The document discusses various aspects of transportation and distribution management. It covers key topics such as: - The importance of transportation in logistics and how it adds value by moving goods across distances. - The different modes of transportation including road, rail, water, air, and pipeline. It discusses factors that affect the cost, speed, and consistency of transportation performance. - The objectives of transportation in minimizing costs and transit time while fulfilling continuous demand. - Recent trends in transportation and how different modes are adapting to changes in the economy and technology.

1. Distribution Management
7th Semester – B.B.A
By
Navin Raj Saroj
M.b.A. (Marketing)

3. TRANSPORTATION
 Very important in the logistics function:
• Movement across space or distance adds value to
products
• Transportation provides time and place utility

4. TRANSPORTATION - GENERAL
 Very important in the logistics function:
o Movement across space or distance adds value to products
o Transportation provides time and place utility
The role of transport in national economy is very crucial. The
physical distribution component of a major project, including
transportation of raw materials, project materials, machinery
and equipment, and such infrastructure facilities as roads,
vehicles etc. usually accounts for 20 – 30% of total capital
cost.
Transportation bottlenecks and resulting delays due to non-
receipt of equipment, machinery, raw materials etc.,
generally cause delays which may run into months.

5. TRANSPORTATION PRINCIPLES
 Continuous flow
Optimize unit of cargo – stackability
Maximum vehicle unit – capacity utilization
Adaptation of vehicle unit to volume and nature of
traffic
Standardization
Compatibility of unit load equipment
Minimum of dead weight to total weight
Maximum utilization of capital, equipment and
personal

6. The role that transportation plays in logistics system is more
complex than carrying goods for the proprietors. Its
complexity can take effect only through highly quality
management. By means of well-handled transport system,
goods could be sent to the right place at right time in order to
satisfy customers’ demands. It brings efficacy, and also it
builds a bridge between producers and consumers. Therefore,
transportation is the base of efficiency and economy in
business logistics and expands other functions of logistics
system.
In addition, a good transport system performing in logistics
activities brings benefits not only to service quality but also to
company competitiveness.
ROLE OF TRANSPORTATION IN PHYSICAL
DISTRIBUTION

7. TRANSPORTATION COST ELEMENTS
Following are the vital elements of transportation to be taken
into account:
1. Transport mode
2. Inventory Costs
3. Transit Capital
4. Obsolescence
5. Packaging
6. Insurance
7. Breakages
8. Pilferage (To steal things)
9. Deterioration (to become worse)
10. Transport costs

8. CONCEPT OF TRANSPORTATION
Transportation refers to the movement of product from
one location to another as it makes its way from the
beginning of supply chain to the customer.
Transportation is an important supply chain driver
because products are rarely produced and consumed in
the same location.
Transportation is the movement of products, materials
and services from one area to another, both inbound
and outbound.

9. 9
FACTORS AFFECTING TRANSPORTATION
PERFORMANCE
Transportation performance
Cost Speed Consistency

10. A. Cost of transportation
- The payment for movement between two geographical
locations and expenses related to administration and and
maintaining in-transit inventory.
B. Speed of transportation
- The time required to complete a specific movement.
- Transport firms capable of providing faster services
normally charge higher rate.
- The faster the transportation services, shorter is the time
interval during which the inventory is in transit and
unvailable.
10
FACTORS AFFECTING TRANSPORTATION
PERFORMANCE Cont….

11. 11
C. Consistency of transportation
- Refers to variations in time required to perform a
specific movement over a number of shipments.
- Consistency is a measure of dependability of
transportation.
- Inconsistency in transportation leads to inventory
safety stocks required to protect against
unpredictable service breakdowns.
Speed and consistency combine to create quality
aspect of transportation.
FACTORS AFFECTING TRANSPORTATION
PERFORMANCE Cont….

12. FUNCTIONS OF TRANSPORTATION
1. Growth of Industries whose product requires quick
marketing,
2. Increase in the demand of goods,
3. Transport creates time utility
4. Transport helps in stabilization of price
5. Transport ensures even flow of commodities
6. Transport enables the consumers to enjoy the
benefits of goods not produced locally
7. Transport identifies competitors to reduce the price
8. Transport increases mobility of labor and capital

13. OBJECTIVE OF TRANSPORTATION
 Select appropriate mode of transport to minimize
transit time and save cost.
 Reduce Inventory by delivering the stock in
markets
 Continuous demand fulfillment

14. SECTION OF MODES OF TRANSPORTATION
Given below are the various mode of transports
1. By Road
2. By Railways
3. Water ways
4. Airways
5. Pipeline and others

15. ROAD TRANSPORT
Road transport is an integral and
essential part of any transport activity,
whether by rail, sea or air. To a lesser
or larger extent road transport is
essential as a supplementary and
complementary mode of transport to
complete the movement carried out
by other modes of transport.
Transport activity is broadly of two
types;
o Motorized or powered transport,
and
o Non-motorized or Non-powered
transport

16. AIR TRANSPORT
With the introduction of wide
– bodied aircraft, freighter
services and containerization,
a new dimension has been
added to air transport. The
industry now thinks of
distribution in terms of speed,
frequency and efficiency.
Apart from providing a high
level of customer service, air
cargo finds the right fits in the
marketing phenomenon,
particularly in savings in
distribution costs.

