JIGDAN COLLEGE BAHIRDAR CAMPUS

PUBLIC TRANSPORTATION MANAGEMENT SYSTM IN THE CASH BAHIRDAR CITY

Name ID

1.Tirngo Zemere 27/13A

2.Alemadis Zelalem 14/13A

3.Mekdes Abebe 29/13A

4.Wubrst Aschlom 32/13A

5.Dawit Simachew 20/13A

6.Samrawit Gezahegn 26/13A

7.Alemnesh Sisey

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Contents
CHAPTER ONE..........................................................................................................................................3

INTRODUCTION.......................................................................................................................................3

1.1 Background of the study....................................................................................................................3

1.2 Statement of the problem...................................................................................................................4

1.3 Research questions............................................................................................................................5

1.4.1 General objective........................................................................................................................5

1.4.2. Specific objective.......................................................................................................................5

1.5. Scope and limitation of the study......................................................................................................5

5.1.1. Scope of the study......................................................................................................................5

1.5.2 Limitation of the study................................................................................................................6

1.6 Significance of the study....................................................................................................................6

1.7 Operational and conceptual definitions..............................................................................................6

1.8 Organization of the study...................................................................................................................7

CHAPTER TWO.........................................................................................................................................7

2 Review of Literature.................................................................................................................................7

2.1. Over view of transportation..............................................................................................................8

2.2. Definition of transportation..............................................................................................................8

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 2.3 Transportation management system...................................................................................................8

2.4 Importance of transportation............................................................................................................10

2.5.1 Passengers transportation..........................................................................................................10

2.5.2 Freight transportation................................................................................................................10

2.6 Transportation functionality.............................................................................................................11

2.6.1 Product movement....................................................................................................................11

2.6.2 Product storage.........................................................................................................................11

2.7 The role of transportation................................................................................................................12

2.7.1 The role of transportation in the supply chain...........................................................................12

2.7.2 The role of transportation in logistics chain..............................................................................12

2.8 Transportation principle...................................................................................................................13

2.9 Transportation administration..........................................................................................................13

2.10 Factors affecting the choice of transport selection.........................................................................14

2.11 Transportation system..................................................................................................................15

2.12 Classification of performance characteristics...............................................................................15

2.13 Transport participants....................................................................................................................16

2.14 Documentation in freight shipment................................................................................................16

2.14.1 Loss and damage claims.........................................................................................................17

2.15 empirical literature reviews............................................................................................................17

2.16. Conceptual frame work.................................................................................................................18

CHAPTER THREE...................................................................................................................................19

3 RESEARCH METHODOLOGY............................................................................................................19

3.1 Research design...............................................................................................................................19

3.3. Target population............................................................................................................................19

3.3.1 Sampling technique and procedure...........................................................................................19

3.3.2 Sample size...............................................................................................................................19

3.4 Data type and source......................................................................................................................19

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 3.5 Method of Data collection...............................................................................................................20

3.7.1 Work Plan.................................................................................................................................20

3.7.2 Budget Plan...............................................................................................................................21

4. REFERENCE.......................................................................................................................................21

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

A transportation management is a subset of supply chain management concerning with

transportation operation and may be part of an enterprise resource management, cost effective
pays as you go finished vehicles transportation management used carriers, shippers, brokers,
logistics providers and other companies for felicity and reliability of supply chain decreases.
Transportation management system manages the process of transportation like planning and
decision making. Transportation management system will work with you and stakeholders.
Transportation management would define the most efficient transport schemes facility
transportation costs, shorter lead time, fewer stops, possible to ensure quality flow and grouping

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efficiently. Transportation follow up any physical or administrative operation regarding
transportation trace ability of transport event, editing of reception, custom clearance, involving
and booking documents, sending transport alert (D.P Jain, 1999).

In broad sense, transportation is defined as the movement of freight, as passengers from one
location to other. One of the money dictionaries for transportation calls it a means of travels from
one place to another. The important common elements in any definition of transportation are
movement. Transportation is what allows products to move from point of consumption through
the supply chain and is thus responsible for creating time utility or time value crated when
customer’s gets products delivered at precisely right time, not earlier and not later. Place utility is
created when customer’s gates products delivered to desired location (Bower sox, 2010).

