Module - 5 INTRODUCTION TO DISTRIBUTION MANAC (7 hours) ‘MENT 18 the distribution network, role of distribution, factors influencing 1, HUB & SPOKE MODEL Distribution Management, Desi , distribution networks in prac on, design option sportation and criteria of decision Transportation Infrastructure-Factors impacting, road distribu Mode off transport cost,Packaging Issues in Transportation Role of containerisation Hazards in transportation, State of Ocean Transport AND Global allia DISTRIBUTION MANAGEMENT [Distribution management refers to the process of overseeing the movement of goods from supplier or ‘manufacturer to point of sale) t is an overarching term that refers to numerous activities and processes Such as packaging, inventory, Warehousing, supply chain, and [Link] includes activities and processes such as consumer or commercial packaging, order fulfillment and order shipping. In short, distribution is most easily understood as commercial or sales distribution. Examples of distribution channels include ecommerce websites, wholesalers, retailers and 3rd party or independent distributors. Logistics refers to the detailed planning and processes involved with the effective supply and transportation of goods. Logisties includes activities and processes such as supply management, bulk and shipping packaging, temperature controls, security, fleet management, delivery routing, shipment tracking and warehousing. [Link] perhaps easiest to think of logistics as physical distribution, Distribution is a management system within logistics that is focused on order fulfillment throughout distribution channels. A distribution channel is the chain of agents and entities that a product or service moves through on its way from its point of origin to a consumer ROLE OF DISTRIBUTION IN THE SUPPLY CHAIN (istribution refers to the steps taken to move and store a product from the supplier stage to a customer stage Th the supply chain}Distribution occurs between every pair of stages in the supply chain. Raw materials and components are Moved from suppliers to manufacturers, whereas finished products are moved from the manufacturer to the end consumer: Distribution is a key driver of the overall profitability of a firm because it affects both the supply chain cost and the customer value directly. ntire business around Examples: 1)Wal-Mart and Seven-Eleven Japan, have built the success of their er outstanding distribution design and operation.companies such as HP distributed throu, 2) Dell distributed its PCs diteetly to end consumers, whereas resellers rile obli arge supermarket chains while obligating 3) Proctor & Gamble (PRG) has chosen to distribute directly (0 larke SUP matter players to buy PAG produets from distributors. IGN er needs that are met EACTORS INFLUENCING DISTRIBUTION NET ‘WORK DE! ensions: 1, Custom Performance of a distribution network should be evaluated along two dimension ng the customer's demands on time affect the overall profitability of the (Service Factor) 2. Cost of meeting customer needs (Cost Factor) Me the revenues of the company at large, which along with the costs together affect network and the company as a whole. 1. Service Factors: The measures that are influenced by the structure of the distribution network are as follows * Response time is the amount of time it takes for a customer to receive an order. * Product variety is the number of different products/configurations that are offered by the distribution network. * Product availability is the probability of having a product in stock when a customer order arrives. * Customer experience includes the ease with which customers can place and receive orders as well as the extent to which this experience is customized. * Time to market is the time it takes to bring a new product to the market, * Order visibility is the ability of customers to track their orders from placement to delivery. * Retumability is the ease with which-a customer can retum unsatisfactory merchandise and the ability of the network to handle such retumns. » 2. Cost Factors: Changing the distribution network design affects the following supply chain costs on + Inventories + Transportation + Facilities and handling + information Relationship between desired response time and required number of Facilities Firms that target customers who can tolerate a long response time require only a few locations that may be fa from the customer Thus, a decrease in the response time customers desire increases the number of facilities required in the networ! as shown in Figure 2-1.Desired Response Time Fig 2.1 Relationship between desired response time and reqi Relationship between No. of Facilities and Inventory Cost To decrease inventory costs, firms try to consolia, Bordon: For example, with fewer facilities, Amazon is able to tor ie inventory al Borders, with about 400 facilities, achieves only about twe tore er year. Inventory Costs [Number of Facilities ies and Inventory Cost Fig 2.2 Relationship between No. of Facil Relationship between No. of Facilities and transportation cost : Transportation costs are of two types. These costs are called Inbound transportation costs and Outbound Transportation costs. Inbound transportation costs are those costs that are incured while bringing the material into the company facility. On the other hand, outbound transportation costs are those that are incurred while sending the products outside the facility. It is observed that the inbound transportation costs are lesser than the outbound transportation ones because these include bringing of raw material that is in bulk, therefore the per unit transportation costs tend to decrease. On the other hand, the outbound transportation costs are higher Seca products may need to be transported in smaller lots to different locations and the cost per unit tends to be highwore ig. Relationship beiveen No, of Fetes and Tramaortation Cot st 7 ae city Facility costs fn setting up a fa oeeoeoh ‘facilities allows @ Relationship between No. of Facilities and Facili solidation of ‘cost is nothing but the cost that is incurred reduced, as shown in Figure 2.4. Because cons ‘economies of scale. Facility Costs Number of Facilities Fig 2.4 Relationship between No. of Facilities and Facility Cost No. of Facilities Response Time and Logistics Cost sts + Transportation Costs + Facility Costs. If a company wishes to improve Relationship between then it may increase the number of facilities, which would also lead to an Total Logistics Cost = Inventory Co: on its response time more effectively, increase in the total logistics costs after the minimum point, Number of Facilities Fig 2.5 Relationship between No. of Facilities Response Time and Logistics Costes such as supplier to manufacturer, many of th Same options still apply, Theie are two kéy dep 1. Will product be delivered to the customer location or picked up ie cen 2. Will product low ihrough an interme iary (or intermediate locat ee Based on the choices for the 1 dk sa |. Manufacturer storage with direct shippin 2. Manufacturer storage with direct shipping and in-transit merge 3. Distributor storage with package carrier delivery 4. Distributor storage with last mile delivery $. Manufacturer / distributor storage with costumer pickup 6. Retail storage with customer pickup «Manufacturer storage with direct With the direct shipping design network, centralisation of inventories is possible for the manufacturer Product is shipped directly from the manufacturer to the end customer, bypassing the retailer who takes the order and initiates the delivery request This is also referred to as drop-shipping. The biggest advantage of drop-shipping is the ability to centralize inventories at the manufacturer, which can aggregate demand across all retailers that it supplies. As a result, the supply chain is able to provide a high level of product availability with lower levels of inventory. Drop shipping also offers the manufacturer the opportunity to further lower inventories by postponing customization until after the customer order has been placed. Build-to-order companies such as Dell hold inventories as common components and postpone product customization, thus lowering the level of inventories carried. Transportation costs are high with drop shipping because the average outbound distance to the end consumer is large and package carriers must be used to ship the product, ‘The retailer has the functions as follows: 1, Providing information about the supply to the potential customers. 2. Collecting orders 3. Informing the manufacturers on the orders.2, Agyrewate inventory holding rhs funtoas of the: hannufecurard arg;as follows: 1 PROHuehS Shipping directly to the customers. The performance of Manufneturer storage with direct shipping is as follows eng Ne + Inventory! Lower costs because of aggregation. Benefits of AB luc items. Benefits are very large if product custor'7a ice and disaggregate shipping jome saving on Significant high v manufacturer c Transportation: Higher transportation costs because of ine ‘acilities and handling Information: Lower facility eosts becaust handling costs if manufacturer can manage small shipments oF s a vestment in information infrasiructure to integrate manufacturer and relaHler | and two + Response time: High response time of between 1-2 weeks because of ineresot AT ig stages for order processing, Response time may vary by product, thus complicating Product variety: Easy to provide a very high level of variety tion at Product availabilty: Easy to provide a high level of product availability because of agercea ed distan of aggregation, Si p from production line, manufacturer 1 Customer experience: Good in terms of home delivery but can suffer if order from Severs! manufacturers is sent as partial shipments Order visibility: More difficult but also more important from a customer service perspect Returnability: Expensive and difficult to implement. Manufacturer Storage with Direct Shipping and In-Transit Merge. Unlike pure drop-shipping, under which each product in the order is sent directly from its manu-facturer to the end customer, in-transit merge combines pieces of the order coming from different locations so the customer gets a single delivery. Ex: When a customer ordered a PC from Dell along with a Sony monitor (during Dell’s direct selling period), the package carrier picked up the PC from the Dell factory and the monitor from the Sony factory; it then merged the two at a hub before making a single delivery to the customer. In-Transit Merge Network Factories =e apap -- Gea eae The retailer has the functions as follows: Providing information about the supply to the potential customers. [Link] orders. [Link] the manufacturers on the orders. 