Transportation

│LECTURE 11│Transport System & Modal/Carrier Choice運輸模式/承運人的選擇

Role & Importance of Transport in Logistics

1.  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 chain
• Lead time should be short - Speed and reliability of flow
• It should have good inventory control

• In-transit inventory cannot be retrieved and altered during transit
• It should be carried and handled by more expansive equipment as there is a higher risk of damage and loss

• A factor affecting the company’s competitive edge & product demand in a given market area

1. Value Adding

• Transportation creates time & place utility to move goods in right time and right place.

1. Global Impact

• It 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.

1. Contribution貢獻 to the Economy

• Expenditure on freight transportation contributes to a significant portion of GDP.

1. 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.

1. Cost-Service Trade-Off

Faster 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

1. Railroads
2. Motor Carriers
3. Water (sea) Carriers
4. Air Carriers
5. Pipeline

• The above basic modes of transportation have different set of technical, operational and commercial characteristics
• Modes 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 train

• Characteristics

• Common Carrier --- its service has to be open to all shippers
• Primarily for long-distance, large volume movement of low-value high-density goods (e.g. products of forests, mines 礦產& agriculture農業)

• Advantages

• Good reliability & safety record
• Weather conditions seldom disrupt 干擾rail services, and cause only minor fluctuations 波動in transit time

• Disadvantages

• Low accessibility 易達性

• Carriers cannot deviate from their fixed route trackage
• Cannot 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 service

• Long total transit time 運輸時間

= in-transit time + time for consolidating loads in classification yards分類貨場

1.  Motor Carriers汽車運營商

• Low Capital Investment

• The 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 providers

• Characteristics

• Primarily 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).

• Advantages

• Highest accessibility 易達性

• Able to provide service to any location in the local market
• Depends on the quality of highway network

• Transit times are faster than rail and water
• Small shipment size & short transit times enable lower inventory and quick replenishment補貨
• Safe transport for commodities

• Disadvantages

• Reliability can be affected by weather and highway conditions
• relatively high modal unit cost (cost per ton/mile) compared with rail & sea

3.  Water Carriers水運