Transportation

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Transportation is normally the largest part of the total physical distribution cost. Transportation costs are high and are being driven higher still by the soaring expense of fuel and inflation. However, cost should not be the only factor in selecting the mode of transportation. For example, a traffic manager who selects railroad transportation because it is cheap may thereby incur additional warehouse and distribution expenses, thus increasing the total cost. These days there are so many variables involved in transportation that a computer is essential to help the traffic manager make wise decisions.

Besides cost, several other factors should be considered. Speed of delivery: How fast will it get to the user? Flexibility: Will it reach the user directly or will other modes of transportation also be required? Bulk size of shipment: Which mode of transportation is best suited for the bulk size of the product? Speed of delivery is especially important for time sensitive items such as perishable fruits and vegetables, cut flowers, periodicals, and livestock or pets, while bulk size is a major concern in transporting coal, sand, grain, or other similar commodities.

Basic Types of Carriers

Carriers can be classified legally as common, contract, or private. Common carriers offer regular services to the general public. They haul the vast majority of small shipments in the United States, and will carry just about anything along specified routes. Common instyler carriers include airlines, railroads, trucklines, and buses. In the early 1980s, the airlines and trucklines became deregulated, but only after a long history of heavy government regulations on rates.