4, Running the in-transit-merge center which organizes the final and single delivery to the customer.‘ory holding. 3. 1. Production. 2. Aggregate inve The functions of the manufacturers are as. follows: Shipping to the in transit merge center, When compared with drop shipping, in-transit merge as the following advantages + Transportation cost is lower + Response time is longer; + The operation of the tines + A sophisticated information infrastructure is needed to Manufa € center creates extra costs, and allow in-transit merge. turer storage with in-transit [Link] best suited for low- to medium-demand, high-value items the retailer is sourcing from a limited number of manufacturers, The performance of factory storage with in-transit merge is compared with drop shipping is as follows Inventory: Similar to drop shipping ‘Transportation: Somewhat lower transportation costs than drop-shipping Facilities and handling: Handling costs higher than drop shipping at carrier, receiving costs lower at customer Information: Investment is somewhat higher than for drop-shipping Response time: Similar to drop shipping, may be marginally higher Product variety: Similar to drop shipping Product availability: Similar to drop shipping Customer experience: Better than drop shipping because a single delivery has to be received Order visibility: Similar to drop shipping Returnability: Similar to drop shipping Distributor Storage with Carrier delivery ‘Warehouse Storage by Distrib! Revailer Customers + Product Flow Information Flow Under this option, inventory is not held by manufacturers at the factories but is held by distributors / retailers in intermediate warehouses and package carriers are used to transport products from the intermediate location to the final customer. [Link] as well as industrial distributors like W.W. Grainger use this approach combined with drop shipping from a manufacturer The retailer has the functions as follows: 1. Providing information about the supply to the potential customers.we sss s 2. Collecting orders = item string ho rat pe cle gt avery 0 HHE om e 3 Infrae he manactorers & re at and i ; 1 unmng the lb center wi osni2e fi ee «to the distribution center, 1. Production and 2 shippint ciurérs are as follows: 1 Prod The funetions of the manufacturers ate cl of inventory. However, sit equires a higher | Relative to manufacturer storage, distsbutor storage Fest sinificantly lower than at a small shop retailer system. stributor 8 facturer with those for manuf torage compared + Transportation costs are somewhat lower for dis storage, Facility costs are higher. + Response time is better because warehouses are closer to customers + Information system is less complex. + Retumability is easy. ; s. Distributor storage Distributor storage with carrier delivery is well suited for slow- to fastmoving item ae manufacturer storage but do no also makes sense when customers want delivery faster than is offered by need delivery immediately The performance of distributor storage with carrier delivery is summarized as follows + Inventory: Higher than manufacturer storage. Difference is not large for faster moving items ‘Transportation: Lower than manufacturer storage. Reduction is highest for faster moving items Facilities and handling: Somewhat higher than manufacturer storage. The difference can be large for slow moving items Information: Simpler infrastructure compared to manufacturer storage 7 Response time: Faster than manufacturer storage * Product variety: Lower than manufacturer storage + Product availability: Higher cost to provide the same level of availability as manufacturer storage + Customer experience: Better than manufacturer storage with drop shipping © Order visibility: Easier than manufacturer storage © Retumnability: Easier than manufacturer storage Distributor Storage with Last Mile DeliveryLast mile delivery refers to the / li fers to the distributor / retailer delivering the product to the customer's home instead of © carrier. Bisleri uses last mile deliver r {ast mile delivery in the water delivery, Unlike package carrier delivery using a pack: er 10 the customer, increasing the lutor warehouse ts be much eh le delivery requii number of w The retailer has the funetioi 1. Providing information about the supply to the potential customers, 2. Collecting orders. 3. Informing the manufacturers on the collected orders. 4, Running the distribution centers which organize the final and single delivery to the customer. The functions of the manufacturers are as follows: 1. Production, 2. Shipping to the distribution center. Unlike package carrier delivery, last-mile delivery requires the distributor warehouse to be much closer to the customer, so more warehouses are required. * Higher levels of inventories are required. * Transportation costs are the highest compared to the other options. + Facility costs are very high (many DCs). + Response time is very quick (many DCs and close to customers). + Returnability is the best (pick up car can do it). + When to apply? (i) High customer density, i.e. in large cities, (ii) Heavy product, e.g. rice in China, (iii) Fast moving items, and (iv) Customer ready to pay for delivery : The performance characteristics of distributor storage with last mile delivery are summarized as follows * Inventory: Higher than distributor storage with package carrier delivery Transportation: Very high cost given minimal scale economies. Higher than any other distribution optio1 Facilities and handling: Facility costs higher than manufacturer storage or distributor storage with package carrier delivery, but lower than a chain of retail stores Information: Similar to distributor storage with package carrier delivery Response time: Very quick. Same day to next day delivery Product variety: Somewhat less than distributor storage with package carrier delivery but larger than retail stores fa : Product availability: More expensive to provide availability than any other option except retail stores Customer experience: Very good, particularly for bulky items ? ‘and easier to implement than manufacturer storage or distributor © Order traceability: Less of an issue storage with package carrier delivery Returnability: Easier to implement than other options. Harder and more expensive than a retail network Manufacturer or Distributor Storage with Customer Pickup In this approach, inventory is stored at the manufacturer or distributor warehouse, but customers place their points to collect their merchandise. orders online or on the phone and then travel to designated pickup Orders are shipped from the storage site to the pickup points as needed.uror Storage istributor omer PIKE gree uracturer 2 mem with Cus i. o NS rickup ster The retailer has the functions as follows: 1, Providing information about the supply to the potential customers. 2. Collecting orders. 3. Informing the manufacturers on the orders. 4, Collecting the items of the orders in the Cross-Dock Center 5. Sending the orders to pick up points 6. Informing the customer about the arrival, The functions of the manufacturers are as follows: 1. Production. 2. Aggregate inventory holding. + Inventory Costs depend on the location of inventory: Fast moving items can be kept at pickup locations, and slow moving items can be stocked at a central warehouse. + Transportation cost is lower than the use of package carriers thanks to possible aggregation when delivering to a pickup site. + Facility costs are high if new facilities have to be built. + Response time is similar to package delivery. + Information system: Sophisticated. + Retumability is somewhat easier since pickup locations can handle returns. + When to apply? In case of motorized customer including public transport. The performance characteristics of manufacturer or distributor storage with consumer pickup sites are summarized as follows Inventory: Can match any other option depending on the location of inventory Transportation: Lower than the use of package carriers, especially if using an existing delivery network Facilities and handling: Facility costs can be very high if new facilities have to be built. Costs are lower if existing facilities are used. The increase in handling cost at the pickup site can be significant * Information: Significant investment in infrastructure required* Response time: Similar to package lelivery wi et OF distributor storage. Sai SP Package carrier delivery with manufacturer or dist Se Fibuto 2 Ake Nallabiiy: Similar o other manufacturer or dtuhetey eee ea ' ‘ustomer Experience: Lower than other options because of the lack of home. delivery. f 8 high density of population loss of convenience may be small yee * Order visibility: Difficult but essential bility: Somewhat easier given that pickup location can handle returns Retai Storage with ickuy In this option, inventory is stored locally at retail stores. Customers either walk into the retail store or place an order online or oti the phone, .and pick it up at the retail store. Examples of companies that offer multiple options of order placement include Bigbasket * Inventory and facility costs are higher than all other options. + Transportation is lower than all other options. + Response time is very good. + Retumability is very easy. + Information system: minimal if customers walk, sophisticated for online orders The performance characteristics of a network with customer pickup sites and local storage (such as retail stores) are summarized as follows Inventory: Higher than all other options Transportation: Lower than all other options Facilities and handling: Higher than other options. The increase in handling cost at the pickup site can be significant