What convenient, cheaper and environment-friendly movement of people,

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 a reliable, quicker,
comfortable, convenient, cheaper and environment-friendly movement of people,
goods and provision of services. It predicts 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 necessary in sustaining
development and ensure safe accessibility at various levels for all 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. It has significant
environmental and economic impacts.

 

Why is
transportation planning important?

Transportation
planning is an important aspect of global freight movement because it determines
how quickly a good can arrive and be processed through ports and borders.
Without a plan, managers likely 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, secured, 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

The
three types of planning that must be done 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,
and transit-time variability serves 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.

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, providing 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. If high customer service standards are demanded and
other carriers are unable to meet these demands, private carriage is a viable
option.