Module 6:Logistics and Distribution Lesson 6.2 Logistics Management II
Video 6.2.1 : Transportation and Distribution Management
The field can be divided into infrastructure, vehicles and operations. Transport is important
since it enables trade between people, which in turn establishes civilizations. I find
it an interesting point that transportation is an enabler of civilization, but this makes
sense, as it enables the ability to trade and communicate.
Selection criteria of types of transportation Environmental (public influence � regulations
� etc) Time sensitive: we must ensure that the choice
of the mode guarantees the delivery time each time.
Cost: visible costs and hidden costs Capability: consideration about the type of
products that need to be moved Dependability: the right place, at the right
time without any damage Frequency: the number of times the goods are
scheduled for movement Road Transportation:
Advantages Is a relatively cheaper mode of transportation
when compared to other transportation methods. Perishable goods can be transported at a faster
speed by road carriers over a short distance. Is a flexible mode of transportation as loading
and unloading is possible at any destination. It provides door-to-door service.
Helps people to travel and transport goods from one place to another.
Disadvantages Due to limited carrying capacity road transportation
is not economical for long distance transportation of goods.
Transportation of heavy goods or goods in bulk by road involves high cost.
Railway Transportation: Advantages of Railway transportation
Is a convenient mode of transport for travelling long distances.
Is relatively faster than road transport. Is suitable for carrying heavy goods in large
quantities over long distance. Its operation is less affected by adverse
weathers conditions. Limitations of Railway transport
Is relatively expensive for carrying goods and passengers over short distances.
Is not available in remote parts of the country. Provides service according to fixed time schedule
and is not flexible for loading or unloading of goods at any place.
Involves heavy losses of life as well as goods in case of accident
Shipping Transportation: Advantages
Is a relatively economical means of transportation for bulky and heavy goods.
Is a safe method of transportation with few accidents.
The cost of maintaining and constructing routes is very low, most of them are naturally made
and it promotes international trade. Disadvantages
The depth and navigability of rivers and canals vary and thus, they affect operations of different
transportation vessels. Is a slow moving and therefore not suitable
for perishable goods and is adversely affected by weather conditions.
Requires large investment on ships and their maintenance.
Airplane Transportation: Advantages
Is the fastest method of transportation. Is very useful in transporting goods and passengers
to the area, which are not accessible by any other means.
Is the most convenient method of transportation during natural calamities.
Provides vital support to national security and defense.
Disadvantages Is a relatively more expensive method of transport.
Is not suitable for transporting heavy and bulky goods.
Is affected by adverse weather conditions. Is not suitable for short distance travel.
In case of accidents, results in heavy losses of goods, property and life.
Transportation System A heavy and light rail systems including associated
land, infrastructure and rolling stock which comprise�trains,�trams�and�light rail
transit. Roads or paths
Vehicles�including�any type (and bicycles) Ports or waterways (includes commercial�ships�and
recreational vessels) Air transport�systems and aircraft.
Distribution Management A�distribution center�is a�facility
or a group of facilities that perform consolidation, warehousing, packaging, decomposition and
other functions linked with handling freight. Goods stored in a distribution center have
usually been sold and are in transit to their destination.�Modern distribution management
is more than just�moving�products from one point to another.
Distribution management refers to�overseeing the movement of goods from supplier or manufacturer
to point of sale. It also involves�gathering�and�sharing of relevant information�that can be used
to identify key opportunities for growth and competitiveness in the market.
Distribution Management includes: Commercial Distribution
Physical distribution, better�known as logistics Distribution�involves such diverse functions
as: customer service, shipping, warehousing, inventory control, private trucking-fleet
operations, packaging, receiving, materials handling, and plant, warehouse, store location
planning, and the integration of information. Distribution Management involves:
Product:�Not always a tangible object,�product can also refer to an idea, music or information.
Price:�This refers to the value of a good or service for both the seller and the buyer,
which can involve both tangible and intangible factors, such as list price, discounts, financing,
and likely response of customers and competitors. Promotion:�This is any communication used
by a seller to inform, persuade, and/or remind buyers and potential buyers about the seller�s
goods, services, image, ideas, and the impact it has to society.
Placement:�This refers to the process that ensures the availability, accessibility�and
visibility of products. Conclusion
In this module we learned about the Transportation and Distribution Management.
We analyzed the various transportation methods and compared each one to the other.
Thank you