for online and phone orders «Information: Some investment in infrastructure required for online and phone orders Response time: Same day (immediate) pickup possible for items stored locally at pickup site Product variety: Lower than all other options . i i i ill other options: + Product availability: More expensive to provide than al i. : Customer expesienoe: Related to whether shopping is viewed as a positive or negative experience by . Onder visibility: Trivial for in store orders. Difficult, but essential, for online and phone orders Returnability: Easier than other options given that pickup location can handle returns Retail Storage with customer pickupoptimize over @ es of each of the players and in creatin the right icture of the distribution work has very long-term consequences: The str he + often lasts for decades, amplifying ice of a distribution 2. The {Yicult decisions to change. The impact network is one of the mos “Another important choice is whether importance of the choice. Sony could 3. Consider whether an exclusive distribution strategy is advantageous: stance, a manufacturer of consumer electronics such as to distribute exclusively or not, For choose to have multiple or an exclusive distributer. le distributors: Sony would be interested in increasing the availa would certainly not mind if its distributors competed with each other to sell Sony pro sive relationship with a distributor. In this case, of its products to customers and ducts to customers, Exclusive distributor: An alternative is to form an exclu: customers can buy this brand’s products only from a single retailer. The retailer can garner higher margins, ‘as it doesn’t have to battle over price with nearby store, The manufacturer can often increase its sales significantly, because its exclusive distributor will be much more interested in marketing the manufacturer's ‘goods, as there is a higher margin and less competition. ‘and criticality affect the type of distribution system preferred by 4, Product price, commoditization, customers: Interactions between a buyer and a ynship with a single enterprise that can deliver a full line of products. This can be ler take time and resources. Many buyers would like to establish a rel accomplished by a manufacturer with a broad line of products. However, this is often accomplished more effectively by distributor carrying products from many manufacturers. A customer's desire for @ one-stop shop depends not just on the convenience of the relationship, but also on the type of product he or she is a customer may well be content to buy a PC directly from manufacturer. However, buying. For example, sy customers are willing to order pens direct from a pen manufacturer, and paper directly from a paper very fe manufacturer, Most customers much prefer a stationary store that carries a very wide range of different ‘manufacturers’ products. the existing physical network: To extract maximum benefit from e-business, g the two networks often results 5, Integrate the Internet wi firms should integrate it with their existing supply chain networks. Separatinallows each of the spokes to move Example: The model encourages consolidation of all the inventory in one place aka delivered to different areas (spokes). eCommerce giant Amazon utilizes this FBA sellers deliver their products to Amazon's ful customers ASAP. “hub” from where it is timely model in their FBA s ice. The Iment centers, and from there it is shipped to the (cers have a close look at this model. Suppose, you're operating in locations A, B, C, D. To deliver goods to all these locations, you'll establish a hub called “O” from where the goods will be shipped from O to A, O to B, 0%, and O10.) (Here you'll need to connect “O” to 4 connections ont will substantially reduce management costs, conveyance costs, and other associated costs.) ge can achieve economies of scale using the hub-and-spoke model Co Oy The cost of the supply chain is reduced [(Costomers can get last-mile deliveryro poke Model Advantages of Hub anid Spoks 4 sud spoke system ee ha pe le ales businesses 10 avoid COStIY OUtof ae ea peak clemand. ‘This ena! iny during’ times of pe delivery of inventory 4 z several locations in % tet tory distributed among sever /ou 10 keep a clos Centralized inventory control ~ Having your inve eg een , ‘entralized invel ceuateeery get what they wa aie that customers may not be able to a's at eye on inventory at all locations and respond quickly when thet « logistics costs. A hub and spoke affect transit significantly within the supply chain: receiving Lower Time In Transit (TNT) ~ Time int i distribution model can help lower shipping costs at two = ie ee fillment centres. inventory from manufacturers and forwarding inventory to fulfillm eee liv Easily trackable deliveries ~ With a hub and spoke system, each del ae issues may be occurring and address them before they becor Spot where potent + of your resources. For Better use of resources ~ Hub and spoke distribution systems help you make the most of y redirect it jemand in another, you can r example, if you're experiencing high demand in one area and low dema Fesources so they're going to the places where they're needed most. a c, Tower costs ~ Hub and spoke systems can help you lower costs by using less warehouse spac expensive real estate, and using fewer resources. Supply Chain Management is the practice of organizing the secure flow of goods and services. Depending on the industry this can vary from the product offered by the specific industry. The Frocess includes and considers the entire conversion of raw material into finished products, and then reaching the hands of the end customer. The management part of this process is where it. gets interesting. It is required by managers to vurces that it takes to make the supply chain more economical, minimize the effort and resot Streamlining this process to gain a competitive advantage and making happy customers is what SCM is all about. Portation strategy is absolutely vital to grow your business, It imless distribution and sorted- Having a clear and economical trans involves creating a wide web of sea receiving and shipping products. A good shi back for more business because nob ody likes to receive late orders.Role of transportation Transportation is the metal link that holds the supply chain together. Every step of th - Every step of the process is connected together through tran: i 3 c fansportation, since raw materials are moved from the where they are purchased from, to the’place where they are manufactured, and fat eee customer. If you don’t have an economical and stable shipping plan in place, you ei lot of money, and that can be a competitive difference. ally to the end nd up losing, a Let's understand further how the rale of transportation is important in a supply chain. a) Reduce Costs meticulous planning and plotting, one can Operating a business is a costly affair already. W! save a lot of money with a good transportation strategy in place. Transportation can involve a number of different modes (air, water, or land), fuel costs, and weight. To keep the cost of such is suggested to conduct a full-scale freight audit. logistics to a minimum, i b) Enhanced Customer Service : The customer should be the top-most priority of a business and by proxy, also the supply chain. Tightening up your transportation lines is one way to ensure that shipments reach your customer on time and in good condition. For a large-scale operation, this tiny little detail is even more important. ©) Segmenting Shipments Based on Priority : A business must understand the varying degrees of priority that shipments might have. Sometimes getting some packages quicker might be more important than getting all the packages at a moderate regular time. This is why, segmenting shipments based on factors such as different customers, type of products, suppliers etc. is highly essential. d) Using a Transportation Management System : TMS or Transportation Management System is transportation network. This helps software that allows for regular and efficient tracking of your mes to analyzing and making informed decisions. With a TMS, you can you a great deal when it coi track route planning, fleet management, fuel costing, cargo handling, and customer communications, all using one platform. on : One way for businesses to grow is by expanding their reach y would need to figure out ways to transport shipments adopting a combination of various modes of transportation product available worldwide. e) Various Modes of Transportatis globally. For that to happen, the .e world. This means everywhere in th bined way to get the and figuring out the fastest com| : This is an extension of the previous point. ery country. They are 0 Dissolve Geographical Limitations A fleet of trucks is the d mode of transporting shipments in ev beyond what the railway lines allow. their transportation needs. ) Transportation t Trucks have been the preferre tangible and on the land level, can go best way for local businesses to manage xxible and stretching across with some hile ods getting fle: sinesses in every country, my:With transportation meth also help their country’s economy I g) Helping Better the Econo 0 borders, global trade is at an all-time healthiest. Bus meticulous planning, can not only expand their reach butansportation, has 1, nodes of tt cus 1e possibilities of doing so. Global trade, due (© the p world smaller in the best way Functions of Transportation oF ids satatin isnot merely 2 means oF TNT Apply chain From a Togs viewpoint ansPeriaven er majo OF im ins sa means of facilita ee : the rl of wenporet to increase the efficiency of your OP ati ia The role of transportation is to inerea pee ; intermediate prev ts and finished goods from their pe ey AE ae seven faetions of Transportation is frequently used in the facilitation of transportation in supply chain management: 1. TRANSPORTATION IS USED TO REDUCE COSTS. / : na business operation. Freight ts from one location to another The transportation in a supply chain can be used to control costs -intensive affair. To and fuel costs take up most of the logistics budget. Moving product ie using one or a combination of the various modes of transportation is a costA ATE control transportation costs and keep them as low as possible, conducting essential, port and logistics. Luckily, technologies exist that make it possible to enhance transparency in trans} loge ‘Companies that use technology and data can increase their awareness of both the supply network in general and how it interacts with the broader transportation ecosystem. 