In actual competitive environment, all businesses are searching for ways to win the larger market share, maximize efficiency, diminish capital inputs, and gain speed throughout their supply chains. The globalization of business has increased the need for global supply chains that are longer, more composite, and intrinsically costlier. The main purpose of supply chain management is to deliver the right goods to the right place at the right time and at the same time to maintain cost efficiency. Thus transportation plays significant role of interlink among all other elements of supply chain which, cooperating, gives result in the form of converting resources and materials into consumer goods. The ability of any transportation system to return and deliver items on a timely basis is equally important and ties into a company’s overall strategy of time-based competition. This issue becomes more important if the carried items have expiration date. The significance of this factor in the completion can’t be overestimated, if you organize well your delivery chain you save money and time by choosing the most flexible strategy of transportation. There are six main modes of transportation: road, rail, marine shipping, inland water shipping, air, and pipelines. This paper will look into two modes, which are railway and road transport. The freight railroad industry plays a significant role in the national economy as a mainstay of transportation for a lot of fundamental industries and most for export and import operations. Today’s railroad systems offer dependable and consistent schedules that could be included in the planning of economic activities such as production and distribution. The demand for freight carriage is derived from the demand for the goods themselves. No intrinsic value, or utility, arises from moving a trainload of coal, grain, or imported goods; rather, the value of the transportation derives from the value of consuming or using the goods at its destination. The demand for freight transportation depends primarily on the overall amount of economic activity; the type of economic activity (for instance, the relative amount of goods, which have to be transported, and services, which do not); and the location of economic activity (in particular, the distances between the sources of raw materials, distribution and production facilities, and consumers). Different types of goods wagons can be classified on the basis of their main design characteristics that depend on the type of transported cargo: * Open wagons, constituted a numerous group of the railway commodity cars and developed first of all for transportation of the mass goods which aren't hygroscopic and can be usually overturned, fall down or be shoveled up; * Lowmacs, designed to transport vehicles or the equipment which usually exceeds recommended height of a normal open goods truck. * Covered wagons (or vans), equipped with fixed roof and whose purpose is to carry part-loaded commodities or parcels. * Refrigerated vans, i.e. insulated covered vans with a special cooling equipment, mostly used for transportation time-sensitive products. * Flat wagons without any walls or with low walls which are at least 60 cm in height. Such wagons are developed for machinery transportation. Wagons with a sliding roof which can be equipped with self-unloading mechanisms. * Tank wagons, used for carrying of a wide diversity of fluids and gases. * Spine cars, developed transportation of intermodal containers. * Special mineral wagons, designed for carrying coal, ores and other mine products These vehicles are classified into different categories in accordance with the classification system, developed by International Union of Railways. Freight trains are usually powered by diesel, electricity and steam. Fixed costs are high and variable cost is relatively low. Fixed costs are high due to expensive equipment requirements, such as locomotives,...
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