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Group 1 members are Akshay Samant (Roll No. 04), Harshita Deotare (Roll No. 19), and Tejas Joshi (Roll No. 55). Transportation is the movement of goods and people from one location to another. It is crucial for logistics operations and business efficiency. Different modes of transportation like rail, road, water, and air each have their own advantages and limitations depending on factors like cost, speed, and cargo capacity.

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Shariq Khan
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98 views

Transps

Group 1 members are Akshay Samant (Roll No. 04), Harshita Deotare (Roll No. 19), and Tejas Joshi (Roll No. 55). Transportation is the movement of goods and people from one location to another. It is crucial for logistics operations and business efficiency. Different modes of transportation like rail, road, water, and air each have their own advantages and limitations depending on factors like cost, speed, and cargo capacity.

Uploaded by

Shariq Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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GROUP

NO.1
Group members Roll No:
Akshay Samant 04

Harshita Deotare 19

Tejas Joshi 55
TRANSPORTATION
Meaning and
Definition
“The process of moving an item from point A
to point B.”

“Safe, efficient, reliable, and sustainable


movement of persons and goods over time and
space”
Transportation in
Logistics:
 The operation of transportation determines
the efficiency of moving products
 The progress in techniques and management
principles improves the moving load,
delivery speed, service quality, operation
costs, the usage of facilities and energy
saving.
 Transportation takes a crucial part in the
Logistics Operation
 Therefore, transportation is the base of
efficiency and economy in business logistics and
Importance of
 Without
Transportation:
well-developed transportation
systems, logistics could not bring its advantages into full
play.

 A good transport system in logistics activities could


provide better logistics efficiency, reduce
operation cost, and promote service quality.

 A well-operated logistics system could increase both the


competitiveness of the government and enterprises.

 Transport system is the most important economic


activity among the components of business logistics
systems
Transportation
Functionality

Product Movement
Functions of
Transportatio
n
Product Storage
Product
Movement
Temporal:
-Product is locked up during transit, hence inaccessible
-Positive amount of time is spent in transporting material
-Time is a resource[Temporal Resource] expended in
Transportation
-During the time product is locked up costs are incurred
in proportion of time
 Financial:
-Administration costs, Salaries, Maintenance costs are
expended
 Environmental:
Fuel costs are high[Creates air
pollution, congestion, Noise pollution
Product
Storage
When unloading and loading is more
expensive then storage

When storage space is limited[situation


when inventory levels are high]
Principles of
Transportation

Economy of
Scale
Principles of
Transportatio
n
Economy of
Distance
Types of
Transportation
Rail
Transport:
Advantages of Rail transport:
 It is a convenient mode of transport for travelling
long distances.
 It is relatively faster than road transport.
 It is suitable for carrying heavy goods in large
quantities over
long distances.
 Its operation is less affected by adverse weathers
conditions like rain, floods, fog, etc.
Limitations of Railway transport:
 It is relatively expensive for carrying goods and passengers
over short distances.
 It is not available in remote parts of the country.
 It provides service according to fixed time schedule and is
not flexible for loading or unloading of goods at any place.
 It involves heavy losses of life as well as goods in
case of accident.
Road
 Transport
Advantages
 It is a relatively cheaper mode of transport as compared to
other modes.
 Perishable goods can be transported at a faster speed by
road
carriers over a short distance.
 It is a flexible mode of transport as loading and unloading is
possible at any destination. It provides door-to-door service.
 It helps people to travel and carry goods from one place to
another, in places which are not connected by other means of
transport like hilly areas.
 Limitations of Road transport
 Due to limited carrying capacity road transport is not
economical for long distance transportation of goods.
 Transportation of heavy goods or goods in bulk by road
involves high cost.
Water
 Transport
Advantages:
 It is a relatively economical mode of transport for bulky and heavy
goods.
 It is a safe mode of transport with respect to occurrence of
accidents.
 The cost of maintaining and constructing routes is very low most of
them are naturally made.
 It promotes international trade.
 Disadvantages:
 The depth and navigability of rivers and canals vary and thus, affect
operations of different transport vessels.
 It is a slow moving mode of transport and therefore not suitable for
transport of perishable goods.
 It is adversely affected by weather conditions.
 Sea transport requires large investment on ships and
Air
Transport:
Advantages:
 It is the fastest mode of transport.
 It is very useful in transporting goods and passengers to
the area, which are not accessible by any other means.
 It is the most convenient mode of transport during natural
calamities.
 It provides vital support to the national security and defence
 Disadvantages:
 It is relatively more expensive mode of transport.
 It is not suitable for transporting heavy and
bulky goods.
 It is affected by adverse weather conditions.
 It is not suitable for short distance travel.
 In case of accidents, it results in heavy losses of
goods, property and life.
Transportation
Impacts
The speed, cost, and capabilities of
available transportation have a significant
economic impact on an area ---
Highway, rail, freight, transit, shipping

