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
COST ELEMENTS OF TRANSPORTATION
MODES OF TRANSPORT
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
Back Next: transportation economic factors
-
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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