Reference no: EM132255990

Hazen and Lynch (2008) identified the service components of transportation as availability, transit time, speed, and reliability. Coyle, Novack, and Gibson (2016), on the other hand, decided "key determinants…include accessibility, capacity, transit time, reliability, and product safety" (p. 347). In this post, we will go with our current textbook and discuss availability and transit time, as transit time seems to be dependent on and strongly affected by both speed and reliability.

The availability of transportation has a significant impact on transportation management. Whichever mode of transportation is needed, be it truck, rail, air, water, or pipeline, the organization has to be cognizant of that mode's capabilities not only at both points of origin and destination, but also along the specified route. There should be adequate facilities, equipment, and manpower available at the origin and destination locations to handle whatever needs to be done aside from loading and offloading operations. Likewise, support along the route should be available when and if necessary.

Transit time is defined as "the elapsed time from the pickup of a shipment to its final destination" (Hazen & Lynch, 2008, p. 12). Depending on the mode used and the type of cargo, this can be anywhere from hours for an air carrier to weeks for water. This affects transportation management tremendously in terms of cost. Ordinarily, the faster a shipment mode, the more expensive it will be. The organization will also have to consider the impact transit time will have on inventory levels and customer satisfaction.