Countries with better/advanced


transportation networks and services are
leaders in industry and commerce

USA, Japan, Germany, ...


What are Current
Transportation
Problems?
1. Financing
2. Congestion
3. infrastructure
4. Safety
5. population
6. Increased truck weights
Multimodal
Transportation:
Relative Opening Characteristics by Transportation
Modes:
Operating Rail Truck Water Pipeline Air Remarks
Characteristics
Speed 3 2 4 5 1 Air is the fastest
Availability 2 1 4 5 3 Road is the best since they
can drive from origin to
destination

Dependability 3 2 4 1 5 Pipeline ranks best-As the


service is continuous and
there is no stoppage due
to traffic or congestion

Capability 2 3 1 5 4 Sea is the best-Can handle


all types and size of cargo

Frequency 4 2 5 1 3 Pipeline is ranked best-As


the movement is
continuous

Composite 14 10 18 17 16 Lowest rank is the Best-


Score
Carrier Selection
Determinants

Transportatio Service
n Cost Performanc
e

Transportation Costs:
MinimumWeights, Loading , Unloading Facilities, Packaging, Damage
in Transit and special services available from a carrier

Service Performance:
----TransitTime
----Reliability
----Capacity
-----Accessibility
-----Security
Cost Structure For Each
Module:
Mode Fixed Costs Variable Costs

Rail High- Equipments, Terminals Low


, Tracks ,etc

Road Low-Highway provided Medium-Fuel , Maintenance, etc


by government

Water Medium-Ships and Low-As capacity is huge


Equipment

Pipeline Highest-Right of the way , Lowest-Insignificant labour costs


construction, Equipment for
control station and
Pumping capacity

Air Low-Aircraft and High- Fuel, labour, Maintenance


cargo handling
systems
Cost ratio of logistics
items
35

30

25

20

15

10

0
Inventory Management Transportation Packaging Ordering Warehousing
Cost Ratio 17.5 11 29.5 11.9 5.5 17
Factors Influencing Transportation
Costs And Pricing:
Product Related Factors Market Related Factors

Density Whether the Product is transported


Domestically or
Internationally, Seasonality of Product
Movement
Location of Markets, which
Stow ability
determines the distance goods must
be transported

Ease or Difficulty of Handling Nature & extent of government


regulation

Liability Balance or imbalance of Freight Traffic


in to and out of a Market
Conclusion:
 Transportation and logistics systems have interdependent
relationships that logistics management needs
transportation to perform its activities and meanwhile, a
successful logistics system could help to improve traffic
environment and transportation development.
 Since transportation contributes the highest cost
among the related elements in logistics systems, the
improvement of transport efficiency could change the
overall performance of a logistics system.
 Transportation plays an important role in logistics
system and its activities appear in various sections of
logistics processes.
 Without the linking of transportation, a powerful logistics
strategy cannot bring its capacity into full play

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