2. TRANSPORTATION ALLOWS FOR BETTER INVENTORY FLOW Effective transportation management keeps your inventory lean, thereby making the flow of stock through your warehouses much more smooth and efficient. Enhancing the flow of goods in and out of your warehouse can help you reduce costs on storage and transportation while reducing overall lead time. 3. TRANSPORTATION ENHANCES CUSTOMER SATISFACTION Making sure finished products reach a customer on time and in the condition they were shipped in is an essential aspect of transportation management. Transportation is one of the few processes in a supply chain where companies have direct interaction with the customers. As such, ensuring quick and reliable delivery while taking measures to avoid delays can increase customer satisfaction and establish your brand’s reputation as reliable and trustworthy. 4. TRANSPORTATION IS USED TO BYPASS GEOGRAPHICAL BARRIERS One way for businesses to grow is to expand their reach globally. Last-mile delivery is a crucial element of logistics and supply chain management because it plays such a critical role in keeping customers happy. Yet, it’s incredibly difficult to get it right due to infrastructural and geographical barriers. Trucks have, for a long time, been the preferred mode of transportation on land. They can get to remote areas and traverse terrains other modes of transportation can’t.Transportation makes goods av ailable to consumers no matter where supply chain depends on the Pa tier where they * are. The success of your Strategic Use of an appropriate t : Insportation system 5. TRANSPORTATION IS USED ‘To SEGMENT SHIPMENTS BASED ON PRIORITY Every shipment will have varying degrees of priority depending on the customers products, and ime of year, among other factors Sometimes, getting certain, high-demand Packages delivered more quickly is preferable to having all Packages delivered at a moderate rate Consequently, the modes [Link] of transportation must be segmented lo reflect these complex tealitie, S- TRANSPORTATION IS USED TO BOOST THE ECONOMY. To freely move products fiom domestic to internatiorial markets and vice versa,’ an efficient Hansportation system is a must. The vast distances between farms, mines, urban centres and forests demand a sound transportation system so that manufactured products can reach Customers as efficiently as possible. 7. MOVEMENT OF PRODUCTS: The fundamental function of transportation is to move the Products from one place to another. ahe upward and downward movements of products inthe salve chain are facilitated by Eansportation. ‘Transpotiation is iinporGint for moving the cpanel to the next stage of manufacturing Process and also closer to the customer, The material can be in the form of components, assemblies, materials, work-in-progress, finished products. 8. STORAGE OF PRODUCTS : temporary storage facility because sometimes the need of storing the in-transit shipment, Benerally for few days, arises. Another situation where the transportation vehicle can be uecd ac a storage facility is when the space in the warehouse is limited. [Link] UTILITY: / As per the economic theories, creating place utility (right place) for the products, distributed and Produced by the firm, can be seen as the main function of transportation. When the goods are Placed where they are to be consumed, it is regarded as place utility. Apart from having the Products at the right place, itis also important to have the product at the right time (time utility) and in right form (form utility). Moreover, the products should be owned by or in custody of the Person who really wants to consume these products creating ‘possession utility’. All the discussed ies depend the efficiency and effectiveness of transportation. util ya of TRANSPORTATION Modes of transportation or Types of transport refer toa combination of networks, infrastructures Vehicles, and operations. These include walking, the road transport system, ral, ship transport and modern aviation. Different modes of transportation have emerged over time, basically, thet are 7(Seven) modes of transportation which are listed below.The 7 modes of transportation 1 Air transportation of ait transport freight | 2 rail transportation (passenger ane! (Fel = eee J maritime shipping oF 3 Ship transport (also known a 1 Road transport or(truck toad) d freight trains) nsportation (a combination of road. transportation an — : of transportation methods 6. Intermodal trai 7. Multimodal transport (a combination of multiple mode: ingly i nt_in ation is air. Airplanes are becoming increasingly. import ot ion with continually improving technologies an’ Pras | air transportation is the fastest growing and most oe a shipping mode. Consequently, many companies, such as Amazon and UPS, have purchas ‘own fleets of airplanes to gain a competitive edge in the growing market. more companies are trusting f flight as a preferred way gularly piggyback on 5, Pipeline Air Transportation ‘As air travel has become increasingly advanced and dependable, airplanes with high value freight and goods. The increasing popularity o to travel also makes shipping by air more convenient as shipments re} passenger planes, further making air an economic way to transport goods. ‘There are a couple drawbacks to air transport. In its current state, air transport is still, by far, the most expensive way to ship. Also, due to the nature of air travel, weight and volume of freight has to stay minimal to ensure the safety of the flight. The level of emissions produced by air transport are also the highest of any mode. Rail Transportation First invented for use in the early 19th century, rail transport quickly became vital for the expansion of the western world and has played a pivotal role in the realm of logistics for over two centuries, In modern practice, rail is used more exclusively for the largest and heaviest payloads (bulk cargo) traveling across land. The vast majority of railway infrastructure connects highly ulated areas with large unpopulated strips of and between them making rail ideal for long- distance and cross country hauls. Rail transport is confined to a more limited infrastructure than road transport. As a defining trait, locomotives (trains, monorails, etc.) are confined to a traced path going between point A and B with very few points of divergence. Railways are costly and time consuming to construct and only a few new railways have been constructed since the early 1900's. Additionally, railways are limited to semi-level geographic areas making construction increasingly laborious. Thus, railwaysattribute makes rail one of the are primarily only accessible in lan le in large metropolitan areas. This primary players in the intermodal tr neSarileg os Within the confines o ny eis of the railway system, the rail vehicle is not influenced by traffic, points of —— ea Oe offs between modes. This makes the rail the most dependable mode for ms oe i ng hauls across land with minimal damage. Trains commonly carry bulk cargo items ss coal corn, iron, ore, and wheat, items that would be uneconomical to ship by truck, Waterways Shipping by water has been Practiced for thousands of years and remains pivotal to today’s global trade. 90% of all international trade is accomplished through maritime transportation. Cargo ships travel on almost every major body of water and have capacity to transport the highest volume of freight of any mode of transportation at the lowest cost. Water transport is very important because it is the cheapest way of transporting bulky goods over a long [Link] the world, there are two major types of water transport namely: Inland water transport and ocean water transport. Inland water transport This is the system of transport through all navigable rivers, lakes, and man-made canals. Many large rivers in different parts of the world are used by ships and barges for transportation; the main rivers where inland water transport is important are the Rhine and Dambe in Europe, Zaire in Africa, the Nile in Africa, the Mississippi in the USA, etc. Ocean Waterways \ However, Ocean waterways carry a lot of the world’s trade, the majority of the bulky goods, materials, and passengers pass through ocean waterways from one country to another at the cheapest cost. ‘The routes available to container ships are calculated and strictly followed. Many routes used today have been used for centuries. However, new routes are still being sought out and tested for optimal supply chain efficiency. In the past few months, Maersk sent a cargo ship over the Arctic Circle for the first time in history to explore the potential for increased efficiency in shipping routes{Ocean transport is indispensable for foreign tradg ft has brought the different parts of thy world closer and has knitted together all the nations of the world into one big world marketIt ., the sea and does not require any investment in the construction operates on a natural track, ie., the : and maintenance of its trackf{{t is, obviously, the cheapest mode of transport] Ocean transport includes: 1. Coastal Shipping 2. Overseas Shipping 1. Coastal Shipping:from one part to another pu » for carrying, hea sans of tanspor! 0" SIRT ost suitable, for Facey BN uk transport pris re can serve only limited area : Hf ing companies. But no\ en B (itis one pte most inet ag of country,{it is a cheaper and s “or uti Parlier, coastal shipping in Ida was may 19 0 i, from 1951 onwards, itis exclusively reserved 2, Overseas Shipping: me there are three types of vessels employed in the overseas SRIPPINB: () Liners, Gi) Tramps, (iii) Tankers. | (Liners: ie, i .s, They are, lave regular fixed routes, time and charges. 