Page 200 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Unit 8: Transportation

 Export documentation is commonly considered to be the most complex and difficult part Notes
of overseas marketing. You may have come across such comments as such comments tend
to discourage people from entering into export business.
 The freight transportation structure consists of the rights-of-way, vehicles, and carriers
that operate within five basic transportation modes.

 India’s transport sector is large and diverse; it caters to the needs of 1.1 billion people.
 Transportation service is achieved by combining the capabilities of modes.
 Transport economics and pricing are concerned with the factors and characteristics that
determine transport costs and rates.
 Transportation has been recognized for many years as being one of the most important
activities in the physical distribution function.

 While traffic managers administer many different activities, they are fundamentally
responsible for: (1) operations management, (2) freight consolidation, (3) rate negotiation,
(4) freight control, (5) auditing and claims, and (6) logistical integration.

8.9 Keywords

Bill of Entry: A bill of entry is a formal declaration describing goods that are being imported or
exported.
Consignees: In a contract of carriage, the consignee is the person to whom the shipment is to be
delivered whether by land, sea or air.

Economy of Distance: It refers to the characteristic that transportation cost per unit of distance
decreases as distance increases.
Export documentation: In general export documentation refers to the bill of lading, or shipping
document, the commercial invoice reflecting the transaction between the buyer and the seller,
the packing list showing the goods actually being sent and, occasionally, a certificate of origin
or some other supporting documentation.
Fixed Cost: A cost that does not change with an increase or decrease in the amount of goods or
services produced.
Freight Transport: Freight transport is the process of moving different types of goods from one
point to another.

Intermodal transportation: It combines two or more modes to take advantage of the inherent
economies of each and thus provide an integrated service at lower total cost.
Invoice: An invoice is a bill sent by a provider of a product or service to the purchaser.

Product movement: Economy of Scale: It refers to the characteristic that transportation cost per
unit of weight decreases when the size of the shipment increases.
Regulation: A process of the promulgation, monitoring, and enforcement of rules, established
by primary and/or delegated legislation.
Shippers: Consignor, exporter, or seller (who may be the same or different parties) named in
the shipping documents as the party responsible for initiating a shipment, and who may
also bear the freight cost.
Transportation infrastructure: Transportation infrastructure consists of the rights-of-way,
vehicles, and carrier organizations that offer transportation services on a for-hire or internal
basis.

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