However, the process can be quite extensive and involves many logistical and supply chain challenges. These emphasizes the importance of transportation egoistic, ” The operation of transportation determines the efficiency of moving parts. 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 manipulation of logistics and a proper transport implements and techniques to link the producing procedures. ” (online, www. Agitated. Mom). What does all of that mean? The bigger picture is this: transportation plays a major logistical role for companies, governments, and consumers across the oral. Would you want to pay the extra charges to ship your new couch all by itself from Italy to your front door? Most people would answer no to that question. We all rely on sophisticated logistical planning to ensure that the costs of our products are not overwhelmed by the cost to transport them. The chart below sows, “the components of logistics costs based on the estimation from the Air Transportation Association….. His analysis shows that transportation is the highest cost, which occupies 29. 4% of logistics cost….. The transportation cost here includes the means of transportation, iridous, containers, pallets, terminals, labors, and time. ” (online, www. Agitated. Com). The first challenge that a company must face when approaching the delivery logistics Of their product is to decide what mode of transportation is best for them. There are many things that should be considered when trying to answer this question. Every company is faced with the challenge of choosing the most appropriate form of transportation for their product.
According to Johnson and Wood, ‘We have surveyed the essential operating characteristics of each transportation alternative Every manager must decide which transportation “m*’ will best meet the company’s objectives. ” They go on to say that the four basic and most important characteristics to be considered are speed, dependability, capability, and fuel efficiency. (Johnson and wood, 168) It is important to all companies that their products arrive in a timely manner. Customers are not patient and expect products at their finger tips. In order to keep up with the competition companies must not let their reputation of speedy delivery faultier. Modern society tends to “shorten” physical distances between people by the design of more and more advanced technical aids. Aspiration towards better mobility of people, services and assets is in the background of every technical, organizational and most, if not all, of today’s other systems,” states AGITATED. (online, womb. Agitated. Com). The quicker companies can get items to the shelves or to the consumer the better. AGITATED continues, “There is no business, or indeed almost no human activity, without a direct or indirect connection with certain traffic activities and needs.
Economic growth, changes in fiscal politics, e-trade, consumer protection, ecology all these, and many more, are factors which generate the need for goods and services. Where there are logistics designs you will find corresponding traffic demands. ” Now this importance of speedy delivery must also be weighed against the costs. It may be faster to build your own runway and fly your own jets to and from with your product but the financial practicality of that is not realistic for most companies. Another characteristic that is important for all companies to consider when choosing their mode to transport product is dependability.
Choosing the fastest aircraft may not always guarantee that your product will arrive faster than if it was sent by another mode such as road transport. If it takes 3 hours f air time to fly your product from Florida to New York, but eight out of ten of your scheduled flights are delayed or cancelled in the winter due to bad weather conditions in New York, you may not find that the benefits of the speedy aircraft are actually worth the lack of dependability. Once shipments get behind there is a domino effect on all other logistical timeliness in your supply chain that will require adjusting.
Our ever emerging use Of technology has allowed many companies to over come obstacles in the way of their dependability. “Today a number of GIS applications for transport and logistics exist ; and the number is rising. GIS has been use daily and worldwide for the efficient connection, harmonistic and management of all transport processes in an ever rising number of companies. Solutions, such as intelligent routing plan, satellite fleet management, distribution area planning and management of infrastructure resources are just a few examples in a wide palette of GIS supported solutions for transport and logistics. (online, www. Agitated. Com Geographic Information Systems (GIS) is one of the most important advances in transportation logistics to enable better dependability for the arrival of goods. One of the most familiar types of GIS many of us have in our own personal vehicles called the GAPS. They are used for many purposes and have many different capabilities from directions to traffic updates. Companies across the world strive to stay on top of the latest GIS technology. The GIS technology helps to give them an extra edge in speed and dependability over many of their competitors.
