Chapter 14

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Topics: Transportation
CHAPTER 14

Transportation in Supply Chain

Transportation refers to the movement of product from one location to another as it makes it way form the beginning of a supply chain driver because products are rarely produced and consumed in the same location. Transportation is a significant component of the costs incurred by most supply chains. The role of transportation is even more significant in global supply chains.

Modes of transportation

• Air transportation. : Although this mode of transportation is not used often, it is a good choice for two types of shipments: High-value shipments. Shipment for products whose high cost can justify a more expensive mode of transportation, such as air. Emergency shipments. Products that need to be sent somewhere immediately. • Railroad Transportation : While rail road transport is less flexible and versatile than air and motor carriers, it is much less expensive. From the other side it has many drawbacks, loading time, additional means of transportation ( to and from rail ), etc. • Package Carriers : Motor transportation is dominant form of transportation today in most countries. Motor carriers are extremely flexible in the nature of their service, due to the huge network of roads. It enables them to deliver directly from anywhere to anywhere. This mode of transportation is used frequently because of its ability to carry almost any product, regardless of size and weight. • Water Transportation : Although water transportation is one of the least expensive forms of transportation, it is extremely slow. Furthermore, service is limited to the origin and destination points at which port facilities are available. Despite these restrictions, water transport is a popular mode, especially for large amounts of product coming from overseas, and bulky, low-value, high-density products. • Pipeline Transportation : This mode of transportation is used for a very narrow range of product types,

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