ADDI

SABABAUNI
VERSI
TY

SCHOOLOFCOMMERCE

MARKETI
NGCHANNEL&LOGISTI
CSMANAGEMENT
I
NDI
VIDUALASSI
GNMENT

NAME I
DNUMBER SECTI
ON

HI
WOTBEKELE BEE/
6795/
13 E4MM3

SUBMI
TTEDTO:
-INSTRUCTORABDULSHI
KUR.
N
SUBMI
TTI
ONDATE:-MAY/31/
2024

1
Whati
sModeofTr
anspor
tat
ion?

Modeoftr
ansport
ati
onref
erst
ot hedi
ff
erentmet
hodsusedt
omov epeople
orgoodsf
rom oneplacet
oanother
.Thefivemaj
ormodesoftr
anspor
tat
ion
ar
e:

1.Road
2.Rai
l
3.Water
4.Ai
r
5.Pi
peli
ne

Fi
veMaj
orModesofTr
anspor
tat
ion:Adv
ant
agesandDi
sadv
ant
ages

1.Road:i sthe mostwi del

yused mode oft r
ansportand used atleast
somewherei nalmostallsupplychain.Thi
st r
anspor
tati
onhasexpanded
rapi
dlysi
ncetheendofthesecondwor l
dwartoasignif
icantdegr
eetherapid
growthofthemotorcar
rierindust
ryf
rom fl
exi
bil
i
tyordoort odooroper
ati
on
andspeedint
ensit
ymovement .

•Advant
ages: Fl
exi
bil
i
ty, door
-t
o-door deli
ver
y, cost
-eff
ecti
ve f
or shor
t
dist
ances
•Disadvant
ages:
Traf
fi
ccongesti
on,pol
lut
ion,weat
herdelays

2.Rail:isthemov ementofpassengersandgoodsbyt r
ainsonanet workof
rai
l
way s.Iti
sav i
talmodeoft r
ansport
ati
oninmanycount ri
esar oundthe
world.Theyar ealmostinv
ari
ablypubli
ccarri
ersrat
herthanpr i
vatecarri
ers.
Thispubl i
cservi
cei snotnati
onali
zed,i
tisallowedamonopol y
.Itismost
commonl yusedforheav
yandbulkyloadsoverlongl
andjourneys.

•Advant
ages:
Energy
-ef
fi
cient
,cost
-ef
fect
iveforl
ongdi
stances,hi
ghcapaci
ty
•Di
sadvant
ages:
Lessfl
exibl
e,sl
owerthanairorr
oad,l
i
mi t
edreach

3.Wat er
:themovementofpassenger sandgoodsbywat er.
Itistheoldestmodeoftransport
.Theor igi
nalsail
i
ngvesselswererepl
aced
bysteam botsint
heearly1800'sanddi eselpowerin1920'
s.Adisti
ncti
onis
generall
ymadebet weendeepwat erandnav igabl
einl
andwat ertr
ansport
.

2
Domesti
cwat
erinvol
vest
hegr
eatl
ake,canalandnav
igabl
eri
ver
.Ital
so
knownasmar
it
ime.

•Adv antages:Cost-
eff
ecti
vef orbulkgoods,globalr
each,env
ironment
all
y
fr
iendly
•Disadvantages:
Slow,weatherdel
ays,l
i
mitedaccesstoinl
andar
eas

4.Ai r
:isthemovementofpassengersandgoodsbyAi
rcr
aft
.Iti
sthenewest
,
fastest,mostglamorous,conveni
entandbyfarthemostutil
i
zedmodeof
transport
ati
onforlongdist
ance.

•Advant
ages:
Fastestmodeoftr
ansport
ation,gl
obalr
each,
highv
aluegoods
•Di
sadvant
ages:
Expensiv
e,weatherdel
ays,secur
it
yconcer
ns

5.Pipel
ine:i
sthemov ementofli
quids,gases,
orsol
idsthr
oughanetworkof
pi
pe.Themai nuseofpipel
inesareoilandgastoget
herwithuti
li
zesofwat
er
andsewage.
I
ti sahi ghl
yeff
ici
entandcost-eff
ectiv
ewayt otr
ansportl
argevolumeof
productoverl
ongdi
stance.

