MOSHI CO-OPERATIVE UNIVERSITY (MoCU)

FACULTY: FBIS

PROGRAM: DBEM (SECOND YEAR)

COURSE ANTE: PSM 076

COURSE NAME: PRINCIPLES OF SUPPLY CHAIN MANAGEMENT

COURSE INSTRUCTOR: MS KAJANA .S.

STUDENT'S NAME: IVO CRISPIN SAPULI

REGISTRATION NUMBER: MoCU/DBEM/069/22

SUBMISSION DATE:

NATURE OF WORK: INDIVIDUAL ASSIGNMENT

QUESTION 1

a) What is transportation? discuss various modes of transportation giving detailed examples of each mode
discussed.

b) Why each mode of transportation is preferred and at what circumstances is one favored than the other.

THE DEFINITIONS OF TRANSPORTATION

Transportation in supply chain refers to the movement of product from one location to another as it makes
its way from the beginning of a supply chain to the customer.

Finding the best transportation mode (e.g., water, rail, air, road), designing the transportation network,
finding the shortest routes with the lowest costs to deliver the products to destinations as well as scheduling
the movements of trucks to deliver the packages on time, are some of the decisions that are being made in
transportation management.

Definitions of transportation according to different Authors

According to “Supply Chain Logistics Management” by Bowersox et al. (2013) :-

Transportation refers to the movement of raw materials, work-in-processes, and final products from one
location to another in the supply chain. It has a significant role in logistics and supply chain management.

According to “Supply Chain Management: A Logistics Perspective” (10th edition) :-

Transportation in the supply chain refers to moving products from the point of origin to the point of
consumption.

According to “Transportation Management” by David Kramberger :-

Transportation refers to the moving of people, animals, and other goods from one place to another, and
means of transport refers to the transport facilities used to carry people or cargo according to the chosen
mode. Examples of the means of transport include airplane, ship, truck, and train.

MODES OF TRANSPORTATION

Road Transport: Involves the use of cars, buses, trucks, motorcycles, bicycles, and other vehicles for moving
on road networks. It’s the most common mode for short to medium distances and offers flexibility and door-
to-door service.

Advantages of Road Mode of Transport

- Its nature is quite flexible.

- It aids in making it easier for commodities to move even in isolated places.

Disadvantages of Road Mode of Transport

- Due of its high cost, it is not appropriate for long distances.

- Compared to trains, it is slow.

- Because of pollution and dust flecks, goods can be damaged or destroyed.

Rail Transport: Includes passenger trains, subways/metros, and freight trains. Railways are efficient for long-
distance travel and bulk freight movement, offering speed, capacity, and energy efficiency.

Advantages of Railways Mode of Transportation

- It can readily cover the entire area of states and cities, making it inexpensive for vast distances.

- This mode of transportation is much faster than using the roads.

- The best choice for transporting heavy objects and merchandise.

- It offers adequate defence against exposure to dust and sun pollution.

Disadvantages of Railways Mode of Transportation

- Large amounts of money are needed for building maintenance.

- Hilly locations are not good for it.

- It is rigid in character.

- The main drawbacks of rail transportation are the expense and length of terminal operations.

Pipelines: Used mainly for transporting liquids and gases like oil, natural gas, and water. Pipelines provide a
safe and efficient transport method for these materials over long distances.

Pipelines mode of transportation is preferred for the transport of large volumes of liquid or gaseous
substances over long distances due to several advantages. Firstly, pipelines offer a more direct and efficient
means of transportation compared to other modes such as rail or road transport. The absence of loading and
unloading processes in pipelines reduces the time and labor costs involved in transportation.
Water Transport: Sea/ocean waterways; Uses ships to transport goods and people across seas and oceans.
Ideal for international trade, it can handle large volumes of goods, including bulky and heavy cargo. Inland
Waterways; Involves the use of rivers, canals, and lakes for transporting goods and passengers. This includes
barges, ferries, and small boats, suitable for areas where waterways are navigable and well-connected.

Advantages of Water Mode of Transportation

- It is the simplest or most affordable mode of transportation.

- Bulk goods are conveyed.

- It encourages foreign or global trade.

- It can readily transport a sizable amount of cargo, including coal and wood.

Disadvantages of Water Mode of Transportation

-The delay in the transfer of commodities from one location to another is one of the downsides.

- Seasonal differences influence performance.

- Due to the fact that it can only operate on seas or oceans, its operational range is constrained.

Air Transportation: Aeroplanes; Used for both passenger and cargo transportation. Air travel is the fastest
mode of transport, ideal for long-distance travel and high-value, time-sensitive goods. Helicopters; Useful for
short-distance travel, especially in areas without airport facilities. Helicopters are often used for specialized
operations like rescue missions, medical emergencies, and aerial surveys.

Advantages of Air Mode of Transportation

- most rapid mode of transportation.

- Useful for moving the bulk of the goods.

- Every location is accessible.

- essential to defence and national security.

