FUNDAMENTAL OF

TRANSPORT AND
LOGISTICS
Introduction
The Changing Landscape: Driving Force

 Globalization
 Views world as a market; Global competition; borderless world; economy
interdependence; wider availability of goods; shorter product life-cycles;
outsourcing: longer shipping distance, transit times and increasing risk,
migration and movement of people
 Technology
 Internet; real-time information; purchasing done at home; booking online;
frequent delivery; outsource call centre; fuel efficiency; environmental
friendly engines; lower fuel consumption; security; GPS; RFID; WMS
 Consolidation and integration
 Emergence of retails giants have transformed supply chains; Sufficient
economic power and leverage to influence business practices of their
suppliers and customers
The Changing Landscape: Driving Force

 Enlightened consumer
 Educated; high income; knowledgeable; demanding
competitive prices, high quality product and services;
Increased demand from special interest groups – senior
citizen
 Government policy and regulations
 Policy towards environment conservation; Sustainability
issues; Energy costs; shifting public to private ownership;
market determination vs. government control;
Government budget constraints; Infrastructure challenges
The Importance of Transport & Logistics

 Transport an important element in country’s development

 Central to economic growth
 Transport adds value to materials/ products. How?
 Activities could be done more effectively and efficiently
 Bridging the rural and urban areas.
 Goodsfrom urban areas can be marketed in rural areas, vice-versa
 Employment purposes, visiting relatives, schooling, hospitalization,
etc
 Globalization
 International business
 Previously, concentrate on domestics market
 Products from one country can be marketed to other country.
The Importance of Transport & Logistics

 Transport facilitates for specialization

 Goods produced in one place
 Allowing production and consumption of products to occur
at different locations

 https://www.youtube.com/watch?v=JZu_gxi3sbs
Transport Systems
 A country could not proper without having a good
transport systems
 Infrastructure
 Road, railways lines, guide ways, airport , runways, ports,
gantry cranes, stations, communication systems, buses
 Services
 Buses operating on certain routes; a prime movers carrying a
container, a ship loaded with containers, a train plying Kuala
Lumpur to Ipoh
 Involve human, uniformity/ consistency of services difficult
to maintained
What are the Roles of Transport?
 Movement of People
 Movement of Goods

To move people or/and goods from a point/place to

another points/places or to the final destinations
 The requirements vary considerably between different
places and between different social groups
 Geographical conditions, distance, the facilities available
Why We Need an Efficient and Effective
Transportation System?

 Cost and customers’ satisfaction are paramount

importance
 Transportation company must provide services at the
lowest cost possible
 Competitive advantage. Most are not monopolized
business
 Maintaining current customers in crucial. Repeat
customers are those who satisfied with the services
rendered to them; Save cost for promotions; costly to
recruit new customers
Why We Need an Efficient and Effective
Transportation System?
 Efficient
 Involve cost and productivity. An efficient organization is the one which can
provide a service with the lowest cost per unit of measurement
 Pax Revenue/km; tonnes/km
 Ton-miles/km(freight)
 passenger-miles/km (people)
 Passenger/km/hour

 Effective
 “The more the merrier”. Is about numbers of passenger/ goods carried; The
coverage of services
 An effective bus company is the one which can carry more passengers than its
competitors
 The LRT is more effective in carrying more passengers than a bus
 Do you know what is the ratio between bus and private car in term of number of
passengers carried?
Major Costs of Doing Business
An Effective and Efficient
Transportation System
 Compare these modes of passenger transport,
which is the most efficient and which is the most
effective transportation system? Why?
 Bus
 Car
 LRT
 MRT
 Bicycle
 Airplane
 Transportation and Person’s Lifestyle
12

 Transportation has an effect upon a person’s

lifestyle
 Decision where to work, live and play are influenced
by transportation
 Growth of suburban areas
 Tourism industry
 Demand for Transportation
13

 Regions or areas tend to specialize in certain

economic activities
 This specialization creates physical gap between
markets and areas of production for a given good
 This gap creates a demand for transport
 Fundamental economic role of transport is to
bridge this supply-demand gap
 Demand for Transportation
14

