Posted in Operations and Supply Chain Terms, Total Reads: 393
Definition: Transportation Mode
It refers to the different ways in which people, goods and information can be moved from one place to another. It includes land, water and air transportation. The various kind of transportation modes are rail, road, ship and aviation. But other transportation media also exist i.e. pipelines, optical fiber, cable etc.
Each transportation mode has its own characteristics, benefits, technical requirements and risks involved. The choice of transportation system depends upon need of customer. Often inter-modal transportation is used in order to reach to the customer. E.g. In steel industry, coils are transported in large quantity to railway yards via rail, and then they are moved to stockyards via road, after which they are delivered to customers via road in small quantity. Inter country transportation of goods takes place via sea route using ships.
The various KPIs for evaluation of transportation mode depend upon cost, quantity, quality, safety, time, accessibility, frequency etc. Cost often determines choice of transportation mode. Each transportation mode requires its own infrastructure that includes network, terminals, vehicles, containers, information systems etc. Different transportation modes also require different kind of skill sets for workforce and training accordingly.