How to choose the best transportation with supply chain

How to choose the Best Transportation With Supply Chain? (1)

Running head: How to Choose the Best Transportation with Supply Chain?

Ahmed Lajili Ali

UB.ID# 0860828

University of Bridgeport

Master science of Mechanical Engineering

Supply Chain Management

((MEEG 573))

Pr. David Burnell


Abstract:

Purpose: to introduce the issue for how to choose the best transportation with supply

chain? Those can companies competitive for transportation into supply chain.

Finding:

Outlines how the individual papers affect debate on the nature and compatibility

development of transportation in the supply chain. Also it can present abilities transportation that

shows how the transportation can play to contact all groups in the supply chain together like steel

chain.

Originality:

I try to provide a summary of the perspectives studied within the transportation in the

supply chain reference to my skills in industry field, which I think can take the best idea for

transportation into supply chain.


1. Introduction

This research revolves around the transportation management has focused on factors that

affect the successful transportation management in supply chain management, which I named the

seven principles to better transportation with supply chain. Generally, the definition for

transportation is Products are transported between different places in different stages within a

supply chain. The transportation has a large impact on both responsiveness and efficiency. Faster

transportation allows a supply chain to be more responsive but reduces its efficiency within a

supply chain (Chopra & Meindl, Supply Chain Management 3rd edition, 2007, p. 53).

Transportation has a significant impact, because it controls the speed of response and reply as

stated in Newton's third law of every action there is always opposed an equal reaction. An

example of Amazon is a company that sells products on the internet and uses UPS or FedEx,

which is a transportation company that delivers products to customers. This is an example of

transportation within a supply chain. In logistic today wrote article for Rosenau transportation

gains real time visibility to customers. This article about Rosenau found solution to assistance

improve dispatch, routing and customer service to provide real time visibility to its customers,

and reducing operating costs by making more stops in fewer miles. They also focused on

improving the information it provides to its customers on delivery, pickup status, at same time

correcting the efficiency and productivity of dispatchers and customer service reps, shortly it will

be executing an advanced route optimization solution to reduce the miles driven, and fuel used

and thus reduce the carrier’s environmental impact (Rosenau Transport Gains Real-Time, 2009).


All companies seeking to expand their businesses to contribute in advancing the growth of sales

as well as improve the methods to include all customers in various geographical regions, both by

the high population growth or moderate. However, globalization has changed everything so that

the companies paid to spend more money on transportation to reduce the time to ensure the

delivery of products to the consumer of course, besides compliance with new government

regulations. A factor that has made these companies to improve performance is the technology

information, transportation, and logistics solutions. They have contributed to the mobilization of

the stock of companies to enable them to obtain goods shortly as well as the right of access to

customers; also, the right place at the right time along with it is likely that you will get a sale and

delivery while reducing costs and enhance its services to avoid delays and fines. All companies

operating in this area and for global programs with logistics, which includes transport and

logistics functions only on the implementation of orders from inception to delivery of this

position to gain visibility at home and abroad for the supply chain as well as lower costs and

improve customer service. That all these components to ensure the quality of the application

must examine the following possibilities: Transportation planning, transportation procurement,

route planning, transportation management, small parcel shipping, and international trade

logistics (Logistics). Particularly, the transportations in the supply chain are the most seeable of

all functions of supply chain management and high subscriber to value cost. you may see trucks,

containers and trailer of material being moved from place to other place for an activity associated

with trade and business. you can also appreciate which adds highest amount of cost to the

activity of making inputs and outputs available to consumers. Therefore Transportation can

move the products or raw materials to meet customer demand at minimum cost.


2. Transportation functionality

Transport is the most obvious of all the functions of logistics and logistics services to

contribute to the high costs. We can see the trucks and containers and vehicles loaded

with the material being transported from one place to another activity directly associated

with trade and business. We should also appreciate that this activity is to add as much of

the cost of the activity of making inputs and outputs available to consumers. Transfer the

job of delivering products to meet customer expectations at the lowest cost possible.

2.1 Functions of transportation

2.1. 1 Production movment:

What is being transferred?

Raw materials and semi-finished items, finished goods and packaging materials, and

rejected materials - do not have to move up or down in the supply chain.

How is this done? What resources are used?