•Adv antages:Ef
fi
cient
,cost
-eff
ecti
veforl
argevol
umes,
saf
e,envi
ronmental
l
y
fr
iendly.
•Di sadv ant
ages:Limited to cer
tai
n product
s( l
i
qui
ds,gases,slur
ri
es),
i
nflexibl
e

Ty
pesofCar
ri
ersi
nEachModeofTr
anspor
tat
ion:

.Here'
sabreakdownoff
ivecommonmodesoft
ranspor
tat
ional
ongwi
tht
he
car
ri
ersassoci
atedwi
ththem:

•RoadTr anspor t
ation:
Car r
iers:Car s,t rucks,buses,mot or
cycles,bicycles,andot hervehicl
est hat
travelonr oads.
•RailTranspor tati
on:
Car r
iers:Tr ainsandt ramst hatr unont r
acks,t r
anspor ti
ngpassenger sand
goodsov erl ongdi st ances.
•AirTranspor tati
on:
Car r
iers:Ai rl
inest hatoper ateai rplanes,heli
copter s,andot herai
rcraftforair
travelacr ossv ari
ousdest inations.
•Wat erTr anspor tation:
Car r
iers:Shi ps,boat s,ferr
ies,andot herwater cr
af tthattranspor
tgoodsand
passenger sov erwat erbodiesl i
keoceans, r
ivers,andl akes.

3
•Pi
pelineTr
ansport
ati
on:
Carr
iers:Pi
pesandpipeli
nesthatt
ranspor
tli
qui
ds,gases,andsol
i
dmat
eri
als
overlongdi
stancesef
fici
ent
ly.

WhatisI
ntermodalTransport
ationandWhyi sitNeeded?
I
nter
modaltransport
ati
on:-i
sjourneyst
hatusesev er
almodeoft
ransport
.It
i
sneededt oovercomet heli
mitati
onsofindiv
idualmodesandtoprovidea
moreeff
ici
entandcost-ef
fect
ivewaytotr
anspor tgoods.

Di
ff
erentTy
pesofI
nter
modalTr
anspor
tat
ionandt
hei
rAdv
ant
ages:

•Cont aineri
zat i
on:Goodsar epackedi ntostandar dizedcont ai
nerst hatcanbe
easilyt r
ansferredbet weendi fferentmodesoft ranspor tat i
on.
•Piggy back: Trail
ersorcont ainersar eloadedont of latbedr ail
carsorshi ps.
•Rol l-on/Roll-
off( RoRo) :Vehi cles orcont ai
ner s ar e dr i
ven ont o and off
vessel sorrai l
carsusingr amps.
•Ai r
-RailIntermodal :Goodsar et ransport
edbyai rtoai rport
sandt henbyr ai
l
tothei rfi
nal desti
nat i
on.
•Ai r
-SeaI nt
er modal :Goodsar et ransportedbyai rtopor tsandthenbyshi pto
theirfinaldestinati
on.
•Rai l
-TruckTr ansfer(RTT) :Cont ainersaretransf erredbet weenr ail
carsand
trucksatspeci fi
ctermi naldedicatedt othispurpose.
•Li f
t-on/Lif
t-off(LoLo) :Thisi nvolveslif
tingcont ainer s,orot hercar go,onto
andof fvesselsusingcr anes,
al l
owi ngforeffi
cientloadi ngandunl oading.

Adv
ant
agesofI
nter
modal
Transpor
tat
ion:

•Costsav i
ngs:I ntermodalt ransportati
oncanbemor ecost -ef
fect
ivet han
usingasi nglemodeoft r
anspor tati
on.
•Increasedf l
exibili
ty:Intermodalt r
ansportati
onall
owsshi pperstochooset he
mostappr opri
atemodeoft ranspor t
ati
onf oreachlegoft hejourney.
•Reduced env ironment ali mpact :Intermodalt ransportati
on can r educe
emi ssi
onsbyusi ngmor eef fi
cientmodesoft r
ansportati
on,suchasr ailand
wat er.
•Impr ovedef f
iciency :Intermodalt ransportat
ioncanr educet r
ansitti
mesand
i
mpr ovetheov eralleffi
ciencyoft hesupplychain.
Third-PartyCarriers( Non- OperatingCar ri
ers)

Thir
d-part
ycarri
ers(alsoknownasnon- operatingcarr
iers)aretransportati
on
companiest hatdo notown oroper atetheirown v ehicles.Instead,they
contractwith ot
hercar r
ier
st o pr
ovide transport
ation services tot heir
customers.Byusingtheirski
ll
sandexperti
set hetr
anspor toperator
scangi ve
bett
erservice,orlowercost sthanownaccountt ransport.Themostt hi
rd

4
par
tyt
ranspor
tispr
ovi
dedbycommoncar
ri
ers.