Capability should always be considered and should often be the first thing a company considers. If you have a certain type of product that is either too large or prohibited by a particular mode Of transport then you can automatically eliminate that mode as an option. “Capability refers to the size, weight, and variety of products that the mode can physically accommodate,” (Johnson and Wood, 169). Barges are often used for extremely large products. For example, NASA typically uses barges to transport Rockets and other space program equipment not because of their weight but their size.
Fuel efficiency continues to be a hot topic across the Globe. Not only do every day people consider fuel efficiency when traveling, but so must companies when choosing the best mode of transport for their product. The rice of fuel fluctuates and cause prices for the modes of transportation that require high volumes of fuel to rise. “For each gallon of fuel a pipeline consumes, barges require 1. 2 to 2. 3 gallons to move the same load the same distance. Then comes railroads, which require 1. 5 to 2 gallons; trucks which need 6. To 10 gallons; and airplanes which require 43 to 93 gallons to perform the same amount of work,” (Johnson and Wood, 169). As you can see fuel consumption varies quite a bit between the different transportation modes. I can not mention fuel efficiency without touching on the environmental issues that companies of today must consider when choosing the mode of transport for their goods. According to the U. S. Department of Energy s Annual Energy Review, “Industrial and transportation sectors- account for sixty-one percent of U. S. Carbon Emissions. With these kinds of numbers companies have a social and ethical responsibility to consider the environment when out lining the logistics to their supply chain. “As transportation and logistics systems continue to integrate, their impacts on the physical environment (air, water, and land resources) will become more complex. Coping with the environmental impacts will require the remonstration industry and its customers and stakeholders to move from strategies based on regulatory compliance to those emphasizing proactive environmental management.
Proactive management of environmental issues requires corporations to identify: (1 ) the interactions among transportation activities that have negative environmental impacts, (2) the types of environmental impacts emanating from transportation operations and facilities, and (3) alternative means of controlling and preventing environmental pollution and natural resource degradation,” writes Professor Dennis Reenrolled from the University of North Carolina. Online, www. Centerpieces. Com ).
Basically, companies and governments must be conscientious and make efforts to ensure their strive for speed, dependability and capability does not come at extreme environmental costs. Some of the damages may not be precedent right now but the long term effects can be devastating. We all have a responsibility to look out for the present and the future. While keeping all of the mentioned factors in mind, a company must then take a closer look at the 5 modes of transportation and their pro’s and can’s. The use of roads for transporting goods has been around since the stone ages.
Originally paths and trails were traveled by foot and goods were transported on human backs and heads. Evidence of street paving can be dated back to BBC. Cobblestones and wood paving were created to reduce highways and dust in cities. In the nineteenth century Tar-bound and concrete paving were established which brings us to the modern paved roads of today. (online, w. Vow. Wisped. Org) One advantage to choosing road transport for your goods is that it is cheap in comparison (only if congestion does not cause issues). Road transport can also be considered convenient. There are many route options when using roads.
You can use your own company vehicles or you can use a ground freight service. There are many companies out there competing for your freight business. Access to vehicles is not as difficult as other modes of transportation which can help with costs. Easy access to roads also makes schedules very flexible. You can arrange for pick ups and drop offs around the clock. You are not limited to prearranged schedules. If you miss a deadline it is quick and easy to arrange a new pick up. If you have in-house vehicles then anytime you are ready to transport the roads can be traveled.
Some disadvantages to using roads as our mode of transport is that safety concerns are high considering the number of accidents on the road today, and you can be subject to delays from road congestion. These delays can cause unneeded stress on your drivers and often cost you money when deliveries do not arrive on time. Clothing, computers, books, groceries, produce, and live stock are some the most common products used by road transport. Along with road transport, water transportation has been around since the early evolution of humans. Boats and watercraft have been used to transport and retrieve goods.
