1. TRANSPORT

2. Transport and Logistics

3. Introduction
Mode of transport
Intermodal transport
Ownership of transport
Routing vehicles
Case study – Mount Isa Mines

4. TRANSPORT is responsible for the physical movement of materials between points in the supply chain
At the heart of logistics are transport vehicles moving goods between suppliers and customers

5. Transport Rate
If an organisation uses third-party transport, the price of moving a unit of material between locations is the rate or tariff.
This is set by the cost of the service provided, value to the customer, the distance moved, weight, size and value of goods, complexity of journey, and so on.

6. Mode of Transport
The mode of transport describes the type of transport used.
There are basically five different options;
* Rail * Road * Air * Water * Pipeline

7. Rail
Most commonly used for heavy and bulky loads over long land journeys
They are almost invariably public carriers rather than private carriers
The rail service is not nationalised, it is allowed a monopoly

8. Advantage of Rail
Rail is that once the infrastructure is in place, it has very high capacity and low unit costs.
Railway is the safest form of transport
Railways perform many public utility services
Unit transport cost is low

9. Disadvantage of Rail Its inflexibility
Trains can only travel along specified routes between fixed terminals, and cannot stop at intermediary points
Obvious limitation of only being used on land
Rail transport cannot provide door to door service

10. Road
The most widely used mode of transport and is used at least somewhere in almost all supply chains.
Road transport can normally carry loads up to, say, 20–30 tonnes

11. Advantage of Road
Main benefit is flexibility, being able to visit almost any location
Travel speed can be an important consideration
Use extensive road networks
Large number of carriers working in the same areas
Easy to monitor location of goods

12. Disadvantage of Road
These become relatively expensive,so road transport is generally used for shorter distances
Used for delivering finished goods than bulky raw materials
Lorries are particularly vulnerable to congestion and traffic delays
Obvious limitation of only being used on land

13. Different types of road vehicle
Delivery vans
Flat-bed lorries

14. Box-bodied lorries
Articulated lorries
Lorry and trailer

15. Water
Most supply chains use shipping to cross the oceans,over 90% of world trade is moved by sea (UK, Australia,USA..)

16. Advantage of Water Ideal for transporting heavy and bulky goods
Suitable for products with long lead times
Cheapest traffic means
Requires cheap motor powers than for airplanes

17. Disadvantage of Water Longer lead/delivery times and slow
Difficult to monitor exact location of goods in transit
Its inflexibility in being limited to appropriate ports
Transfers to ships take time

18. Basically three types of water transport
* Rivers and Canals →
← * Coastal Shipping
* Ocean Transport →

19. Different types of vessel
* General cargo ships →→
← ← ←* Bulk carriers
* Tankers →→ →→

20. * Container ships →→
← ← ← ← * Ferries
* Barges →→→→
← * Combination ships

21. Air
Passengers account for most airline business, with eight billion passenger kilometres flown a year in the UK.

22. Avantage of Air Main advantage is speed of delivery
Useful for Cargo companies For ex; Yurtiçi,UPS,Aras etc..

23. Disavantage of Air Transfers to plane take time in the airport
It is costly transport
Competition can also be fierce
Weight limits is prevent carrying amount of materials.

24. Pipeline
The main uses of pipelines are oil and gas together with the utilities of water and sewage.
They can also be used for a few other types of product such as pulverised coal in oil.

25. Advantage of Pipeline Moving large quantities over long distances.
Cheapest way of moving liquids For ex; oil and gas
Local networks can add flexibility by delivering to a wide range of locations

26. Disadvantage of Pipeline
Being slow
Inflexible
Only carrying large volumes of certain types of fluid
Huge initial investment of building dedicated pipelines

27. Choice of Mode
* Choice of mode depends on a variety of factors.The main ones are the nature of materials to move, the volume and distance.
Other factors include:
Value of materials
Importance
Transit times,
Reliability
Cost and flexibility to
negotiate rates
Reputation and stability of carrier
Security, loss and damage
Schedules and frequency of delivery

28. * Ranking for the cost, speed, flexibility and load limits of different modes of transport

29. INTERMODAL TRANSPORT

30. Intermodal Transport
INTERMODAL TRANSPORT refers to journeys that involve two or more different modes of transport.
The aim of intermodal transport is to combine the benefits of several separate modes.We can avoid disadvantages with this:
combining the low cost of shipping with the flexibility of road
getting the speed of air with the cost of road

31. →→The main problem is that each transfer between modes causes
delays and
adds costs for extra handling.

