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1 Lesson 2 Transportation
This is a preview. There are 14 more flashcards available for chapter 1
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What is Internal transportation?
The movement of products inside the company -
What are the different transportation modes?
- Road (highway)
- Air
- Water
- Rail
- Pipeline
- Road (highway)
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What are the characteristics of road (highway)
Dominates thelogistics infrastructure - Has become more
cost-effective - Weaknesses -->Not the fastest nor the cheapest option
- Strength-->
flexibility to deliver where and when needed - Greater emphasis on delivery speed + flexible mode of transportation
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What are the characteristics of water?
- Water carriers- inexpensive, slow & inflexible, include inland
waterway , coastal &deep-sea Ideal for materials with high weight-to-value ratio, (for heavy, bulky, low-value materials) especially if delivery speed is not critical
- Water carriers- inexpensive, slow & inflexible, include inland
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What are the characteristics of rail?
- Rail is relatively slow & inflexible
- Similar to water but more flexible
- Strengths--> highly cost-efective for bulky items
- Weaknesses--> Limited locations.
- Rail is relatively slow & inflexible
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What are the characteristics for air?
- Ideal for customers with a low weight-to-value ratio, especially, if delivery speed or delivery reliability is critical
- Higher shipping (fuel) costs and improvement in other modes have reversed in the rise in air growth over the past decade
- Strength--> quickest mode of delivery, flexible especially linked to the highway mode.
- Weaknesses --> often the most expensive model on a per-pound basis
- Ideal for customers with a low weight-to-value ratio, especially, if delivery speed or delivery reliability is critical
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What are multimodal solutions?
A transportation solution that seeks to exploit the strengths of multiple transportation modes through physical, information and monetary flows that are as seamless as possible. -
What are intermodal transportation?
Combinations of various transportation mode, is becoming an extremely popular method -
Key aspect of multimodal/intermodal solutions
Integration of the various models through physical, information and monetary flows UPFRONT. Coordination is essential -
What are contract carriers?
A transportation service providor that handles shipments for other firms based on long-term agreements on contracts
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