Resources used by the means of transport:

time-locked: the product even while in transit, and therefore can not be

accessed. We have to spend a positive amount of time in the transfer of

materials. Resource time [time] resources that are spent in the field of

transport. During that time the product is locked up costs incurred in relation

to time.

Finance: a number of cost elements such as administrative costs, salaries, and

payment of maintenance costs. Loss at the expense of loss and damage

resulting also needs to be destiny. Spent fuel and at great cost in

transportation.


Environmental - This activity is a car consuming fuel, eat natural fuel such as

oil, directly and indirectly. Creates congestion and air pollution and noise

pollution. Environmental costs of tangible and intangible to a large extent. Are

also used to transport time and financial and environmental must be the terms

of the transfer of resources only when they are enhancing the value of the

product.

2.1. 2 Product storage:

Temporary storage in cars or vehicles remains constant moving on a circular road -

storage products more expensive in the transport vehicle. But in some cases, keeping

in mind the total cost is adopted this.

When unloading and loading are more expensive than storage

When storage space is limited epidemic. [The situation when inventory levels

are too high]

3. Principles of transportation

3.1 Economy of scale

It is known that the transport cost per unit also comes the greater part of the terms of

the transfer increases. And then in order to obtain benefits in the reduction of logistics

costs of transportation try to unite the bulk cargo ship and then instead of half a cargo

or cargo container half. This benefit is an economy of scale.

3.2 Economy of distance

Transportation cost per mile down also increases the distance moved. Hence, it is to

be transferred in one long lap instead of the number of laps short to reach the

destination. Spread these fixed costs and overhead costs such as loading and


unloading over the distance through which the cargo is transferred.

When assessing alternative strategies to meet the expectations of the transfer of

customer service, economies of scale and economy from a distance of essential.

4. Who is involved in the decisions of transportation?

Normal commercial transaction and a limited number of Parties to the business

decision. Are the seller, the buyer, directly or indirectly the government. But the decision

to transport and a number of parties in the decision. These parties have very important

roles to play in the environment and transport. Parties to decide transport those who have

an interest in transportation. Are as follows:

1. Shipper: Shipper is the party who wishes to transfer the goods to his clients in

commercial transactions.

2. Consignee is the party that is sending the goods.

3. Carrier service provider that carries a load of the consignee.

4. The government has a role to play as it is interested in the field of transport and has

an interest in it. Transport makes the work that occurs is essential to the economy in

any society. Economic prosperity of the society is the goal of the Government of the

day. The government also collects taxes on the transaction. Government is the public

who have an interest in protecting.

5. The general public is a party to another has a large share in the transaction, which

involves the means of transport. The public wants goods produced in different regions

of the country not only, but in the world. Cannot be achieved without their demand

for transport.


4.1 Roles and perspective of each party

The shipper and the consignee: Predictable and the minimum for each of the

transit time, cost, and taxes, pick-up and delivery dates, zero losses and damages,

and the exchange of timely information and billing. These are the needs of the

parties mentioned above. They look at transportation from this angle. Are the

basic elements of the transfer? Start their business the need to transport.

Carrier: Why does he want? Maximize revenue and cost of employment [and fuel

and vehicle costs, and minimize the tax]. Flexibility in pick-up and delivery dates

to promote the movement. Carrier facilitates trade between the shipper and the

consignee. He gets for his service. And adds value to the supply chain through the

transfer of material from the supplier to the client. Strike by transport companies

in our country is a recurrent phenomenon to protest against the role of

government.

Government: the government, while he was playing for the exercise of control

over the role of all players. They want to work in prosperity, at the same time to

access the benefits of uniformity in all parts of the country. It also has to provide

the infrastructure necessary to support and transport. It is said that one of the

reasons that accelerate the disintegration of the Soviet Union and poor

infrastructure at the expense of products that cannot be transferred to remote areas

of the country. Hunger-related deaths in India, although self-sufficiency in food

production examples to illustrate the interest of the government. The government

controls the price of the carrier and licenses. Government and service units the

carrier is probably the cheapest option available means of transport for business.


Government support and means of transport through the provision of a network of

roads, airports and air traffic control, ports and harbors. The government wants

taxes to support the above activities in the national interest. In the end consumer,

and the general public, bear the burden of taxes.

Public: what does the public wants?

