TRANSPORTATION

Raw material and finished goods are to be finished goods are to be transported either  into the  factory or
from factory to other destination. Transportation charges contribute significantly to cost  of  product .
Normally  the share of transport cost  is  about 30-40% of total logistics cost .Hence any  effort to cut
down cost would require
efficient  and effective  utilisation of  transport facilities.

Areas for improvement are

  • reduction in transit time

  • less damage in transportation

  • reduction in  protective packaging

  • availability  of  information through
  • out shipment points .




COST  ELEMENTS OF  TRANSPORTATION

  • Freight  cost
  • Transit time costs
  • Obsolescences & deterioration costs
  • Protective  packaging costs
  • Transit  insurance costs
  • Misc costs eg         octroi ,  toll taxes , local taxes etc



MODES  OF TRANSPORT

  • Airways

  • Seaways

  • Roadways

  • Railways

  • Pipelines

CONTAINERISATION

Inter modal transportation involves movement of shipment from origin to destination  utilising  two or more
different  modes of transportation . A container  is a specially  designed metal box  . Most popular sizes  
are
8x8.5x20 ft  OR 8x8.5 x40 ft . 20ft container has become standard for shipping lines  It s termed as TEU

ONE TEU = ( 20 FT CONTAINER )

The concept of  containerisation  has gained acceptance with majority of manufacturers .Goods of any
kind are packed  into a container at any location  and placed on wheels  and moved by truck or rail to
reach the destination .In  the case of overseas shipment , containers are moved to the marine terminal by
truck or rail , where  large gentry cranes lift the container from the vehcle and laod on the ship with slots  
assigned to old containers for shipment . At destination  the process is reversed  and the container is
offloaded fo final delivery to the destination




TRANSPORTATION  DECISION( FREIGHT CHAGRES)

While  making transportation -related decisions  a variety of factors are required  to taken , important
factors are

  • Economic  factors

  • Shippers factor

  • Carrier  factors

  • Alternate  pricing strategies        

Back                      Next:   transportation economic factors





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