- really beneficial during earthquakes and other floods.

disadvantage of Air Mode of Transportation

- the significant capital outlay required.

- Insufficient for working products.

- Possibly impacted by rain.

- Accident risks are greatest.

Other Modes of transportation are :-

Space Transport: Involves the use of spacecraft to transport people or cargo into space. This is a highly
specialized mode, primarily used for scientific, military, and commercial purposes.

Intermodal Transport: The use of two or more modes of transport to move passengers or freight. For
example, containerized cargo might be moved by ship, then by rail, and finally by truck to its destination.

Therefore;

Each transport mode has its own infrastructure, vehicles, and operations, and they often work together to
form a comprehensive transportation network. The choice of transport mode depends on factors like
distance, cost, speed, capacity, environmental impact, and the nature of what’s being transported.

The following is why each mode of transportation is preferred and at what circumstances is one favored
than the other.

Road Transportation

Flexibility and Accessibility: One of the primary reasons road transportation is preferred is its flexibility and
accessibility. Roads provide connectivity to even the most remote areas, allowing for door-to-door delivery
services and easy access to various locations.

Cost-Effectiveness: Road transportation can be more cost-effective for short to medium distances compared
to other modes like air or rail. It is often more economical for transporting goods over shorter distances or in
cases where the volume of goods does not justify the cost of other modes.
Speed and Timeliness: Road transportation offers faster transit times, especially for short distances. This
speed can be crucial for perishable goods or time-sensitive deliveries where immediate transport is
necessary.

Railway Transportation

Long-Distance Transport: Rail transport is particularly favored for long-distance hauls where the efficiency
and cost-effectiveness of trains shine. Moving goods or passengers over hundreds or thousands of miles can
be done more efficiently by rail.

Bulk Cargo Movement: When large quantities of goods need to be transported, such as raw materials, coal,
grains, or automobiles, railways offer the capacity to move these bulk cargoes economically.

Urban Congestion Relief: In urban areas with heavy road traffic congestion, shifting some freight or passenger
traffic to railways can help alleviate congestion on roads and highways, improving overall transportation
efficiency.

Air Transportation

Long-Distance Travel: Air transportation is favored over other modes like road or rail when covering vast
distances, especially when time constraints are a factor.

International Travel: For international journeys that require crossing borders or oceans, air travel is often the
most practical and efficient option available.

Emergency Situations: During emergencies such as medical crises or natural disasters, air transportation
provides rapid response capabilities for transporting aid personnel and supplies to affected areas swiftly.

Water Transportation

Cost-Effectiveness:

One of the primary reasons water transportation is favored is its cost-effectiveness. Shipping goods via
waterways is often more economical compared to air or road transport, especially for bulky or heavy cargo.
The ability to transport large quantities of goods in a single journey helps reduce the overall cost per unit.
Capacity and Efficiency:

Water transportation also excels in terms of capacity and efficiency. Ships have a high carrying capacity,
allowing them to transport large volumes of goods in one go. This efficiency becomes particularly
advantageous when moving goods over long distances where water transport can outperform other modes
in terms of energy consumption per ton-mile.

Suitability for Certain Goods:

Certain types of cargo are better suited for transportation via waterways. Bulk commodities such as coal,
grains, ores, and petroleum products are commonly transported by ships due to their volume and weight.
Additionally, oversized items like machinery or equipment that may be challenging to transport by road or air
can be efficiently moved through water transport.

Pipelines Transportation

Transportation of large volumes of liquids or gases over long distances: Pipelines are ideal for transporting
large quantities of substances over long distances due to their efficiency and cost-effectiveness.

Transportation of hazardous materials: Pipelines offer greater safety and reliability compared to other modes
for transporting hazardous materials due to their ability to carry large volumes at once and their multiple
safety features.

Transportation in remote areas: Pipelines can be built in remote areas where access by other modes of
transportation is limited or difficult.

Therefore;

Choosing the right transportation mode for your logistics needs should not be a one-size-fits-all decision.
Several factors should influence your choice as seen above.

REFERENCES
Bowersox, D.J., D.J. Closs, M.B. Cooper, and J.C. Bowersox. 2013. Supply Chain Logistics Management. 4th ed.
New York, NY: McGraw-Hill.

Brealey, R.A., S.C. Myers, and F. Allen. 2017. Principles of Corporate Finance. 12th ed. New York, NY:
McGraw-Hill.

Chea, A. 2011. “Activity-Based Costing System in the Service Sector: A Strategic Approach for Enhancing
Managerial Decision Making and Competitiveness.” International Journal of Business and Management 6,
no.11, pp. 3–10.

Cooper, R., and R.S. Kaplan, 1988. “Measure Costs Right: Make the Right Decisions.” Harvard Business Review
66, no. 5, pp. 96–103.

Coyle, J.C., C.J. Langley, Jr., R.A. Novack, and B.J. Gibson. 2017. Supply Chain Management: A Logistics
Perspective. 10th ed.