Archive | Logistics Management

PRINCIPLES OF TRANSPORTATION   There are 2 principles of transportation   1)    ECONOMY OF SCALE   This refers to the characteristics that transportation cost per unit of weight decreases when the size of shipment increases. It is also generally true that larger capacity transportation vehicles such as rail or water are less expensive per unit [...]

FACTORS INFLUENCING TRANSPORTATION COST AND PRICING   Factors influencing transportation cost or pricing can be grouped into 2 major categories namely   Product related factors Market related factors   PRODUCT RELATED FACTORS   1)   DENSITY   It refers to a products weight to volume ratio. Items such as steel canned foods, building products and bulk [...]

MODES OF TRANSPORT   AIRLINES   Air lines are the fastest terminal to terminal mode of transportation. They specialize in time sensitive movement of documents, perishable items, medical supplies etc. airlines transport small volume shipments and are very cost effective and time saving. They are also the preferred mode for travel passengers. Their services are [...]

LOCATION ANALYSIS                    If a firm wished to locate facilities closest to its potential customers, using one or more warehouses in their logistics network, a number of sites would be possible. The site-selection decision can be approached from macro and micro perspectives. The macro perspective examines the issue of where to locate warehouses geographically [...]

Land Bridge: A variant of this intermodal option is the “LAND BRIDGE” concept, which moves containers by a combination of sea and rail. The land bridge concept is based on the benefit of ocean and rail combination that utilize a single tariff, which is lower than the total cost of the separate rates. The-goods can [...]

Birdy Back: It is a combination of road and airways and is generally used in International shipments. Local cartage is a vital part of every air movement because air fright must eventually transport from the airport to the final delivery destination. Air- truck movements usually provide service and flexibility comparable to straight motor freight. Air- [...]

Fishy Back: It is a combination of road and water transport. Fishy back/ train ship/ containership are examples of the oldest mode of the intermodal transport. They utilize waterways, which are one of the least expensive methods for line- haul movement. The fishy back, train ship and container ship concepts load a truck trailer, railcar, [...]

Piggy Back: It is a combination of rail and road. The containers are placed on railway flat-cars and transported by rail from one terminal to another. After reaching the destination terminal, they can be placed on trailers and transported by roads which are also called as TOFC that is Trailer on Flat Car or COFC- [...]

Multimodal/Intermodal Transportation: Multimodal transport means using more than one modes of transport during the delivery of a particular consignment. It is a combination of more than one mode of transport. For e.g.: if a consignment is been transported from one country to another like from Japan to India by using a ship i.e. water transport [...]

Factors Determining Transportation Cost: There are various factors or things which is affecting or determining the cost of transportation and it’s pricing in the transportation system. They can be categories in two types: A] Product Related Factors. B] Market Related Factors.   A] Product Related Factors: 1) Product Density: It incorporates weight and space consideration. [...]