1.2 Statement of the problem

Any governmental and non-governmental organization shall coordinate their different activates
in order to achieve its objectives. The organization must control the management system process,
because it is core of organization structure. The function of transportation management system is
planning and optimizing terrestrial transport round, transportation mode and carriers
management of air and maritime transport. Cost control reporting and statistics in addition to
inventory carrying cost, data cost associated with the foreign and administration logistics
functions. Among this transportation is the largest of cost, so in this study an attempt will be man
transport management system effective by recommending possible strategies (altekar, 2005).
There for main purpose of this study is to investigate the gaps in office of transportation cost and
gives services opportunities for employees adequate facilitate transportation system. These
problems are due to which do not give enough attention and respect between employees and
managers and researcher will attempt to solve those problems by effectively solution to
investigate that problems.

1.3 Research questions

 What transportation management system is currently being used in Bahir dar transport
office?

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  How transportation management system is managed in Bahir dar transport office?
 What are the weaknesses of transportation management system in Bahir dar transport
office?

1.4 Objective of the study

1.4.1 General objective
The general objective of the study is the assessment of effective transportation management
system in Bahir dar transport office.

1.4.2. Specific objective

To achieve this general objective the following specific objectives are set

 To investigate the possible factors that hinders the development of transportation

management system.
 To evaluate the transportation management system for continuous improvement
 To verify transportation management system in order to improve organizational
profitability
 To assess the strengths and weakness of transportation management system.

1.5. Scope and limitation of the study

5.1.1. Scope of the study

The study will be limited on geographically, conceptually and methodologically.

In geographically: - this study will be focused only in Bahir dar publication transportation
management system.

In methodologically: - the study will use simple random sampling techniques and more over the
study will be employed under descriptive research design.

Conceptually scope of this study will be to assess of the public transportation management
system and it facilitates employees to service and provides opportunities for them.

1.5.2 Limitation of the study

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The researcher will focuses only in Bahir dar public transportation management system rather
than covering all public transportation management study. Hence finding study in this particular
institution cannot be generalized for other public transportation management institutions is one
of the problem.

1.6 Significance of the study

The significance of the study will create awareness employs, supervisors, managers and other
members of the organization about the needs of designing and implementing effective
transportation management system. The finding of the study will help the organizations:-

 It will help to provide information for managers, supervisors and others to identify
whether the work efficient way or not.
 It uses as input for others to make further and broader study and investigation around the
transportation management.
 Foster their academic skill and to understand the problem that hamper transportation
management system.

1.7 Operational and conceptual definitions

 consolidation:- the combining of shipment
 Shipper:-is a party who wants to transport the goods to this customer in a business
transaction.
 Consignee:- is the party to whom the good recent
 Carrier: - the carrier, a business that performs of a transportation service, desires to
maximize it is revenue for movement while maximizing associated cost.

1.8 Organization of the study

This study contains three chapters. Chapter one includes introduction part and back ground of the
study, statement of the problem, research questions, research objectives, significance of the
study, scope and limitation of the study, operational and conceptual definition of the key terms

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and organizational and conceptual. The second chapter would deals with review of related
literature. The third chapter contains the part of methodology.

CHAPTER TWO

2 Review of Literature
Every organization has its own objectives weather the organization is profit making or nonprofit
making and governmental or nongovernmental. The input of organization is processed and the
output is either goods or service that is delivered to the individual and other organization. So that
transportation plays a great in this delivery of goods and service (Bowers ox, 2010).

2.1. Over view of transportation

Geographically distance resource become accessible with transportation. The economic growth
of any part of the world is directly related to the availability of transportation. Without question,
a society without an advanced transportation system remains primitive. No matter where we
turbine transportation is involved in our daily lives. The clothes we wear the food we eat, the

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entertainment we seek and homes we live in are all available because of transportation.
Transportation contributed immeasurably to our personal well-being and to society in general
(Bower sox, 2010).

2.2. Definition of transportation

Transportation is the movement or carrying of freight, passengers and service from one place to
another place. It is also defined as the movement of freight and passengers from one location to
another. Generally transportation is a network between origin (departure) and destination area to
move freight and passengers in a good manner of proper way.

