Transport Role Essay

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INTRODUCTION: Role of transportation in supply chain Transportation is an important tool in Supply Chain Management (SCM) introduction transportation is the major connector of the upstream and downstream of a supply chain. It is that aspect of the supply chain that takes goods and services to the retail end of the supply chain. It is the major promoter of globalization and as such is one that is to be given high attention to ensure efficiency of the chain. Modes of transportation there are different ways in which products and services can be moved from one place to another with each mode having its unique characteristics, its gains and setbacks the effect of a transportation mode on a supply chain also aids in the decision making process; that is, does one transportation mode make the supply chain more customer responsive than the other even though it is quite expensive, or is there a cheaper mode that responds a lot more slower to customer demands than another. Look at Wal-Mart, which focuses on low cost. Their supply chain is designed for total efficiency to keep costs low. Now consider Nordstrom. If they are selling designer bags, cost is not an issue. Instead, their supply chain is focused on making sure that $2000 Prada bag is available when the customer wants to buy it. Intermodal transportation includes employing more than one mode of transportation. And this intermodal transportation mainly refers to containerized goods, as opposed to bulk or general cargo which requires large containers; we cannot compare the cost of this mode because it constitutes less labor than traditional freight handling. Major intermodal noted issues could be transportation companies are still structured around modes. Modes of transportation * Air , Maritime & Land Transportation: With the improvement in technology, change in strategies, most of the companies

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