MODULE

#5 •                 Distribution Management 
MODULE G ALS FLEX Course Material

Transport Selection, Costing and Sourcing

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 TRANSPORTATION COSTING

•Start with your average monthly (or yearly) transportation

expenses.
•Divide this figure by your gross monthly (or yearly) income,
before taxes and any other adjustments.
•The amount, expressed as a percentage, shows how much of
your earnings are used to pay for transportation.
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 Costing the Total Transport
The expenses a company incurs when it transfers its inventory or other assets to another
location. For example, a company must pay a trucking or shipping company. If a company
is delivering a product, it may pass on the costs to the customer.

Running or Operating cost

Operating costs are the expenses which are related to the operation of a business, or to
the operation of a device, component, piece of equipment or facility. They are the cost of
resources used by an organization just to maintain its existence.
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 Main vehicle types
Vehicles include wagons, bicycles,
motor vehicles (motorcycles, cars,
trucks, buses), railed vehicles (trains,
trams), watercraft (ships, boats),
amphibious vehicles (screw-
propelled vehicle, hovercraft), aircraft
(airplanes, helicopters) and
spacecraft.
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 Types of operation
Modes of transport include
air, land (rail and road), water,
cable, pipeline and space. The
field can be divided into
infrastructure, vehicles and
operations. Transport enables
trade between people, which
is essential for the
development of civilizations.
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 Load types and
characteristic
Transport operation.
Themes Transportation of
goods by road (TMC)
Transport operation. This is
the movement of a single
type of goods from one
place of origin, where the
goods are loaded, to a
destination, where they are
unloaded.
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 TYPE OF LOADS;
COMPLETE LOADS/ FTL
• Without limit we can deliver your load with our
vehicle to the place where it should arrive on
time. The loads will be tracked in our
technology and we guarantee your safety!

Relying on us and our services you can feel free

and calm for your shipments, that they will be
on right place on right time

We offer special solutions that help you meet

deadlines and to keep its customers
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 PART LOADS/LTL
• Wide range of services offered from a
single source - this is possible thanks to
our extensive portfolio of services that
includes from parcels to general cargo
transport. We provide precisely tailored
service in accordance with local
requirements of individual markets
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 UNDER TEMPERATURE CONTROL

• The goods under temperature control

require compliance with strict rules
during the entire transportation in order
to maintain the high standards and
quality of the goods. Our employees
involved in the transport of cargo under
temperature regime are highly qualified
and possess the specialized knowledge
necessary to ensure compliance with all
applicable safety regulations
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 DANGEROUS GOODS/ ADR
• WE MUST KNOW EVERYTHING WHEN,
WE TRANSPORT ADR GOODS,
DIFFERENT CLASSIFICATIONS OF
PRODUCTS REQUIRE DIFFERENT TYPES
OF TRANSPORT PRECAUTIONS MUST BE
TAKEN. IN ADDITION, THE CONSIGNOR,
PACKERS, AND THE RECIPIENT MUST
COMPLY WITH MULTIPLE
REGULATIONS.

OUR EMPLOYEES INVOLVED IN THE

TRANSPORT OF DANGEROUS GOODS
ARE HIGHLY QUALIFIED AND POSSESS
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SPECIALIZED KNOWLEDGE NECESSARY

TO ENSURE COMPLIANCE WITH ALL
APPLICABLE SAFETY REGULATIONS 15
 Main types of vehicle
body

The three main
classifications for
road truck by weight are
light trucks, medium trucks,
and heavy trucks.
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 Vehicle Costing
The expenses a company
incurs when it transfers its
inventory or other assets to
another location. For
example, a company must
pay a trucking or shipping
company. If a company is
delivering a product, it may
pass on the costs to the
customer.
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 Key aspects of road

Road transport offers
complete freedom
to road user to transfer the
vehicle from one lane to other.
It gives quick and
easy transportation of men,
machineries, materials etc.
Road transport serves the
agricultural area by
transporting of goods.
Roads are used by various
categories of vehicles
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 What Is Zero-Based Budgeting (ZBB)?

Zero-based budgeting (ZBB) is a method of budgeting in which

all expenses must be justified for each new period. The process of zero-
based budgeting starts from a "zero base," and every function within
an organization is analyzed for its needs and costs. The budgets are
then built around what is needed for the upcoming period, regardless
of whether each budget is higher or lower than the previous one.
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 Zero-based budgets
Zero-based budgeting is a
repeatable process that
organizations use to
rigorously review every
dollar in the annual budget,
manage financial
performance on a monthly
basis, and build a
culture of cost management
among all employees
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 FACTORS AFFECTING THE DECISION TO INSOURCE OR OUTSOURCE
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Thank you!