Transportation channels

Steps in selecting modes of transport

• Options– What are the types of transport channel available?

• Requirements– What are the requirements of the delivery?

• Costs– What are the costs of all the options

• Other factors• Critical transport elements, service factors, packaging,

insurance, pilfering, etc

Types of transport channels• Air• Land– Trucks– Rail (Trains)

• Water– Boats– Vessels

• Pipeline• Oil, water, liquid, gas

(Pg 528)

Discuss

• What are the options (possible types) of transport channels for Keytronics to delivery goods to IBM?

Operating characteristics

• Speed• Availability• Dependability• Capability• Flexibility• Environmental

Discuss

• What are the requirements for the delivery of: – DimS, and – Case?

• Which modes of transport are suitable?• Consider the relevant operating

characteristics of different modes of transport that can meet the special requirements, if any, of the delivery

Elements of freight costs

• Fixed vs variable costs• Critical transport elements• Rates• Service factors• Packaging• Insurance• Pilfering• Others

Discuss

• Propose suitable transportation channels IBM should use for both ‘DimS’ and ‘Case’– Give your recommendations, consider

• Rail, Air, Water, Others

– Justify your recommendations, consider the following factors• Nature of the products, Speed, Costs, Packaging, Other

requirements• (Give 5 -6 reasons for your justifications)• Reference: Page 528• Do Internet search on keyword: “ transportation”