Transportation is a single largest element of logistics cost. Transportation managers responsible

for arranging for inventory to be positioned in a timely and economically manner, procurement,
manufacturing and customer accommodation performances will not meet expectations.
Transportation is key activity in logistics because it moves product through the various stages of
production and ultimately to customers (Bower sox, 2010). Transportation in single language can
be defined as means through which goods are transferred from one place to another.
Transportation always product to move from suppliers to the assembly plans to customers
(chopra and meindl, 2004).

2.3 Transportation management system

Transportation management system is a princess of identifying, evaluating, treating and

controlling the transportation activity in order to maintain representation service. Manager under
takes widely jobs in content and scope. However some writers contains as a process which
include planning, organizing, staffing, directing, control, representation and communication
(Wilson. G. 1947). A transportation management system is sub set of supply chain management
concerning transportation operations and may be part of an enterprise sources planning system.

Functionalities

Transportation management system is manager four key processes.

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1. Planning and decision making:- transportation management system will define the most
efficient transport schemes according to given parameter to which have a lower of higher
important according to the user policy, transport cost, shorter lid time, fewer stops
possible to ensure quality, etc.

2. Transportation execution:-transportation management will allow for the excision of the

transportation plan such as carrier rate acceptance, carrier dispatching EDI etc.

1. Transport follows up:-transportation management system will allow following any

physical or administrative operation regarding transportation, treatability of transport
event (shipping from A, arrival at B, customs clearance etc.) editing of reception
custom clearance, invoicing and booking documents, sending of transport alert
(delay, accident…)

4. Measurement:-transportation management system have or need to have a logistics key

performance indicator (KPI) reporting function for transport.

 Planning of optimizing of terrestrial transport around

 In bounded and out bounded transportation mode and transportation provide.
 Management of motor carrier, rail, air and maritime transport
 Real time transportation tracking.
 Service quality control in the form of key performance indicator (KPIs)
 Vehicle load and sachem simulation
 Transport cost and scheme simulation
 A shipment batching of orders / reporting and statics (Wilson. G. 1947).

 Typically key performance indictor (KPI) included but not limited to:-
1. % of on time pick up or delivery performance relative to requested
2. Cost per metric, mile, km , weight, cube, pallet.
3. Productivity in monetary terms, eg,:- cost per unit weight or shipping unit.
4. Productivity in operational terms, eg:- shipping units ( order or weight load.
(Wilson. G. 1947)

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 2.4 Importance of transportation
Key factors for any movement

 Connecting customer and supplier

 Increasing organizational profitability and
 Delivery good at needed place (NurizmanJebril, 2002).
2.5. Division of transportation service

Transportation services are divided in to two major categories:-

1. The movement of people (passengers)

2. The movement of material and product (freight)

2.5.1 Passengers transportation

Passenger transportation includes public transportation such as:- automobiles or air planes, and
various forms of public transportation. Typical means public transportation are buses, trains, air
plans, water way useless. Each form of public and privet transportation has its own application
and significance for passenger travel (Bower sox, 2010).

2.5.2 Freight transportation

Freight transportation is a large field of study which is defined as the economic movement of
commodities and products as well as the effect of such movement on the development and
advancement of business (Wilson .G 1947;45)

2.6 Transportation functionality

Transportation functionality provides two major functions

1. product movement and

2. product storage

2.6.1 Product movement

A primary transportation function is product movement. The main objectives of transportation
are the move products from the origin to the destination with minimum time period, financial and
environmental resource. It moves the product up and down the value chain. Weather the product

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is in the form of materials, components, assemblies, working processes or finished goods,
transportation is necessary to move it to the next stage of the manufacturing process or physical
closer to the ultimate customer ( Altekar, 2005).

Since transportation utilizes temporal, financial and environmental resource, it is important that
items to be moved only when it is truly enhances product value. Transportation was financial
resources because internal expenditures are regard for commercial or private transportation.
Expenses result from driver labor, vehicles operating cost and same allocation for general and
administrative cost. Transportation uses environmental resource both directly and indirectly. In
direct terms its one of the largest consumer or energy (fuel and oil). In directly transportation
creates environmental expense through congestion air pollution and noise pollution.

