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Your email address will not be published. It is the least complex but most critical aspect of the supply chain because it represents the biggest percentage of the supply chain. It pertains to procuring raw … But, when a company delivers promptly with complete and undamaged goods, the confidence of the customer is built and his loyalty gained. SUBMITTED BY D.TULASI 2. This leaves trucks as the most convenient for moving vast volumes of products cost effectively. The numbers are impressive. 7 Uses of Transportation in Supply Chain Management, conducting a full freight audit is essential, How to Clean Tail Lights in Your Car: 8 Steps, 6 Things to Know About the Toronto Tech Boom, How to Balance the Air Pressure in Your House, 8 Types of Vehicle Insurance and Their Coverage Details, 6 Important Summer Rules for Kids and Youths, How to Enhance the Benefit of Commercial Security Systems, Creating a More Efficient Distribution Process, 3 Things to Look For in Your Painting Project Quote, How the Services of an Estate Lawyer Can Protect Your Loved Ones, 10 Real Estate Photography Tips to Take the Best Pictures, How to Become an Undercover Agent: 9 Specialties, 6 Best Ways to Backup Data on Your Computer, How to Create An App Without Coding Experience, How to Get a Big Picture Printed: 7 Best Practices, 9 Best Tips for the Optimal Chatbot Design. google_ad_client = "ca-pub-9755093768544960"; This encourages labour and capital to invest in more productive sectors. The distribution of raw materials for the purpose of production and distribution of finished goods for consumption is solely dependent on transportation. Read: How to Start Importation Business in Nigeria with Only N,5000 Naira or Less. And who can blame them? But how does a company achieve this? While the data certainly lends itself to the mindset that transportation is a “cost albatross,” if you will, around one’s neck, this attitude is rapidly changing. THE ROLE OF TRANSPORTATION IN SUPPLY CHAIN MANAGEMENT Transportation involves the movement of materials, component parts and products from one location to another right from the source to the final destination. When one level in the supply chain experiences delays and problems, it impacts the abilities of downstream members of the supply chain to serve their customers. The transportation in a supply chain entails ferrying a product from a supplier to a customer or a distribution store by road, rail, pipeline, air or sea. Your email address will not be published. It also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, or customers. The transportation in a supply chain can be used for customer... 3. This narrows the gap between producers and consumers and facilities timely and affordable distribution of goods and services. See our User Agreement and Privacy Policy. It is important to further get involved with the upstream of the supply chain by driving continuous improvements into processes and decisions to ensure that transportation continuous to deliver excellence for their organisations. The daily monitoring of transportation operations is best handled by a transportation management software (TMS). 2. There are major areas in a supply chain: Purchasing, manufacturing and transportation of both raw materials and finished products. Such a system is ideally suited to support international and domestic supply chains. Factors involved in transportation include cost, service/transit time and movement of products. Logistics Management is the component of SCM that focuses on how and when to get raw materials, intermediate products, and finished goods from their respective origins to their destinations. Luckily, technologies exist that make it possible to enhance transparency in transport and logistics. Transportation is used to reduce costs. A supply chain as mentioned earlier, is a network of bodies that work towards providing a good or service for the final consumers. An efficient and stable transport system brings stability in price of products as goods are transported from points of abundance to points of scarcity and this establishes formalities between demand and supply. Items moved by air and road have a higher value per ton, meaning that these two modes have a higher value than the others. If transportation will continue to be of great influence to the supply chain, transportation managers need to study the supply chain to identify where the importance of transportation was mostly felt, so as to educate their chain peers on these impacts. The role transportation plays is more complex than carrying goods for business owners, it brings efficacy and builds a bridge between producers and consumers. google_ad_slot = "8444795376"; Transport planning is an often-overlooked key function of a TMS solution. Our aim is to provide daily living guide for Nigerians and her friends. 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. If we systematize all areas of logistics that need to be developed for the rational management of production resources, we can single out the following functions: Warehouse design and management. In the US alone, fifty million tons of products are freighted via trucks every day at the cost of more than $50 billion. It is the duty of the person in charge of the supply chain to choose the most convenient, effective and economical means of transportation that befits the company or organisation. google_ad_slot = "9979770738"; Potential sources for disruptions include equipment failures, natural disasters and inclement weather, work stoppages, and government intervention. Transportation can be hazardous and risky. It involves the movement of product, service/transit time, and cost which are three of five traditional key issues of effective supply chains. See our Privacy Policy and User Agreement for details. Figure 1-2 Links and nodes in a supply chain. Clipping is a handy way to collect important slides you want to go back to later. Companies that use technology and data can increase their awareness of both the supply chain network in general and how it interacts with the broader transportation ecosystem. Copyright © Ray’s Now. Transportation is used to enhance customer service. How? When an order is placed, the transaction is not completed till the goods are physically moved to the customer’s place. All rights reserved. Use code BOOKSGIVING. In fact, Supply Chain Managers who are outpacing their competition have done so largely by acknowledging transportation as a ready vehicle through which to drive cost savings and create value within the Supply Chain. Home » The Key Functions of a Supply Chain Transportation Management System (TMS) The Key Functions of a Supply Chain Transportation Management System (TMS) April 30, 2020. If you continue browsing the site, you agree to the use of cookies on this website. TRANSPORTATION AND THE SUPPLY CHAIN A supply chain as mentioned earlier, is a network of bodies that work towards providing a good or service for the final consumers. They traverse roads alongside railways to move products across the land efficiently. For a supply chain to be deemed effective, the transportation segment must be managed efficiently. A supply chain is the network of companies that work together to provide a good or service for end users and consumers. Supply chains also include coordinating and collaborating with supply intermediaries, third party service providers or customers. Transportation helps to fulfil the economic utility of time and pace; it provides the link that connects nodes in the supply chain, linking a focal company to its suppliers and customers. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Pipelines are also highly popular, especially in the transportation of gaseous and liquid products.

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