What is also essential for sustainable development and ensuring

What is
transportation planning?

Transport
planning the planning of operation, provision and the managing of facilities
and services for the modes of transport to achieve for a reliable, quicker,
comfortable, convenient, cheaper and environment-friendly movement of people,
goods and provision of services. It helps predict of the usage that would be of
demand in future travel needs and ensuring all the necessary facilities and
services are able to cater to that demand ensuring that goods and services are able
to reach consumers in time. Transport planning is highly necessary in shaping
cities, enabling economic activities, promoting community interaction, and
ultimately enhancing quality of life. It is also essential for sustainable
development and ensuring safe accessibility at various levels for all
individuals involved in the supply chain. The global movement of freight is
facilitated and run by a complex system of transportation networks, companies,
and government agencies thus global freight transport is a key component in the
trade of goods and materials, but it can also have significant environmental
and economic impacts as the global trade moves up to trillions of dollars of
merchandise every year and thus drives production and improves the employment
rate as well as international political conditions.

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Why is
transportation planning important?

Transportation
planning is an important aspect of global freight movement because it can
determine how quickly a good can arrive and be processed through our ports and
borders. Without a plan, managers are set up to encounter errors, waste, and
delays. A plan, on the other hand, helps a manager organize resources and
activities efficiently and effectively to achieve goals. In the case of
logistics, to achieve efficient and effective freight flow, especially in the
movement of products around the world, proper and thorough planning must be made by global transportation
managers in order to ensure the movement of freight in a timely, secure, and
economical manner. Firstly, orders must be sorted out properly, packed and
prepped for shipping. Then shipments must be prepared for export-appropriate
trade terms selected, insurance obtained, payment terms specified, and
documents accurately completed. Finally, suitable plans and choices regarding
modes, carriers and routes must be made. Only then should the freight owner
begin to execute the global movement of goods.

 

Most of the
responsibility and cost in the process of freight transportation if not all,
comes from the exporter himself. For example, Free on board (FOB) refers to the
mode of shipment in which the exporter delivers the goods at a specific place.
Expenses paid by the exporter include load, lash, secure and stow the cargo,
including securing cargo to be held stationary, guarding the cargo from making
contact with the double bottom to prevent slippage, and protection against
damage from water from condensation. This term also means that where the
responsibility of shipper ends and that of buyer starts. The exporter is bound
to deliver the goods at his cost and expense. In this case, the freight and
other expenses for outbound traffic are borne by the importer. Therefore,
without prior proper planning, it is easy to make a huge loss on the part of
the exporter due to unforeseen circumstances, especially if the cargo is not
properly insured. Additionally, in an event where the buyer does not receive
his shipment, he is bound to have a bad impression of the seller, leaving the
company’s image tarnished and possibly being shunned by potential customers.

 

Types
of planning

There
are three types of planning that must be done. They are mode, carrier, and
route.

 

Mode

The
selection of a mode of transportation or service offering depends on a variety
of service characteristics, ranging from speed, time of delivery, and inventory
carried. According to multiple surveys that rank transport service
characteristics, which shows that, except for cost, speed and dependability are
the most important factors. Therefore cost of service, average transit time
(speed), and transit-time variability (dependability) can serve as the basis
for transportation modal selection.

 

Carrier

Common
carrier –
common carriage is predicated primarily on the protection factor. Since these
carriers agree to serve the entire shipping public, the law imposes flexible
regulations on their operations, penalties are levied for non-compliance. By
selecting common carriage, shippers know that they will receive maximum
protection and that they are backed by the regulatory agencies. They also know
that the rate they pay are non-discriminatory. Common carriers also agree to
post and observe scheduled operations thus provides security for companies.

Contract
Carrier (Motor, Water and Air) – Contract carriage offers some attractive
advantages as well. For a firm that moves products, which are unique or require
special equipment or handling, contract carriage is the right choice. Examples
include movements of highly fragile items, products with a short shelf life, high
unit value items, refrigerated products and products requiring extensive
protective services. Contract carriage provides tailor-made equipment to move
these products, designed almost exclusively for the use a particular shipper.

 

Private
Carrier (Ownership, Leasing, or Combination all modes of transportation) –
To
enhance the feasibility of a private carriage, volume traffic is a must,
whether it is inbound raw materials or outbound finished goods. A balance
traffic flow is desirable, i.e., goods move to and from the plant in relatively
equal amounts. Customer or market concentration is needed in order to obtain
volume shipments and equipment utilization. If transportation costs are
relatively significant, considerable savings can accrue from private carriage.
Finally, if high customer service standards are demanded and other carriers are
unable to meet these demands, private carriage is a viable option.

 

Route

A
Route Plan is the most efficient plan to serve a number of orders. Route planning can be defined as a method of computing
the most cost-effective route involving several nodes/stopovers by minimizing
the distance travelled and time taken or the number of stopovers. With the said
method of computation, it benefits to improves acceleration the supply chain
activity, as it also collaborates with the effectivity and savings on
transportation and logistics.