Modes of Transport in Supply Chain: A Comprehensive Guide

EFFECTIVE MODES OF TRANSPORT IN SUPPLY CHAIN MANAGEMENT

WRITTEN BY 3SC

EDITED BY

3SC

A supply chain is nothing without its transit. For all the efforts stand still if a product doesn’t get delivered to its intended recipient – and, for such a titular mechanism to work, an organization finalizes various modes of transportation in supply chain management to ensure that they maintain the key performance metrics which actively drive its revenue. For an enterprise to choose one or multiple modes of logistics options, its key parameters should cover efficiency, scalability, robustness, visibility & innate quality to work seamlessly, even in the face of contingencies.

In this write-up, we’ll cover the key modes of transportation in logistics and supply chain management, helping a business cover substantial freight volume at an even better economical rate.

Choosing the suitable mode of transportation in logistics and supply chain management can make a business more cost-effective, collaborative & scalable to varying demands.

WhatAretheDifferentModesofTransportationUsedinSupplyChainManagement?

1RoadTransportation

Themostcommonmodeofall,roadtransportation,fromyesteryeartomodernizesocietyoftoday,hasbeenthe‘it’wayofgettingthingsfrom pointAtopointBFrombullcartsinremoteareastotrucksonhighways–roadcarriageisthemostutilizedlogisticswayknowntomankind Inthecontextofabusiness,itsimpactisdecidedbywhethertheinfrastructureofageographicalareasupportsthefreighttransferincontext Finance,too,isadecidingfactor.Fromtheusualtaxes&tolls,maintenanceofthewheelsemployedhastobetakenintoconsiderationto ensurethattheworkingcostdoesn’teatintoprofitmargins

Though,onebiggestvirtuethatfavorsscaleforroadtransportationisitsUSPofensuringdeliveryofconsignmentdirectlyatthedoor–somethingthatdifferentmodesoftransportationinsupplychainmanagementdon’thavethemeansforAlso,roadfreightcaneasilysyncup withothertransshipmentwaystoensuretimelyOTIFmetrics.

Herearethekeytakeawaysofroadtransportation

Benefits

Easiertrackingcomparedtoair&seafreight

Aneconomicaloption

Worksforalmosteverygeographicalarea.

Door-to-Doordelivery

Easierpacking,docking,&offloadingprocess

Bettermanagementincaseofcontingency.

Drawbacks

DirectlyinfluencedbytheweatherCantakelongerincaseofroadobstruction&closures

Size&weightlimitation

Higherrateofbreakdowncomparedtoothermodes

Needsmorebandwidthfordelivery

2.SeaTransportation

Oneofthemostprominentmodesofshipping,seatransportationaccountsformorethan90%ofgoodstransitThekeydrivingfactorbehind thestatistheship’sabilitytocarryhigherloadsthananyothermode,andthattoo,atafractionofthecost.Withsuchloadcapacityhandled daily,maritimetransportationisconsideredthebackboneoftheindustrialtradeWithitsinter-continentalshipmentadvantage,conglomerates preferwaterwayshippingasitcanseamlesslycarrymorebulkcargopertransitcomparedtoothermeans

Herearethekeypointersforseatransportation

Benefits

Morescalableowingtospace&maxweightcapacity.

Economicalthanairtransitduetolowerfuelcosts

Environmentallyfriendly

Getsrarelyimpactedduetoweather

Slowmovementguaranteesbetterpackagehandling.

Drawbacks

Needsalongertimelineduetoitsspeed

Requiresothermodesoftransportationtocompletethelogisticsprocess RunsonafixedroutineCan’tspeedupthetimeline Mightbeachallengetotrackincaseofbadweather.

3.RailTransportation

Fastforwardingtheperksoflandtransportationonscalesofcapacity&finance–railtransiteasilycarriesheavierpayloadsacrossitsnetwork as&whenrequiredbyanorganizationWithitsmultiplefreightsystem,arailnetworkcancarrydiverseshipmentsfromdenselypopulated areastoquaintones,trackspermittingThebiggestadvantagethatarailnetworkhasthat’sitdevoidoftheusualbottlenecksfacedbyaroad shipmentfromtraffictodiversionandcancarryheavyloads(suchasiron,coal,ore),whicharestraightforwarduneconomicalwhen consideringroadnetworkmovement

Listingoutthepros&consofRailtransit

Benefits

Morecapacitythanroadtransportation

Fewerchancesofdelays

Lessenvironmentalimpact

Cost-effectiveforlongertransit

Betterregulation&complianceframework

Drawbacks

Requiresroadtransportationtocompletethechain NeedsproperinfrastructureTracksrequiredforpropertransit Slowerthantheroadasitisdependentonothermodes.

Slightlyuneconomicalforsmalltransit

4AirTransportation

ThefastestmovementacrossvariousmodesoftransportationinsupplychainmanagementisviaAirAnincreasinglypopularchoicefor domestic&internationaltrade,theairroutebolstersthepossibilitiesoftime-efficientshippingfromanorganization’sperspective,givingthem anedgeovercompetitors.Ifanenterprisecankeepupwiththeexpensesofthetransportmodeindebate,thenthelogisticsofacompany overlongdistances(acrosscontinents)willseeexcellentperformance-orientedresults

Here’showairtransportationshapesoutwithitspros&cons

Benefits Drawbacks

Speed

FollowsstrictschedulingGoodon-timereliability

Strictersecuritynorms

Suitedforlong-distancetransit

Cost.Mostexpensiveowingtofuelprice.

Notsuitedforlargervolumes

Securitycompliancefiltersoutcertaincargowhichcannotbeshipped,likeoilfreight

5.MultimodalTransportation

Often,withlarge-scaleindustries,companiespreferamixoftwoormoremodestoachievetheirlogisticalgoalsThisistermedmultimodal transportation,inwhichlargesteelcontainersgettransferredthroughthedifferentmodesoftransportationinsupplychainmanagement Here’showmultimodaltransportationwillfitintoyoursupplychainframework

Benefits

Safetyofconsignmentbecauseofcontainers

Reducedcostastheexpensescanbestrategicallyshapedwithoptimizationoftransportoptions

Handlingexpensesarelimitedtocontainermovementuntilproperunloadingatthedestination

Drawbacks

Needstimeformovementbecauseofthemultipletransportationsinvolved.

Extensivedocumentworkisrequired

Needsinitialsetupcostwithcontainers

Withsuchtransportationscalestomanage,companiesemploytransportmanagementsystemstohavecompletevisibilityoftheirend-to-end logisticprocessAidingyourorganizationwithplanning,execution,collaboration&trackingofyourfreight,transportmanagementsoftware providesutmosttransparencywiththelatesttechsimplifyingthecomplexitiesofyourtransportnetworkWith3SC’sTMS,yougetstreamlined singulardashboardvisibilityofyourentireshippingoperationsEnablingcollaborationamongststakeholderswithproactivityagainstreal-time contingencies,yougetacomprehensiveoverviewofmodesoftransportationinsupplychainmanagement.So,ifyou’relookingforan exhaustiveplatformthattakescareofyourentiretransportoperation,contactus

Source:https://3scsolutioncom/insight/modes-of-transportation-in-supply-chain-management