 Derived demand
 Transport is a mean to the end
 Demand for other things that created demand for transport
 Someone ordered a computer on-line, the company requires
transport to deliver the product
 Transport cannot be stored
 Few empty (unsold seats) for the Alor Setar to KLIA
flight, cannot be stored for the next days. It represents a
loss revenue to the company forever.
Transport Classification
 Passenger Transport
 Modes of transport that carry people/human
 Movement of people
 Goods Transport
 Other than human, which includes animals, raw
materials, semi-finished goods, finished goods, etc
 Movement of goods
Walking is the basic type of transportation
Transport Classification
 Motorized
 Example?
 Non-Motorized Transport
 Any form of transportation that provides personal or
goods mobility by method other than combustion
motor (Guitink, Holste & Lebo, 1994)
 Human porterage, bicycle, animal-drawn cart
 Some areas are only accessed by these type of
transports
Transport Classification
 Private transport
 Privately-owned; a private car
 Public transport
 A transportation services shared by general public
 Bus, Taxi, Train, Airplane services
Transport Modes
 Road – examples please?
 Rail - ?
 Air
 Water/Sea
 Pipelines
Transport, Logistics and Supply Chains
Logistics management has many names….

 Business logistics  Physical distribution

 Channel management
 Distribution
 Industrial distribution
 Industrial logistics
 Materials management
 Logistical management
 Logistics
 Quick-response systems
 Supply chain management
Logistics : Definition
 Benson (1994) defined logistics
 as the art of maintaining control over world-wide
supply-chains by a combination of transport,
warehousing skills, distribution management and
information technology.
 Transport bridges the geographical gaps in the
complex pattern of manufacturing centers, sources
of raw material supplies, depot locations and
marketing outlets.
Definition
Council of Logistics Management :

“Logistics is that part of the supply chain process

that plans, implements, and controls the efficient,
effective forward and reverse flow and storage of
goods, services, and related information between
the point of origin and the point of consumption
in order to meet customers’ requirements.”
Logistics
 Logistics is the task of managing two key flows
 Material flow of the physical goods from suppliers
through the distribution centers to store
 Information flow of demand data from the end-
customer back to purchasing and to suppliers, and
supply data from suppliers to the retailer, so that
material flow can be accurately planned and controlled
 Logistics

From cow to customer

In the early days, logisticians were concerned about
making sure that the goods arrived in good condition
and at the lowest possible cost.

The advent of containers in ocean trades (mostly 1960s and

1970s) lowered transit times substantially.

International air shipments became an increasing

percentage of all shipments in the 1980s
In the 1980s, with very high interest rates, companies
shifted their emphasis to inventory reductions.

Logisticians became ever more focused on transit times in

order to minimize inventory costs, raising the expectations
of customers.

Fast delivery times facilitated the adoption of different

inventory management techniques:
Just-In-Time
MRP
MRP II
Logistics and Supply Chain Management

• The terms “Logistics” and supply chain

management are often used
interchangeably, logistics is actually a
subset of supply change management
Logistics and Supply Chain Management
Supply Chain Management
Encompasses the planning and management of all
activities involved in sourcing and procurement,
conversion, and all Logistics Management activities.

Importantly, it also includes coordination and

collaboration with channel partners, which can be
suppliers, intermediaries, third-party service providers,
and customers.

In essence, Supply Chain Management integrates supply

and demand management within and across companies.
Logistics and Supply Chain Management

Three views on the relationship between logistics and SCM

Logistics and Supply Chain Management
Supply Chain Management includes more activities than
Logistics Management: the “Inclusionist” viewpoint
prevails.

In 2004, the Council of Logistics Management changed its

name to the Council of Supply Chain Management
Professionals (CSCMP) to reflect what was perceived as the
broader nature of the field
Supply Chain Management
Definition by the Council of Supply Chain Management
Professionals (CSCMP)

Supply Chain Management encompasses the planning and

management of all activities involved in sourcing and
procurement, conversion, and all Logistics Management
activities. Importantly, it is also includes coordination and
collaboration with channel partners, which can be
suppliers, intermediaries, third-party service providers,
and customers. In essence, Supply Chain Management
integrates supply and demand management within and
across companies.
Elements of Transport

