SCM Presentation
SCM Presentation
SCM Presentation
MANAGEMENT
Mohammed Sufyan Rizvi
• Transportation is the main artery
of logistics and supply chain
management.
• Transportation means movement
of goods and persons from one
Introduction place to another.
• Transportation plays a significant
role in supply chain processes
because products are rarely
produced and consumed in the
same locations.
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Features of Transport
• Transport infrastructure is capital intensive
• Creation of transport infrastructure
requires time
• Involves huge cost
• Provide linkage between production and
consumption
• Effective use of energy is a critical aspect
of transport sector
Role of
Transport
• Widening of market
• Economies of large scale production
• Transport increases the economic efficiency
or
• resources
• Increases the mobility of labour and capital
Transport curbs monopoly of the traders
• Stability in prices
Modes
• Land Transport
• Water Transport
• Air Transport
Methods of Transport Pricing
`
• Cost based pricing
• Pricing method based on competition
• Distance based pricing
Challenges
• India's roads are congested and
of poor quality
• Rural areas have poor
• The railways are facing severe
capacity constraints
• Urban centres are severely
congested
• Ports are congested and
inefficient
THANK YOU
8
Transport Cost
Elements
• Tariff of transport mode
• Transit time cost
• Obsolescence cost
• Packaging cost
• Insurance cost
• Breakage
• Miscellaneous Cost