Transportation Management

  • David Frederick Ross


When asked to provide a definition of distribution, both the public and professionals alike will most likely structure their response around two functions: warehousing and transportation. As was discussed in the previous chapter, warehousing is concerned with the storage and handling of inventories. Warehousing provides value by satisfying marketplace time and place utilities. Transportation, on the other hand, is associated with the movement of product from one node in the supply channel network to another. This ability to provide purposeful movement of goods in the supply chain is fundamental in assisting companies achieve time and place utilities. No matter how sophisticated the warehouse system, if a product is not available at the specific time and place it is wanted, the firm risks lost sales, faltering customer satisfaction, and increased costs resulting from order expediting. Transportation attempts to solve this problem by ensuring that product is moved as efficiently and cost-effectively as is possible from the point of origin to the point of consumption. Basically, transportation creates value by changing the location of inventory. In this sense, to conceive of a “world-class” supply chain without an efficient transportation system to support it is clearly an impossibility. Transportation’s ability to create place utility by ensuring that product is available at the time the customer wants it defines a fundamental pillar in the search for competitive advantage.

Supplementary material

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Problem 13.1 (XLSX 13 kb)
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Problem 13.2 (XLSX 13 kb)
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Problem 13.3 (XLSX 13 kb)
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Problem 13.4 (XLSX 13 kb)
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Problem 13.5 (XLSX 13 kb)
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Problem 13.6 (XLSX 13 kb)
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Problem 13.7 (XLSX 14 kb)
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Problem 13.8 (XLSX 13 kb)
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Problem 13.9 (XLSX 14 kb)
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Problem 13.10 (XLSX 13 kb)
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Exercise 13-1-Shipping Cost (XLSX 9 kb)
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Exercise 13-2 Mode Selection (XLSX 15 kb)
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Exercise 13-3-Transportation Estimates (XLSX 15 kb)
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Exercise 13-2 Mode Selection original (XLSX 15 kb)
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Exercise 13-3 Transportation Estimates (XLSX 15 kb)
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Table 13.1 (XLSX 14 kb)
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Table 13.2 (XLSX 13 kb)
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Table 13.3 Volume and cost calculation (XLSX 13 kb)
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Table 13.4 Incoterms (XLSX 14 kb)
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Table 13.4 U.S. terms of sale (XLSX 13 kb)
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Table 13.8 Consolidation example (XLSX 13 kb)
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Table 13.9 Transportation Budget (XLSX 14 kb)
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Case Study-Answer (XLSX 5484 kb)
978-1-4899-7578-2_13_MOESM26_ESM.pptx (1.3 mb)
Chapter 13 (PPTX 1360 kb)


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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • David Frederick Ross
    • 1
  1. 1.APICSChicagoUSA

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