Would like to discuss Transportation issues in the light of Logistics and Supply Chain Management through this article in short. These are terms as understanding transportation, different modes of transportation, role of infrastructure and policies, various transportation networks, identify some points on trade-offs while designing transportation networks etc. Also discuss some Bangladesh perspective after discuss some general transport issues.
Role of Transportation:
Transportation refers to the movement of things from one point to another as products make their way to reach the customer at the beginning. Supply Chains use responsive tansportation to centralize inventory and operate with fewer facilities. Shipper requires the movement of products from one pint to another in a Supply Chain and Carrier is the party who moves the cargo. The other parties are owners and operators of roads, ports, canals and airports and bodies that set transportation policies. A carrier takes investment decisions regarding their equipment; Shipper in contrast uses transportation to minimize total cost, while providing an appropriate level of responsiveness to the customers.
Air vs. Package carriers:
Supply Chains using modes of transportation, such as air, package carriers, trucking, rail, water, pipelines and inter-modal etc. Effectiveness of any mode of transportation is affected by the carrier as well as infrastructure and transportation policies, e.g., an airline’s goal is to maximize daily flying time of a plane and generated revenue per trip. Air carriers usually carry below 500 pounds, high value and light weight products. The Key issues air carriers usually faces include identifying location and number of hubs, assigning planes to routes, maintaining schedule of planes and crews , also availability in different prices.
But package carriers, such as, DHL, FedEx, UPS etc. are usually carries letters and other small cargo weighing below 150 pounds using air, Truck and rail to carry time sensitive smaller packages. They are expensive and cannot go for competition with other carriers for larger shipment due to expensiveness. They can provide other value added services e.g., speed inventory flow and track order status. Companies use air cargo carriers for
larger cargo and package carriers for more time-sensitive smaller cargo.
The Truck and Rail as a transport:
Truck shipment has two types of segments, i.e., TL (Full Truck Load) and LTL(less than Truck Load). It can reach to the customer’s door, while it is more costly than Rail transport. Truck has usually a shorter delivery time also. Through consolidation, LTL trucking can reduce cost through consolidation centers products originating from a geographical areaand destined to the same geographic area. Key issue for LTL industry is location of consolidation centers and scheduling and routing of pickup and delivery. Rail carriers incur a higher cost including rails, locomotives, cars, stations/yards. The idle time is more expensive in a rail transport. Labor and fuel cost is more than 60% of the total running cost of the train /rail transport. To be profitable, a rail transport crew and locomotives should be well utilized.
The Water transport:
Water transport is ideal for carrying very large loads at low cost. Very large sty shipment in international destinations is carried with comparatively quite low cost.
|A Depiction of a Transport By Water|