Transportation Mode

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East Asia Institute of Management
Registered with MOE Singapore – Registration No. 3037 – Formerly known as East Asia School of Business

Subject: Transport management

Case Topic: Consider in selecting the transportation mode and long-term core carrier.

Word count: 1281
Introduction ------------------------------------------------------------------------ 3 Factors of selecting transportation mode ----------------------------------- 4~5 1. Case study ------------------------------------------------------------ 6 Factors of selecting of long term core carrier------------------------------- 7 1. Case study ------------------------------------------------------------- 8 Conclusion --------------------------------------------------------------------------- 9 Reference ---------------------------------------------------------------------------- 10

Introduction :

I am the logistics manager of canned fruit manufacturing company located in Singapore and distribute the products to Asia Pacific region. And considered in selecting the transportation mode and long-term core carrier.

Factors of selecting transportation mode :

Alternative modes are usually available to move shipment between any two points. The mode selection problem focuses on selecting the best mode to transport shipment considering mode capacities, costs handling requirements and distances .Several factors are important in selecting the transportation mode–frequency of service ,speed ,transit time , transit time variability ,cost ,availability ,safety ,security and customer service .Factor analysis ,weighted factor analysis ,and analytic hierarchic process can also be used for selecting mode .

When we need to selecting the mode of transport .Transport companies can offering a wide selection of services to us to shifting our canned fruit to desired destination. They often provide different modes of transport facilities such as air, sea, road, and rail. However, there are various advantages and disadvantages with the use of all these modes of transport.


Advantages of Air Transportation:
1.Fastest for long distance deliveries
2.Customer perception is high, easy for order fulfillment
3.Very safe mode of transport
3.Reduces lead time on suppliers
4.Improved service levels

Disadvantages of Air Transportation:
2.Potential for flight delays and/or cancellations
3.Customs and Excise restrictions
4.Expensive vs. other modes
5.Unsuitable for some goods,
6.Limited routes, and inflexible timetables
7.Environmental pollution
8.Airport taxes


Advantages of Sea Transportation:
1.Ideal for transporting heavy and bulky goods
2.Suitable for products with long lead times
3.Cheap for large volumes

Disadvantages of Sea Transportation:
1.Very slow, longer lead/delivery times
2.Difficult to monitor exact location of goods in transit
3.Customs and Excise restrictions
4.Could be costly
5.Inflexible routes and timetables
5.Port duty/taxes
6.Requires inland transportation for door-to-door delivery


Advantages of Rail Transportation:
1.Fast delivery
3.Cost effective
4.Safe mode of transport
6.More environmentally friendly than alternatives
7.Does not add to congestion

Disadvantages of Rail Transportation:
1.Potential of damages, from shunting
2.Subject to unforeseen delays
3.Reliance on rail freight operator's timetable
4.Suppliers/customers are not always located near a rail freight depot and delivery to/from the depot can be costly and time consuming 5.Limited routes, inflexible routes and timetables


Advantages of Road Transportation:
1.Cost effective
2.Fast delivery, Ideal for short distances
3.Ideal for transporting perishables
4.Easy to monitor location of goods
5.Easy to communicate with driver
6.Ideal for sending by courier shortages to customers...
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