of their commercial success.
• Economic conditions, trends in the global economy and the
outlook for the developing country, investment trends,
demographic and spatial changes, regulatory trends for the
portfolio and other significant challenges and opportunities
including energy efficiency, climate change and
technological innovation helps to boost up business
opportunity for prospects.
AIR - Moves the perishable and valuable;
Drives the worlds largest industry - Tourism
Shipping and world trade
– the container is the
trigger
ROAD TRANSPORT
• Vital to the logistic
chain
• The highway warehouse
• Ease of door to door
• Quick and efficient
• Flexible
• Unit or partial loading
• State resourced
• Overcrowded highways
• Abuser of labour
Rail – struggling in
the new market
INLAND RIVER
TRANSPORT
THANK YOU

More Related Content

PDF
All about INCOTERMS latest revision
Mihai Guta
 
PPTX
Immunology
Khushboo Vatsal
 
PPTX
Railway accidents
gayathrysatheesan1
 
PPTX
THE GENERATION GAP
deepika46
 
PPTX
Biodegradation
SureshKumar Pandian
 
PPTX
Goods and services
Imran Alam
 
PPTX
Uv spectroscopy
Harpreet Kaur
 
PPTX
Biological treatment of waste water
AarjavPinara
 
All about INCOTERMS latest revision
Mihai Guta
 
Immunology
Khushboo Vatsal
 
Railway accidents
gayathrysatheesan1
 
THE GENERATION GAP
deepika46
 
Biodegradation
SureshKumar Pandian
 
Goods and services
Imran Alam
 
Uv spectroscopy
Harpreet Kaur
 
Biological treatment of waste water
AarjavPinara
 

What's hot (20)

PPT
Types of transportation
Renu Malra
 
PPTX
Logistics transportation
Ravi K Singh
 
PDF
Modes of Transport in Logistics
Youssef Serroukh
 
PPTX
Multimodal Transport in an Indian Perspective
Farhan Khan
 
PDF
Transportation Management
Muhammad Aleem Habib ,PMP
 
PPTX
Transportation
Raj Shravanthi
 
PPTX
Transportation ppt of suppy chain management
Vandna Dhiman
 
PPTX
Transport system ..
Sheethal Anchan
 
PDF
Transportation Management
Amitabh Mishra
 
PPTX
Multimodal transport
MAX GALARZA HERNANDEZ
 
PPT
Transportation management
Chidambaram Nagarajan
 
PPTX
Operations of air cargo
Rajiv Babu Chintala
 
PPT
Intermodal (combined) transport
Hammaduddin
 
PPTX
role of transportation modes in Commerce trade
Kamaljit Singh
 
PPTX
Decesion making criteria in transport management 1
Keshar Khadka
 
PPTX
Transportation Management
JhOnie JhOan
 
PPTX
Cfs & icd
yusuf patel
 
PPTX
Rail transport
Niren Gada
 
PPTX
Shipping In Logistics And Supply Chain
merchantvenky
 
PPTX
logistics, supply chain management, shipping
jacob mathew
 
Types of transportation
Renu Malra
 
Logistics transportation
Ravi K Singh
 
Modes of Transport in Logistics
Youssef Serroukh
 
Multimodal Transport in an Indian Perspective
Farhan Khan
 
Transportation Management
Muhammad Aleem Habib ,PMP
 
Transportation
Raj Shravanthi
 
Transportation ppt of suppy chain management
Vandna Dhiman
 
Transport system ..
Sheethal Anchan
 
Transportation Management
Amitabh Mishra
 
Multimodal transport
MAX GALARZA HERNANDEZ
 
Transportation management
Chidambaram Nagarajan
 
Operations of air cargo
Rajiv Babu Chintala
 
Intermodal (combined) transport
Hammaduddin
 
role of transportation modes in Commerce trade
Kamaljit Singh
 
Decesion making criteria in transport management 1
Keshar Khadka
 
Transportation Management
JhOnie JhOan
 
Cfs & icd
yusuf patel
 
Rail transport
Niren Gada
 
Shipping In Logistics And Supply Chain
merchantvenky
 
logistics, supply chain management, shipping
jacob mathew
 
Ad

Similar to Transportation (20)