7 (bade rere Liners are the ships which hi pean ship, te, a fleet. They provide a uni collection of vessels under one owné fl Liners sail on scheduled dates and time, whether full of cargo or not. (ii) Tramps: in sally ‘Tramps are ships which have no fixed routes. They have no set rules or rate schedu a ay they do not sail till they have full cargo. They can be chartered by exporters and are re: ss a anywhere and at any time. They are not as fast in speed as liners. Tramps are more su carry seasonal and bulky goods. (iii) Tankers: Tankers are the yessels which are specially designed to carry oil, petrol and such other liquids. wi ers They have a large capacity, 2 to 3 lakh tons of oil, and very shortly, we may have super tar with a capacity of about 10 lakh tons of oil. The greatest disadvantage of maritime cargo ships is the speed at which they operate. By far, maritime is the slowest mode of transportation. It is, however, the most efficient for the amount of cargo it is capable pf carrying. In practice today, the speed of ships compared to air can have great significance when it comes to regulations and tariffs. As of January 2017 there were 52,183 cargo ships in service; so at any given time there can be thousands of ships at sea, If a sanction is put in place during a ship’s 40 days at sea, the operators have to either turn around or comply with a tariff they were not prepared to pay. This has caused a lot of upset in the trade world recently. Additionally, the carbon emissions produced by one cargo ship are equivalent to the emissions produced by 50 million cars. There is a continued effort to reduce ocean emissions by 50% by 2050. The closest alternative to maritime shipping is air shipping; however, due to current technological setbacks, air will not be taking over maritime for international shipping anytime soon.Road Transport The first, and most common mode of transportation in logistics, is road. From walking, to horses to Wagons to bikes to cars to trucks, road transportation has been around longer than mode and is utilized the most of any mode in logistics With the continued improvement of vehicles and road infrastructure, transportation by road is the most vei of the four main modes with the least geographical constraints. This attribute of road transport makes it the preferred mode for smaller loads over a shorter distances and as such, road is the only mode that performs door-to-door deliveries. Consequently, most shipments that initially were carried by another mode of transportation are completed by road transportation. Anything that can be shipped in small-to-medium quantities can be shipped by road. Small packages (or Parcel) can be transported in a vehicle no larger than personal car. Companies specializing in ecommerce ship parcel when there are hundreds, if not thousands, of small packages being shipped to different locations (Parcel is often made up of different modes of transportation, but always picked up and delivered by truck)... On the flipside, shipments larger than 150Ibs. are considered freight and require a truck. The two main forms of road transport are ‘an-Truck-load (LTL) and Truck Load (TL). {i LTL transports smaller shipments (primarily palletized shipments) to their respective locations along a specified route. The route begins and ends at a specified hub of origin and makes various stops according to the number of different shipments it is carrying. This system of transportation i known as the Hub and Spoke model. The advantage of LTL is that the Shipper only pays for the portion of the truck occupied by their freight while the rest is payed for by the shippers using the pet of the truck. The disadvantage of LTL is the multiple stops and transfers that the shipment undergoes en route to its destination. A shipment will be transferred multiple times to different trucks along the route much like a passenger on a plane will be transferred fo different planes en route to their destination. This results in a longer shipping time and the possibility of the shipment being damaged. . “(ii) uch faster than LTL because it does not operate on a hub and spoke model. As such, the “a sae gies destination with toadATionaT stops ot transfers along the way. The ight in order to make the shipment truck will drawback to TL is that a shipper must ship a lot of frei ng 000Ibs or greater, it is_ cconomical. Generally, if a shipment is longer than “16 linear feet or 20; cheaper fo ship TL. .nal influences that play into its effectiveness, ‘The main downside to'road transport is the extel and road regulations, three things that mostly don't influence other in the current shipping environment it has become shortage has led to an increase in primarily weather, traffic, modes, In addition to these drawbacks, increasingly difficult to find truck drivers. This capacity intermodal transportation.Pipeline al sense. However, it i qi of transportation in the traditiona itl Pipeline shipping, is not a formal mode of transp' ae ot important to acknowledge for its importance in the and oil from their point of origin to the point Pipelines transport unrefined fossil fuels such as gas seton'The cést of where they can then be transferred to the refineries or another mode of feangeon sar aeari shipping primarily lies in its construction, the diameter of the pipeline, an Jedwatér ‘makiny fluid béing transported. They can be built above ground, underground, oF un i them ideal for offshore drilling. of transporting crude oil is ‘The pumping of crude oil has risen in recent years the increasing need i A correlative with the increase in drilling and extraction Traditionally, the transporting of oil was accomplished by rail but oil and gas companies are quickly turning to pipeline shipping because of increased safety and efficiency. Regardless, the building of pipelines has been a topic of the speed of the controversy because of the environmental damage they will cause by increasing oil industry, creating additional fossil fuel emissions, and slow the progress of sustainable energy. Intermodal Intermodal transport which involves the use of both rail and road is known as combined [Link] transport is a subset of intermodal transport. For a transport to be ‘combine most of the haulage must be performed by rail, through inland navigation (on barges) or by sea (short-sea shipping), limiting as much as possible the use of long distance trucking. Our intermodal transportation service allows you to make use of a combination of transportation modes, such as railway, trucks, aircrafts, and ships. We can smoothly transfer containers from one transportation mode to another, ensuring your cargo is delivered safely al destination. Railways and ocean shipping, have excellent economic efficiency, and it brings low environmental impact. Incorporating these modes into the main part of your route can lead to cost savings for your supply chain. Furthermore, in regions where inter-modal transportation is promoted as part of economic/environmental measures, simplified customs clearance can be arranged when certain conditions are [Link] supply chain will provide customers with preferential transport methods for long distances - such as trains, planes or boats. Then, a truck will finish conveying the goods from the port or station to the final destination. Intermodal rail-road transport is a solution that meets the current concern for ever more Corporate Social Responsibility (CSR). This solution acts most positively on the environment, by using rail transport for long distances, as boats and planes are major sources of pollution. Multimodal Transportation Multimodal is the combination of different types of transport to move a shipment. The carrier can include trucks, trains, ships, airplanes, etc. Even though the load breaks down into different modes of transport, it still falls under a single contract/bill of lading. Companies that choose multimodal shipping can handle all shipping delays and interactions through one provider and ease the stress of communicating between different contacts. Some of the main advantages ofmultimodal transport are effici are efficiency in delivery time and proficie ee and proficient shipment tracking, Multimodal anspor! can benefit many businesses that ship large amounts of freight regulary The main fer multimodal is that it requires fess time and effort than compared to the ler a single bill and managed by an external reason companies intermodal. This is because all the shipments are party difference between multimodal and intermodal transport? Both intermodal and: multimodal transportation. suggest using two or more shipping modes together. However, there is a list of differences between intermodal and multimodal transport. When you ship intermodal, a different carrier is responsible for each part of your transportation. Consequently, you have several separate shipping bills and reports from each link in the chain. When using multimodal transport, all of your shipments are signed under a single bill of lading. Both transportation methods have benefits and drawbacks, and here we will dive deep into multimodal. Other modes of transportation + Animal-powered transport: which is mostly referred to as a beast of burden. It is the oldest means of transportation; this usually involves the use of animals for the transportation of people and goods. Humans may ride some of the higher animals directly, or harness them. Examples of such animals used for transporting humans and goods include camel, horse, donkey, elephant, and giraffe. Human-powered transport: this is another form of transport, which includes people, goods or both transported from one place to another using human muscle-power, in the form of walking, running and swimming. Modern technology has allowed machines to take over human power. Human-powered transport remains popular for reasons of cost-saving, physical exercise, leisure, and environmentalism; it is sometimes the only type available, especially in underdeveloped or inaccessible regions. a means of transport that moves out of Earth's atmosphere into outer space + Spaceflight: by means of a spacecraft. While large amounts of research have gone into technology, itis not commonly used except to put satellites into orbit and condict scientific experiments. able transport is a broad class