Introduction:

Transportation is one of the most visible elements of logistics operations. The rote of transportation in
national economy is very crucial. Every business firm, regardless of what it produces or distributes,
requires the movement of goods from one point to another. Transportation essentially concern the
spatial dimension of business firm, it refers to geographical relationship and reflects the combination of
firm with respect to their materials sources, markets. The purpose of transportation is serve as a
connecting link between plants and warehouses and such as suppliers and customers.

Role of transportation:

1.) Transportation in production and marketing- in production, transportation function is looked

after by executives of materials management department. A part of transportation function can
2.) Modal characteristics- modes of transportation used in national logistics and supply chain
management can be grouped under five models :
Rail
High way
Water
Pipeline

The relative important of each mode can be measured in terms of system mileage, traffic volume,
revenue, and the nature of traffic composition. Each mode discussed with respect to this measures:

Motor carriers/truck- motor carriers have flexibility and speed of intercity movement because they are
able to operate on all types of rail roads.

Rail network- rail roads dominated intercity freight tonnage until after World War II. The capacity to
efficiently transport large tonnage overlong distance is the main reason railroads continue to handle
significant intercity tonnage and revenue.

Water transport-the oldest mode of transportation, it has the capability to carry large tonnage at low
cost places this mode of transport in demand when low freight rates are desired and speed of transit is a
secondary consideration.

Pipelines- it operates 24/7 and is limited only by commodity changeover and maintenance. Pipes has
the highest fixed cost and lowest variable cost among transportation modes.it is use for shipping
petroleum, natural gas, water and any other chemicals from sources to markets.

Air transport-the newest but least utilized mode of transport is air freight. It is high cost but ideal when
speed is needed.

Factors for the selection of international carrier:

1.) Transportation cost: this include rates, minimum weight and loading and unloading charges.
2.) Transit time: it is the total time that elapses from the time the consigner makes the goods
available for dispatch until carrier deliver same to the consignee.
3.) Reliability: refers to the consistency of the transit time a carriers provide.
4.) Capability: refers to the carrier’s ability to provide the equipment and facilities that is required
for the movement of particular commodity.
 5.) Accessibility: refers to carrier’s physical access or geographical limits.
6.) Security: concern the arrival of good in the same condition.

TRANSPORTATION PERFORMANCE

Whether the movement of the material and equipment is by rail, sea, air, or road, adequate facilities
for their free flow to and from the factory must be ensured.

Terminal facilities: one of the major activities of transportation is making terminal arrangement, if
terminal facilities are liberally provided, a reduction can be obtained in freight rates.

Major facilities available in terminals:

Adequate storage space

Loading and unloading arrangement
Storage facilities

Fleet management- an important feature of movement of major project is the type of vehicle used for
movement. The vehicle dimensions, capacity, type, and its special characteristic if any have to examine
with reference to the quality and quantity of goods to be moved.

Major carrier decisions:

Type
Capacity
Characteristics
Speed

Key movers- the motive power utilize for the international handling of vehicles and transportation to
destination is another important component of the total movement system. Suitable design of
conveyors and mechanical loaders can reduce the drudgery of annual labour and make pre-dispatch and
post receipt handling operations more efficient.

Routing – solving the vehicle routing problem is critical to efficient fleet management. The route or
pathways must have adequate capacities.

Transit time management- transit time generally never received adequate attention in the planning of
major projective. Transit time can be drastically cut any time by air lifting a consignment.

Distribution pattern- the pattern of the movement of the product by road or rail must be planned
properly. It is not sufficient to take the average lead or distance for the whole country for calculating
fleet requirements.

Nature of product- the generally low level of sophistication is transport planning in the country has
made it difficult for planners to appreciate the fact that transport capacity is influence by the nature of
goods.

Asset tracking – in order to serve the customer firms are in position to update them regarding the
process in movement of goods. The technologies like GSM really provide an enormous information that
allows the service providers to identify the distance covered by any shipment as well as its GPS
technology is used to determine exact location.
Transportation modes

A diversity modes- transportation modes are the means by which people and freight achieve mobility.

Road transportation: road infrastructure are large consumers of space with the lowest level of
physical constraints among transportation modes.
Rail transport: rail ways are composed of a traced path on which is a bound vehicle.
Pipeline: pipelines route are practically unlimited as they can be laid on land or under water.
Maritime transportation: maritime transportation is the most effective mode to move large
quantities of cargo over long distance.
Air transportation: air transport constraints are multidimensional and include the side climate,
fog, and aerial current.
International transportation : concern a variety of modes used in combination so that the
respective advantages of each mode are better exploited, it is over freight transportation that
the most significant impact have been observed containerization has a powerful vector of
intermodal integration, enabling maritime and land transportation made to move effectively
interconnected.
Telecommunication: often does not have physically. Yet, they are structured as networks with a
practically unlimited capacity with very low constraints.
Modal competition: a general analysis of transport modes reveals that each has key operational
and commercial advantage and properties.

Transportation infrastructure and policies

The transportation modes serving agriculture have experienced strains over the last five years. The
current capacity for storage, trains, loading, inspection, ships, port, capacity, etc. will be inadequate to
meet projected demand for VS feed and food products from china, India, and south east Asia.

Tailored transportation – is the use of different transportation modes networks based on products and
customer characteristics. Most firm sell a variety of products and serve many different customer
segments. A firm that sells office supplies and furniture will have a different tailored transportation
strategy than a firm that sells bulk oil products. A firm can meet customer needs at a lower cost by using
tailored transportation to provide the appropriate transportation choice.

For example:
Short distance
High density- private fleet with milk runs
Medium density- third party milk runs.
Low density- third party milk runs or LTL carrier
Medium distance
High density- cross dock with milk runs
Medium density- LTL carrier
Low density- LTL or package carrier
Long distance
High density- cross dock with milk runs
Medium density- LTL or package carrier
Low density- package carrier
 Group 2
(Designing Transportation)

Members:
Rizza Mae Geraldez BSHM 2-B
John Albert Dela Torre BSHM 2-B
John Nicole Macatuno BSHM 2-B
Shara Geronimo BSHM 2-B
Glen Jay Huelar BSHM 2-B
Krizzia Lyn Pandan BSHM 2-B
Jacquiline Hirmano BSHM 2-B