Wednesday, April 17, 2013

3 WAY OF TRANSPORT FOR LOGISTICS

Trucks, Planes, Boats, Trains – How Will Your Goods be
Delivered?

lmAs supply chains continue to grow globally and customers expect their logistics operations to be managed as cheaply, efficiently and quickly as possible, there is constant discussion regarding which modes of transportation to use.
Choosing a mode (or modes) of transportation is like solving an intricate puzzle – there is no “one size fits all” answer and timing is everything.  Factors such as fuel costs, speed, response time environmental concerns and inventory dictate the preferred mode of transportation on a case by case basis.  For example, ships are cheaper but take longer.  Vessel sharing and route optimization have extended transit times.  Air is extremely expensive and only allows you to move small volume but is the fastest way to move critical shipments.  Trucks can be extremely expensive, particularly in the wake of rising fuel prices and demand, but oftentimes trucks are the only option.  Railways, though historically a logistics nightmare because of unreliability and lack of customer service, are experiencing a resurgence as large companies begin to rely on trains and their fuel efficiency to move products across the United States.  

Selecting a mode of transport is a balancing act that comes with experience and a true, in-depth understanding of a client’s business goals.  For example, if cost is the predominant factor for a client, timing may take a backseat to the cheapest option.  If a constant flow of goods is paramount, inclement weather may force a last minute change in transportation methods to ensure on-time delivery.  A transportation logistics provider who understands the client’s business and has the experience to maneuver through bottlenecks, is the key a successful relationship

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