Modes of TransportationBy : Armaan Anand, 14020241107

Introduction

• 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 expands other functions of logistics system

Role of Transportation in SCM

Transportation provides the critical links between these organizations, permitting goods to flow between their facilities.

Transportation service availability is critical to demand fulfillment in the supply chain.

Without 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

Challenges to carry out this role Supply chain complexity

Competing goals among supply chain partners

Changing customer requirements Limited information availability

Synchronizing transportation with other supply chain activities Transportation capacity constraints pose a challenge.

Rising transportation rates present another major concern for organizations.

The transportation industry is impacted by governmental requirements that affect cost structures and service capabilities.

Regulation is growing in areas where the transportation industry has the potential to impact the quality of life, the safety of citizens, and the growth of commerce.

Modes of Transportation

Pipelines

Package Carriers

Inter ModalTransportation

Pipelines Characteristics

An unique mode of transportation

They can move large quantities of certain types of commodities, mainly fluids, over long distances at relatively low cost

The operations are environmentally friendly, dependable and continuous

The pipelines can be laid on a wide variety of terrains without much difficulty.

Pipelines Advantages

They are insensitive to surface conditions such as storms, inclement weather, etc.

High fixed versus low variable. Operating costs are low.

They are environmentally friendly.

Unique mode of transportation as the equipment is fixed in place and the product moves through it in high volume.

174 operators of hazardous liquid pipelines that primarily carry crude oil and petroleum products

Three primary typesGathering linesTrunk linesRefined product pipelines

Success story of Numaligarh Refinery ltd

• The Refinery feeds the countries's never- satisfyable need for petroleum products. Despite a crude allocation of 2.80 MT last year the plant had to restrict processing to only 2.28 MT

• For NRL, the most-dreaded impact at this time of the year is that the raging river -- as it makes its way down to the Bay of Bengal -- overflows onto the railway tracks. It affecting all links between NRL's processing facilities and the product markets in mainland India.

• Even during the rest of the year which is marked by normal weather, the railways are unable to supply adequate rakes to NRL -- on the single-track railway line -- in order to ensure adequate evacuation.

• Therefore, that Numaligarh has tied up with another company in the north-east, Oil Indian Ltd (OIL), to build a 660 km product pipeline -- with a capacity to move 1.72 MT of diesel and petrol -- linking Numaligarh with Siliguri in West Bengal.

The impact of the pipeline on NRL

• The railways were carrying only 1.21 MT of products up to Siliguri. With the pipeline in place, 1.72 MT of the refinery's total output would get delivered to the markets in the East and the North.

• With the pipeline in place, the profitability of NRL is expected to go up by as much as 150 crore annually because of higher capacity utilisation and lower transportation cost. .

• The pipeline is not easily susceptible to damage from the Monsoon-driven waters of the Brahmaputra.

• The Barauni-Kanpur pipeline, for instance, the operating cost is a mere Rs 191 per tonne of product, whereas the railway freight per tonne for the 649 km distance is a mere Rs 926 per tonne.

• In the case of the Chennai-Trichi-Madurai pipeline -- to be commissioned in mid-2005 -- the railway freight is likely to be around Rs 728/tonne for a distance of around 500 km whereas the operating cost of the pipeline for the distance is expected to be only Rs 66.30 per tonne.

Inter Modal Transportation

Inter Modal Transportation

Involves the use of 2 or modes of transportation in moving cargo from origin to destination.

Relies primarily upon the use of containerization Involves the use of standardized box dimensions, hold down devices, &

related items. Allows the same container to be used by water, rail, & motor carriers. Combines the advantages & disadvantages of each transportation mode

used

Motor freight is the most common mode used

PIGGYBACK - First Intermodal Revolution

Includes the movement of motor carrier trailers on rail flatcars (TOFC) Typical trailer ranges in length from 28 to 53 feet Most flatcars can handle up to 2 trailers 40 feet in length Trailers loaded by driving, crane hoisting, or fork-lift hoisting

And the movement of water carrier containers on flatcars (COFC) Container come in 2 standard lengths TEU (20 feet equivalent units) FEU (40 feet equivalent units) Typically loaded by crane hoisting Normally transported on a doublestack car

PIGGYBACK

Several attempts to integrate transport modes- “Piggyback” or trailer on flatcar (TOFC)

Early success limited by rate restrictions, poor reliability and low profitability

Containerization was the revolutionary breakthrough

Transfer of cargo can be mechanical by crane and safety and security is improved

Fast loading and unloading reduces port congestion

Growth has occurred through conversion of cargo from traditional break of bulk and the growth of world trade

Package Carriers• Package delivery or parcel delivery is the delivery of shipping containers, parcels,

or high value mail as single shipments. The service is provided by most postal systems, express mail, private package delivery services, and less than truckload shipping carriers.

• Continued growth of business-to-consumer (b2c) e-commerce has increased demand for low-cost package shipping services. Demand for inexpensive parcel shipping is especially intense for online and catalog retailers

• Large parcel carriers, such as United Parcel Service (UPS) and FedEx, often include an array of accessorial charges (like fuel and residential delivery surcharges) in addition to their standard fees

• Packaging needs to be designed for the potential hazards which may be encountered in parcel delivery systems. The major carriers have a packaging engineering staff which provides packaging guidelines and sometimes package design and package testing services.

Methodology to reduce packaging by producers By concentrating the product as is now common with detergents, household cleaners and

squashes so that the same benefit can be got from a smaller package. By changing the design of the packaging so that it uses less material, for example by

providing coffee in pouches to refill a glass jar. In some cases the environmental impact can actually be reduced by using more packaging.

For example, 20% of grapes used to go to waste in store when they are sold as loose bunches. Most now are packed in bags or boxes, which means fewer grapes get squashed before they get home and the packaging can even help keep the grapes fresh when they get home.

This work has been going on for many years e.g. washing-up liquid bottles are 58% lighter, cardboard boxes are 14% lighter and drinks cans are 50% lighter than in the 1970s.

More recently many organization's have been working with WRAP to reduce both household food waste and the impact of packaging, resulting in a voluntary agreement known as the Court auld Commitment. Nearly 50 major retailers, brand owners and manufacturers from the food and drink sector have now agreed to support a second phase of the Court auld Commitment to reduce the carbon impact of food waste and packaging

Case Studies Coop glass ale bottles • The Co-operative introduced lighter glass bottles on their premium ale range. This

resulted in annual savings of around 138 tones of glass. • Working with Free miner Brewery, The Co-operative has reduced the bottle weight of

its 500ml Gold miner, Organic and Bumble Bee Honey Ales by 22% from an original weight of 385g and reduced its 422g Strong Ale bottle by nearly 30%. Other breweries have done similar things too (see Court auld Case Studies).

Wal*Mart – Glass Containers • It has achieved a 20% reduction in its own-label packaging, with a particular focus on

cutting the weight of the glass they used. • It has worked with suppliers, advisory bodies and academics to prove that lightweight

glass packaging can be delivered to market without affecting quality or sales. It has now reduced the weight of glass packaging for sauces, pickles, spices, coffee and wine bottles.

• These initiatives have achieved an overall glass reduction of 2,800 tonnes compared to 2005

Top 6: Shipping Companies

United Parcel Service, Inc.Headquarters: Sandy Springs, Georgia, US

DHL ExpressHeadquarters: Bonn, Germany

FedEx CorporationHeadquarters: Memphis, Tennessee, US

United States Postal Service Headquarters: Washington, D.C., US

TNT Headquarters: Hoofddorp, Netherlands