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means of conveyance or travel (of goods and services) from one place to another.

Today in the country we have a wide variety

of modes of transport by land, water and air.

Indias transport sector is large and

diverse, it caters to the needs of 1.1 5billion people. Since the early 1990s, India's growing economy has witnessed a rise in demand for transport infrastructure and services.

The nation has just 13 million cars on its

roads which is just over 1% of the countrys population. In addition only 10% of the Indian households own a motorcycle. In India, public transport still remains the primary mode of transport. Indian railways is the largest and fourth most heavily utilized system in the world.

Transportation and Supply Chain Links

Supply Chain Consideration
Inbound Network Distribution Network


Production Center

Distribution Center Transportation Consideration


Infr astructure


Logistics operation environment

Airports, rail, ports, roads

Warehouse depots

Fleet size and composition



Source: Chatterjee (2000).

History of transportation

Modes of Transportation
0 Motor

0 Air
0 Rail 0 Water 0 Pipeline 0 Intermodal

Walking Palanquin Bullock carts and horse carriages Bicycles Hand-pulled rickshaws Cycle rickshaws Trams

Modern transportation
These are the major means of transportation now a days:
Railways Road ways Air ways Water ways

Indian Railways is one of the largest

railways under single management. The trains were introduced by the British in 1853. The Indian railways improved a lot from then on to become the one of the longest railway networks in the world.

0 Average revenue / ton-mile (1996) = 2.5 cents 0 Average haul = 720 miles 0 Average load = 80 tons 0 Key issues: 0 Scheduling to minimize delays / improve service 0 Off-track delays (at pickup and delivery end) 0 Yard operations 0 Variability of delivery times

0 Lowest overall cost per

unit weight 0 Consistent time schedule 0 Recommended with most commodity types 0 Weather

0 Inflexibility 0 Potential damage of

goods 0 Ineffective with small shipments

Road transport
The total length of surfaced road in India is

around 5,50,000 km. They carry almost 90 percent of the countrys passenger traffic and 65 percent of its freight. Road network of India is the largest road networks(3.314 million kilometers ) in the world. India's road network consists of national highways, state highways, district roads and village roads.

Road transportation
0 1970s economic deregulation of interstate traffic 0 Lower costs

0 Accessibility
0 Small, frequent shipments

0 Speed 0 Capacity 0 Range

Type of Road Expressways National Highways State Highways Major District Roads Rural and Other Roads Total Length Length 200 km (120 mi) 66,590 km (41,380 mi) 131,899 km (81,958 mi) 467,763 km (290,654 mi) 2,650,000 km (1,650,000 mi) 3,300,000 km (2,050,000 mi) (Approx)

Air transportation
There are many airlines which are operating in

India. Aircraft and plays a major role in connecting India with the rest of the world. There are almost 220 airports in India .these include all types of airports. Out of which 27 are international airports. Others include domestic airports, air force based airports and etc

0 Premium transportation

0 Speed delivery
0 Range

0 Price 0 Non-direct points 0 Add-on charges

0 Necessary?

Water and sea transportation

Coastline Ports Maritime transportation Navigable waterways

Ships can take:Large volumes Long distances Slower than air travel Limited access

National waterways.
Allahabad Saidiya Kollam Bhadrachalam Mangalgadi

0 Transport of homogeneous

materials 0 Lower transportation costs than other modes 0 Higher initial costs 0 Unable to transport a variety of materials

Intermodal transportation
0 Use of more than one mode of transportation to move

a shipment to its destination 0 Most common example: rail/truck 0 Also water/rail/truck or water/truck 0 Grown considerably with increased use of containers 0 Increased global trade has also increased use of intermodal transportation 0 More convenient for shippers (one entity provides the complete service) 0 Key issue involves the exchange of information to facilitate transfer between different transport modes

Transportation decision
0 Economic factor

0 Shipper factor
0 Carrier factor 0 Alternative pricing strategies

Factors Affecting Transportation Decisions

0 Carrier (party that moves or transports the product) 0 Vehicle-related cost 0 Fixed operating cost 0 Trip-related cost 0 Shipper (party that requires the movement of the

product between two points in the supply chain)

0 Transportation cost 0 Inventory cost 0 Facility cost

Transportation network (routing and scheduling)

Direct shipment network Direct shipping with milk runs Direct shipment via distribution centre

Risk Management in Transportation

0 Three main risks to be considered in transportation are: 0 Risk that the shipment is delayed 0 Risk of disruptions 0 Risk of hazardous material 0 Risk mitigation strategies: 0 Decrease the probability of disruptions 0 Alternative routings 0 In case of hazardous materials the use of modified containers, low-risk transportation models, modification of physical and chemical properties can prove to be effective


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