WhyUseThi
rd-
Par
tyCar
ri
ers:

Compani
esmaychooset
ouset
hir
d-par
tycar
ri
ersf
orav
ari
etyofr
easons,
i
ncl
udi
ng:

•Fl exi
bil
it
y:Third-
part
ycar ri
erscan provide accesst o a widerr ange of
transport
ationopti
onsandequipmentthanacompanycoul downandoper ate
i
tself.
•Costsav ings:Thi
rd-
partycarri
erscanoftenpr ovi
det ransportati
onser vi
ces
atal owercostthanacompanycoul dachievebyoper ati
ngi tsownf leet
.
•Ti mesav i
ng:byoutsourci
ngtranspor
tati
ont ot hi
rd-partycarrier
s,business
cansav et i
me.Thisallowsbusinessestof ocusonot hercr i
ti
calaspect sof
theiroper
ation.

Ty
pesofThi
rd-
Par
tyCar
ri
ers:

•Agent s: Theyactasi ntermediari

esbet weent heshi ppersandcar r
iers
exchanging infor mat i
on,ar rangement,and so on and t hey gi
veal ocal
presence.
•par celservice:Thesear esi mil
artoaPostOf fi
ce,ast heydeli
v ersmall
packagest oanyl ocation.
•FreightBroker s:Thesecar r
iersactasi ntermediariesbet weenshippersand
carri
ers.Theyar r
angef orthet ransport
ationofgoodsbutdonotownor
operateanyv ehicl esthemselv es.
•FreightFor war ders:Thesecar r
iersprovideawi derr angeofser vi
cesthan
fr
eightbr okers,i ncludingcust omscl earance,insur ance,andwar ehousing.
Theymayal soconsol idat
eshi pmentsf r
om mul ti
pleshi pperstof i
llasingle
containerortruckl oad.

St
rengt
hsandWeaknessesofEachTy
pe:

Agent s:
•St r
engt h:Hav e extensi
ve network and exper t
ise isthe t r
ansport
at i
on
i
ndust ry,prov i
deaccesst oawi derangeoft ransportati
onr esource,l
eading
pot
ent ialcostsav i
ng.
•Weaknesses: Li
mitedcontrol
overtheactualtransportat
ionprocess,wor ki
ng
wit
hmul t
ipleagentscanl eadtocommuni cat
ionchal l
enges,dependenceon
ext
er nalpar t
ies.
Parcel Offi
ce:
•Strength: speedandef f
ici
ency,t
racki
ngandv isibil
i
ty,widecov er
age.
•Weaknesses:si ze and weight,costconsider ati
on,r el
i
ance on ext ernal

5
serv
icepr ovi
der
Frei
ghtBr okers:
•Strengths:Exper tiseinfindingthebestt ransport
ati
onopt i
onsf orshippers,
cannegot iat
er atesonbehal fofshi pper
s
•Weaknesses:Lesscont r
olov ertr
ansportati
onschedules,maynotbeabl eto
provi
det hesamel evel
ofser viceasasset-basedcarri
ers
Frei
ghtFor warder s:
• Strengths:Pr ov i
de a wi de r ange of ser vi
ces,can handl e compl ex
i
nternati
onal shipment s
•Weaknesses:Canbemor eexpensi vethanothertypesofthird-
partycarri
ers,
maynothav et hesamel evelofexperti
seinal l
areasoftransport
ation

WhatisMat er
ialHandl
ing?
Materi
alhandli
ng:-isconcer
nedwit
ht hemov
ementofmat er
ial
sf orshor
t
di
stance general
ly wi
thi
n a war
ehouse,orbet
ween st
orage areas and
tr
ansport
.

WhatisMat eri
alHandlingEquipment?
Materi
alhandli
ngequi pment:-isanydevi
ceormachiner
yusedtomov e,l
i
ft,
orstoremat eri
als.Examplesi ncl
udefor
kli
ft
s,conv
eyorbel
ts,cr
anes,and
aut
omat edstorageandr et
ri
evalsyst
ems(AS/RS)
.

