Transportation & Warehousing

8/3/2019 Transportation & Warehousing

1/27

Transportation & warehousing

Prof:Sham Choughule


2/27

Indias Transport sector

Indias transport sector is large and

diverse; it caters to the needs of 1.1 billionpeople. In 2007, the sector contributedabout 5.5 percent to the nations GDP,

with road transportation contributing thelions share.

Transport is backbone of Logisticsmanagement


3/27

Transportation

Place utility

Inventory is moved from one place toanother by by transport system

Therefore, Transport is a backbone oflogistics

Various mode of transport

Transportation cost (40) is main factor inLogistics

How Transportation cost can minimize ?


4/27

Principles of Transportation1. Economy of scale

Bulk shipping brings down per unit transportation cost

2. Economy of distance

Cost per unit kilometer decreases as the distance moved increases.

Principles of transportation are fundamental in evaluatingtransportation strategies.


5/27

Transportation

Various mode of Transport

SeaCoastal-Inland waterways-International

RoadState & national Highways Rail -Indian Railway

Air- Domestic V/s International

PipelineGas pipeline ElectronicSoftware export


6/27

Transportation ModesWhat is transportation mode:: Mode identifies transportation method or form


7/27

Road

Used by suppliers to deliver goods in a costeffective manner and best suited for shortdistances. Many transport companies haveexpertise for fast delivery, packaging etc. for

making scheduled delivery.


8/27

Road transport High flexibility and speed

Ultimate mode of transport

Low capital cost as compared to railways

Operating costs are higher

Ideal for small shipments over short distances

Suitable door to door service

Road Ways- Details


9/27

Labor intensive

Occasional fuel shortages

Availability of good quality vehicles

Availability & cost of maintenance and spares

Bad and unsafe road conditions

Carrier organizations and their disputes with government

Octroi

Old MVA

Restrictive permits

Road Ways- Details


10/27

Road Ways - Connection


11/27

Rail TransportIndian Railway have 10 zones

CONCOR is carrying containers only

Govt has issued 15 private companies to transport goods includingcontainers

Largest traffic handled by East Coast railway 9-10
http://www.google.com/imgres?imgurl=http://www.njamnadas.co.in/images/multimodal-transport.jpg&imgrefurl=http://www.njamnadas.co.in/multimodal-transport.htm&h=162&w=244&sz=16&tbnid=_veuHNBEPwK-rM:&tbnh=73&tbnw=110&prev=/images%3Fq%3DMultimodal%2Btransport&hl=en&usg=__5Xj1wdFSrl7QHjSlUquIiNgl_zY=&ei=7UN1SuO1Oork6gOPieGyCw&sa=X&oi=image_result&resnum=6&ct=image


12/27

vancemen s o re uceTransportation Cost

Enclosed Tri-Level Automobile Car


13/27

Double Stack Containers


14/27

Air

Used mostly for delivery of high value andtow volume goods from distant suppliers,usually not connected by any other mode

of Transportation. It is also suitable foremergent item to be imported for somespecific requirement.


15/27

Inland water Transport is not used to its full potential in India although we

have used mechanized IWT since early 1800.

Main hurdles appear to be

1. Low priority in policy2. Construction of dams3. Receding water levels in the rivers4. Tough competition by other modes

Water Ways- Details


16/27

Main features of this mode of transport Reliable all weather means of transport

Low energy consumption

Pipeline being under ground space occupation is minimal

Pipe line operates all the time except when it is shut down for maintenance

No empty container or wagon to be brought back

Highest fixed costs, right of way and laying of pipeline, and lowest operatingcosts

Not flexible by nature. Pipe lines are stationary

This mode of transport can release capacity of other modes for transport ofessential commodities

Pipelines - Details


17/27

Transportation policy

I. Mode Selection

Air - most expensive, but very fast

Road - relatively quick and inexpensive, highly flexible

Rail - An inexpensive mode for large quantities

Water - the slowest but most economical for large overseas consignments

Pipeline - primarily for oil and gas


18/27

WAREHOUSE

Awarehouse is a commercial building forstorage of goods. Warehouses are usedby manufacturers,importers, exporters, wholesal

ers, transport businesses, customs The warehousing sector is another vital link in

the logistics chain, one which is evolving at arapid pace. Where once a big shed and a forklift

was all that was needed
http://en.wikipedia.org/wiki/Buildinghttp://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Manufacturerhttp://en.wikipedia.org/wiki/Importerhttp://en.wikipedia.org/wiki/Exporterhttp://en.wikipedia.org/wiki/Wholesalerhttp://en.wikipedia.org/wiki/Wholesalerhttp://en.wikipedia.org/wiki/Transporthttp://en.wikipedia.org/wiki/Customshttp://en.wikipedia.org/wiki/Customshttp://en.wikipedia.org/wiki/Transporthttp://en.wikipedia.org/wiki/Wholesalerhttp://en.wikipedia.org/wiki/Wholesalerhttp://en.wikipedia.org/wiki/Exporterhttp://en.wikipedia.org/wiki/Importerhttp://en.wikipedia.org/wiki/Manufacturerhttp://en.wikipedia.org/wiki/Goodshttp://en.wikipedia.org/wiki/Building


19/27

General view of warehouse


20/27

WMS

The primary purpose of a WarehouseManagement System is to control themovement and storage of materials within

a warehouse you might even describe itas the legs at the end-of-the line whichautomates the store, traffic and shipping

management


21/27

Uses of Warehouses

Inbound Logistics to store raw material

Out bound Logistics to store finish product


22/27

Ware House


23/27

WMS

WMS, is a key part of the supply chain andprimarily aims to control the movementand storage of materials within a

warehouse and process the associatedtransactions, including

Receiving

shipping,

.
http://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Warehousehttp://en.wikipedia.org/wiki/Warehousehttp://en.wikipedia.org/wiki/Supply_chain


24/27

Types of warehouses

General warehouse

Transit shed in port

Customs bonded warehouse

Ware houses near portsTank form

CFS-Cargo distribution centre

Logistics park

Cold store warehouses

Warehouse & Free Trade zone


25/27


26/27

Case study

There were big orders from garment shops of London to Garmentmanufacturer of Coimbatore in India at time of X Mas

It was difficult to them to supply garment from Coimbatore to UKvia Kochin port

No frequent shipping service & transit time is high more than 25days

How garment manufacturer can solve their problem ?


27/27

Thanks

Sham Choughule

Transportation & Warehousing

Documents