DOC
Marketing channel and logistics management CHAPTER 2.doc
AsaminowGirma
 
PPTX
Logistics and Managing Transportion.pptx
calf_ville86
 
PPTX
Transportation and Technology in INDIA
Tonmoy Bora
 
PPTX
Lecture-8 Logistics Transportation system.pptx
GoharSaeed6
 
PDF
logistics assignment
MADHAVANG13
 
PPTX
Transportation
Vairamuthu S
 
PPTX
Mode of Transportation
Mohammad Alfian
 
PPTX
Transportation and Trade Part 5 (1) (1).pptx
Sheldon Byron
 
PPT
Transport
ercan demir
 
PPTX
TPT250_CHAPTER 7.pptx
DiniInsyirah1
 
PPTX
Introduction to Logistics Demo class
MAX GALARZA HERNANDEZ
 
PPTX
International Transportation and Trade 4.22.pptx
Sheldon Byron
 
PDF
Why Choose Land Freight Transport Over Other Modes.pdf
Top Movers in Dubai
 
PPT
Transportation Infrastructure | Transport functionality | Principles and part...
FaHaD .H. NooR
 
PPTX
Case Study And IntroCase Study And Intro
DiveshDutt3
 
PPTX
Market logestics
Sandip Dey
 
PDF
Transportation
urielmurphy
 
PPTX
transportationinsupplychainfinalppt-190322181336.pptx
NURULAULIARAHMA4
 
PDF
transportationinsupplychainfinalppt-190322181336.pdf
mcjaya2024
 
PPTX
Transportation in supply chain
RakshaSharma26
 
Marketing channel and logistics management CHAPTER 2.doc
AsaminowGirma
 
Logistics and Managing Transportion.pptx
calf_ville86
 
Transportation and Technology in INDIA
Tonmoy Bora
 
Lecture-8 Logistics Transportation system.pptx
GoharSaeed6
 
logistics assignment
MADHAVANG13
 
Transportation
Vairamuthu S
 
Mode of Transportation
Mohammad Alfian
 
Transportation and Trade Part 5 (1) (1).pptx
Sheldon Byron
 
Transport
ercan demir
 
TPT250_CHAPTER 7.pptx
DiniInsyirah1
 
Introduction to Logistics Demo class
MAX GALARZA HERNANDEZ
 
International Transportation and Trade 4.22.pptx
Sheldon Byron
 
Why Choose Land Freight Transport Over Other Modes.pdf
Top Movers in Dubai
 
Transportation Infrastructure | Transport functionality | Principles and part...
FaHaD .H. NooR
 
Case Study And IntroCase Study And Intro
DiveshDutt3
 
Market logestics
Sandip Dey
 
Transportation
urielmurphy
 
transportationinsupplychainfinalppt-190322181336.pptx
NURULAULIARAHMA4
 
transportationinsupplychainfinalppt-190322181336.pdf
mcjaya2024
 
Transportation in supply chain
RakshaSharma26
 
Ad

More from Navin Raj Saroj (18)