of transport modes that have cables as the © Cable transport: foundation for transporting goods or people, often in vehicles called cable cars. The cable may be driven or passive; items may be moved by pulling, sailing, sliding, or by drives within the object being moved on cableways, this is another means of transport used in the mountain, The use of pulleys and balancing of loads going up and down are common elements of cable transport. Criteria of Decision in choosing transportation 1) Cost of Transport : When selecting the best and most suitable transport for exportation of products, the budget is the most important consideration. Costs vary based on the type andmind that the cost 1. It is important to keep 1” ed to be transporte’ int of goods needed | pais cost of goods. inland, then rail transport es the transport influences tl es : i ied over a long, jted for small amount of goo sroducts are being transport eid fae 1 Ovo i oa toreport typically by trucks oes and handling costs. The cheape nical, Land transport, Y danenees saves pac! avy or bulk a "aver short stances, asi aso saves packing aM WT A ayy J paar ei ntort i water transport, abet the stowest too, bul ‘not an important factor. Air er transport, a ime is not @ i ances, where tim te and valuable goods, even mode of transport is wal able, fragile over long goods that need to be transported over a transport is the best option for transportation of peris! though it is the most expensive. cost of transportation, keeping yverall It is important for importers and exporters to consider the i ee aad the “hidden costs” such as insurance premiums and finance charg nie ity parameters of 2) Reliability and Regularity of Service : The reliability and regularity eS the goods are to be transport modes, differ from each other. The urgency and speed by ae se pr meeaee delivered, influences the decision as to which mode of transport to use. rms, which land, ocean and air, are affected by bad weather such as heavy rains, snow, fog and sto may cause delays. : 3) Safety : Another crucial factor influencing the selection of a mode of transport is the safety a security of goods in transit. Land transport is more preferred to railway transport because the losses are less. From the safety point of view, sea transport is the most risky, as water transport exposes the goods to the perils of sea, and the long duration of travel adds to the risk factors. Certain types of packaging also helps in safeguarding the goods in transit and are highly recommended, but they do influence costs as well. Some goods also require special facilities such as refrigeration or special security measures that “need to be taken into consideration when selecting a mode of transport. 4) Characteristics of goods : When selecting the mode of transport, the size and weight of goods play a crucial role. Land and air transport primarily cater to fragile and small shipments. Rail and sea transport are a more suitable option for heavy shipments. How dangerous, fragile or high value the products are, also influences the selection of the transport mode. For breakable and fragile, high value products, air and land transport are the best option. 2) Budget: Transportation costs are add-on cost on the sale price of a product. The transport costs add to how much the goods can be sold for, to make a profit. Hence budget requirements need to be considered accordingly. The volume or weight of the goods play a key role in determining which method of transport is the best value. Also the type of good in terms of urgency of delivery, such as how perishable the goods are, and how quickly they need to arrive, influences the choice of mode of transport.Typically, water trang; s the fs mi hurt Ypically, water transport is th MOS! cost effective, and tl bl eee mostly suitable when there ism o hurry, and the goods are bull are bulky or heavy, and relatively nese,” mand need to be carried a long di ane Hesitie 7 saat ie these lypes 7 Boos, The advantage of daa ne a is : BS to be made on the costs of hand transport bony te monte ae ndling and packaging, Air tr he Most expensive modes, bit has the beret of being fast ae Be ea BMSBOM is One of fraglenoee 18 F981, 80 is best suited for perishable andl 6) Timescale ; i ) Timescale : Air transport is the best option for long distances Fequiting urgent and speed g urgent and speedy able oF fragile. Motor transport is transport, to meet deadlines or because the goods are p for longer haul journeys rail is ee than rail transport for short distanc deliveries, However, ster a re economi w aster and more economical. Water "ransport is often not suitable where time is facrey 2) Fexibilty ‘The most flexible mode of transport is Motor or road transport, as it is not Teaattained by factors such as flight times, shipping routes or pre-scheduled timetables. Motor Maa ont CAN operate day and night, at personal convenience, to suit all time frames, and has the added advantage of door-to-door delivery. TRANSPORTATION INFRASTRUCTURE clement of any city. Itallows people, goods, and services to travel ut effective transport systems and infrastructure, our cities would Transport infrastructure is a key nhouse gas emissions and air from one place to another. Withot not function. However, transport is also a major cause of greet pollution. With such a key role, it is vital that transport infrastructure is in the [Link] ful 'y constraints, such as the availability of land, the Cost of building and operating transport systems, and public opinion, Several tools have been developed to help planners make these decisions. These tools can address some of the complexities involved in planning future transport infrastructure by providing information on what has been done in other locations and what might work best in each situation. Whatever tools an urban transport planner employs, they must overcome the most complex question of all: 1) how do you plan for what we don’t know? 2) What kind of transportation system do we want? 3) How do we make sure that it’s sustainable? 4) What are the costs associated with building this new system? 5) Should we start from scratch or work with what we have now?swered befOFe any PFOBTESS can pust be a Iifficult to answer but they Mt pese questions are dificult to answet pe teward a beter transportation 8 ints Transportation Infrastructures and their Constrair Fs lenis Transport ines mand and accidents can create boluencchs inthe demand and at Lavi, ue ee is capital intensive. J Se ope aenany con contain nasty development ture create disruptions i Construction and maintenance of inrastruct ‘existing operations. Rea ‘can be developed. «222282 Sout How anspor intastrvcture : ‘owned and operated, “5 sPressures from advocacy rou. 1) Physical and environmental. Conventional physical constraints, such as topography and hydrography, have enduring impacts on transport infrastructure. nas Thuy ieipood otnsluis gtd raiser barriers that have shaped the development of transportation infrastructure for centuries. » Any physical constraints impose higher construction and maintenance costs that can only be justified by higher economic and social opportunities the infrastructure may. confer, ® Transportation network density and connectivity are usually at their highest in areas having low physical constraints, underlining the standard geographical influence on mobility and productivity. 4 : > Climate constraints and weather disruptions are also constraining transportation infrastructure by increasing their construction and maintenance costs as well as impairing operations. 2) Demand, Transport infrastructures are designed to meet a specific demand level by offering, a defined capacity and level of service. For instance, a road segment can handle a specific number of vehicles per hour, or a port has the capacity to transship a defined quantity of cargo per work shift, Variations in the demand, often linked with seasonality, can create bottlenecks as parts of the network are not able to support additional volumes. Peak periods of traffic activity are often above the design capacity of the supporting infrastructure, creating delays. This also concerns accidents creating disruptions that have a higher probability to occur at high-traffic locations within the transport network. 3) Financing, Transportation infrastructures are capital intensive, constrain their development or even their maintenance. Allo transportation infrastructure requires careful consideration of the and securing financing can cating scarce resources for expected economic and socialbenefits. If these benefits are uncert Particularly the ¢ lain, infras ene ‘ge se fOr peripheral areas, For eet’ development could be im, 4, which . the private serie ‘or some infrastructure apaired, which is Sime te Pee is willing to comm i such as ral, airports andl rou oe othe nat clures, namely rom pi fitce the return on investment can be nited expectations oy nl Fads, the public sector ean i 7 of direct recovery oF est using, a taxation invested funds as the infrastructere Provided on the PI publ iB 8round of publ oe Public service, The joint availat be Taintin the development of transport in at ee 7 Pa nd pub ang cn ‘sport infrastructure, 4) Constructior oo intensive not maintenance. The censtruction and maintenance of t Speatatat nn ae by reducing the available capacity (e.g. lane closure) mee fesse may not be ee y fei, the organization of labor, equipment, and material resources that eee iy available on-site and would require to be brought in, which comes at a cost. ‘ularly the case in remote areas or developing economies where labor, equipment, wad ‘materials cannot be sourced locally. FACTORS IMPACTING ROAD TRANSPORT COST Transportation costs can impact crucial areas of business. They can affect the pricing of Products as well as the competitiveness of an organization in the market, 1. Handling ~ Damaging goods and products in transport can result in unnecessary costs to an organization. Sensitive or perishable products require more shipping costs as they need to be handled and packed carefully. 