Transportation - Transport functionality and participants
3 important questions on Transportation - Transport functionality and participants
What is the functionality of transportation?
Transportation provides two major logistical services: product movement and product storage.
Product movement
- Basic value of transportation is moving inventory to specified destinations throughout the chain included reverse logistics;
-In-transit inventory: inventory captive in the transport system
- Transportation impacts: environmental resources (direct and indirect), financial resources (labor, fuel, but also damaged products)
Product storage
-Products are also stored when they are transported.
-Another service having storage implications is diversion: occurs when original shipment destination is changed after product is shipped.
Product movement
- Basic value of transportation is moving inventory to specified destinations throughout the chain included reverse logistics;
-In-transit inventory: inventory captive in the transport system
- Transportation impacts: environmental resources (direct and indirect), financial resources (labor, fuel, but also damaged products)
Product storage
-Products are also stored when they are transported.
-Another service having storage implications is diversion: occurs when original shipment destination is changed after product is shipped.
What are participants in transportation?
Transportation decisions are influenced by six parties:
1.Consignor (shipper)
2.Consignee (destination party/receiver)
3.Carries and agents (business that performs transportation service)
4.Government (reliable service to economic and social well-being)
5.Internet (Share real-time information)
6.Public (creates transportation demand by purchasing goods)
1.Consignor (shipper)
2.Consignee (destination party/receiver)
3.Carries and agents (business that performs transportation service)
4.Government (reliable service to economic and social well-being)
5.Internet (Share real-time information)
6.Public (creates transportation demand by purchasing goods)
What's the role of transportation in distribution? (lecture)
- Movement of product from one location to another.
- Products rarely produced and consumed in the same location.
- Significant cost component.
- Shipper requires the movement of the product: cheap, not much handling, easy as possible, realtime information on container.
- Carrier moves or transports the product: full containers by combining goods from different shippers, bringing shippers together.
- Transport manager has to decide: do it yourself VS outsourcing to carrier.
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