TRANSPORT MODE SELECTION

Transport Mode Selection

Transport Mode Selection

Introduction

In this paper, we will have a discussion on the different modes of transport that can be used for the distribution purposes. Our company is one of a small group each of which up to now has organised its own independent distribution. Some of them work at national level only and some work internationally as well. On the other hand, following the acquisition of another quite large company, the Directors have decided to create a Group Distribution Centre to cater for all their distribution requirements and I am appointed as the Transport Manager of the company.

As the transport manager of the company, I will have to outline how we would determine the most appropriate transport modes for the different elements of the distribution network under normal circumstances. This paper will also explain how we would plan to accommodate the requirement for very urgent and/or emergency customer orders. It will also have a discussion on the potential problems that the company would anticipate by preventing from achieving a high level of 'On Time in Full' deliveries and the contingency plans that we may develop in order to overcome those problems.

Means of transportation are used to transport machines and living beings, so that it may carry the people and cargo to transport from one place to another. The division of transport is similar to the distribution of transport. The simplest means of transport includes internal and external transport. The vehicles through which the things and living beings can be moved are listed below:

External Transport

Land Transport

Rail vehicles

Motor vehicles

Single track vehicles (motorcycles, bicycles)

Water Transport

Inland

Marine

Air Transport

hovercraft

airplanes

Internal Transport

lifting equipment (cranes)

transport equipment (trucks and conveyors)

Discussion

The choice of means of transport must be carefully considered depending on the type of goods to be exported, the distance, the speed with which it is to reach its destination. The volume, weight and intrinsic value of the good should also be determined. The criterion for choosing the means of transport is based on the following three essential elements:

The cost, as a strategic variable export policy, which includes the price of freight and incidental expenses (costs of packing, loading and unloading, storage and insurance etc.).

Speed, it is seen in the light of the possibility of avoiding penalties for delays in the execution of contract or as a means to comply with the terms of a letter of credit;

Security, which is a key exporter to avoid the risk of having replaced damaged goods or to compromise a good brand image among foreign clients (Duval, 2007, pp. 1-10).

Modern courier service must perform one main task, express delivery of letters and documents. Express mail is primarily the speed of work; hence the delivery service uses several modes of transport, the choice of which depends on the situation. For delivery of express parcels, courier service can use the road, air, sea and rail transport. In some cases, the customer chooses the delivery method, each of which has its pros and cons. On the other hand, the use of motor vehicles by the ...