Ty
pesofMat
eri
alHandl
ingSy
stems

•ManualMat erialHandl i
ng:Mat eri
als are mov ed and handl ed manual l
y
withouttheuseofequi pment .Thi si spr obablyt heeasi estar r
angementt o
i
magi ne,andoneoft hemostcommon.Thei t
emsar est oredonshel v
esori n
bins.
•Mechani calMat eri
alHandl i
ng:Mat er
ialsar e mov ed and handl ed using
equipmentsuchasf orkl
if
ts,conv ey orbelts,andcr anes.I tisreplacesomeof
muscl epowerofmanualwar ehousesbymachi ne.Thewar ehousecanst ore
heaviergoodsandmaybemuchbi gger.Thekeyconceptofmer chandise
system i
st hattheyar esti
llundert hecont rolofanoper at i
on.
•Automated Mat er
ialHandl ing:Mat eri
als are mov ed and handl ed using
automatedsy stemssuchasAS/ RSandaut omat edgui dedvehicl
es( AGVs) .I
t
needsav eryhighi nvest
menti nequi pment ,andi sonl yreall
ywor t
hwhil
ef or
verybigstoresthatmov elargeamount sofmat erials

Str
engthsandWeaknessesofEachAl t
ernat
ive
ManualMat eri
alHandl
ing:
•Str
engths:Lowcost,f
lexi
ble
•Weaknesses:Slow,i
neffi
cient
,canbedangerous
MechanicalMateri
alHandli
ng:

6
•St rengt hs: Fast er,mor eef fi
ci ent ,lessdanger oust hanmanual handli
ng
•Weaknesses: Canbeexpensi ve, requirestrai
ningt ooper ate
Aut omat edMat erialHandl i
ng:
•St rengt hs: Highl yef f
icient,canoper at
e24/ 7,reducesl aborcost s
• Weaknesses:Ver y expensi ve,r equir
es speci alized mai ntenance and
exper ti
se
Maj orTy pesofMat er i
alHandl ingEqui pment
•Forkl ifts
•Conv eyorbel ts
•Cr anes
•Aut omat edst orageandr etriev al systems( AS/ RS)
•Aut omat edgui dedv ehicles( AGVs)
Issues t o Consi derWhen Choosi ng a Mat erialHandl ing Sy st
em and
Equi pment
•Vol umeandwei ghtofmat er i
al s:Theequi pmentmustbeabl etohandlethe
volumeandwei ghtoft hemat erial sbeingmov ed.
•Faci lityl ayout :Theequi pmentmustbecompat iblewi tht helayoutofthe
facility.
•Thr oughputr equi rement s:The equi pmentmustbe abl et o meett he
throughputr equi rement soft heoper ati
on.
•Budget : Thecostoft heequi pmentmustbewi thint hebudget .
•Saf et y :Theequi pmentmustbesaf etooper ateandmai ntain..
•Mai nt enance: Theequi pmentmustbeeasyt omai nt ainandr epair
•Tr aini ng:Empl oy eesmustbet rainedt ooper ateandmai ntaintheequipment
safel yandef f
icient l
y.
Final l
y ,Mat erialhandl i
ngi sacr iti
calaspectofsuppl ychainmanagement .By
choosi ngt her i
ghtmat erialhandl i
ngsy stem andequi pment,compani escan
i
mpr ov eef fi
ciency ,reducecost s, andenhancesaf ety.

Ref
erence:-
[1]. DONALD WATER LOGISTICS AN INTRODUCTION TO SUPPLY CHAIN
MANAGEMENT BOOK 2003.
[2]. ALAN RUSTHON, PHIL CROUCHER,
PETER BAKER THE HANDBOOK OF
LOGISTICS AND SUPPLY CHAIN MANAGEMENT 4TH EDITION BOOK.
[3]. MARTIN CHRISTOPHER LOGISTICS AND SUPPLY CHAIN MANAGEMENT 4TH
EDITION BOOK 2011.
[4]. DONALD J.BOWERSON, DAVID J.CLASS, OMAR K.HELFRICH
LOGISTICAL MANAGEMENT 3RD EDITION BOOK.
[5]. JOHN MANGAN, CHANDRA LALWANI, TIM BUTCHER, ROYA JABADPAIR
GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT 2ND EDITION BOOK.
[6]. John Meredith Smith Logistics and the out-bound
supply chain book