17. INLAND WATER TRANSPORT
Regular monthly Boat
service: owing to the
withdrawal of water from
rivers for irrigation and
competition from roads
and railways water
transport started
gradually losing traffic. It
has been established
because this mode of
transportation consumes
the least amount of
energy per tonne-km

18. ROPEWAYS TRANSPORT
The real economic and
technical value of a
ropeway system as a
mode of transport is
the fact that it can
connect two places
with a large
differential of altitude
without much difficult

19. PIPELINE MOVEMENT - TRANSPORT
A pipeline is an ideal
mean of transporting
a large quantity of
liquids and gases over
long distances. They
have also gains
importance in the
transportation of
solids, particularly of
coal, limestone, iron
ore and copper
concentrates.

20. RAIL TRANSPORT
With a network long distance,
railways in developing or
developed countries are the
largest system for transportation
of passengers and goods in the
country. They carry large amount
of country’s total freight traffic
and nearly 50 percent of
passenger traffic. i.e.
Indian railways are Asia’s largest
and the worlds, fourth largest rail
system; 61000 km networks.
Japan and China has fastest rail
service in terms of service and
space.

21. SEA TRANSPORT
A liner conference is a group
of two or more vessels
operating carriers which
provides international liner
services for the carriage of
cargo on a particular route or
routes with in specified
geographical limits on uniform
or common freight rates and
on other mutually agreed
conditions.
Ports provide – ships for
transportation

22. INTERMODAL & CONTAINER TRANSPORT
• Intermodal Transportation is use of more than one mode of transport for
the movement of shipment from origin to its destination.
• Intermodal operation is used two or more mode of transport
to take the advantage of inherent
economies of each and thus
provide the integrated service at
lower cost.
For example: truck/water/rail.

23. INTERMODAL & CONTAINER TRANSPORT

24. INTERMODAL TRANSPORT
There are some common type of multimodal transport which is used
in the transportation system. They are:
1. Piggy Back: It is a combination of rail and road. For instance, the
containers are placed on railway flat-cars and transported by rail from
one terminal to another. After reaching the destination terminal, they
can be placed on trailers and transported by roads which are also
called TOFC (Trailer on Flat Car) or COFC (Container on Flat Car).
2. Fishy Back: It is a combination of road and water transport. Fishy
back / train ship / Containership are examples of the oldest mode of
the intermodal transport. They utilize waterways, which are one of
the least expensive methods for line- haul movement. The Fishy back,
concepts load a truck trailer, railcar, or container on to ship for the
line – haul move.

25. 3. Birdy Back: It is a combination of road and airways and is generally
use in International shipments. Local cartage is a vital part of every air
movement because air fright must eventually transport from the
airport to the final delivery destination. Air-truck movements usually
provide service and flexibility comparable to straight motor freight.
4. Land Bridge: The Land Bridge Concept, which moves containers by a
combination of sea and rail. The land bridge concept is based on the
benefit of ocean and rail combination that utilize a single tariff, which
is lower than the total cost of the separate rates.
INTERMODAL TRANSPORT Cont…

26. MAJOR ADVANTAGES BY TRANSPORT MODE
• ROAD
– Speed of
delivery
– Diversity of
equipment
– Flexibility
– Frequency of
movement
– Transfer of
goods to other
carriers
– Convenient to
both shipper
and receiver
• RAILWAY
– Mass movement of goods
– Low unit cost of
movement
– Dependability
– Long-haul moving
– Wide coverage to major
markets and suppliers
– Many auxiliary services
(i.e., switching)
– Transfer of goods to
other carriers
– Specialized equipment
• INLAND
WATER
– Very low unit
cost of
movement
– Movement of
low-unit-value
commodities
– Long-haul
movement
– Mass movement
of bulk
commodities

27. MAJOR ADVANTAGES BY TRANSPORT MODE
• PIPELINE
– Lowest unit cost
of movement
– Mass movement
of liquid or gas
products
– Long-haul moving
– Large capacity
– Most dependable
mode
• AIR
– Frequent service
to major markets
– Large capability
– Overnight service
– Most rapid speed
of any carrier
• INTERMODAL
– Cost savings
– Lower loss and
damage claims
due to
containerization
– Service extended
to more shippers
and receivers
– Reduced handling
and storage costs

28. RECENT TRENDS IN TRANSPORTATION
• Capital wants transport - cheaper, faster and barrier free to
support the building of their commercial success.
• Economic conditions, trends in the global economy and the
outlook for the developing country, investment trends,
demographic and spatial changes, regulatory trends for the
portfolio and other significant challenges and opportunities
including energy efficiency, climate change and
technological innovation helps to boost up business
opportunity for prospects.

29. AIR - Moves the perishable and valuable;
Drives the worlds largest industry - Tourism

30. Shipping and world trade
– the container is the
trigger

31. ROAD TRANSPORT
• Vital to the logistic
chain
• The highway warehouse
• Ease of door to door
• Quick and efficient
• Flexible
• Unit or partial loading
• State resourced
• Overcrowded highways
• Abuser of labour

32. Rail – struggling in
the new market

33. INLAND RIVER
TRANSPORT

34. THANK YOU