Transportation modes & Types of warehousing

10 important questions on Transportation modes & Types of warehousing

What are the six most common ways of transportation?

  • Road
  • Air
  • Water
  • Rail
  • Pipeline
  • Multimodal / Intermodal solution

Give some examples of constraints when planning transportation:

  • Customer requirements and time available;
  • Maximum route time;
  • Vehicle capacity;
  • Start & Stop points en route;
  • Infrastructure constraints & traffic conditions;
  • Balancing of the route for the driver, to avoid overtaxing
In order to plan transportation you will need information about transportation factors such as:
  • modal choice, carrier selection, consolidations, vehicle routing and scheduling, selection of the right vehicle type considering the dimensions and characteristics of the shipment, selection of the right vehicle and driver, vehicle loading.


At least have 5/7

What is the landed (total) cost?

The cost of a product plus all costs driven by logistics activities, such as transportation, warehousing, handling, customs fees, etc.
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What is the implication for warehousing?

Warehousing and inventory managers must work closely together to achieve the desired business outcome.

What are implications for transportation?

  • Using slower and cheaper transportation modes will cause inventory levels within the supply chain to rise.
  • Using faster and more expensive transportation modes will enable firms to lower inventory levels.

What are the three outsourcing options? Give an explanation for each one.

  • Common carriers; transportation company, working together on a case by case basis, mostly short-term corporation
  • Contract carriers; transportation company, working together on a contract basis
  • 3PL (Third Party Logistics); not only limited on transportations, from warehousing, all the way through to delivery

What are the four types of warehousing?

  • Private warehousing: in-house
  • Public warehousing; commercial inventory space owned by a third-party business and rented to other companies
  • Contract warehousing; arrangement in which a partner warehouse agrees to receive, store and ship goods for a client.
  • Bonded warehousing; managed by the state or by private enterprise

What is cross-docking warehousing?

When large, economical shipments come in, and small flexible shipments go out.

What is break bulk warehousing?

A break bulk operations receives the combined customer orders from a manufacturer and then ships them to individual customers based on the requirement. A break bulk warehouse fundamentally sorts and splits the individual orders and arranges for local delivery.

What are hub-and-spoke systems?

A hub and spoke network is a centralized, integrated logistics system designed to keep costs down. Hub and spoke distribution centers receive products from many different origins, consolidate the products, and send them directly to destinations.

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