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Transoprtation in B2B

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Transoprtation in B2B
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   Definition Transportation refers to the movement of goods from one location to another as it makes its way from the beginning of a supply chain to the customer’s hand   Shipper  - The party that requires the movement of the product between two points in supply chain Carrier    –  The party that moves or transports the product . Transportation  Factors affecting Carrier Decisions 1.Vehicle related cost 2.Fixed operating cost 3.Trip related cost 4.Quantity related cost 5.Over head cost Factors affecting Shippers decision 1.Transportation cost 2.Inventory cost 3.Facility cost 4.Processing cost 5.Service level cost Transportation  The key components of Transportation decisions are: 1.Mode of Transportation   –  Speed, Cost, Size and Flexibility 2.Route and network selection   –  Direct shipment, Milk run, Central DC, Tailored Transportation 3. In-house or Outsource   –   Purchase versus Leased versus Vendor’s vehicle 4. Trade off  - Responsiveness versus Efficiency  –  Cost versus Speed Key Components of Transportation
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