You must consider the features and modes of the transport companies when you want to hire one to fulfill the prime objective of product transportation which is to reach the products to the customer on time. Especially when you require transporting tangible products you must be more careful about the delivery options and analyze all factors well.
Modes of Transportation
When you select ten modes of transportation you must know that the optimal level of customer service is the key factor based on which you should choose the mode of transport. However, “optimal” in this case will not translate into fastest delivery by the transport companies. There are ideally six different modes of transportation namely, air, digital, rail, pipeline, truck and water.
Key Transportation Features
There are a few distinct features of transport companies that include:
- Product Options – This feature considers the number of products that can be shipped realistically by using a specific mode of transport. This varies from one product to another. For instance, highly inflammable items, edible items and chemical items need to be locked, processed and then transported according to various safety guidelines.
- Speed of Delivery – This feature refers to the time taken by the mode to deliver the products from the shipper’s location to that of the buyer. This has to be decided by the concerned transport company once you decide about your consignments.
- Accessibility – This is a specific feature for transportation that refers to whether the delivery of product will be at the desired location of the buyer or whether it will be off-loaded to other transportation modes to reach at the buyer’s destination eventually.
- Cost – Cost is an important factor that is evaluated considering the cost of each item and the distance to be covered. The usual process followed here is the tons-per-mile and metric-tons-per-kilometer.
- Capacity – This refers to the product volume that is shipped at a time within a single transportation unit. The transportation cost will be higher with more volume, but it can be distributed over individual products thereby lowering the transportation cost of each item.
Deciding Modes of Transportation
- Ocean – This is the most common and popular mode. It is inexpensive, safe and provides more size and volume.
- Air – This is a critical mode of transportation for goods that need to be delivered in quick time. Many companies dealing with perishable goods look for transport companies dealing with air freight.
- Rail – This is the ‘green’ mode of transportation and trains burn less fuel per ton-mile than the road vehicles and needs only one driver for 100 wagons.
- Road – One of the most common modes of transportation, this is widely used for moving goods across different states and countries.
- Multimodal – This involves a combination of different modes of transportation and is cost-effective with better shipment management.
Consider the Operational Factors
An efficient transportation will have a better operation and these factors include external and internal factors. The external factors have a greater influence on the distribution system. The external factors include:
- Basic infrastructure
- Trade barriers
- Export licenses
- Law and taxation
- Financial institution
- Economic condition
- Communication system
- Culture and
The Customer Characteristics
Choice of transport companies will also depend upon particular customer characteristics. Usually, the main characteristics that are taken into account are the service level and type, location, constraints at delivery points, after-sales service, credit rating, and terms of sale, order size, customer importance and knowledge of a product.