PDF
Cigarette Substitute Products
Navin Raj Saroj
 
PDF
Logistics management
Navin Raj Saroj
 
PDF
Order processing
Navin Raj Saroj
 
PDF
Warehousing
Navin Raj Saroj
 
PDF
Inventory control
Navin Raj Saroj
 
PDF
Warehousing
Navin Raj Saroj
 
PDF
Physical distribution
Navin Raj Saroj
 
PDF
Channel Power & Conflict and Channel Dynamics
Navin Raj Saroj
 
PDF
Marketing channel middlemen
Navin Raj Saroj
 
PPTX
Marketing Channel unit 2
Navin Raj Saroj
 
PPTX
Channel of Distribution Management Unit 1
Navin Raj Saroj
 
PDF
The Management of Service & Quality
Navin Raj Saroj
 
PDF
Management of a Retail brand
Navin Raj Saroj
 
PDF
The applications of IT to Retail marketing
Navin Raj Saroj
 
PDF
Merchandise management
Navin Raj Saroj
 
PDF
Consumer Behaviour & Retail Operations
Navin Raj Saroj
 
PDF
Retail Marketing Management - Marketing Mix
Navin Raj Saroj
 
PDF
Retail marketing management - Introduction Unit 1
Navin Raj Saroj
 
Cigarette Substitute Products
Navin Raj Saroj
 
Logistics management
Navin Raj Saroj
 
Order processing
Navin Raj Saroj
 
Warehousing
Navin Raj Saroj
 
Inventory control
Navin Raj Saroj
 
Warehousing
Navin Raj Saroj
 
Physical distribution
Navin Raj Saroj
 
Channel Power & Conflict and Channel Dynamics
Navin Raj Saroj
 
Marketing channel middlemen
Navin Raj Saroj
 
Marketing Channel unit 2
Navin Raj Saroj
 
Channel of Distribution Management Unit 1
Navin Raj Saroj
 
The Management of Service & Quality
Navin Raj Saroj
 
Management of a Retail brand
Navin Raj Saroj
 
The applications of IT to Retail marketing
Navin Raj Saroj
 
Merchandise management
Navin Raj Saroj
 
Consumer Behaviour & Retail Operations
Navin Raj Saroj
 
Retail Marketing Management - Marketing Mix
Navin Raj Saroj
 
Retail marketing management - Introduction Unit 1
Navin Raj Saroj
 

Recently uploaded (20)

PDF
Internet Marketing Company Report KUBS 2025 Spring.pdf
Janghyuk Lee
 
PDF
10 Best Practices for SEO Cross Linking.
Flying Elephant Digital Marketing Agency
 
PPTX
co9ntoh presentasi untuk brand Launcing.pptx
tettisinaga39
 
PDF
Buy LinkedIn Accounts In This Years 2025
usasocialservice
 
PPTX
Advertising Marketing: Insights Inspired by Firoze Kohli
Firoze Kohli
 
PDF
Hit Play, Then Pause: Reframing Entertainment for Resilience SXSW 2026 Propos...
morgan212401
 
PDF
How to Create Undeniably Human Content with the STAMP Framework - Scott Murra...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
PDF
Performance-Driven Web Design-Fast, Smart & Scalable Web Design
Viacon
 
PDF
TAIPAN99 Situs Pkv Games Terbaik Bermain Kapan Pun Dimana Dengan Mudah #1
TAIPAN 99
 
PDF
Content Marketing Used By Travel Companies
charlesouch
 
PDF
Beginner to Pro Email Marketing in India Explained 2025.pdf
Getsvision Solutions
 
PDF
AI for Search and Social Performance: A New Era Begins - Jason Downie, Making...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
PPTX
What Branding looks like, by: Cayancela Sánchez Jairo
Jairo Cayancela Sánchez
 
PPTX
Social_Media_Marketing_Presentation.pptx
sumitsaini6461
 
PPTX
Punjabi_Music_KayD_ FINAL 2025 .pptx
krishandutt4459
 
PDF
Types of Custom Envelopes and Their Uses
divyaquapri
 
PDF
Multi-Platform Search is the Future of SEO: How to Capture Demand Beyond Goog...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
PPTX
Self_and_Personality class 12 psychology
dynamicplays04
 
PDF
When is the Right Time to Outsource Digital Marketing
Jomer Gregorio
 
PDF
Marketing With Meaning: Get Out of the Sea of Sameness and Make Real Marketin...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Internet Marketing Company Report KUBS 2025 Spring.pdf
Janghyuk Lee
 
10 Best Practices for SEO Cross Linking.
Flying Elephant Digital Marketing Agency
 
co9ntoh presentasi untuk brand Launcing.pptx
tettisinaga39
 
Buy LinkedIn Accounts In This Years 2025
usasocialservice
 
Advertising Marketing: Insights Inspired by Firoze Kohli
Firoze Kohli
 
Hit Play, Then Pause: Reframing Entertainment for Resilience SXSW 2026 Propos...
morgan212401
 
How to Create Undeniably Human Content with the STAMP Framework - Scott Murra...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Performance-Driven Web Design-Fast, Smart & Scalable Web Design
Viacon
 
TAIPAN99 Situs Pkv Games Terbaik Bermain Kapan Pun Dimana Dengan Mudah #1
TAIPAN 99
 
Content Marketing Used By Travel Companies
charlesouch
 
Beginner to Pro Email Marketing in India Explained 2025.pdf
Getsvision Solutions
 
AI for Search and Social Performance: A New Era Begins - Jason Downie, Making...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
What Branding looks like, by: Cayancela Sánchez Jairo
Jairo Cayancela Sánchez
 
Social_Media_Marketing_Presentation.pptx
sumitsaini6461
 
Punjabi_Music_KayD_ FINAL 2025 .pptx
krishandutt4459
 
Types of Custom Envelopes and Their Uses
divyaquapri
 
Multi-Platform Search is the Future of SEO: How to Capture Demand Beyond Goog...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Self_and_Personality class 12 psychology
dynamicplays04
 
When is the Right Time to Outsource Digital Marketing
Jomer Gregorio
 
Marketing With Meaning: Get Out of the Sea of Sameness and Make Real Marketin...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 

