1 Supply Chain Logistics Management Transportation Operations 2 (S Supplier, P Plant, W Warehouse, C Customer) C C S C C S P C P C C C W S W C C C S C S P C C C C C C P W C C C 3
Transportation Economics Pricing
Transportation Administration
Transportation Documentation
4
Transportation Economics Pricing
Economic Drivers
Cost Allocation
Carrier Pricing Strategies
Transportation Rates and Ratings
Transportation Administration
Transportation Documentation
5
Transportation Economics Pricing
Economic Drivers
Distance
Weight
Density
Stowability
Handling
Liability
Market
Cost Allocation
Carrier Pricing Strategies
Transportation Rates and Ratings
Transportation Administration
Transportation Documentation
6 Transportation Economies of ScaleThe more items (weight) is transported, the less the transportation costs per item (unit of weight) 100/book Transportation Cost per Book .10/book 1 1000 Number of Books in Shipment 7 Transportation Economies of DistanceTapering PrincipleThe greater the distance, the less the transportation costs per unit of weight (e.g., per lb) .10/lb Transportation Cost .05/lb Tapering Principle 50/lb 1 mile 500 miles 1000 miles Shipment Distance 8 Relationship between Product Density Transportation Cost/lbThe more dense (combination of weight volume) the products are that are being transported, the less the transportation costs per item 100/item Transportation Cost per Item .10/item 1 1000 Density of Products in Shipment 9
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