The Role of Transport within the Supply Chain

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What is the role of Transport within the Supply Chain? Transport plays a critical role in the supply chain and according to Bhattacharya et al. (2014) it is becoming one of the key components of the whole supply chain valuation for many organizations. Transportation is the movement of good from one location to another. Supply chain is a network of individuals, organizations, activities, resources and technology that is involved in formation and sale of a product, which is from the delivery of source materials from the supplier to the manufacturer, through to the end user. Hopkins (2007) states that supply chain professionals look at whole business procedures, which is from raw materials to manufacturing, wholesaling and retailing. And by using specialist software, the supply chain professionals can investigate how a business can save money and become more efficient, this includes selecting transport. According to Horsley (1993) transport represents 36% of total distribution costs while 64% of cost is spent by other elements in the supply chain, but these days it transport should represent more than 36%. There are 5 types of transportation, these transportation includes; road transport, rail transport, sea transport, air transport and pipeline. Road Transport Trucks can travel from one country to another, and nearly everywhere within a country. Bhattacharya et al. (2014) states that road freight is very competitive, packaging cost can be kept to a minimum, has a high flexibility in scheduling. According to Lynn (nd) says that road based freight has increased significantly over the years in the distribution channel, they are great for small, frequent shipments that requires follow-up or expediting. But it leads to overuse of ... ... middle of paper ... ...no.5, pp.30-38. Niam, M, Potter, A, Mason, R & Bateman, N 2006, ‘The role of transport flexibility in logistics provision’, The International Journal of Logistics Management, vol. 17, no. 3, pp. 297 – 311. Coyle, J, Novack, R, Gibson, B & Badi, E, 2011, Transportation: A Supply Chain Perspective, 7th ed, South Western Cengage Learning, Mason, USA. Waggner, B & Alderdice, A 2006, ‘Manageing the distribution channel: the case of Scot Trout and Salmon’, Supply Chain Management: An International Journal, vol.11, no. 2, pp.104 – 107. Harrison, A, Fichtiner, J 2013) ‘Managing variability in Ocean Shipping’, The International Journal of Logistics management, vol. 24, no. 1, pp. 7 -21. Mason, R & Nair, R 2013, ‘Supply-side strategic flexibility capabilities in container liner shipping’, The International Journal of Logistics Management, vol.24, no.1, pp. 22-48.

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