Transportation

  • 1. Distribution Management 7th Semester – B.B.A By Navin Raj Saroj M.b.A. (Marketing)
  • 3. TRANSPORTATION  Very important in the logistics function: • Movement across space or distance adds value to products • Transportation provides time and place utility
  • 4. TRANSPORTATION - GENERAL  Very important in the logistics function: o Movement across space or distance adds value to products o Transportation provides time and place utility The role of transport in national economy is very crucial. The physical distribution component of a major project, including transportation of raw materials, project materials, machinery and equipment, and such infrastructure facilities as roads, vehicles etc. usually accounts for 20 – 30% of total capital cost. Transportation bottlenecks and resulting delays due to non- receipt of equipment, machinery, raw materials etc., generally cause delays which may run into months.
  • 5. TRANSPORTATION PRINCIPLES  Continuous flow Optimize unit of cargo – stackability Maximum vehicle unit – capacity utilization Adaptation of vehicle unit to volume and nature of traffic Standardization Compatibility of unit load equipment Minimum of dead weight to total weight Maximum utilization of capital, equipment and personal
  • 6. The role that transportation plays in logistics system is more complex than carrying goods for the proprietors. Its complexity can take effect only through highly quality management. By means of well-handled transport system, goods could be sent to the right place at right time in order to satisfy customers’ demands. It brings efficacy, and also it builds a bridge between producers and consumers. Therefore, transportation is the base of efficiency and economy in business logistics and expands other functions of logistics system. In addition, a good transport system performing in logistics activities brings benefits not only to service quality but also to company competitiveness. ROLE OF TRANSPORTATION IN PHYSICAL DISTRIBUTION
  • 7. TRANSPORTATION COST ELEMENTS Following are the vital elements of transportation to be taken into account: 1. Transport mode 2. Inventory Costs 3. Transit Capital 4. Obsolescence 5. Packaging 6. Insurance 7. Breakages 8. Pilferage (To steal things) 9. Deterioration (to become worse) 10. Transport costs
  • 8. CONCEPT OF TRANSPORTATION 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. Transportation is the movement of products, materials and services from one area to another, both inbound and outbound.
  • 10. A. Cost of transportation - The payment for movement between two geographical locations and expenses related to administration and and maintaining in-transit inventory. B. Speed of transportation - The time required to complete a specific movement. - Transport firms capable of providing faster services normally charge higher rate. - The faster the transportation services, shorter is the time interval during which the inventory is in transit and unvailable. 10 FACTORS AFFECTING TRANSPORTATION PERFORMANCE Cont….
  • 11. 11 C. Consistency of transportation - Refers to variations in time required to perform a specific movement over a number of shipments. - Consistency is a measure of dependability of transportation. - Inconsistency in transportation leads to inventory safety stocks required to protect against unpredictable service breakdowns. Speed and consistency combine to create quality aspect of transportation. FACTORS AFFECTING TRANSPORTATION PERFORMANCE Cont….
  • 12. FUNCTIONS OF TRANSPORTATION 1. Growth of Industries whose product requires quick marketing, 2. Increase in the demand of goods, 3. Transport creates time utility 4. Transport helps in stabilization of price 5. Transport ensures even flow of commodities 6. Transport enables the consumers to enjoy the benefits of goods not produced locally 7. Transport identifies competitors to reduce the price 8. Transport increases mobility of labor and capital
  • 13. OBJECTIVE OF TRANSPORTATION  Select appropriate mode of transport to minimize transit time and save cost.  Reduce Inventory by delivering the stock in markets  Continuous demand fulfillment
  • 14. SECTION OF MODES OF TRANSPORTATION Given below are the various mode of transports 1. By Road 2. By Railways 3. Water ways 4. Airways 5. Pipeline and others
  • 15. ROAD TRANSPORT Road transport is an integral and essential part of any transport activity, whether by rail, sea or air. To a lesser or larger extent road transport is essential as a supplementary and complementary mode of transport to complete the movement carried out by other modes of transport. Transport activity is broadly of two types; o Motorized or powered transport, and o Non-motorized or Non-powered transport
  • 16. AIR TRANSPORT With the introduction of wide – bodied aircraft, freighter services and containerization, a new dimension has been added to air transport. The industry now thinks of distribution in terms of speed, frequency and efficiency. Apart from providing a high level of customer service, air cargo finds the right fits in the marketing phenomenon, particularly in savings in distribution costs.