Public transport activity as consumers moves by demanding products and

services of high quality from all over the world at the lowest cost possible. Have

worried about the safety and incidents of this type have been various products and

goodbye to the transfer. Environmental degradation is another threat for the year

for which we are concerned and transport is the main reason for many of these

concerns. For instance, deterioration of the atmosphere, water, and high levels of

noise, oil spills due to tanker carrying a cargo of crude oil.

When these parties that have interest separate and distinct environment interaction

and transport was created.

Conflicts of interest raise issues that interrupt the smooth transport of goods in the

country. Government: the main steps to resolve these differences in the interest of

work.

5. Transportation mode

It is recommended to identify the mode of transport or form. Vehicle used

according to all other parameters of the situation. If the ship is the vehicle used, then we

know that is associated with other transport parameters such as water, ports, etc. There

are many options now available for the transfer of goods and services from one place to


another. This situation has emerged over a period of time represent changes in technology

and business environment of today. Has played a science and technology play a key role

in the development of this infrastructure of roads and relevant. March of the development

for a gig Aviation is a contribution to science and technology for the performance of

logistics services. Selection mode is an important decision in the transport strategy

because it affects the cost of transportation. Railways, roads, water pipelines, and air

modes of transport used is known widely in transportation and logistics. And discusses

several important features of such situations is the time of transport in other parts of the

notes.

The supply chains follow combination modes of transportation following:

5.1 Air fright.

Airfreight logistics is very important in industries and services to complete the supply

chain and functions. Where they provide with the speed of delivery, as well as a

reduced risk of damage, security, flexibility and ease of access to good views of the

ordinary, but the disadvantage is the high courier fees. Reynolds, Feighan (2001) said

air cargo logistics is selected 'when the value per unit weight and relatively high

speed of delivery is an important factor. The properties of airfreight logistics in the

following:

Aircraft, airports and separated. Therefore, the industries only need to prepare

aircraft for its operation.

It allows for faster delivery in long-haul destinations.

Air freight transport is not affected by the terrain.

The data indicate that the transport of goods in the market continues to


grow. There is a view of the directions of global markets and logistics and air

cargo also to change their services. Future directions for the development of

airfreight, and integration with other transport modes, and the

internationalization of the coalition, and the integration of the airlines and the

pattern of the future of logistics, and air freight to cooperate with other modes

of transport. Such as sea and land transport, to provide service on the base just

in time, and transport from door to door. (YUE, TSENG, & TAYLOR, 2005)

5.2 Land logistic (truck, rail, water, and pipeline)

Land logistics is considered very important in the logistics activities. They are

providing services for air transport and maritime transport from airports and ports.

Additional logistical capacity, the positive ground is the high-level access in the wild.

The major means of transport logistics land transport by rail, road transport and

pipeline transport.

For rail transport to and comparative jeopardy of high endurance capacity, the less

the impact of climatic conditions, and low power consumption, but that the

disadvantages of high cost of basic facilities and the difficulty in the cost of

maintenance, with the lack of flexibility of the pressing demands, and time-

consuming in the organization of railroad cars. As for the transfer of land, he has the

advantages of investment funds cheaper, and ease of access is high, and the mobility

and availability. On the other hand, Disadvantages, low capacity, low and safety, and

slow. The advantages of pipeline transportation of high capacity, less the impact of

climatic conditions, and cheaper the process of drawing, and the continuation of the

means of transport; disadvantages of costly infrastructure and the difficulty of control,


goods, specialization, and needs regular maintenance.

The excessive use of road transport also brings many problems, such as traffic

congestion, pollution and traffic accidents. In the future, to improve road transport in

the transport efficiency and reliability, a revolution in the field of transport policy and

management is required, for example, pricing. (YUE, TSENG, & TAYLOR, 2005)

5.3 Package carriers

Package carriers are transportation copmanies such as FedEx, The United States

Postal Service (USPS), and the Uninterruptible Power Supply (UPS), The package

can be small because the backage cariers use air and should weight about 150 pounds,

also package carriers are expensive and cannot compete with less than truckload

carriers on price for large shipments. Thus, shippers use package carriers for small

and time sensitive shipments. Package carriers also pickup the package from the

source and deliver it to the destination site. With an increase in just in time (JIT)

deliveries and focus on inventory reduction, demand for package carriers has grown.

