Explain the factors taken into account while selecting a proper mode of transport for despatch of goods.
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Answer:
1) Cost of Transport
1) Cost of TransportWhen selecting the best and most suitable transport for exportation of products, the budget is the most important consideration. Costs vary based on the type and amount of goods needed to be transported. It is important to keep in mind that the cost of transport influences the cost of goods.
2). Reliability and Regularity of Service
2). Reliability and Regularity of ServiceThe reliability and regularity parameters of different transport modes, differ from each other. The urgency and speed by which the goods are to be delivered, influences the decision as to which mode of transport to use. All modes of transport, land, ocean and air, are affected by bad weather such as heavy rains, snow, fog and storms, which may cause delays.
3) Safety
3) SafetyAnother crucial factor influencing the selection of a mode of transport is the safety and security of goods in transit. Land transport is more preferred to railway transport because the losses are less.
3) SafetyAnother crucial factor influencing the selection of a mode of transport is the safety and security of goods in transit. Land transport is more preferred to railway transport because the losses are less. From the safety point of view, sea transport is the most risky, as water transport exposes the goods to the perils of sea, and the long duration of travel adds to the risk factors. Certain types of packaging also helps in safeguarding the goods in transit and are highly recommended, but they do influence costs as well.
4) Characteristics of goods
4) Characteristics of goodsWhen selecting the mode of transport, the size and weight of goods play a crucial role. Land and air transport primarily cater to fragile and small shipments. Rail and sea transport are a more suitable option for heavy shipments.
5) Budget
5) BudgetTransportation costs are add-on cost on the sale price of a product. The transport costs add to how much the goods can be sold for, to make a profit. Hence budget requirements need to be considered accordingly. The volume or weight of the goods play a key role in determining which method of transport is the best value. Also the type of good in terms of urgency of delivery, such as how perishable the goods are, and how quickly they need to arrive, influences the choice of mode of transport.
6) Timescale
6) TimescaleAir transport is the best option for long distances requiring urgent and speedy transport, to meet deadlines or because the goods are perishable or fragile. Motor transport is faster than rail transport for short distance deliveries. However, for longer haul journeys rail is faster and more economical.
6) TimescaleAir transport is the best option for long distances requiring urgent and speedy transport, to meet deadlines or because the goods are perishable or fragile. Motor transport is faster than rail transport for short distance deliveries. However, for longer haul journeys rail is faster and more economical.Water transport is often not suitable where time is a factor.
7) Flexibility
7) FlexibilityThe most flexible mode of transport is Motor or road transport, as it is not constrained by factors such as flight times, shipping routes or pre-scheduled timetables. Motor transport can operate day and night, at personal convenience, to suit all time frames, and has the added advantage of door-to-door delivery.
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