The Role of Transport within the Supply Chain Essay

Transit time is an important element as well. Any reduction in transit time therefore reduces the overall cost of the delivered goods. Transit times can be improved by

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).

In the twenty-first century many people wonder why transportation by rail cars can still be such a major way of transporting goods.The answer can be found in the advantages that come with choosing rail cars. Lets start with the thing that every business owner likes is dependability. People like to know that the products will be delivered on time no matter the weather conditions. Rail cars regularly get maintenance and inspections. Rail cars are great when it comes to organization, The routes are fixed, and scheduled so there are less stops, and delays. The speed trains travel at can only be topped by the speeds of a plane. With long distance shipping you can expect for this method to help get your product to its destination in the least amount

Logistics is a vital component of supply chain management. Both involve the planning, carrying out and management of goods, services and information from the point of origin to the point of consumption. Logistics aligns the multifaceted pattern of traffic and transportation, shipping and receiving, import and export operations, warehousing, inventory management, purchasing, production planning and customer service. Organizations, like the one I work for, see logistics as a critical design of the supply chain. When organizations incorporate logistics as a key component of the business plan, they can use it to manage, coordinate and monitor resources needed to move products in a smooth, timely, cost effective and reliable manner.

It provides an effective way to transport people and commodities from one place to another.

The maritime shipping has been major form of transportation as well as connecting country and continent. Water transportation is the most economical and environmentally efficient way to travel and transport merchandise. Data shown that 90% of the world trade carried by international shipping industry. Air transportation is part of a service supply chain that

Faster transportation has transformed the distribution of goods in allowing a greater selection of cargo to travel further than it was previously capable of. So what about the costs? "The container made shipping cheap" (Levinson, 2006, p.10). Just after McLean’s idea, it was thought that the costs of shipping were 11 percent of the value of United States exports, and could be as high as twenty-five percent. By contrast, shipping costs in comparison to product price have fallen sharply. (Asteris, 2009). It is not just the use of containers and ships that is responsible for the transportation costs, the larger normal routes, the increasing competition between the major container ship operators, such as Maesrk and Evergreen, the investment in modernising crane handling equipment and the logistics, have all had an impact.

The term Supply Chain is generally used to describe the all of the possible processes which are involved in the flow of goods starting with the raw material supplier, and ending with the customer. This includes the processes of manufacturing, distribution and transportation to the end user or consumer. Supply chain management not only involves all of the steps mentioned above, but also affects other company activities such as marketing decisions, fulfilling customer demand, and even general corporate strategy or goals. Managing a supply chain has typically been considered to be a complex and intensive process, and many methods have been developed over the years in an effort to deal with supply issues related to the logistics involved in the production and distribution of goods.

For any production and distribution to be successful, then it should be able to produce quality goods and products. It should also ensure that the goods get to the customer in good condition and on time among others. This is achieved through efficient and effective production and distribution logistics. Customer orders may face delays in delivery and therefore not meeting customer satisfaction, which could cause problems with customer retention. Analysis of data helps in coming up with the best actions that a manager or a CEO should take. This paper seeks to discover the factors that affect distribution in any given organization.

The way products are moved today has changed dramatically compared to the slow manual process in the past. Initially products were mainly moved on ships. Once rail became available products were able to be moved more quickly on land. Then came trucking and air planes that could be used to move cargo even quicker. These changes occurred slowly over time and each of them still have play an important part in transportation and the supply chain. (http://amhistory.si.edu/onthemove/, n.d.)

The primary forecasting techniques that Bronson Methodist Hospital uses varies with the ongoing processes of building, implementing, evaluating and the never-ending improvements that are made in each forecast models that are consistent throughout the organization. Bronson hospital focuses on using forecasting techniques that have data that is readily available, can be performed in house, easy to understand and the forecasting methods are reasonable (Harrelson and McClurkan 2007).

Transportation is a key element in the logistic chain. It joins together those components that are considered to be separated. In order for transportation and logistics to work together successfully, there must be good management between them. It plays a

We have seen from above examples that supply chain and logistics is a concept that was not invented by manufacturing industry but was successfully borrowed from the military and implemented to increase its own efficiency. The focus of use of logistics and supply chain in both military and manufacturing is to make sure that people or resources or products reach their destination in time and in correct condition.

Dr. Nelson (2009, pp.121-2) agrees that air shipment is the fastest way of delivery; however, it is the most expensive transportation. Freight by sea is more cost efficient and more convenient for bulk and heavy products but it takes longer to transfer. (Nelson, 2009, pp.121-2 and Weiss, 2008, pp.143-p7).

Transportation accounts for between one-third and two-thirds of total logistics costs; for most firms, it is the most important single element of logistics costs. Firms and their products’ markets are often separated geographically. Transportation increases the time and place utility of products by delivering them at the right time and to the right place where they are needed. By doing so, the customers’ level of satisfaction increases, which is a key factor for successful marketing.