Introduction Transportation involves the physical movement of goods between origin and destination points. The transportation system links geographically.

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Presentation transcript:

Introduction Transportation involves the physical movement of goods between origin and destination points. The transportation system links geographically separated partners and facilities in a company’s supply. Transportation facilitates the creation of time and place utility in the supply chain. Transportation also has a major economic impact on the financial performance of businesses.

Transportation capacity constraints pose a challenge. Industry Challenges Transportation capacity constraints pose a challenge. Rising transportation rates present another major concern for organizations. The transportation industry is impacted by governmental requirements that affect cost structures and service capabilities. Regulation is growing in areas where the transportation industry has the potential to impact the quality of life, the safety of citizens, and the growth of commerce. 2

Figure 10.1 Motor Carrier Options 3

Modes of Transportation Motor Carrier - Truck Less Than Truckload (LTL) Regional – Next Day/2nd Day Interegional/National – 3rd day/Beyond Truckload (TL) 4

Modes Modes selection issues Shipment size & weight (density) Value Freight form (unit vs. bulk) Service requirements Consignee location (Domestic or International) Special handling requirements Cost absorption 5

Regional LTL- Next Day, 2nd Day Butler Pittsburgh Consignee Shipper Terminal

Regional LTL Carrier 7

Pittsburgh to San Diego LTL – National Pittsburgh to San Diego Shipper Pittsburgh Sort Hub Akron OH Terminal Pittsburgh Consignee Terminal San Diego Sort Hub Los Angeles CA How long? 6 - 7 days

National LTL Carrier 9

Truckload Shipper Pittsburgh Direct Consignee Los Angeles