1、TransportationKXO325 Business LogisticsLecture 6.1Associate Professor Xin ShenAIEN Shanghai Ocean UniversityDr Luke MirowskiSchool of Engineering & ICTUniversity of TasmaniaOverviewWarehousingCustomer ServiceValue of LogisticsForecasting & InventoryLogistics Role in Economy & SCMMaterials & Transpor

2、tationProcurementEnterprise LogisticsGlobal LogisticsChannelsManufacturingQuality/StandardsFreight typesBulk cargo: Cargo that is stowed loose on transportation vehicles, a tank or hold without any packaging; handled by pump, scoop, conveyor or shovel. Ex: grain, coal, petroleum and chemicals.Break-

3、bulk cargo: Cargo in between bulk and containerised, that must be handled piece-by-piece by terminal workers; often stored in bags or boxes and stacked on pallets.Pallet: a small platform on which cartons of goods are stacked for handling in warehouses and transport vehiclesContainerized cargo: Carg

4、o filling an entire container that is handled as a single unitContainer: A single, rigid, sealed, reusable metal box in which freight is shipped by vessel, truck or rail. Usually 8x8 ft in width & height, 20 to 55 ft long. Some different container typesDunnage: Wood and packaging materials used to k

5、eep cargo in place inside a container or transportation vehicle.3ExampleTransportationThe actual, physical movement of goods and people between two points along the chainFive (5) general modes of transportation (to be considered soon): air, road, pipeline, rail and waterIndividual country topology,

6、economy, infrastructure and other macro environmental factors impact on different transportation systemsInfrastructure Statistics of Several CountriesBrazilChinaIndiaUnited KingdomUnited StatesAir1854178191Highway (paved)94,871 km1,447,682 km2,411,001 km387,674 km4,164,964 kmPipeline (oil)5,212 km14

7、,478 km5,613 km6,420 km244,620 kmBroad gauge (1.676 m) rail4,907 km-45,718 km460 km-Standard gauge (1.435 m) rail194 km71,898 km-16,814 km227,736 kmNarrow gauge (1.000 m) rail23,915 km-14,406 km-Water (inland)50,000 km123,964 km14,500 km3,200 km41,009 kmComparative AreaSlightly small than USSlightly

8、 smaller than the USSlightly more than 1/3 USSlightly smaller than US state of Oregon-Source: The World Factbook, , 2006.1Paved runways over 3,047 metres (Intl flights)Transportation InfluencesTransportation costs impacted by location of the firms plants, warehouses, vendors, customersInventory requ

9、irements impacts by transport mode: high speed/high priced suited to small inventories, low speed/low price suited to large inventoriesTransport mode impacts on packaging, and carriers dictate packaging choiceType of carrier impacts on manufacturing plants materials handling equipment for loading/un

10、loadingCustomer service goals influence type and quality of carrier, and carrier service selected by sellerThe Five Basic Transportation ModesEach of the five modes of transportation , each providing different attributes, and different benefitsCost (price that a carrier charges to transport a shipme

11、nt)Speed (elapsed transit time from pickup to delivery)Reliability (consistency of delivery)Capability (amount of different types of product that can be transported)Capacity (volume that can be carried at one time)Flexibility (ability to deliver the product to the customer)8Comparison of Transportat

12、ion Modes9FeatureMotorRailAirWaterPipelineCostModerateLowHighLowLowSpeedModerateSlowFastSlowSlowReliabilityHighModerateHighLow/ModerateHighCapabilityAll typesLow-moderate value, high densityHigh value, low moderate densityLow value, high densityLow value, high densityCapacity (tons)10-2550-12,0005-1

13、251,000-60,00030,000-2,500,000FlexibilityHighModerateLow/ModerateLowLowAirfreightSpeed is primary advantage imparted by airfreight on the line-haul (terminal-to-terminal movement of freight)Plane speed in excess of 965 km per hour far exceeding any other form of transportationTrade-off the speed wit

14、h cost along line-haul in addition, shippers and consignees generally not located near airports requiring additional transportation services supplemental to line-haul serviceFreight size limited usually by passenger airplane freight compartment (belly freight): standard passenger plans limited to 10

15、 to 60 tonneBest suited to high-value, low-volume products that are perishable in nature or require urgency10Example: cargo versus civilian planesCargo plane: Airbus A300 BelugaRange (40 ton payload) 2,799 KmRange (26 ton payload) 4,632Cargo volume 1,210 cubic metresCivilian: Boeing 747 Main deck: 6

16、05 cubic metres or 30 palletsLower deck: 159 cubic metresBulk cargo: 15 cubic metresSource: Source: Motor CarriersCoverage of highway systems critical factor impacting on economic development of countriesAbility to locate manufacturing, assembly and distribution facilities close proximity to highway

17、sMost important motor carrier are trucks Less than Truckload (LTL): 70kg to 4500kg do not quite fill a truck, generate load by combining many customer deliveriesOperate through Terminals, where freight is shifted between vehiclesTruckload (TL): Operate between terminals along line hauls to move bulk

18、 freightShipments greater than 4500kg12Motor Carriers Cont.Motor carriers limited by speed and hours-of-service (HOS) rulesLegislation for safety reasons e.g. fatigue risk managementAlso limited by weather (fog, snow, flooding, and high winds), highway congestion, roadway accidentsIntelligent transp

19、ort systems to avoid delays e.g. GPS or Performance Based Road SystemsPrimary advantage is flexibility: deliver the product directly to the customerExample: Road TrainsRoad train used to move freight efficiently using trucksPulls two or more trailers: b-double, b-triple, AB-triples, BAB-quads etcAus