 Transport systems can be analysed in terms of four

basic elements
 The vehicles
 The ways
 The terminals
 The Motive power
Elements of Transport
 Vehicles or cars
 Are the means by which the traffic – that is, the
passengers or freight – is carried.
 Referred collectively as fleet for any mode and rolling
stock for rail vehicles
 Cars, buses, railways rolling stock, vessels and aircraft
 A transitunit (TU) is a set of vehicles travelling together, it
may be a single vehicle unit or a train with several coupled
vehicles
Elements of Transport
 The ways, travel ways, or rights-of-ways
 Are tracks or media on which, or through which, the
vehicles travel.
 Refer to common streets and roads, reserved lanes
(designated only), exclusive lanes (physically
separated), busways (grade-separated roadways for
buses only), LRT guideways
 Roadways, railways, seas, rivers, canals, airspace and
airways
Elements of Transport
 The Terminals
 Provide the access and exit points along the way – the
essential nodal points of any transport system.
 Bus stops, stations, loading areas, seaports, railway
stations, wharves, river ports, airfields and airports
Elements of Transport
 Transport terminals have three main functions
 To allow access to vehicles along the way
 To permit easy interchange between vehicles operating
on different routes, and between different modes of
transport
 To facilitate consolidation of traffic, grouping together
passengers or freight consignments into a larger unit
for onward movement
 KualaLumpur International Airport (KLIA), Westport,
Penang Port, Sentral Station
Elements of Transport
 Motive Power/ Propulsion
 refers to the type of propulsion unit and method of
traction, or transferring acceleration/ deceleration forces.
 Major components
 Type of propulsion unit
 Diesel internal combustion engine (ICE)
 Electric motor; Gasoline ICE; gas turbine; steam engine; linear
induction motor (LIM)
 Method of transferring tractive force
 including friction/ adhesion (dominant), magnetic forces, cable,
rotor (helicopter) and propeller
Routing and Scheduling
 Route is a way/path a vehicle takes from one point to
another points
 Route A : Alor Setar to UUM via Jitra, Changlun
 Route B : Alor Setar to UUM via PLUS Highway
 Scheduling is a planned movement – specific, which
vehicle, the driver and the time of departure and arrival
 Technologies help to improve the routing and
scheduling; communication and also monitoring
purposes
Accessibility
 Able to reach the services provided; to reach the destination;
 Accessibility
 Link a place to other.
 People from a side of a river needs a bridge connecting to the other side
 LRT Station with adequate facilities such as parking space could not be accessed
because there was no access road built to the station
 More people can access the transport services.
 An aged person or a person with a disability have difficulty accessing public
transport 
 Buses must have low floors or ramp systems.
 Some developed countries requires local authority and transport operators to
meet the requirements of the Disability Discrimination Act.
 Spaces in trains for wheelchairs, prams and bikes are being increased and doors
and grabrails painted yellow to assist people to enter and ride safely and securely.
Bridge
Bridge
Ramp
Falkirk Wheel
 is a rotating boat lift in
Scotland
 Connecting the Forth
and Clyde Canal with
the Union Canal.
 The wheel raises boats
by 24 metres (79 ft)
 Opened in 2002,
reconnecting the two
canals
Accessibility
 https://www.youtube.com/watch?v=_tBH9SE-Kw8
 https://www.youtube.com/watch?v=FOOsF-Yufz0
 https://www.youtube.com/watch?v=-B49tOP2uPg
 https://
www.youtube.com/watch?v=sRNNRahOumU
Accessibility
 Accessibility (Continue)
 All busway stations have lifts, ramps and pathways to help with
ease of access, tactile paving for people with vision impairment
and audio systems to make announcements clearer for people
wearing hearing aids.
 Allow Guide Dog to travel on board train and buses for
blind/vision/visually/hearing impaired person. Guide Dog is
required to wear a coat or harness that identifies it as an
assistant animal.
Guide Dog
Mobility
 The mean that move people to the other place
 Mode of travel
 Bus for students to go back to their hometown
 Wheel chair for person with disability
 LRT for daily commuters
Affordability
 Refers to the financial ability of an individual or a
household to make a journey without having to
sacrifices expenses on other activities
 Parents of a low income group might be able to afford
necessary journeys to work but they might not be able to
afford trips to school by their children, or for their children
to visit grandparent in hospital, for such a family urban
transport by most standards, be considered unaffordable
 The percentage monthly incomes spend on transport
(fares)
Affordability
 So affordability can be considered as the ability to
make necessary journeys to work, school, health,
and other social services, and make visit to other
family members or urgent other journeys without
having to curtail other essential activities.