  • 17. INLAND WATER TRANSPORT Regular monthly Boat service: owing to the withdrawal of water from rivers for irrigation and competition from roads and railways water transport started gradually losing traffic. It has been established because this mode of transportation consumes the least amount of energy per tonne-km
  • 18. ROPEWAYS TRANSPORT The real economic and technical value of a ropeway system as a mode of transport is the fact that it can connect two places with a large differential of altitude without much difficult
  • 19. PIPELINE MOVEMENT - TRANSPORT A pipeline is an ideal mean of transporting a large quantity of liquids and gases over long distances. They have also gains importance in the transportation of solids, particularly of coal, limestone, iron ore and copper concentrates.
  • 20. RAIL TRANSPORT With a network long distance, railways in developing or developed countries are the largest system for transportation of passengers and goods in the country. They carry large amount of country’s total freight traffic and nearly 50 percent of passenger traffic. i.e. Indian railways are Asia’s largest and the worlds, fourth largest rail system; 61000 km networks. Japan and China has fastest rail service in terms of service and space.
  • 21. SEA TRANSPORT A liner conference is a group of two or more vessels operating carriers which provides international liner services for the carriage of cargo on a particular route or routes with in specified geographical limits on uniform or common freight rates and on other mutually agreed conditions. Ports provide – ships for transportation
  • 22. INTERMODAL & CONTAINER TRANSPORT • 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.
  • 24. INTERMODAL TRANSPORT There are some common type of multimodal transport which is used in the transportation system. They are: 1. Piggy Back: It is a combination of rail and road. For instance, the containers are placed on railway flat-cars and transported by rail from one terminal to another. After reaching the destination terminal, they can be placed on trailers and transported by roads which are also called TOFC (Trailer on Flat Car) or COFC (Container on Flat Car). 2. Fishy Back: It is a combination of road and water transport. Fishy back / train ship / Containership are examples of the oldest mode of the intermodal transport. They utilize waterways, which are one of the least expensive methods for line- haul movement. The Fishy back, concepts load a truck trailer, railcar, or container on to ship for the line – haul move.
  • 25. 3. Birdy Back: It is a combination of road and airways and is generally use in International shipments. Local cartage is a vital part of every air movement because air fright must eventually transport from the airport to the final delivery destination. Air-truck movements usually provide service and flexibility comparable to straight motor freight. 4. Land Bridge: The Land Bridge Concept, which moves containers by a combination of sea and rail. The land bridge concept is based on the benefit of ocean and rail combination that utilize a single tariff, which is lower than the total cost of the separate rates. INTERMODAL TRANSPORT Cont…
  • 26. MAJOR ADVANTAGES BY TRANSPORT MODE • ROAD – Speed of delivery – Diversity of equipment – Flexibility – Frequency of movement – Transfer of goods to other carriers – Convenient to both shipper and receiver • RAILWAY – Mass movement of goods – Low unit cost of movement – Dependability – Long-haul moving – Wide coverage to major markets and suppliers – Many auxiliary services (i.e., switching) – Transfer of goods to other carriers – Specialized equipment • INLAND WATER – Very low unit cost of movement – Movement of low-unit-value commodities – Long-haul movement – Mass movement of bulk commodities
  • 27. MAJOR ADVANTAGES BY TRANSPORT MODE • PIPELINE – Lowest unit cost of movement – Mass movement of liquid or gas products – Long-haul moving – Large capacity – Most dependable mode • AIR – Frequent service to major markets – Large capability – Overnight service – Most rapid speed of any carrier • INTERMODAL – Cost savings – Lower loss and damage claims due to containerization – Service extended to more shippers and receivers – Reduced handling and storage costs
  • 28. RECENT TRENDS IN TRANSPORTATION • Capital wants transport - cheaper, faster and barrier free to support the building of their commercial success. • Economic conditions, trends in the global economy and the outlook for the developing country, investment trends, demographic and spatial changes, regulatory trends for the portfolio and other significant challenges and opportunities including energy efficiency, climate change and technological innovation helps to boost up business opportunity for prospects.
  • 29. AIR - Moves the perishable and valuable; Drives the worlds largest industry - Tourism
  • 30. Shipping and world trade – the container is the trigger
  • 31. ROAD TRANSPORT • Vital to the logistic chain • The highway warehouse • Ease of door to door • Quick and efficient • Flexible • Unit or partial loading • State resourced • Overcrowded highways • Abuser of labour
  • 32. Rail – struggling in the new market