TRANSPORTATION

SH. YAKUBOV | 06.06.2011

IN SUPPLY CHAINS

AGENDA IMPORTANCE MODES CHARACTERISTICS COSTS SUMMARY

TRANSPORTATION

IMPORTANCE

GREATER COMPETITION ECONOMIES OF SCALE LOWER COSTS

GREATER

EFFICIENT

COMPETITION

TRANSPORT SYSTEMS =GREATER COVERAGE FASTER DELIVERY

ECONOMIES OF

CHEAP+EFFICIENT

SCALE

LOCATE PRODUCTION WHERE THERE’S A

TRANSPORT SYSTEM

GEOGRAPHICAL ADVANTAGE

LOWER

INEXPENSIVE

COSTS

TRANSPORTATION

COSTS REDUCED $$$$$$$$$$$$

Movement 8%

Packaging 12%

Warehousing 17%

Inventory 17%

Ordering 6%

Management 11%

Transportation 29%

Cost ratio of logistics items. (modified: Chang, 1988)

WATER RAIL

TRUCK AIR

PIPELINE

MODES

$ = RATE OF TRANSPORTING GOODS ACCESSORIAL + TERMINAL CHARGES

PRICE

WATER RAIL

TRUCK AIR

PIPELINE $$$$$$

$$ $$$

$

$

PRICE

TRANSIT TIME = AVERAGE

TRANSIT TIME AND VARIABILITY

TIME IT TAKES FORSHIPMENT

TO MOVE FROM ITS POINT OF ORIGIN TO ITS

DESTINATION

VARIABILITY= DIFFERENCE

TRANSIT TIME AND VARIABILITY

IN TRANSIT TIME

BETWEEN VARIOUS MODES OF TRANSPORTATION

WATER RAIL

TRUCK AIR

PIPELINE

MODES

EVERY SHIPMENT

LOSS AND DAMAGE

IS SUBJECT TO RISK

OF LOSS & DAMAGE

TRANSPORT

LABOUR

COSTS

FUEL ROADWAY TERMINAL MAINTENANCE

ADMINISTRATIVE ETC.

RATE PROFILE

VOLUME DISTANCE DEMAND RE

LATE

DRA

TES

RATE PROFILE

VOLUME RE

LATE

DRA

TES

RATE PROFILE

DISTANCE RE

LATE

DRA

TES

RATE PROFILE

DEMAND RELA

TED

RATE

S

SUMMARY