Transport in supply chains

11 important questions on Transport in supply chains

How to select different transport modes?

Based on:

- The volume and value of the freight

- The distance travelled

- The availabillity of different services

- Freight rates to be charged

Logistics service providers (LSP) usually apply volumetric charging based on the consignment dimensions.

What is a hub and why does it exist?


A hub is a place where passengers and cargo are exchanged between vehicles and transport modes.


Because of the enlargement of the supply chain and infrastructure. This is why there is a Need of redefining distribution patterns and a Need of new freight traffic routes.

How do we choose a hub?

- Infrastructure and accessibility
- Market acces
- Operarational base costs. E.G. labour and land costs
- Labour market capacity= size of working population and unemployment
- Logistic competences
- Business environment

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Where do we plan the next hubs to be?

More to the eastern of Europe because of the cost reduction, but they will also lose market access because is isn't that central.

What are the characteristics of modes of transport?

-Speed
-Accessibility
- Variability = thepossibility of the transport beginningand/or ending on anagreed time.
- Efficiency
-Frequency
-Risk = cargo loss or damage
- Price
- Environmental impact?

What are the biggest advantages of Railway transport?


-Possible for big volumes
-Longer distances
- Heavy loads
-Fixed departure andarrival schedule
-Possible for hazardous substances
-Environmentally friendly
- No traffic jams

What are the biggest advantages of road transport?

-Fast
-Door-to-door
- Flexible
- Reliable

But: Toll+ traffics jams

What are the biggest advantages of air transport?

- Fast
- Long distances
- Reliable

But: Expensive

What are the biggest advantages of water tranport?


-Mostly oil, coffee and chemicals
- Value added logistics (VAL)!
- Environment
- No traffic jams
- Efficiency improvement

What is the last mile and how can it cause problems?

Delivery to the last retailer or customer, mostly by road.
What if the customer isn't home, congestion.

What are FCL and LCL ?



The term FCL is used in transport to refer to full container loads


The term LCL is used to refer to less than full container loads


When carriers have a consignment that will not fill an entire loading unit they will usually try and build a consolidated shipment to make up a FCL

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