Transportation

Meaning and Definition “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”

Importance of transportation: Place Utility. Industrial Development. Employment Opportunities. High Standard of Living. Distribution of Perishable Goods. Emergency Transportation

Transportation Functionality Functions of Transportation Product Movement Product Storage

Financial: Environmental: Product Movement Temporal: - Product is locked up during transit, hence inaccessible - Positive amount of time is spent in transporting material. - Time is a resource[Temporal Resource] expended in Transportation . - During the time product is locked up costs are incurred in proportion of time. Financial: - Administration costs, Salaries, Maintenance costs are expended. Environmental: - Fuel costs are high[Creates air pollution, congestion, Noise pollution.

Product Storage: It is a temporary storage in stationery vehicle. Product storage is expensive in transport vehicle. In some situations Product is done such as: When the cost of unloading and reloading the product in the Warehouse is more expensive. When storage space is limited. Or, at other times, temporary storage is used due to diversion. This occurs when an original delivery destination is changed while the inventory is in transit.

Principles of Transportation Economy of Scale Economy of Distance

Types of Transportation Road Transport. Rail Transport. Water Transport. Air Transport. Pipeline Transport. Ropeway Transport.

Road Transport: * Advantages * Disadvantages Door to Door Service. Economical over short distances. Flexibility. Limited Capital Expenditure. * Disadvantages Irregular and Unreliable. Unsuitable for Long Distances No Uniformity in Rates. Limited Speed. Affected by Weather.

Rail Transport * Advantages High Speed. Suitable for Long Distances. Bulky Goods. Protection. Large Carrying Capacity. * Disadvantages Huge Capital Expenditure. High Overheads. No Door to Door Service. No Competition. Inflexible Mode.

Air Transport * Advantages * Disadvantages 2. Quick service. 1. Flexible. 2. Quick service. 3. Natural Highways. 4. Protection. 5. High Speed. * Disadvantages 1. High Cost of Construction and Maintenance. 2. Costliest. 3. Limited Carrying Capacity. 4. International Restrictions. 5. Unsuitable for Bulky Goods.

Water Transport * Advantages * Disadvantages Cheapest Mode of Transport. Large Carrying Capacity. Safety. Protection to Goods. Flexibility. * Disadvantages Slow. Huge Capital Expenditure. High Cost of Maintenance. No Door to Door Service. Special Packing.

Pipeline Transport Generally liquids like oils, crude, petroleum products are transported.

* Advantages of Pipeline Suitable for All Weather. Low energy Consumption. Space Utilization. Continuous. * Disadvantages of Pipeline State of Commodity to be transported is limited. Leakages. High fix Costs.

Cost Structure For Each Module: Mode Fixed Costs Variable Costs Rail High- Equipments, Terminals , Tracks ,etc Low Road Low-Highway provided by government Medium-Fuel , Maintenance, etc Water Medium-Ships and Equipment Low-As capacity is huge Pipeline Highest-Right of the way , construction, Equipment for control station and Pumping capacity Lowest-Insignificant labour costs Air Low-Aircraft and cargo handling systems High- Fuel, labour, Maintenance

Cost ratio of logistics elements

Factors affecting Transportation Costs: Product Related Factors Market Related Factors Density Whether the Product is transported Domestically or Internationally, Seasonality of Product Movement Stow ability Location of Markets, which determines the distance goods must be transported Ease or Difficulty of Handling Nature & extent of government regulation Liability Balance or imbalance of Freight Traffic in to and out of a Market

Conclusion: Transportation and logistics systems have interdependent relationships that logistics management needs transportation to perform its activities and meanwhile, a successful logistics system could help to improve traffic environment and transportation development. 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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