Chapter 7.

Transportation in Logistics
1. Transportation in Logistics
Transportation, which can be defined as the actual, physical
movement of goods and people between two points, is pivotal
to the successful operation of any supply chain because it
carries the goods, literally, as they move along the chain.
 Chapter 7. Transportation in Logistics
1. Transportation in Logistics
Transportation influences, or is influenced by, the logistics
activities:
. Transportation costs are directly affected by the location of the
firm’s plants, warehouses, vendors, retail locations, and
customers.
. Inventory requirements are influenced by the mode of transport
used.
. The transport mode selected influences the packaging required,
and carrier classification rules dictate package choice.
 Chapter 7. Transportation in Logistics
1. Transportation in Logistics
Transportation influences, or is influenced by, the logistics
activities
. The type of carrier used dictates a manufacturing plant’s
materials handling equipment
. An order-management philosophy that encourages maximum
consolidation of shipments between common points enables a
company to give larger shipments to its carriers and take
advantage of volume discounts.
. Customer service goals influence the type and quality of carrier
and carrier service selected by the seller.
 Chapter 7. Transportation in Logistics
2. Transportation modes
• Airfreight
• Motor carriers
• Pipelines
• Railroad
• Water
 Chapter 7. Transportation in Logistics
3. Intermodal transportation
Intermodal transportation refers to transportation when using a
container or other equipment that can be transferred from the
vehicle of one mode to the vehicle of another mode without the
contents being reloaded or disturbed
With intermodal transportation, two or more modes work closely
together in an attempt to utilize the advantages of each mode
while at the same time minimizing their disadvantages.
 Chapter 7. Transportation in Logistics
4. Transportation specialists
. Freight forwarder
. Shipper’s association
. Parcel carrier
 Chapter 7. Transportation in Logistics
6. Legal classification of carrier
. a common carrier
. a contractual carrier
. an exempt carrier
. a private carrier
 Chapter 7. Transportation in Logistics
5. Transportation regulation
. Environmental regulation
. Safety regulation
. Economic regulation