The major objectives of the transportation are to move product from origin location to a
prescribed destination while minimizing temporal, financial and environmental resource costs.
Loss and damage expenses must also be minimized. At the same time the movement must take
place in a manner that meets customer demand regarding delivery performance and shipment
information availability (Bowers ox, 2010)

2.6.2 Product storage

A less common transportation function is temporary storage. This because vehicle make rather
expensive storage facilities. However, if the in transit product requires storage but will be moved
again shortly (in a few day).

The cost of unloading and reloading the product in a ware house may exceed the podium (daily)
charge of storage in the transportation vehicles. In circumstance were house space is limited;
utilizing transportation vehicle may be available option. one method involves loading product on
the vehicles and then having it take a circuitous route to it is destination with a circuitous
route ,transit time is greater than with a more direct route. This is desirable when the origin of
ware house limited storage capacity. A second method of achieve temporary product storage is
diversion. This occurs when an origin shipment destination is changed while the delivery in
transit. In summary, although product storage in transportation vehicles can be costly, it may be
justified from a total cost, capacity constraints or the ability to extend lead times are considered
(Bowersox,2010).

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2.7 The role of transportation
The role of transportation plays in the supply chain as well as transportation related decisions
that supply chain management lead to make.

2.7.1 The role of transportation in the supply chain

Transportation moves product between different stages in supply chain. Like, the other supply
chain drivers, transportation has impact on both responsiveness and efficiency. Faster
transportation whether in the form of different modes of transportation or different amounts
being transported, allows a supply chain to be more responsiveness but reduces its efficiency.
The types transpor5ation a company uses also affect the inventory and facility location in supply
chain (Sunil chopra,2004).

2.7.2 The role of transportation in logistics chain

Transportation one of the most visible elements of logistics operation. A consumer, we are
accustomed to seeing truck and trains moving product, or parked at a distribution facility.

Transportation is linkage process, in logistics and often consumes much of the resource
providence to the logistics function. It ones dominated the distribution activity (and indeed from
many companies it was the distribution function)but for most companies it is now integrated in
to an overall activity. Transportation (with facilities) creates time utility value in supply chain.
Transportation also creates place utility value by delivery product to location that is convenient
for customer. Transportation possibly account for the largest resource commitment in the
logistics activity, therefore it is relative cost (benefit profile must be established within the
context of the level of the customer satisfaction that is being set as an objective) (Gattrone and
Walters, 1996).

The role transportation in logistics has changed dramatically over the last four decades. Today’s
a wide range of transportation alternatives are available to support supply chain. For example,
logistics managers may integrate public with for hire transportation is very visible elements of
logistics (Bowersox,2010).

2.8 Transportation principle

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According to Bowers ox,(2010) there are two fundamental principle guiding transportation
management and operations. These are: 1.Economy of scale and

2. Economy of distance
1. Economy of scale
Economy of scale refers to the characteristics that transportation cost per unit of weight decrease
when the size of shipment increases. Transportation economies of scale exist because fixed
expenses associated with moving a load can be spread over the loads weights. The fixed includes
administrative cost of taking their transportation order time to position the vehicles for loading or
un loading, in invoicing and equipment cost. These costs are considered fixed because they do
not vary with shipment volume.

2. Economy of distance

Economy of distance refers to the characteristics that transportation cost per unit of distance
decreases as distances increases. Transportation economy of distance also referred to as the
tapering principles since rates or charges taper with distance. The rational for economy of
distance is similar to that for scale. Specially, the relatively fixed expenses incurred to load and
unload; the vehicle must be spread over the variable expense per unit of distance.

2.9 Transportation administration

According to Bowers ox, (2010) there is several administration of transportation in different
activity among the most common are operational management, consolidations, negotiation
control and audits.

1. Operational management

The fundamental responsibility of traffic department is to observe day to day transportation

operation. In large scale organizations, traffic management involves wide variety of
administrative responsibility. From operational perspective, the key element of transportation
management are equipment scheduling and yard management, load planning, routing and carrier
administration.

1 Consolidation

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At several different points throughout the text the importance of freights consolidations are
directly related to the size of shipment and length of how place premium up on freight
consolidation.

2 Negotiation

The key to effective negotiation to seek win agreement where in both carrier and shippers share
productivity pains. The traffic department must seek to lower rate consistent with service
standards.