( (Chopra & Meindl, Supply Chain Management 3rd edition, 2007, p. 389).

For example, the goal of DHL is nothing less than to transform the logistics

industry and to deliver beyond our customers' expectations wherever and whenever

they need us - by offering the most comprehensive suite of services and becoming the

only genuine one-stop source for logistics solutions, globally.

“The supply chain in package carrier for DHL express is the flow of goods, within

information and finance”. It starts by sourcing raw materials which content semi-

finished goods, that are scheduled and transported into factories to be made into

finished products. Then pass through warehouses or distribution centres and are


delivered to retailers, wholesalers or direct to consumers' homes or business premises.

Finally, aftermarket activities involve the maintenance and repair, or the return and

recycling, of products at the end of their life. Supply chain planning optimises overall

flows and inventories, by balancing resources with demand at all stages. (DHL)

It can be important features such as these, and the transit time, risk or liability,

and smooth and flexible traffic.

Impact of mode of transport on the other costs associated with transportation

• Movement costs: the cost of energy to drive the vehicle of transport depends on the

selected style.

• Inventory costs: It is quite clear that holding inventory costs and the costs of the

temporal and directly proportional to the transit time. Is stored in an atmosphere of transit

is the cost. Capital Transit inaccessible during the transit time and unavailable for use.

Mode of transport determines the transit time effects and therefore these costs.

• Limitation: in particular, when the transit time is a very large and can become

redundant when the inventory reaches the point of use. We know that in the changing

environment, product life cycles are shrinking, and therefore these costs would be very

relevant. Other cases are the product of time and the deterioration of the expiration date

of the product.

• Packaging: The development of these costs depends on the needs of the poor road

condition and packaging, transport, smooth strong do not need such packaging. This also

depends on dealing with the system.

• Insurance: This cost is relatively clear that the risk of damage and loss in transit and

this is the responsibility of the carrier.


• Fraction: This depends on the smoothness of the traffic and deal with system-related

situation.

• Embezzlement: You can eliminate this cost by switching to options such as container

transport

• the cost of customer service: a lack of production when it demanded by the client lead

to dissatisfaction and the loss of this customer from the sale of the company. Should

therefore be raised customer service to be able to meet customer requirements? When we

try to raise the level of customer service costs incurred. Traditionally, stock companies

have raised the level of service. But the current thinking is to reduce response time to

customer need, instead of increasing inventory, and inventory costs was well understood.

This is done by improving the flow of information to forecast demand and reduce transit

time by changing to a faster mode of transport. The second method is cheaper than

conventional. But the rise in customer service beyond a certain level does not lead to

increased revenue. In other words, in terms of cost is not value.

6. Transport infrastructure

it is the main mediator in any activity to take place. For the transfer to take place a strong

infrastructure is essential. If this infrastructure is insufficient transport gets slower output

to a major obstacle to the growth of trade and business in this area.

6.1 Elements of transport infrastructure

• Terminal facilities - Free as well as maintaining the discharge facilities, space for

movement of vehicles, platforms, rail yards

• cars, trucks, ships and vehicles depending on the situation. On the size, shape and speed


• The right to traffic in the direction and to move forward. Rails, roads, airlines and

restrictions on speed and weight, height, etc. If we use this section in particular.

• Engine Prime Minister - in the force of moving the car from a lack of transportation

which has a serious impact on the means of transport. Decreases in the number of

locomotives good weaken the benefit of the railway as a mode of transport.

• Carrier organizations - service providers and transport in the area of business. And the

transfer of their core business. Good service and provides a vital incentive for business

and trade. Railways, roads, airlines, shipping lines and service providers.

The different features of the media or the properties of a modal

Properties are the properties of conditional special status which refers to the

relative importance of this pattern. By measuring these features one can determine the

relative importance of each mode.

Measure the relative importance of each method

The companies measure the relative importance of each method from now or

more of the specified period of time by measuring the properties conditionally. The

importance, popularity, and wide can use or spread of this pattern at work. System

properties are unconditional, mileage, the volume of traffic, the nature, composition of

traffic, revenue.

System Mileage: miles covered by the network conditional, like the total length of roads

in the road network in miles or kilometers is a system of miles from the road as a mode.


This explains what to measure is to use the roads end, or how popular in the business as a

means of transport today.

