transportation decisions in logistics management

8/7/2019 TRANSPORTATION DECISIONS IN LOGISTICS MANAGEMENT

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TRANSPORTATIONTRANSPORTATIONDECISIONS INDECISIONS IN

LOGISTICSLOGISTICS

MANAGEMENTMANAGEMENT

PRESENTED BY:PRESENTED BY:--

DR. KARANBIR KAURDR. KARANBIR KAUR

MBA HOSPITALMBA HOSPITAL

MANAGEMENTMANAGEMENT4/10/2011 1


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INTRODUCTIONINTRODUCTION

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CHALLENGCHALLENG

ES FACEDES FACED

BYBY

MANAGERSMANAGERS

LABOR &LABOR &

EQUIPMENEQUIPMEN

TT

SHORTAGSHORTAG

ESES

INCREASEDINCREASED

SAFETY &SAFETY &SOCIALSOCIAL

REGULATIOREGULATIO

NN


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Transportation plays a central role in

seamless logistics operations, moving

inbound materials from supply sitesto manufacturing facilities,

repositioning inventory among

different plants and distribution

centers, and delivering finished

products to customers.

Benefits that should result from

world-class operations at the points of

supply, production, and customer

locations will never be realized

without the accompaniment of

excellent transportation planning and

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Having inventory positioned and available fordelivery is not enough if it cannot be cost effectively

delivered when and where needed.

Transportation is considered as the significant

component of the cost which most logisticsmanagement incur.

It forms nearly about 1/3rd 2/3rd of the total cost

Now a days from bulk producing industry to the

grocery industry, on line firms are delivering products

in small packages to consumers home instead of full

truck loads to retail outlet

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PARAMETERSPARAMETERS

While planning transportation of cargo/ consignment

various parameters to consider like

Cost

Selection of mode

Load scheduling & planning

Routing

Selection of transporter/ service provider

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COSTCOSTTransportation pricing is driven

by several factors these are :DISTANCE

VOLUME

STOWABILITY

HANDLING

LIABILITY

MARKET : there are various

market factors such as

Restricted entry timings

Lack of backhaul load

Seasonality

Topography, terrain & climate

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SELECTION OF MODESELECTION OF MODEFollowing to be considered

before selecting the mode

Urgency of delivery

Type/ weight & size of

consignment

Comparative freight

calculation

Risk elimination to avoid

loss in transit

Availability of dedicated

transporter who generally

ply on route

Reliability

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ROUTINGROUTING

Means mapping out most economical route chart for cost

effective movement

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SELECTION OF TRANSPORTER/SELECTION OF TRANSPORTER/

SERVICE PROVIDERSERVICE PROVIDER

Following factors to considerReliability, market reputation

Marketing efforts

Transport performance

Clientele baseAvailability of transport flee, contact

with 3 PL

Pricing

Billing accuracy & timeliness

Loss & damage cost handling

Financial stability

Security consciousness

liability4/10/2011 10


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transportation decisions in logistics management

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