3 Auditing and Control

When transportation service or charges are not performed as promised, shippers can make claims
for restitution .Claims are typically classified as loss and damage or over charge or under charge.

2.10 Factors affecting the choice of transport selection

There are five factors which should be considered in choice of transportation.

A. Company characteristics and philosophy

There are important and concern the company’s marketing, financial and operations strategies.
The company marketing strategy is important because this will determine the parameter for the
customer service offer financial structure decisions.

B. Marketing system

There are two factors under remarketing structure: competitive structure and the geographical or
territorial consideration.

A. Product characteristics

The important product characteristics to be considered are weight, size and shape robustness,
shelf life, potential danger, value and special characteristics which may require expensive
handling service and equipment.

B. Environmental issue

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Environmental issue can be influence a transport mode decisions in number of ways. in its
broadcast scope environment can be taken to include government and it is influence on transport
policy .Clearly, effective transport selection benefit from a current and detailed knowledge and
understanding of government infrastructure policy (Gattrone and Walter,1996).

2.11 Transportation system.

According to Bowers ox, (2010)

A previously stated the transformation system consists of freight carriers and management.

A. Freight carrier: the freight system includes several distinct forms of transportation
modes the mode the most differ internal of operating characteristics and capability
giving them comparative advantage and disadvantage .
B. Management: is the process of transportation service who sell and transportation service.
The freight transportation carrier and management.

2.12 Classification of performance characteristics.

According to Bowers ox, (1996) classification of performance can be

1. Speed : References to elapsed time form when freight is given to transportation

mode until the movement is complete . Transportation is a service that moves
freight to production or from production to consumption . If a manufacture is
shipping to retail store the retailer is interested in what the product will be available
for sale .

2. Competences: is the extent of model network and the amount of required involvement
there mode. Turk is most complete. Because it can finish its movement without any
involvement any other.
3. Capability: is a major modes ability to handle particular transportation requirement.
This would include the type of freight the size of the individual product and the weight
and the load size required.

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 4. Dependability: is the potential variance from expected to publish delivery schedule pipe
line because of their continuous service and limited interface from the water and
congestion rank highest dependability. It means damage in transit time is minimum.
5. Frequency: is a number of modes can pick up and deliver during a particular period.
6. Cost: is an amount of money a shipper or receiver must pay for freight movement.

2.13 Transport participants

According to William, F,(1982) transportation transaction are often influenced by six parties.

1. Shipper and consignee; have a common interest in moving goods from origin to destination
within a given time at the lowest cost.

2. Carriers: desire to maximum their revenue movement while minimized associated costs.

3. Agents (brokers and freight for wardens) facilitate carrier customer matching.

4. Government:- desire a stable and efficient transportation environment to support economic

growth.

5. Public:- is concerned with transportation accessibility, expense and standard for secret, safety
and environment.

6. Internet: - the internet now provides the vital communication link between the transactional
participants (shipper –carrier – consignee) replacing phone and fax technologies.

2.14 Documentation in freight shipment

According to Bower sox (1981) the transportation parts prepare the documentation involved in
transporting the firm’s products. By the for the most important document is the bill of lading.
Bill lading is a document which is signed by the carrier or his agent acknowledging that goods of

the stated kind, quality and condition have been received for shipment or shipped on board a
particular vessel destination.

2.14.1 Loss and damage claims

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During the negotiation process, the shipper a grass to hold the charges the transportation
deregulation acts reduced carrier liability they contain:-

 The name the shipper and consignee

 The origin and destination of the shipment
 The data of shipment
 The data or delivery or expected delivery
 Particulars about what is missing or damage (Morgan, Cetal,(1986)

2.15 empirical literature reviews

there are in the same problem in the public and governmental transport company regarding
transporting management system due to same factor which affect the organization daily
activates, for instance, infrastructure, technology, vehicle performance etc. to solve such
problems the company themselves and other researcher made research to eradicate these factors
especially, the major problems in cost transportation and time consuming during delivery of
good. Therefore, in case real situation of transport company specially road can solve the problem
by different strategies of the company, for example negotiation with other carriers, consolidating
shipments and using modern infrastructure that help to transport goods in their accurate time.

