MODES OF TRANSPORTATION Introduction of transportation Transportation refers

MODES OF TRANSPORTATION

Introduction 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

Role of transportation in supply chain management • Raw materials • Suppliers • Manufacturing • Consumer • Customer • Distribution

Key Drivers • Shipper: The party who wants to transport the product from one place to another place. • Carrier: Carrier is company that moves the goods from one place to another place. Ex: DHL, Fed Ex.

Road Transport Advantage • It is a relatively cheaper mode of transport as compared to other modes. • It is flexible mode of transport as loading and unloading is possible at any Destination. • It provides door to door Service. Disadvantage • Due to limited carrying capacity road transport is not economical for long distance transportation of goods.

Air Transportation advantage • It is a fastest mode of transport. • Reduces lead time. • Improved services. Disadvantage • It is expensive mode of transport. • Not suitable for short distance travel. • It is not suitable for transporting heavy and bulky goods.

Advantages of Railways • Relatively faster than road transport. • Suitable for carrying heavy goods. • Carrying large quantities over long distance. • Cost efficient. Disadvantages • Not available in remote parts of the country. • Relatively expensive for carrying goods over short distance.

Advantages of water transportation • It promotes international trade. • The cost of maintaining & constructing routes is low • Most of routes are naturally made. Disadvantage • It is adversely affected by weather conditions. • It is slow moving mode of transportation. • Sea transport requires large investment on ships and their maintenance.

Pipeline Transportation • It is used primarily for transport of crude & refined petroleum. • It is not flexible. • The scope is limited with respect commodities. • Unable transport a variety of materials.

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