Oceans, coasts, seas, lakes, rivers, and channels all serve s routes for water transport. In the sass’s centralization emerged and ships became a top contender for transporting goods in bulk. “Today, there are more than 17,700 Kilometers of commercially important navigation channels in the lower 48 states. ” (online, www. Hydroelectrically. Com). Water transport remains the cheapest mode of transportation for large volumes. “Because of the physical properties of water conferring buoyancy and limited friction, maritime transportation is the most effective mode to move large quantities of cargo over long distances, (online, www. People. Hoofers. Du). Although the previous statement is true companies do find drawbacks to using water transport. Loading times and travel speed can be slower than other options which can off set the advantage to being able to transport more at a time. You are also at the mercy of inflexible routes and set time tables. Not to mention, there are a relatively low number of ports. Most of the time if you are using water transport you will also require another form of transportation to get the product to the Customer. Chemicals, bauxite, grain, motor vehicles, and agriculture implements are common products carried on waterways.
One of he most popular and well known products to utilize water transport is oil. As a result of being a popular mode of transport for extremely dangerous and non-environmentally friendly goods water transport has found itself under much scrutiny in the past due to the devastation caused by isolated accidents. Most Americans still remember the headlines and stories associated with the 1989 Exxon Valued Oil Spill. Wisped recounts, “The Exxon Valued oil spill occurred in the Prince William Sound, Alaska, on March 23, 1989.
It is considered one of the most devastating human-caused environmental disasters ever to occur a sea. As significant as the Valued spill was, it ranks well down on the list of the world’s largest oil spills in terms of volume released…. The vessel spilled 10. 8 million U. S. Gallons (about 40 million liters) of Prudhoe Bay crude oil into the sea, and the oil eventually covered 1,300 square miles (3,400 km) of ocean. ” (online, www. Waking. Org). Since this accident and others regulations and changes have been made to hopefully help prevent this type of grand disaster in the future.
Dildos, the first wagon (a predecessor of the railway) is said to have been used in Greece around BBC. In 1803 the Surrey Iron Railroad opened and is considered to be the first public railway. As investors and inventors continued to brainstorm the ideas and potential for the railroads became a hot topic. “It was not until 1825 that the success of the Stockton and Darlington Railway proved that the railways could be made useful to the general shipping public as to the colliery owner. The railway broke new ground by using rails made of rolled wrought iron. ” (online, www. Wisped. Org).
Improvements continued over the next century. From the birth of Diesel and Electric engines, we now have the massive railways yester of today. Railroads are typically one of the fastest modes of transportation you can choose. They move at impeccable speeds and are seldom faced with stops. Railroads are also viewed as one of the more environmentally friendly modes of transportation. Most importantly railroads offer the highest capacity for land transport. It is said that the largest recorded load was 23,000 tons of coal. One of the biggest disadvantages to railroads is that you are limited In the route options.
Railways have been built to connect cities and they do a wonderful job of that, but there are not many options on which route you can cake to get from place to place. Railroads are not set up like roads. They are better compared to Interstates that make a straight shot. As a result of the number of rails, you are often stuck with few options when it comes to schedules. Trains share the tracks but you can only ride one at a time, so you are sometimes at the mercy of another train. Unlike roads where you might choose an alternate route to avoid traffic, railroads only offer one way to get there.
If there is another train held up in front of yours there is no other choice than to just wait it out. Railways are Often viewed as unreliable when it moms to arrival times because of their inflexible routes. Some of the most common goods transported by railroads are coal, grain, lumber, heavy equipment, paper and pulp products, and chemicals. CSS is one of the largest railroad companies in the US. Executive Vice President of CSS, Clarence Goode describes the importance of railroads in the following statement, “Railroads serve as the circulatory system of the U.
S. Economy. Efficient and reliable rail transportation is one of the genuine competitive advantages that U. S. Businesses have in the global economy. ” (online, www. CSS. Mom Railroads are the safest and more environmentally friendly than any other mode of land transport CSS emphasizes their fuel efficiency in the following statement, “Everything about our operation is designed to reduce fuel consumption and improve the quality of our air. Steel wheels rolling on steel rails is the most efficient way yet devised to move goods from place to place.
