Transport in supply chains
11 important questions on Transport in supply chains
How to select different transport modes?
- The volume and value of the freight
- The distance travelled
- The availabillity of different services
- Freight rates to be charged
Logistics service providers (LSP) usually apply volumetric charging based on the consignment dimensions.
What is a hub and why does it exist?
A hub is a place where passengers and cargo are exchanged between vehicles and transport modes.
Because of the enlargement of the supply chain and infrastructure. This is why there is a Need of redefining distribution patterns and a Need of new freight traffic routes.
How do we choose a hub?
- Market acces
- Operarational base costs. E.G. labour and land costs
- Labour market capacity= size of working population and unemployment
- Logistic competences
- Business environment
+More info on blue banana hubs in slides
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Where do we plan the next hubs to be?
What are the characteristics of modes of transport?
-Accessibility
- Variability = thepossibility of the transport beginningand/or ending on anagreed time.
- Efficiency
-Frequency
-Risk = cargo loss or damage
- Price
- Environmental impact?
What are the biggest advantages of Railway transport?
-Possible for big volumes
-Longer distances
- Heavy loads
-Fixed departure andarrival schedule
-Possible for hazardous substances
-Environmentally friendly
- No traffic jams
What are the biggest advantages of road transport?
-Door-to-door
- Flexible
- Reliable
But: Toll+ traffics jams
What are the biggest advantages of air transport?
- Long distances
- Reliable
But: Expensive
What are the biggest advantages of water tranport?
-Mostly oil, coffee and chemicals
- Value added logistics (VAL)!
- Environment
- No traffic jams
- Efficiency improvement
What is the last mile and how can it cause problems?
What if the customer isn't home, congestion.
What are FCL and LCL ?
The term FCL is used in transport to refer to full container loads
The term LCL is used to refer to less than full container loads
When carriers have a consignment that will not fill an entire loading unit they will usually try and build a consolidated shipment to make up a FCL
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