32. At the heart of intermodal transport are the systems for transferring materials between
modes.
The aim is to give a virtually seamless journey, and the best way of achieving this is to use modular or unitised loads.

33. Some of the benefits of containerisation includes:
● Simplified transport and flow of goods ● Easier and faster handling ● door-to-door service ● Faster deliveries ● Reduced loss due to damage, misplacement and pilferage

34. ● Reduced packing costs ● Lower insurance costs ● Separation of incompatible goods ● Use of less congested routes ● Improved transport encourages trade.

35. Other types of intermodal transport
→A very wide range of materials can be put into containers, but there are inevitably some that cannot, or are cheaper to transport by other means.
Oil, for example, might be put into
container-sized tanks but tankers or pipelines give cheaper alternatives.

36. Another types of containers is piggy-back transport, where a lorry – or usually just
the trailer – cars and lorries are driven onto a train or ship for this part of their journey

37. Land bridges: These are used when materials cross land on what is essentially a sea journey. The most widely used in EAST TO WEST transfer of materials.

38. OWNERHIP OF TRANSPORT

39. Is it better for an organisation to run its own transport fleet, to use public transport, or a combination of the two?
                                     

40. With transport the more common terms are in-house or own account transport compared with third-party transport.
     
                                     

41. OWN ACCOUNT TRANSPORT
An organisation using its own transport fleet to move its materials.
The most common form of private transport has large companies running their own fleets of trucks and this has the advantage of :
flexibility 
greater control 
closer integration of logistics
easier communications

42. Transport can also be made fit to the organisation’s needs, with the best type of vehicles, fleet size, delivery schedule, customer service, and so on.
                           

43. Own account transport can be expensive and an organisation should only run its own fleet when it is cheaper than using a specialist third-party carrier. It means that own account transport must be run as efficiently as a specialised transport company. Only larger organisations can afford the capital investment and costs of running their own fleet.

44. THIRD-PARTY CARRIERS
Specialised transport companies offer a range of services to other organisations. The advantage of this arrangement is that specialised companies run the transport, leaving the organisation to concentrate on its core operations. By using their skills and expertise the transport operators can give better services, or lower costs than own account transport.

45. -Integrated logistics -International transportation -Domestic transport -Clearance and insurance -Storage services- -Information Services 45

46. Most third-party transport is provided by common carriers
Most third-party transport is provided by common carriers. Companies (like TNT) move materials on a one-off basis whenever asked by another organisation. 
For example;  If you want to send a cargo to Poland, you might use a cargo service such as MNG Cargo or Aras Cargo and the company deliver your cargo.

47. Alternatively, an organisation can form a long-term relationship with a contract carrier. This contract carrier then takes over a part of the organisation’s transport for some extended period. For example; 

48. CHOICE OF OWNERSHIP
Operating cost: In different situations either own account or third-party transport might be cheaper, and the company should determine significant benefits before choosing.
Capital costs: Capital is always scarce, and even if own account transport seems attractive, an organisation might find it difficult to justify the investment in vehicles. so cost analyses should be done carefully before reaching any conclusion.
Customer service: Organisations must use transport that provides acceptable customer service in the best possible way. Sometimes, it is impossible to get a third-party carrier that can meets all requirements, and then own account transport is the only option or vice versa.
Control: An organisation clearly has greater control over transport if it runs its own transport. However, this control might be bought at a high price, and contract companies might offer equivalent services but without the overheads and inflexibility of a private fleet.

49. Flexibility: The structure and operations of a private fleet are fairly rigid, as you cannot make quick adjustments to allow for changing conditions. If there is a sudden peak in demand, you cannot increase the size of the fleet for a few days, and then reduce it again when the peak passes. Common carriers can make these adjustments much faster.
Management skills: Managing transport needs specialised skills, which are not readily available in even the biggest organisation. This gives a strong argument for third-party carriers. Large transport companies can support the management teams with specialist skills, knowledge and experience of different conditions.
Recruitment and training: Road transport is generally the most labour intensive. This gives high employment costs. There is also a shortage of skilled drivers, with many organisations finding it difficult to recruit and train suitable people. Both of these give an incentive to use third-party transport.

50. OTHER SERVICES
An organisation can pass all its transport problems to a third-party carrier, but there are many other people who can offer their own specialised services. These can provide the special skills that are not usually available within a single organisation.
Some organisations give fairly general advice, such as management consultants who work in logistics, and software companies that tailor packages for transport. Other experts give more specific services, such as freight forwarders and shipping agents.