2. Delivery Area ~ The cost of transportation is dependent on the delivery area covered by an organization. A local delivery service can be cost-effective by covering short distances with larger volumes. Whereas a nationwide delivery system will require a lot of strategic planning and resources to be cost-effective. 3. Inefficient Routes ~ Setting up a cost-effective route is the core of any transportation strategy. An inefficient route can affect the cost of transportation. Nowadays, organizations are using digital tools like vehicle route optimization software to automate the process of route planning cost-effectively. 4. Inefficient Schedules — Inefficient schedules can lead to more time on the road resulting in extra fuel and toll costs. This can be a real bottleneck during pick-ups and disrupt both the supply chain and last-mile delivery.transportation cost. Usually, ays hike up the he customers. e cost of urgency by U ery will alw 5, y Urgency of delivery wi saat Te eover some extent oF th eS ortation. It determines of trans} fect the cos tre increased number of te ity ean af nt. The icle Capacity ~ Vehicle capa 6. Vehicle Capacity — Vehi ae amber of pick-up [Link] complete a delivery will result in additional fuel as well as fabor co consignme ‘ortation cost. A good way to er trans n reason behind a higher tt Caton system and adopted by the tr and drop-off points. 7. Distance ~ Distance is the m control this factor is the optimization of routes reducing the distance between various pick-up PACKAGING ISSUES IN TRANSPORTATION : feguards the finished ng, sal Product pacha m sport to retailers and the In a typical supply chain management workflow, Sepa products as they move across the entire process, especially durin final destination. in, including the Packaging has many functions that address specific challenges in the supply chain, including following: > Protective function: The packaging must safeguard the goods from external factors and ensure that products survive handling during transportation. > Storage function: Since the products can travel and be contained in multiple locations before reaching the final destination, the packaging should use materials that allow convenient storage while meeting storage requirements. > Transport function: Proper and efficient packaging design enables easy handling, stowing, and stacking during transportation in a way that maximizes the space available. > Tertiary function: This refers to the extra protective carrier that safeguards the secondary and primary packaging of the goods. It also has an organizational purpose—grouping individual products into one box, It’s better to use eco-friendly materials for this additional packaging, especially since more customers expect businesses to be more environmentally conscious and responsible. Logistics packing ensures that your things reach their destination intact, saving you time and money. Will your items spend time in a warehouse or storage facility between original shipping, and delivery to the ultimate customer? If that's the case, having the correct packing makes storage a lot easier. Under-packaging will lead to damage and logistics failures, along with other fees and costs, but over-packaging and excess materials will increase supply chain costs and environmental impact. Few issues w.r.t packaging in transportation are :1) Organizational Challenges sal marl s differ. nges: That said, in an ordinary market situation, the chalk i larkel siltation, the challenges differ. While the fragmented nature of the industry ada “UP toa large segment of the problems, thats just commonality that can be though is the chaos that these one part of the puzzle, One napped across businesses and industries a challenges lead to. Chaos in terms of failed packaging, design, packaging stock-out, j P '8INg Stock-out, erroneous artwork, product recalls'~ it’s a long list. At a broader level, resulting in a loss of busi ; '8 na loss of business and revenue. And that’s where the bigger problem lies, 2) Packaging Waste : One needs to ‘ensure that the packaging solution in use is not excessively wasteful oF unneceséarily [Link], tiere are some companies that make the mistake of adding more packaging than necessary. This in turn leads to logistics issues such as increase in weight and also the cost increases. amicably, In the long run, it hurts the company financially and environmentally, In addition, customers won't appreciate having to clean up a bunch of packaging after receiving their item(s) that didn’t need a ton of packaging to begin with. 3) Getting It- Procurement : One of the impacts of stressed supply chains is the extended wait time in procuring packaging. This extended time impacts delivery dates of standard packaging and research and development (R&D) of packaging for new food product launches. For routine packaging procurement, developing a robust and resilient supply chain insulates the food business from volatility due to natural disasters, human strife, and dynamics such as power grid fluctuations. While working with trusted ‘suppliers limits this risk, this is not always possible. Due to supply chain disruptions, substitute packaging sources often are needed to procure packaging. These substitutions —in the form of coatings, adhesives, and thicknesses of layers—mhay occur throughout the supply chain of manufacturers and converters. In the past, qualifying multiple packaging suppliers for a package material allowed for resiliency in sourcing. However, it is imperative to ensure that final packaging converters and their converters have qualified substitutions and that these substitutions do not impact product attributes. 4) Package fraud also is a result of packaging procurement challenges. Fraudulent packaging can provide different migration rates, use of unapproved chemicals, and processing aids, all of which can affect shelf life and seal integrity. ROLE OF CONTANERIZATION Containerization is a shipment method in which commodities are placed in containers, and after initial loading, the commodities, per se, are not rehandled in shipment until they are unloaded atthe destination. This allows for goods to be has become The international organization has define Various types of Containers: resecurely and efficiently. Containerizg shipped m many benefits ont years due to its popular shipping method in recent year | freight container as and article of transport equipm od freight container 2 eated use of a permanent character and accordingly strong cee aa isledes of transport + specially designed to facilitate the carriage of goods by’ without intermediate reloading, + fitted with devices permitting its ready handling = so designed as to be easy to fill and empty * Having an internal volume of 1 m3 or more. General Cargo Container: This container is packed with all general type of cargo that does not require any specific temperature control. Today most of the containers that are in use are overwhelmingly the general cargo type. Thermal Container: These containers are specifically designed to carry cargo that requires refrigeration or thermal insulation. It is covered with a special material that has low heat transfer such as polystyrene foam. Thermal containers are further classified in to three types: a) Refrigerated containers meant for food items that require cold storage facility. E.g. meat, fish etc, b) Insulated containers for fruit, vegetables etc. Here dry ice is used as cooling medium. ©) Ventilated containers which allow the passage and circulation of air through openings made either on the sides of the containers or at the ends of the containers. E.g. coffee seeds, tea leaves etc, are carried in these containers. Dry Cargo Containers: These containers are in maximum use, Such containers are very useful when cargo has to be stuffed in to the container after the container has been mounted on to a wagon or a trailer. Flat Container: These containers have only a strong base and no side walls. They are useful when the cargo is of odd size or when the cargo is very heavy. Trucks which carry heavy machinery, large sized pipes or railway wagons which carry army tanks make use of such containers. These containers are also called flat rack. Bulk Containers: Are basically large sized containers, which have man holes in them. Man holes are openings or holes at the top of the container similar to what we see in petrol or water tankers. Such man holes facilitate the loading of bulk cargo using gravity. Garment Containers: These containers have hangers built in them. Clothes can be hung from the hangers instead of folding and packing them in boxes. Such containers are thus used for transport of garments only. Liquid Containers: These containers are usually made of stainless steel,They have manholes built in them, These manholes are very useful to load or unload liquid cargo. Wd Dan see such containers in the transportation of milk.Gas Containers: These ai re specialized containers th ice fainers that have fixture fittings which hel empty li vei gas Eg, Liquid oxygen. They have thick walls and ate made of high realy fe + This is required for safe transport of liquid gas. wean The containerization con The toler n conveys numerous advantages to freight distribution, it does not come 'ges. The main advantages of containerization are: aH eee a container is a standard transport product that can be handled wagons), equipment mee stahdard) through specialized ‘modes (ships, trucks, barges, and epeeoe ie t, minals. Each container has a unique identification number and a size » allowing to be a unique transport unit that can be managed as such. Flexibility. Containers can be used to carry a wide variety of goods such as commodities (coal, wheat), manufactured goods, cars, and refrigerated (perishable) goods. There are adapted containers for dry cargo, liquids (oil and chemical products), and refrigerated cargo. Discarded containers can be recycled and reused for other purposes. Costs. Container transportation offers lower transport costs due to the advantages of standardization. Moving the same amount of break-bulk freight in a container is about 20 times less expensive than conventional means. Containers enable economies of scale at modes and terminals that were not possible through standard break-bulk handling. The main cost