Transportation & warehousing

Prof:Sham Choughule

Indias Transport sector

Indias transport sector is large and diverse; it caters to the needs of 1.1 billion people. In 2007, the sector contributed about 5.5 percent to the nations GDP, with road transportation contributing the lions share. Transport is backbone of Logistics management

Transportation
Place utility Inventory is moved from one place to another by by transport system Therefore, Transport is a backbone of logistics Various mode of transport Transportation cost (40) is main factor in Logistics How Transportation cost can minimize ?

Principles of Transportation
1. Economy of scale
Bulk shipping brings down per unit transportation cost

2. Economy of distance Cost per unit kilometer decreases as the distance moved increases. Principles of transportation are fundamental in evaluating transportation strategies.

Transportation
Various mode of Transport Sea Coastal-Inland waterways-International Road State & national Highways Rail -Indian Railway Air- Domestic V/s International Pipeline Gas pipeline Electronic Software export

What is transportation mode:: Mode identifies transportation method or form

Transportation Modes

Road
Used by suppliers to deliver goods in a cost effective manner and best suited for short distances. Many transport companies have expertise for fast delivery, packaging etc. for making scheduled delivery.

Road Ways- Details

Road transport High flexibility and speed Ultimate mode of transport Low capital cost as compared to railways Operating costs are higher Ideal for small shipments over short distances Suitable door to door service

Road Ways- Details

Labor intensive
Occasional fuel shortages Availability of good quality vehicles Availability & cost of maintenance and spares Bad and unsafe road conditions

Carrier organizations and their disputes with government

Octroi Old MVA Restrictive permits

Road Ways - Connection

Rail Transport
Indian Railway have 10 zones CONCOR is carrying containers only Govt has issued 15 private companies to transport goods including containers Largest traffic handled by East Coast railway 9-10

Advancements to reduce Transportation Cost

Enclosed Tri-Level Automobile Car

Double Stack Containers

Air
Used mostly for delivery of high value and tow volume goods from distant suppliers, usually not connected by any other mode of Transportation. It is also suitable for emergent item to be imported for some specific requirement.

Water Ways- Details

Inland water Transport is not used to its full potential in India although we have used mechanized IWT since early 1800.

Main hurdles appear to be 1. 2. 3. 4. Low priority in policy Construction of dams Receding water levels in the rivers Tough competition by other modes

Pipelines - Details
Main features of this mode of transport Reliable all weather means of transport Low energy consumption Pipeline being under ground space occupation is minimal Pipe line operates all the time except when it is shut down for maintenance No empty container or wagon to be brought back

Highest fixed costs, right of way and laying of pipeline, and lowest operating costs
Not flexible by nature. Pipe lines are stationary

This mode of transport can release capacity of other modes for transport of essential commodities

Transportation policy
I. Mode Selection

Air - most expensive, but very fast Road - relatively quick and inexpensive, highly flexible Rail - An inexpensive mode for large quantities Water - the slowest but most economical for large overseas consignments Pipeline - primarily for oil and gas

WAREHOUSE
A warehouse is a commercial building for
storage of goods. Warehouses are used by manufacturers,importers, exporters, wholesal ers, transport businesses, customs The warehousing sector is another vital link in the logistics chain, one which is evolving at a rapid pace. Where once a big shed and a forklift was all that was needed

General view of warehouse

WMS
The primary purpose of a Warehouse Management System is to control the movement and storage of materials within a warehouse you might even describe it as the legs at the end-of-the line which automates the store, traffic and shipping management

Uses of Warehouses
Inbound Logistics to store raw material Out bound Logistics to store finish product

Ware House

WMS
WMS, is a key part of the supply chain and primarily aims to control the movement and storage of materials within a warehouse and process the associated transactions, including Receiving shipping, .

Types of warehouses
General warehouse Transit shed in port Customs bonded warehouse Ware houses near ports Tank form CFS-Cargo distribution centre Logistics park Cold store warehouses Warehouse & Free Trade zone

Case study
There were big orders from garment shops of London to Garment manufacturer of Coimbatore in India at time of X Mas It was difficult to them to supply garment from Coimbatore to UK via Kochin port No frequent shipping service & transit time is high more than 25 days How garment manufacturer can solve their problem ?

 Thanks Sham Choughule