51. Common carriers: move materials between two points for any customer, usually in a one-off delivery using common facilities.
Contract carriers: offer transport services, but usually for a longer time. They take over some, or all, aspects of an organisation’s transport for an agreed period.
Intermodal carriers: Traditionally carriers have concentrated on one type of transport, such as shipping lines or road haulers. They typically look after all aspects of a journey between two specified points.
Terminal services: The terminals do more than just transfer materials, and they might unload delivery vehicles, sort goods, break bulk for local delivery, concentrate goods for onward movement, load outgoing transport, keep track of all movements, and provide any other relevant services.

52. Freight forwarders: One problem with third-party carriers is the expense of moving smaller loads. Unit transport costs fall with increasing quantity, and transport now focuses on standard loads, such as a full container load. An alternative is to use a freight forwarder. These are people who collect relatively small loads, and consolidate them into bigger loads travelling between the same points. A freight forwarder might, for example, combine six or seven smaller loads to get a full container, giving lower unit costs faster delivery.
Brokers: A broker acts as an intermediary between customers and carriers. Effectively, they look at the goods to be moved, find the best routes and carriers and negotiate conditions.
Agents: These are usually local people who represent, say, shipping companies. They give a local presence and act as intermediaries between distant carriers and local customers, exchanging information, arrangements, and so on.
Parcel services: These are similar to a Post Office, as they deliver small packages to any location. Companies such as PTT Cargo, United Parcel Service (UPS) offer very fast deliveries to almost any location in the world. Their strength is customer service, as they offer guaranteed next day delivery over long distances.

53. ROUTING VEHICLES

54. Any organisation involved in transport has to consider many types of problem.The number of vehicles needed, type and size, special features required, routes used, assignment of loads and customers to vehicles, schedules, maintenance schedules, measures of service and quality, and so on.

55. A basic routing problem looks for the best path for a delivery vehicle around a set of customers. There are many variations on this problem, all of which are notoriously difficult to solve.
Real problems are much more complicated.
competing aims
uncertain costs
variable delivery times

56. varying speeds caused by traffic conditions
customers with different importance and conditions for deliveries
incompatible products
different logistics facilities

57. There are two general approaches
The first uses geographical arguments to look for the best routes, regardless of the actual roads.
The second looks at the road network and finds shortest routes through it.

58. The following list suggests some specific methods that have been proposed
1. Negotiations:This may not give the best technical answer, but it has the support of everyone concerned.

59. 2-Adjust previous plans:
This has the benefit of being relatively easy and causing little disruption. It also uses a well-understood procedure and experts can give results that are trusted by the organisation.

60. 3-Maps
The most popular are simple maps of key features. Then schedulers can draw routes and iteratively improve them.

61. 4-Spreadsheet calculations:
is a computer application with tools that increase the user's productivity in capturing, analyzing, and sharing tabular data sets and look at the patterns in the numbers.

62. 5-Simulation
It gives a dynamic view by imitating real operations over a typical period. Suppose that you want some information about proposed routes. You could sit in cabs and watch the process for some time, and see what was happening.

63. 6-Expert systems:
Expert system are designed to solve complex problems by reasoning about knowledge like an expert. The basic skills, expertise, decisions and rules used by experts are collected in a knowledge base.

64. 7-Mathematical models
The most common mathematical approach uses linear programming. These methods are rather complicated, so they are generally limited to small problems.

65. CASE STUDY

66. Mount Isa Mines is one of the world’s great metal mines
Mount Isa Mines is one of the world’s great metal mines. Its main operations are at Mount Isa, in Queensland, Australia.

67. Mount Isa has serious transport problems
Mount Isa has serious transport problems. It produces huge quantities of ore in a remote area of Australia, while the main demand for finished metals is in the industrialised areas of the world, particularly Europe.

68. The problem is to process the ores and move them to final markets as cheaply as possible.

69. Underground explosions
Crush of copper
Grinding
Smelter
Furnace

70. Copper is only one of Mount Isa’s products, and it has similar transport problems with lead and zinc. It also mines coal and gold, has organised its transport operations into a separate company, generates electricity and supplies water for the city of Mount Isa, and is involved in a wide range of mining and associated ventures.

71. Questions
● How important do you think transport is for the operations at Mount Isa? ● What alternatives are there for transport? ● Do other mining companies have similar transport problems?

72. THANK YOU FOR YOUR LİSTENİNG
DO YOU HAVE ANY QUESTİONS?