The fact is, our trains can move a ton of freight 436 miles on a single gallon of fuel. Can you beat that? (online, FWIW. CSS. Com). Over all those are some pretty impressive numbers. Most Americans would love to eave a personal vehicle that would get 436 miles per gallon! The Wright Brothers took first flight in Kitty Hawk, NC in 1903. However, it was not until 1 910 that Americans actually used an aircraft to transport goods. A bolt of silk was shipped from Dayton to Columbus. This shipment was timed against the railroad express and reports were released that the air shipment arrived faster.
During the mid 1 ass’s many airlines began shipping cargo and parcel. Over the years the government has played a vital role in the existence Of all airline companies. Government regulation began in 1 925 tit Airmail Act which allowed the CSS Government to pay commercial airlines to transport mail. Mail delivery at the time was a major money maker for most airlines and they began cut-throat bidding for airmail routes. To avoid this type of cut-throat business the McCann-Waters Act of 1930 was passed and it allowed the post Office Department to review the accounting practices of mail carrier lines.
The Airmail Act of 1934 prohibited carriers from purchasing other airmail companies. This was a law put in place to prevent a monopoly situation. For the next 30 years more and more regulations were UT on airlines of all types. The government regulated all Interstate Carriers and enforced the concept that, “economic regulation of airlines should be in the interest of the public”. (online, www. Confidentiality. Gob). The CAB was formed to carry out these regulations. All airlines had to seek approval form the CAB for certificates that enabled them to start up or expand.
The CAB would use their power to approve and disapprove based on economic needs and demands of time. The CAB could only enforce economic regulations on the interstate airlines. If the airline only flew with in a state they were not abject to CAB regulations. This also helped to eliminate a monopoly situation from occurring. As the regulations stacked up a movement to deregulate airlines emerged. In 1 978 the Airline Deregulation Act was passed. “This Act ended most economic regulation in a series of steps over several years, and directed that CAB cease operations by the end of 1984” (online, www. Internationalists. Gob). The passing of the Deregulation Act of 1978 was crucial for all airlines. In addition to the end of the CAB’s economic regulation on the airlines, the safety regulations were passed on to the Federal Aviation Agency (FAA). The FAA continues to hold tight safety and environmental regulations on airlines. Some of the most prominent regulations are as follows: 1. Fuel venting and Exhaust 2. Noise Standards 3. Preventative Maintenance 4. Training Qualification for Pilots and Crew 5. Special Licensing Human Space Flight Requirements 6. 7.
Experimental permits 8. Financial Responsibility 9. Insurance Coverage The list goes on and on for safety and environmental regulations enforced by the Many companies were hesitant to use air freight carriers because of all the government regulation. By the sass’s a new freight company had bread its wings and was seeing astronomical success. Federal Express had over 75 aircraft and reported over $1 billion In revenues in 1983. Other competitors such as UPS also found great success at the turn of the century. In 2001 , UPS Airline was the 9th largest airline in the U. S.
Air transport can be considered the fastest mode of transportation in some situations. If a company is looking to ship goods long distance air transport can most of the time guarantee the quickest delivery. However, if the goods are being shipped a shorter distance air transport may not be the best choice due to the required loading time. Air is also limiting on the number of routes available. There are not airports around every corner in the world. Companies also have to consider the time schedules that they are bound to when using air transportation for their goods. Delays are unfortunately common in airports due to weather.
When one plane runs behind it can mess up flight schedules across the Globe. Like trains who share the railroads, planes must also share the runways. These delays can cause some companies to feel that air transport is not dependable when it comes to delivery times. Air transport is also one of the most expensive modes of rainspout and airport taxes can be outrageous. Due to high altitudes, size and weight constraints air transport is not always suitable for all goods. Some of the most common goods being transported by aircraft are flowers, food, technical instruments, emergency parts and equipment, and overnight mail.
