The DAILY OBSERVER Tuesday, March 9, 2021 Page 23

Lesson 22
with
Treisa Cornwall

MODES OF TRANSPORTATION

1. AIR TRANSPORTATION: this is the movement of passengers and or cargoes by aircraft.

ADVANTAGES DISADVANTAGES

It may be risky; the smallest mistake will prove

It is the fastest mode of transportation.
costly to lives and property.

It is highly suitable for perishable goods and

It is not suitable for large bulky cargo.
important documents.

Fewer infrastructures are needed with air

It is very costly.
transportation.

There is no physical barrier that will affect the

It is affected by adverse weather conditions.
route the plane takes.

JOL PRINCIPLES OF BUSINESS continues on next page

 The DAILY OBSERVER Tuesday, March 9, 2021 Page 24

JOL PRINCIPLES OF BUSINESS continued from previous page

2. Road transportation: this is the movement of people and goods from one place to another via
road. It is the most common form of transportation within the Caribbean.

ADVANTAGES DISADVANTAGES

It is very flexible – can be used for door-to-door

It is subject to traffic delays.
delivery.
Can be costly as it requires regular maintenance
It is suitable for reaching all locations in a country.
of vehicles to avoid breakdowns.
It allows for the fast delivery of goods from the It requires drivers to be well trained to avoid
plant to the customer. damage to goods or loss of lives.
The location of goods being transported can
be monitored with the use of a GPS (Global It is subject to delays from bad weather.
Positioning System).
Communication is easily fostered with the driver. It can add to air pollution.
It can be cost-effective.
It can be used as a means of advertising goods as
ads may be placed on the vehicle.

JOL PRINCIPLES OF BUSINESS continues on next page

 The DAILY OBSERVER Tuesday, March 9, 2021 Page 25

JOL PRINCIPLES OF BUSINESS continued from previous page

RAIL TRANSPORTATION: the movement of people and goods via rail. This mode of transportation
was very popular in the Caribbean. With the advent of cars, there was a decline in the rail system. In
many cases, it is no longer operational except in the bauxite industry. It is however a very popular and
convenient mode of transportation in developed countries.

ADVANTAGES
A good mode for transporting bulky cargo.
Goods are transported faster than on roads.
It is cheaper than road transportation.
It tends to be a reliable form of transportation.
There are fewer breakdowns and maintenance
can be completed in downtime.
DISADVANTAGES
Requires heavy capital investment.
Schedules can be rigid.
Not suitable for short distances and a small
number of goods.
Does not facilitate door-to-door delivery.

3. SEA TRANSPORTATION: this is the movement of people and cargo by waterways.

ADVANTAGES
A very suitable method of transportation for large It is a slow form of transportation; proper planning
bulky goods.
Suitable for non-perishable goods.
It can be cost-effective for large goods.
It may be used to carry specialised cargo from
container to loose shipments of oil and grain.
DISADVANTAGES
is necessary as there may be delays within ports.
It can be delayed by bad weather.
It is subject to customs and excise regulations. In
addition, goods may have to be inspected.
It is highly recommended that goods be insured,
this will increase the final cost for the shipment of
goods.
The possibility for pilferage of goods may occur at
ports traversed.

JOL PRINCIPLES OF BUSINESS continues on next page

 The DAILY OBSERVER Tuesday, March 9, 2021 Page 26

JOL PRINCIPLES OF BUSINESS continued from previous page

4. PIPELINE: this method of transportation 5. DIGITAL DELIVERY: this is linked

is suitable for transporting liquid, water,
gas (crude oil and refined petroleum) and
chemically stable substances.
to e-commerce/online shopping. It is
becoming more popular with the ever-
changing demands of customers. The
Corona virus pandemic affecting the world
has also given rise to online shopping and
digital delivery.

ADVANTAGES DISADVANTAGES
It is costly to set up
It is used to transport
thus requiring a huge
large volumes.
capital investment.
Broken or damaged
Is not affected by
line often gives rise to
weather conditions.
pollution.
It is often fixed as it
It is safe and reliable,
would take time, effort
low chance of incidents/
and energy to remove
accidents.
pipelines.
Very cost-effective for
large quantities.
ADVANTAGES DISADVANTAGES
A very fast method Usual requires the use
of delivery: instant of a credit card/visa
delivery. debit.
Sellers must ensure
Suitable for tech-savvy
that product is safe and
individuals
not easily pirated.
There is little or no
barriers to enter the
Requires the use of the
online market platform
internet to complete a
except in countries
transaction.
where strict internet
rules apply.
The seller can tap
Competition tends to
into an audience of
be high as one seller is
potential buyers who
always competing with
already exist on the
other sellers online.
internet.
It allows for fast sales
transactions.

Advantages and disadvantages of supply chain operations

ADVANTAGES DISADVANTAGES
Better quality of life Counterfeiting
Wealth creation Product complexity
New and innovative job opportunities Product obsolescence
Management blunders
Natural disaster
Political instability

JOL PRINCIPLES OF BUSINESS continues on next page

 The DAILY OBSERVER Tuesday, March 9, 2021 Page 27
JOL PRINCIPLES OF BUSINESS continued from previous page
Impact of logistics and supply chain operations
on the competitiveness of business
Logistics gives businesses a competitive
advantage. This happens in two ways, a business
will seek to be highly competitive, they aim to
supply quality goods in immaculate condition
promptly to customers. Businesses want to
Specific measures to mitigate problems
remain a low-cost provider, they will offer goods at
an affordable low price if they presume that their
supply chain is efficient.
Potential distribution problems
The following are likely problems that will be
encountered in distribution:
● Delayed shipment – this is when the
shipment of goods does not arrive as
scheduled.
● Spoilage of goods – perishable goods
spoil, possibly due to improper storage or
damage during shipment.
● Industrial unrest – workers’ refusal to
work in varying transport sectors such as
ports, airports, railway stations.
● Misdirection of good – goods being sent
to the wrong location.
● Inadequate warehousing facilities –
warehouse lack the required conditions
for storage.
● Inadequate security at ports – not
enough security measures/personnel to
prevent theft and pilferage.
● Poor communication – little or no
communication between the parties
involved.
● Communication network – engaging in a
proper telecommunication system to track
the movement of goods.
● Government intervention – seeking the
guidance of the government or trade union
representative to resolve disputes/conflicts.
● Careful labelling and documentation of
goods – using the most suitable packaging
and labelling of documents for clarity.
● Utilising security companies –
contracting personnel that specialises in
security to monitor goods while they are at
the ports.
● Insurance – purchasing insurance to
safeguard against loss, theft or damage to
goods
● Choosing an appropriate distribution
channel – choosing the most reliable
and cost-effective method of distribution
(reliability, speed, cost).
Treisa Cornwall is on the staff of
St Andrew Technical High School.
 E-mail: treisacornwall@gmail.com