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3 LOGISTICS - TRANSPORTATION

3 LOGISTICS - TRANSPORTATION

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Published by ashish.bms9
Logistics 5th Semester
Notes for lectures
Logistics 5th Semester
Notes for lectures

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Published by: ashish.bms9 on Jun 25, 2008
Copyright:Attribution Non-commercial

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04/27/2013

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06/24/08 1
Transportation
 
Transportation
[
Ref. Bowersox page 311
]The most visible of all functions of logistics andhigh contributor to logistics cost
Transportation functionality
:
Functions of transportation1. Product movement:
What is moved?
Raw Material, Semi Finished items, WIP, Finishedgoods, packaging material, rejected material-movement is required up or down the supply chain
 
06/24/08 2
How is this done? What resourcesare used?
Resources used by transportation:
a. Time, Temporal
 
Costs
- product is locked upduring transit, hence inaccessible
b. Money, Financial
 
Costs
-Administration Costs, salaries, maintenance, etcProduct loss and damageCost of fuel for prime mover 
c. Nature, Environmental Costs
-Guzzles natural fuels
 
06/24/08 3
India consumes about 90% of the total availableand imported oil for transportationTransportation Creates
congestion, air pollution
 and
noise pollution.
 
Environmental cost is tangible and substantiallyintangible.As transportation utilizes temporal, financial andenvironmental resources,
items must be movedonly when product value is raised
 

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