INTRODUCTION
Each business has its own particular transport needs. These depend on the nature of the business and the type of products or services it buys and sells.
This guide will help you decide on the most appropriate transportation for your business needs and assess the tax implications and costs to your business.
It also tells you what licenses, insurance and training you or your staff will need to operate business vehicles.
ROLE OF TRANSPORT:
Transportation is the physical thread connecting the firms geographical dispersed area. It helps in transfer of materials from suppliers to the firm and finished goods to be transferred from the firm to the market. It serves as link that facilities of the firm.it also suprts the products of
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The large number of carriers is due in part to the low capital that entering the trucking business requires. High variable cost and low fixed cost characterized the cost structure. The motor carrier does not require extensive terminal and equipment investment and does not invest in its own highway, and the carrier pays for highway use through fees such as use of taxes licencing charges. These variable expenses contribute to the high variety cost structure.
Motors carriers are classified in manner as truckload and less than truck load. Less than truck load carrier accept small packages of shipment where truckload carrier accepts shipment of full truckload size.
ADVANTAGES OF ROADWAYS
1.road transportation offers advantages of speed, door-to-door flexibility and widespread geographic coverage.
2. the major advantage of motor transport over the modes is its inherent ability to provide service to any location.
3. the large number of motor carriers suggest a high availability. For example,many more motor carriers than railroad facilities are available in an area.
4. motor carriers do not need to consolidate wagons together or decouple wagons at various locations on the route as it in railway transport it speeds up the transportation.
5. motor carriers used in road transportation have lower fixed capital costs as compared to other modes of transportation.
6. due to the lower entry costs of capital, this mode of transportation is characterized by
· The ability to offer attractive trade-off in terms of price and performance: Public transportation such as train, subway, bus, or airplane can give
The intent of this analysis is to compare and contrast the cost structures for rail, motor carriers and air modes of transportation. Implicit in this analysis is the rapid adoption of intermodal transportation which is often optimized to specific logistics and supply chain objectives (Jennings, Holcomb, 1996).
Express Trucking Company will be located in Miami. It’s primarily function is to provide customers with a variety of transport services, so that the merchandise can get to its destination on time and without damages or flaws. Not only good services, but also lower prices is what will put the company at the top of the list of the transportation world which is the main mission meanwhile the vision is to expand the business to other states so that the customers list can grow as well as the company. Express Trucking Company will be a sole proprietorship type of business and it will require some legal structure like licenses to operate the vehicles, a DOT number given by the Department of Transportation, an insurance for the trucks and for the loads since any damage to the merchandise can be very expensive, but none of those requirements will stop the company from giving my clients their best service out there.
The new entrants would grow the customer base in which U Drive Transport can take opportunity to grow their base
Relative extents of these six expense gatherings may change, contingent upon the kind of administrations railroads give. For instance, the offer of work expenses for traveler administrations is higher than for cargo administrations. A higher offer of administrations may be exchanged off for lower shares of work and materials. On the off chance that low deterioration reflects restricted speculation, costs for materials may rise in light of the fact that more established resources are all the more expensive to keep
People got rid of the danger of attaction of animals or got drown in the sea thanks to transportation. Riding horses or walking by bare foot were not very safe and easy. Some people can say that we shouldn’t produce transportation devices because it consumes lots of energy, we should be aware of that controlling these devices is up to us. For example Chinese goverment restricted the production of personal cars. If all people use transportation wisely, we see how they can be useful and eco-friendly for our lifes .
The Tourism Industry depends on transportation to keep them in business. People need to be able to travel to destinations, therefore they need all modes of transportation.
Define the effect of transportation on the situation Greater prospects are available for truckload shipping volumes with consolidated distribution centers and assorted product shipments. This would necessitate fewer outbound shipments, with each in larger quantities for better transportation savings. The possible longer distances from distribution centers to customer locations might be the only disadvantage to transportation cost.
Free transportation to the site of employment and in the following cases, free return transportation to the point of origin:
A value analysis of four different modes of transportation was conducted to assess which would be the most economical by means of time and expense. Two separate trips were analyzed. The first, a relatively shorter trip of 1200 miles round trip from Detroit Michigan to Nashville Tennessee. The second, a longer trip of 2800 round trip miles from Detroit to Miami Florida.
(7) Transportation in Figure 3.4 and its fixed and variable costs are either factored into the total cost of the distribution centre or the finished product warehouse. That is, transportation is not a level in the supply chain. This makes the model three rather than four levels. If you disagree, then why transportation is important to consider in an MNC context?
Transport, therefore, plays a major role in supporting international economies and creating major links and networks of exchange of goods via supplying goods through various modes of transports like airlines or marine transportation, which reduces geographical distances between the manufacturer and the consumer.
Transportation Problem involves distribution of a certain commodity from several origins to a number of destinations. The aim in the whole process is to minimize the costs involved.
Because suitable mode of transport will reduce the cost; moreover the transport which is appropriate to the goods ensures the goods to arrive safely.
For every country, Transport group plays a vital role for moving from one place to another place for general public. These systems are very safe, easy, reliable and sustainable for everyone.