20、tralia has largest and heaviest road-legal vehicle: 200 tonnesSource: .auPipelinesUnique transportation mode as it does not require expert human vehicle operator i.e. pilot or driver (and associated salaries, strikes)Benefits include no vehicle-related disruptions (such as accidents), and unaffected

21、 by weatherSlow speed, requires forcing product down the pipeline, increased transit timeLiquid or liquefiable, gaseous in nature productsCostly to construct (high fixed cost), fixed cost spread over large capacities, therefore low transportation cost per unit15Example: Habshan-Fujairah Oil Pipeline

22、Oil pipeline in United Arab Emirates (UAE), from Habshan onshore field in Abu Dhabi to Fujairah on Gulf of OmanIncrease security of supply and reduce oil transportation through Straits of HormuzOperational since June 2012360 km long, 1.5 million barrels oil per dayCost $3.3 billion to buildSource: S

23、ource: ecssr.ac.aeRailroadsInfrastructure usually controlled by a few operators in a country limited competitionApparent trade-offsPotential to transport many different products (capability) but have tended to focus on low-value, high volume goodsPossesses less flexibility that motor carriers, unles

24、s customer located on rail line, but more flexible then air, water or pipelineVolume is superior (capacity) compare to air and motor, but not as good as pipeline or waterIn the middle of all modes in terms of cost and speed17WaterVarious vessel types: freighters (oceangoing vessels) through to barge

25、s (inland)Inland waterwaysWater level requirements e.g. drought, dredging, flooding? Impacts on inventory levelsSlow average speeds, direction of trafficRelatively inexpensive: on a ton-mile basis, trucks are 20 times more expensivePetroleum, coal, grain, forestry: transported on barge vessels18Exam

26、ple: Cargo Ship versus BargeCargo ship: MV Colombo ExpressOne of the largest container ships in the worldHolds 8,749 Twenty-Foot Equivalent Units (TEUs)Width 43m, 93,750 tonnageDry bulk cargo bargeDesigned to carry freight such as coal, finished steel, grain, sand, gravelSource: Source: Multimodal &

27、 Intermodal TransportMultiple modes are used to transport a shipment from origin to destinationIntermodal transport is when two or more modes work closely together to utilise the advantages of each mode whilst minimising their disadvantagesThe container is the key development in intermodal transport

28、ation over past 30 yearsMoved between water, rail and truckTwenty Foot Equivalent (TEU): volumes of intermodal traffic expressed in TEUs (how many TEUs can it transport)Example: Hongqiao Transportation HubHongqiao transportation hub, includes airport and high-speed railways, metro railway and transp

29、ort links to highways 26 square km, transfers 1.1 million passengers dailyOver 10,000 people switching between flights and high-speed trains each day (10% of airports traffic)More info: (Reviewed Again) Comparison of Transportation Modes Tradeoffs in Selection22FeatureMotorRailAirWaterPipelineCostMo

30、derateLowHighLowLowSpeedModerateSlowFastSlowSlowReliabilityHighModerateHighLow/ModerateHighCapabilityAll typesLow-moderate value, high densityHigh value, low moderate densityLow value, high densityLow value, high densityCapacity (tons)10-2550-12,0005-1251,000-60,00030,000-2,500,000FlexibilityHighMod

31、erateLow/ModerateLowLowExample 1: US International Distribution Shipping Options23LandbridgeMinilandbridgeAll-waterRailRailMicrobridgeTruck/railLandbridgeAll-waterSource: Adapted from David L. Anderson, “International Logistics Strategies for the Eighties,” Proceedings of the Twenty-Second Annual Co

32、nference of the National Council of Phyisical Distribution Management, 1984, p. 363. Used by permission of the Council of Logistics Management.Example 2: Australian International Distribution Shipping Options24Transportation SpecialistsFreight forwards: give volume discounts to customers shipping la

33、rge quantities of freight at one time by consolidating small individual ordersShipper associations: same as freight forward but generally not for profit e.g. association of firms in same industry cooperating to improve transportation (cost savings for members)Brokers: look to secure best transportat

34、ion rate available for shippers, while attempting to ensure carriers operate as close to maximum capacityTransportation CostsTransportation absorbs on average a higher percentage of logistics costs than any other logistics activitySo far considered mode selection, however, carrier routing and vehicl

35、e scheduling are also major factors (4.2)Prior to these issues, we need to consider perceptions around transportation costs and inventory costs (i.e. total cost of transportation)Transport Service SelectionTransit time (speed) and transit time variability (dependability) are key factors for service

36、choice followed by costBest service is found by trading off cost of transport service with indirect cost of inventory associated with performance of the selected modeSpeed and dependability affect both shipper and buyer inventory levels (order quantity stock, safety stock, transit stock)Slower or le

37、ss reliable transport services increase inventory and hence inventory costsGiven alternative transport modes, the one that offers lowest total cost consistent with customer service objectives should be selectedExample Which mode minimises total costTransport Service(R)ate,$/UnitDoor-to-DoorTransit T

38、ime, DaysNo. of Shipments per yearRail0.102110Piggyback0.151420Truck0.20520Air1.40240East Coast PlantWest Coast PlantCurrently using railT = 21 daysTransit Inventory = ?Plant Inventory = 100,000 unitsField Inventory = 100,000 unitsC=$30 per unitInventory carrying costs are I = 30% of unit inventory value per yearD=700,000 units sold per year out of West Coast WarehouseTransport Choice Evaluation Based On CostsCost TypeMethod of co