Volume of traffic: How much is the amount of moved tons of style. This is the best

measure and this indicates that the cargo is shipped by this situation as well.

Income: is the amount of transport work in rupees or dollars by mode. In simple terms

how many rupees are shipped material values in this situation?

The nature and composition of the Movement: What a variety of goods are transported by

this situation is a measure of a reference to a range of goods traded. This speaks for the

flexibility and mode.

7. Transportation infrastructure and policies

The transportation is infrastructure that means roads, seaports, airports, rail, and

canal. All these exist along nodes and links of transportation network. All countries are

taken responsibility a significant role in building and managing these infrastructure

elements. The transportation and infrastructure focuses on operational and policy issues

within transportation and infrastructure areas that affect logistics operations.

8. Discussions

You can quickly deliver products to consumers with a common consensus on the

control operators. That the integration of logistics services and e-business is the current

trend is currently in some companies. In order to obtain position that is more beneficial

and building a complementary relationship, which is its reliance on networks and

industries, such as Yahoo and E-Bay, and often cooperate with the logistics industry.

Integration can reduce the middle-level procedures. For example, producers can

immediately provide products to more customers of the station. To reduce costs by more


efficiently. Besides, companies do not have to take inventory and warehouse costs only,

and therefore it becomes a modern industry of the lower cost and more efficient division

of specialization. For example, customers can obtain an order of goods shops. Through E-

logistics, and the state of competition in industries could be promoted in the knowledge

economy.

Moreover, to promote business activities should include transport systems in various

stages. The integration between different applications is to provide comfort through the

promotion of the system of information flow and business processes. For consumers and

businesses can make more efficient and easier than through the assistance of e-commerce

and the Internet. With physical delivery, still rely on the transportation system to end

processes. The cost of transport may be one-third of the cost of logistics. At the same

time, transport systems and techniques required in almost every activity of logistics

services.

9. Conclusion

I have tried to cover papers on the part of the scope of logistics activities of

transportation systems and attempts to determine the role of transport in transport systems

and logistics. Knowing that is the most of the major contents of the research include a

review of the development of logistics services, operations and personalities from

different transport activities, logistics, and logistics applications in various fields, and

logistics city, and the future direction in the development of logistics services, and

cooperation with the transport regulations.

To summarize, transportation management, and some importance in the supply chain


must be. First, the transport system and supply have a more and more important in our

society. Next, transport and transport systems, logistics and interrelationships that the

needs of logistics management and transportation of the implementation of its activities at

the same time, it can be to the success of the transport system and supply help to improve

traffic and transport, environment and development. Third, as it contributes the highest

transport costs among the relevant elements of logistics systems, and improve the

efficiency of transport can alter the overall performance of the transportation system and

supply.

Final, play and transport an important role in the logistics system and activities

appear in the various sections of logistics services. Without linking transportation and

logistics, services cannot be a powerful strategy to bring its full play.

Review of the Transport and Logistics in a broad sense may help to integrate the

benefits of different applications of cases to overcome the disadvantages of the present.

On the other hand, Review of the transport systems and provides a clear idea on the

applications in transportation logistics. The development of logistics services will still be

active in the following decades and logistics that can be applied in other areas.


Bibliography

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2. Chopra, S., & Meindl, P. (2007). Supply Chain Management 3rd edition.

3. (2007). Supply chain driners and metrics. In S. Chopra, & P. Meindle, Supply Chain Management "3rd edition" (pp. 53, 78). Ch 3, Ch13.

4. DHL. (n.d.). Retrieved Dec 13, 2009, from DHL: www.DHL.com

5. Handfield, R. B., & Nichols, Jr., E. L. (2002). Supply chain redesign.

6. Logistics, I. S. (n.d.). Retrieved Nov 11, 2009, from infor: http://www.infor.com/solutions/scm/transportation/

7. Sreenivas, M., & Srinivas, T. (n.d.). The Role of Transportation in Logistics Chain. http://www.siam.org/journals/plagiary/1814.pdf.

8. YUE, W. L., TSENG, Y.-y., & TAYLOR, M. A. (2005). THE ROLE OF TRANSPORTATION IN LOGISTICS CHAIN. South Australia: http://www.siam.org/journals/plagiary/1657.pdf.

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