advantages of containerization are derived from lower intermodal transport costs. Velocity. Transshipment operations are minimal and rapid, and ship port turnaround times have been reduced from 3 weeks to about 24 hours. Because of this transshipment advantage, transport chains involving containers are faster. Container shipping networks are well connected and offer a wide range of shipping options. Containerships are also faster than regular cargo ships and offer a frequency of port calls allowing a constant velocity. Warehousing. The container is its own warehouse, protecting the cargo it contains. This implies simpler and less expensive packaging for containerized cargoes, particularly consumption goods. The stacking capacity on ships, trains (double-stacking), and on the ground (container yards) is a net advantage of containerization. With the proper equipment, a container yard can increase its stacking density. Security and safety. The container contents are unknown to carriers sinee it can only be opened at the origin (seller/shipper), at customs, and the destination (buyer). This implies reduced spoilage and losses (theft). ‘The main drawbacks of containerization are: Site constraints. Containers are a large consumer of terminal space (mostly for storage), implying that many intermodal terminals have been relocated to the urban periphery. Draft issues at the port are emerging with the introduction of larger containerships, particularly those of the post-Panamax class. A large post-Panamax containership requires a draft of at least 13 meters. Capital intensiveness. Container handling infrastructures and equipment (giant cranes, warehousing facilities, inland road, rail access) are important capital investments that require large pools of available capital. This requires the resources of large corporations or financial institutions, Further, the push towards automation is increasing the capital intensiveness of intermodal terminals.inets, both on the ground and ent of conta een Stacking, The complesity of the arranger ’ con retaking, which incurs ad i nhipe ahd do oabuund abate e he more com, (contamerships and double-stac Rt By pa Wha ead unit or the yard, f costs and time for terminal operators z . operational management containers are moved empty (20% : ning, Because of trade imbalances, many re ete de ; However elie full or empty, a container Lakes the same a Sone ace Hows). However, ee sey a3 ma the global level require divergence between production and consum containerized assets over tong distances (tansoceanic) {unit that can forcefully be opened of . Theft and losses. High-value goods and a a nity between a teratnal and the Fog carried away (on a truck) implied a level of cargo vulner d), mainly because of destination. About 1,500 containers are lost at sea each year (fall overboard), bad weather. : * Illicit trade. The container is an instrument used in the il weapons, as well as for illegal immigration (rare). t trade of goods, drugs, and AfazARDS IN TRANSPORTATION 1. Collision With Pedestrians This refers to the risk of vehicles operating with; ce-coming into contact with workers 0 visitors who are on foot. This risk is particularly high in environments where heavy machinery like forklifts or trucks operates alongside pedestrians It's ‘one of the most serious transportation hazards, as it can lead to severe injuries or even fatalities, Collisions can occur due to several factors: * _ The vehicle operator may not see the pedestrian due to blind spots, especially when reversing or making turns, * Pedestrians might not hear the vehicle approaching, Particularly in noisy environments, or they may underestimate its speed. * __In areas with high traffic and people activity, the likelihood of such collisions increases, especially if there are no defined paths for pedestrians and vehicles, * The risk is also higher when distractions like mobile devices or visibility are poor due to factors like lighting or weather conditions, Control Measures: * Designated Pedestrian Walkways and Crossings: By marking specific pathways for Pedestrian use and setting designated crossings, you create a Physical separation between vehicles and pedestrians. It is critical that these paths are well-lit, clearly marked, and unobstructed at all times. Regular audits should be carried out to ensure these paths remain in 800d condition and are used appropriately. * Safety Barriers: Physical barriers should be installed to separate pedestrian areas from vehicle routes. This could be railing, fencing, or even planters. The aim is to create a physical deterrent to prevent pedestrians from accidentally straying into vehicle paths and vice versa.* Safety Awareness Tra taining about the tr 18: Both vehicle é, sks involved. on sae driving pr and hog Perators and pedestrians shou he ey Lo Mitigate them, Vehicle ld receive regular operators should be online Ger aetices within the work ahd, eee orkplace, focusing o On contrang sn oe 1% ON awareness of pedestrians, blind spots: ant tmpeiees peal b Tare OF the tisks involved in moving vehicle king to designated walkways : a" 2. People Falling From Vehictes Falling from a vehi @ vehicle may not imm la 10 mediatel e ca " y come to mind as a common workplace hazard, Still vant : risk, especially in industries where worker, frequently enter or exit vehicla ach Sprains, fret UCtion, OF warehousing. This hazard can res i \ Prains, fractures, and head injuries, irate There are several reasons why this can happen: + Slippery or unstable surfaces on the vehicle. * The worker is in a rush and does not take the necessary precautions when climbing on or off the vehicle. * The vehicle does not have proper handholds or steps for safe access and egress * Lack of training or disregard for safe entry and exit procedures, Control Measures: Safe Access and Egress Points: Vehicles used in the workplace should be fitted with secure, non-slip access points, like steps and handrails, to aid in safely climbing onto and off the vehicle. If these are not part of the vehicle's design, supplementary equipment, such as ladders or platforms with railings, should be provided. These access points should be regularly inspected to ensure they are in good condition and defects-free. Training on-Safe Methods of Vehicle Entry and Exit: All workers who use vehicles must be trained on the correct procedures for safely entering and exiting the vehicle. This training should cover the importance of using handrails or handles, the danger of jumping down from the vehicle and ensuring footwear and the vehicle's steps are free from mud, oil, or other substances that could cause slips. Regular Safety Reminders and Monitoring: Regular reminders about the importance of safe entry and exit can help to keep this issue at the forefront of workers’ minds. Supervisors should monitor vehicle use to ensure workers follow the correct procedures, and disciplinary measures should be in place for non-compliance. 3. Objects Falling From Vehicles This risk is inherent in workplaces involving transporting goods or equipment. When loads are improperly secured, they can shift or fall during transit, posing a serious risk to other workers, vehicle operators, and even members of the public. Falling objects can cause minor cuts and bruises to serious head injuries or crush incidents, Several factors contribute to this risk:tchet straps. fhains, or ral such as ropes, ¢t of restraints, $u © Inadequate or incorrect use eee 7 verloading, vehicles beyond their specifie L capacity. : ha vs acked or unbalanced loads. acing toad : Fail cel r aijeceleration, or sharp turns can destabilize . -apid acceleration, deceleration, res: ce vorkers loading and unloading, vehicles a ‘This includes techniques. Training in Load-Securing Techniques: 0 Fee ‘and correctly using should receive thorough training in proj ‘ z understanding the ehice’s load capacity, distributing weight evenly, restraints and other load-securing equipment. 7 a .n. Routine . Routine Inspections: Even with the best training, mistakes can still peiden rian inspections are crucial to ensure loads are secure before moving the vehicle, SUPETWATS designated safety officers should check that the load is not over the vehicle’s capacity, si evenly distributed, and tha all restraints are correctly applied and in good working condition. Use of Proper Equipment: Always ensure the correct loading equipment is available zi in good condition. This includes restraints and things like forklifts for heavy items, non-slip gloves for manual loading, and personal protective equipment (PPE) such as hard hats and steel-toed boots to protect against accidental drops. + Safe Driving Practices: Vehicle operators should be trained to drive in a manner that reduces the risk of destabilizing the load, This includes avoiding rapid acceleration and deceleration, taking corners gently, and observing speed limits. 4, People Being Struck By An Overturning Vehicle Overturning vehicles are a significant hazard in many industries, including construction, warehousing, agriculture, etc. This is because many work vehicles have a high center of gravity, making them more susceptible to tipping. When a vehicle overturns, it can cause serious injuries or even fatalities to the driver and anyone nearby. The risk of a vehicle overturning is often due to several factors: * Driving too fast, especially around corners or on uneven ground. Overloading the vehicle or improperly loading it, so it’s unbalanced. * Vehicle instability due to poor maintenance or faulty design. * Operating the vehicle on uneven or unstable ground. Control Measures: Regular Vehicle Maintenance: Regularly maintaining and checking the vehicles used in the workplace can help to identify and correct any issues that could lead to instability. This should include checks on tires, brakes, suspension systems, and loading mechanisms. Driver Training: Training for drivers should include understanding the risks of overturning, recognizing the signs of an unstable load, and knowing how to drive safely to reduce the risk. This may involve driving at reduced speeds, taking extra care on comers, and being aware of the load distribution within the vehicle.