However, according to The Environmental Literacy Council, “Airplanes and other modes of mass transit are also becoming more popular, for both freight and personal travel. Aviation is currently growing faster than any other transport sector, and carries nearly 40 percent in value of all global trade. In 2003, 1. 7 billion passengers flew the skies and demand is projected to triple by 2025” (online, womb. Environmentally. Org In 1863, Dimmitt Meddle first introduced the idea of using pipes to transport goods. In his particular case, he was considering pipes to transport petroleum.
Since then, pipeline transport has been used to transport liquids and gases through pipes. However, there are some cases where pipes have been used to transport solid capsules by the use of compressed air. There are three different types of pipelines. The first two are gathering pipelines and distribution pipelines which are used to transport goods smaller distances. The third type is transportation pipelines which are “mainly long pipes with large diameters moving products between cities, countries, and even continents.
These transportation networks include several compressor stations in gas lines or pump stations for crude and multipurpose pipelines” (online, www. Absoluteness’s. Com). Companies can consider pipelines as a very dependable mode of transport. “It is a safe and economical way to carry goods quickly and on time in congested urban areas by underground transportation lines” (online, www. Cargo. Mom). The major drawback to pipeline transport is its accessibility. There are just not many pipelines in place to transport goods. The most common goods transported via pipeline are oil, processed coal, and natural gas.
There is a new mode of transportation on the rise. You may not find it listed in text books but it is inevitably making its way into the transportation line-up. The “information highway’ or also know as the Internet continues to simplify and provide instantaneous delivery of many forms of information. What use to be sent by letter in the mail or currier is most often sent by email today. The Internet is not an option for most companies as a delivery method for their product, but for those that can use the Internet they have a fast, reliable, and environmentally friendly option just a click away!
As companies and government consider all of the pro’s and con’s associated with the different modes of transport they must also consider the option of outsourcing their transportation needs. A local furniture manufacturer may find that it is more cost efficient to purchase their own small fleet of delivery trucks than it is to rent or outsource their delivery needs altogether. However, an exotic fur retailer who has customers all over the world might decide that it is ridiculous to purchase their own planes or boats to transport their product overseas and they would most likely outsource their transportation needs.
This type of outsourcing is normally called Third Party Logistics (PL). Dishonor Memento explains one of the largest advantages to PL, “Likewise, by outsourcing logistics activities, firms can save on capital investments, and thus reduce financial risks. Investment on logistics assets, such as physical distribution centers or information networks, usually needs rage and lump sum costs, which involves financial risks. Furthermore, the PL providers can spread the risks by outsourcing to sub-contractors. “. (online, w. Vow. Subsections. Bent. Com).
Just because you are an expert in infant highchairs does not make you and expert in transport nor does it mean that you have to become one either. The biggest disadvantage to PL is finding a partner that cares as much for your goods as you do. The process Of finding a PL partner can be time consuming, but in the end may allow you to concentrate more on your product and less on the supply chain logistics associated with transporting your product. Finally, the last concept in choosing a transportation mode that I would like to mention is that of intermeddle transportation.
It is the use of various transportation modes. Intermeddle transportation has become more popular and almost a necessity with the advancement of Globalization. This is another area that many companies find most effective to ultimately outsource their transportation logistics especially when intermeddle transportation is needed. It would seem almost impossible to get those Italian grapes from the field in Italy to the wine glass in my living room using only en mode of transportation. Planning that journey can be very difficult.
Choosing the right modes Of transportation can present a large challenge and companies spend extreme time and money developing the best and most efficient transportation plans for their products. An entire industry of transportation logistics has emerged to satisfy the ever growing needs and expectations of people and companies. We expect to go onto a computer and click a few buttons and have products delivered directly to our door the next day. If you had tried to explain this sort of efficiency to someone seventy vive or even fifty years ago they would have had an extremely hard time grasping what you were trying to explain.