Modes Of Transportation In Supply Chain Management Pdf
Transportation is one of the crucial parts of supply chain management that plays a significant role in achieving business objectives. It involves moving goods from one location to another, turning inventory into sales, and ultimately generating revenue. There are various modes of transportation available to businesses to manage their supply chain.
1. Road Transport
Road transport is the most common and flexible mode of transportation widely used for short and long distances. It involves the use of trucks, vans, and trailers to move goods from one location to another. Road transport is reliable and efficient, making it suitable for small to large businesses. It also provides real-time tracking and visibility of goods, which is an essential aspect of supply chain management.
2. Rail Transport
Rail transport is a cost-effective mode of transportation suitable for the movement of bulk goods over long distances. This mode of transport is suitable for businesses that deal with heavy and bulky products. Rail transport is environmentally friendly and provides fast and reliable delivery of goods. However, the downside to rail transport is that it lacks flexibility in terms of delivery locations and timings.
3. Water Transport
Water transport involves the use of ships and boats to move goods from one location to another. This mode of transport is suitable for businesses that deal with heavy and bulky goods in bulk quantities. Water transport is the most cost-effective mode of transportation for international trade, making it suitable for businesses that engage in global trade. However, the downside to water transport is that it is relatively slow and lacks flexibility in terms of delivery locations.
4. Air Transport
Air transport is the fastest mode of transportation suitable for businesses that deal with perishable and time-sensitive products. It involves the use of airplanes to move goods from one location to another. Air transport is reliable and efficient, making it suitable for businesses that require fast delivery of goods. However, the downside to air transport is that it is relatively expensive, making it unsuitable for businesses that deal with low-value products.
Conclusion
In conclusion, transportation is a crucial part of supply chain management, and businesses should carefully choose the mode of transport that suits their needs. Each mode of transport has its advantages and disadvantages, and businesses should consider these factors when making a decision. Road transport and rail transport are suitable for businesses that deal with heavy and bulky goods. Water transport is suitable for businesses that engage in international trade, while air transport is suitable for businesses that deal with perishable and time-sensitive products.
