Essay About Higher Transport Costs And Efficiency Of A Supply Chainlead Time

Transportation
│LECTURE 11│Transport System & Modal/Carrier Choice運輸模式/承運人的選擇Intended Learning OutcomesUnderstand the role of transport in logisticsCompare different modes of transportation and discuss their relative advantages and disadvantages Discuss the modal/carrier 運輸模式/承運人 selection criteriaRole & Importance of Transport in Logistics1.  Transportation is the physical link between nodes 節點in a logistics network This means to convey 運送 the flow of materials Transportation is a decisive factor on the efficiency of a supply chainLead time should be short – Speed and reliability of flowIt should have good inventory controlIn-transit inventory cannot be retrieved and altered during transitIt should be carried and handled by more expansive equipment as there is a higher risk of damage and lossA factor affecting the company’s competitive edge & product demand in a given market areaValue AddingTransportation creates time & place utility to move goods in right time and right place.Global ImpactIt increased spatial 空間性的gaps between different parties in a supply network.It resulted in higher transport costs, longer transit time, higher inventory and higher risk.Contribution貢獻 to the EconomyExpenditure on freight transportation contributes to a significant portion of GDP.Importance in Company The total distribution costs represent a significant percentage of the sales.Quality of transport services affects inventory costs, stock out costs, related facility costs, etc.Cost-Service Trade-OffFaster mode of transportation means less transit time, less inventories and lower warehousing / inventory costs, but at the expense of higher transport costs.Basic Modes of Transport交通運輸的基本模式RailroadsMotor CarriersWater (sea) CarriersAir CarriersPipelineThe above basic modes of transportation have different set of technical, operational and commercial characteristicsModes can compete or complement 互補each other in terms of cost, speed, accessibility, frequency, safety, comfort, etc 1.   Railroads鐵路Natural monopolies專利High capital investment in terminals, track, equipment and trainCharacteristicsCommon Carrier — its service has to be open to all shippersPrimarily for long-distance, large volume movement of low-value high-density goods (e.g. products of forests, mines 礦產& agriculture農業)AdvantagesGood reliability & safety record Weather conditions seldom disrupt 干擾rail services, and cause only minor fluctuations 波動in transit timeDisadvantagesLow accessibility 易達性Carriers cannot deviate from their fixed route trackageCannot provide door-to-door service if a shipper is not adjacent 鄰近to the rail right-of-way, another transport mode has to be used to gain access to rail serviceLong total transit time 運輸時間= in-transit time + time for consolidating loads in classification yards分類貨場 Motor Carriers汽車運營商Low Capital InvestmentThe infra-structure (highway, bridges, tunnels, etc.) are usually built and maintained by the government Low fixed costs but high variable cost Low entry barrier & low scale economies results in a lot of small carrier service providersCharacteristicsPrimarily for high-value, manufactured commodities over relatively short distances.Useful for small shipments (due to the physical and legal constraints限制 on carrying capacity).AdvantagesHighest accessibility 易達性Able to provide service to any location in the local marketDepends on the quality of highway networkTransit times are faster than rail and water Small shipment size & short transit times enable lower inventory and quick replenishment補貨Safe transport for commoditiesDisadvantagesReliability can be affected by weather and highway conditionsrelatively high modal unit cost (cost per ton/mile) compared with rail & sea3.  Water Carriers水運