TRANSPORTATION
Aug 08, 2015
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
Mode of Transport The mode of transport describes the type
of transport used. There are basically five different options;
*Rail * Road * Air
* Water * Pipeline
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
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
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
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
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
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
Water Most supply chains use shipping to cross
the oceans,over 90% of world trade is moved by sea (UK, Australia,USA..)
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
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
Basically three types of water transport;
* Rivers and Canals →
← * Coastal Shipping
* Ocean Transport →
Air
Passengers account for most airline business, with eight billion passenger kilometres flown a year in the UK.
Avantage of Air
Main advantage is speed of delivery Useful for Cargo companies For ex;
Yurtiçi,UPS,Aras etc..
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.
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.
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
Disadvantage of Pipeline
Being slow Inflexible Only carrying large
volumes of certain types of fluid
Huge initial investment of building dedicated pipelines