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• 1 Lesson 2 Transportation

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• What is Internal transportation?

  The movement of products inside the company

• What are the different transportation modes?

  1. Road (highway)
     
  2. Air
  3. Water
  4. Rail
  5. Pipeline
     

• What are the characteristics of road (highway)

  • Dominates the logistics infrastructure
    
  • Has become more cost-effective
  • Weaknesses -->Not the fastest nor the cheapest option
  • Strength--> flexibility to deliver where and when needed
  • Greater emphasis on delivery speed + flexible mode of transportation
    

• What are the characteristics of water?

  • Water carriers- inexpensive, slow & inflexible, include inland waterway, coastal & deep-sea
    
  • Ideal for materials with high weight-to-value ratio, (for heavy, bulky, low-value materials) especially if delivery speed is not critical

• What are the characteristics of rail?

  • Rail is relatively slow & inflexible
    
  • Similar to water but more flexible
  • Strengths--> highly cost-efective for bulky items
  • Weaknesses--> Limited locations.

• What are the characteristics for air?

  • Ideal for customers with a low weight-to-value ratio, especially, if delivery speed or delivery reliability is critical
    
  • Higher shipping (fuel) costs and improvement in other modes have reversed in the rise in air growth over the past decade
  • Strength--> quickest mode of delivery, flexible especially linked to the highway mode.
  • Weaknesses --> often the most expensive model on a per-pound basis

• What are multimodal solutions?

  A transportation solution that seeks to exploit the strengths of multiple transportation modes through physical, information and monetary flows that are as seamless as possible.

• What are intermodal transportation?

  Combinations of various transportation mode, is becoming an extremely popular method

• Key aspect of multimodal/intermodal solutions

  Integration of the various models through physical, information and monetary flows UPFRONT. Coordination is essential

• What are contract carriers?

  A transportation service providor that handles shipments for other firms based on long-term agreements on contracts