By Ayesha, Farooq, Fateh & Hannah

Introduction
 Transportation has been a major component
enabling trade for centuries; involving physical
movement of goods
 The back bone of any sustainable supply change
relies on a performing and reliable transportation
network
 Transportation has a major economic impact on the
financial performance of businesses in Supply
chain
 Transportation service availability is critical to
demand fulfillment in the supply chain
 Transportation efficiency promotes the
competitiveness of a supply chain
 Introduction
 In order to be efficient and economical SC
Managers are focusing on responsive
Transportation with a view to increase
customer satisfaction
 Due to rapid technological changes, manpower
requirements, demand and supply issues the
transportation is facing considerable challenges
in Supply Chain
 Importance of Transportation
 The past decade has witnessed considerable
changes in transportation
 Transportation represents the single largest
logistics cost for most companies
 In 2015, The United-States logistics accounted
for 7.85% of the Gross Domestic Product
(GDP)
 In total, $1.4 trillion was spent on logistics, with
transportation representing 63%
 The figures provide a glimpse of how the
various modes of transport are important to
supply chain
Current Transportation Challenges
 Sharp Fluctuations in fuel pricing
 Driver shortages
 Expansion in 3PL / 4PL providers
 Commoditization of carrier pricing
 Expanding use of technology tools

 Increasing regulations
• These challenges have exponentially increased
the complexity of the transportation environment