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Amity Business School
1
Amity Business School
MBA Class of 2016, Semester II
Distribution & Logistics Management
Ms.Vandana Gupta
Amity Business School
TRANSPORTATION
Amity Business School
Transport Media Mix
• Roadways
• Railways
• Waterways
• Airways
• Pipelines
Amity Business School
1. Roadways (Trucks)
Strengths
• It is speedier resulting in price stabilization and
consumer satisfaction
• Do not insist on strict packaging requirements
• More economical
Amity Business School
Weaknesses
• Closed during monsoons
• It is not reliable for bulky and heavy goods
• There may disproportionate rise in fuel and spare part
expenses
Amity Business School
2. Railways
Strengths
• It provide all season production to the products moved
on uninterrupted basis
• Main sources of connections with the markets outside
the country moving goods from interior parts to the
points of overseas and shipping
• Railways are known as bulk carriage of goods over long
distances
• Cheaper
Amity Business School
Weaknesses
• Railway transport works costlier over short distances
because of tapering and differential tariff rates
• As compared to air and road transport, the speed of
movement is slower
Amity Business School
3. Waterways
Strengths
• The items which are bulky and heavy, fragile can be
moved with ease
• Waterways provide an independent movement unlike
road system where road is meant for all kinds of vehicles
creating the problem of congestion
• Tariffs are much lower and thus is cheaper.
• Sender and receiver of cargo has the facilities of loading
and unloading from boats and steamers
Amity Business School
Weaknesses
• Changing seasons may create problems
• Cargo capacity is quite limited as inland water ways
are connecting the given places
• Movement is slow
• Not meant for perishable products
Amity Business School
4. Airways
Strengths
• It is known for its dependable service during time of
floods, wars and earthquakes
• As it provides fastest and uninterrupted service, capital
investments in the form of stocks of goods is less.
• Speediest movement of cargo
Amity Business School
Weaknesses
• It connects metros and some important cities only
• Cargo capacity of plane is much smaller
• Cost is very high and there is limit of weight of cargo
and thus suitable for lightweight, high grade and costly
items only
Amity Business School
5. Pipelines
Strengths
• As there are no occasions of loading and unloading,
there is no scope for spilling, evaporation, pilferage and
so on
• It is underground thus do not require any additional
space
• Crude oil and gas transported through the pipelines
works out almost ¼ of railways and roadways
• No wastage of time
Amity Business School
Weaknesses
• Though operational and maintenance costs are minimal,
the capital costs of pipeline is rather much higher
Amity Business School
Factors determining Transport Medium choice
1. Performance Criteria
2. Cost
Amity Business School
Performance Criteria includes:
1. Frequency
2. Safety
3. Product Suitability
4. Availability
5. Speed
6. Versatility
7. Reliability

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Transportation

  • 1. Amity Business School 1 Amity Business School MBA Class of 2016, Semester II Distribution & Logistics Management Ms.Vandana Gupta
  • 3. Amity Business School Transport Media Mix • Roadways • Railways • Waterways • Airways • Pipelines
  • 4. Amity Business School 1. Roadways (Trucks) Strengths • It is speedier resulting in price stabilization and consumer satisfaction • Do not insist on strict packaging requirements • More economical
  • 5. Amity Business School Weaknesses • Closed during monsoons • It is not reliable for bulky and heavy goods • There may disproportionate rise in fuel and spare part expenses
  • 6. Amity Business School 2. Railways Strengths • It provide all season production to the products moved on uninterrupted basis • Main sources of connections with the markets outside the country moving goods from interior parts to the points of overseas and shipping • Railways are known as bulk carriage of goods over long distances • Cheaper
  • 7. Amity Business School Weaknesses • Railway transport works costlier over short distances because of tapering and differential tariff rates • As compared to air and road transport, the speed of movement is slower
  • 8. Amity Business School 3. Waterways Strengths • The items which are bulky and heavy, fragile can be moved with ease • Waterways provide an independent movement unlike road system where road is meant for all kinds of vehicles creating the problem of congestion • Tariffs are much lower and thus is cheaper. • Sender and receiver of cargo has the facilities of loading and unloading from boats and steamers
  • 9. Amity Business School Weaknesses • Changing seasons may create problems • Cargo capacity is quite limited as inland water ways are connecting the given places • Movement is slow • Not meant for perishable products
  • 10. Amity Business School 4. Airways Strengths • It is known for its dependable service during time of floods, wars and earthquakes • As it provides fastest and uninterrupted service, capital investments in the form of stocks of goods is less. • Speediest movement of cargo
  • 11. Amity Business School Weaknesses • It connects metros and some important cities only • Cargo capacity of plane is much smaller • Cost is very high and there is limit of weight of cargo and thus suitable for lightweight, high grade and costly items only
  • 12. Amity Business School 5. Pipelines Strengths • As there are no occasions of loading and unloading, there is no scope for spilling, evaporation, pilferage and so on • It is underground thus do not require any additional space • Crude oil and gas transported through the pipelines works out almost ¼ of railways and roadways • No wastage of time
  • 13. Amity Business School Weaknesses • Though operational and maintenance costs are minimal, the capital costs of pipeline is rather much higher
  • 14. Amity Business School Factors determining Transport Medium choice 1. Performance Criteria 2. Cost
  • 15. Amity Business School Performance Criteria includes: 1. Frequency 2. Safety 3. Product Suitability 4. Availability 5. Speed 6. Versatility 7. Reliability