In addition that to solve the problem related with high time consuming to deliver the goods. The
role of other public transport company is necessary. The other stratagem to reduce cost and time
to transport goods is consolidation of shipments. Because it seeks high cost and time collect each
goods from different parties of the area (http:p//www.doc.com…)

2.16. Conceptual frame work

System of transport management play great role for economic development of the country, for
Transport Company, community and individuals, also having the excellence transportation
system. For instance, infrastructure, new technology, transport operators and logistics security
etc. leads to high profitability, cost minimization and timer saving to delivery where as building
poor system expose to high time consuming cost extravagancy and other obstacle (Donald
Walter, 2003).

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CHAPTER THREE

3 RESEARCH METHODOLOGY

3.1 Research design

The types of research will be descriptive research design describing effectives of transportation
of management system of Bahir dar transportation office. The study will use both qualitative and

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quantitative research technique. The research design will be survey and the types of survey will
be data collect at one point of time

3.3. Target population

The target population of the study will be employs of institution Bahir dar.

3.3.1 Sampling technique and procedure

The sampling technique that will be used for the study to collect and investigate data will be
simple random (probability) sapling and will use to select population directly relate with the each
purpose.

3.3.2 Sample size

In order to make manageable size of population the researcher will select employs of
transportation management system in Bahir dar. Therefore in order to determine the sample size
study will use Yemeni (1967) sample size determination formula and which gives as follow;
n=N/1+N (e)2

Where n=sample size

N=total population

e=error

by using the formula the sample size of the respondent will be determined.

3.4 Data type and source

Researcher will use both primary and secondary source. Concerns primary source the data is
collect by open ended and close ended questionnaire and structured interview. Secondary data
will be collected through analysis or internal documents that directly related to transportation
management system in Bahir dar transport office.

3.5 Method of Data collection

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The researcher will collect the necessary data by questionnaires and interview that use as major
instruments to collect primary data. Regarding to questionnaires both open ended and closed
ended questionnaires will be used, because of questionnaire will uses as major instrument to
collects data, Interviewing all sample of the employee is cost and time consuming , so that
researcher will present structure interview to manager office because of it may not enough
time to interview all employee in one time.

3.6 Data processing and Analysis

After data will be collect from different source concerning about the transportation management
system of the next step is analyzing. The data will be analyze using descriptive statistics.
According to Bruce (2007) descriptive statistics simple describes the characteristics of the given
population and answer the questions of what, whom, where and sometimes how by using data
presentation. The collected data will be processed and analyzed quantitatively through
tabulation and percentage.

3.7. Work and budget plane

3.7.1 Work Plan

No Prescription activities Time Period

May Jun July May Jun Jun

(2014) (2014 (2015) (2015) (2015)
)
1 Title selection *
2 Proposal development *

3 Preparing literature *
4 Developing interview and quest *
ionize
5 Data collection *
6 Data analysis and interpretation *
7 Writing research report *

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 8 Submission of the research report *
9 Presentation *

3.7.2 Budget Plan

No Item Quantity Unit cost Total cost in birr

Stationary material
1 Pen 6 5.00 30.000
Paper 300 0.50 150.00
Flash 16GB 250 250.00
2 Trans port 5 5 25.00
3 Inter net 20 0.50 10.00
4 Printing 45 10 450.00
5 Binding paper 1 15 15.00
Total 378 285.5 390

4. REFERENCE
 Bowers ox et.al(2010) supply chain logistics management 3rd edition

 Donald J.Bowers ox David J. Closs (1996) logistic management.

 Donald Walter, (2003) logistics, Introduction to supply chain managements

 D.P Jain, (1999) Business organization and management Urinda publication PLID India.

 Ebel, R. and Frisbec, D (1991) essential of logistics management (3 rd ) new Jersey:

Prentice hall.

 NurizmenJebril, (2002)” Transportation management” (LSCM 532). Unpublished

teaching material).

 RahuluAltekar, (2005) concept and cases new Delri India.

 Sunil chapra. Peter mendil, (2004) strategic, planning and operation 2nd edition.

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 William, F, (1982) principal of transportation (3rded) Londan: Aton

 Wilson, G. (1947) interest commerce and traffic law (6th )Hume wood III: Irwin, Inc.

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