TRANSPORTATION OF VANCE BIOENERGY SDN.BHD

TRANSPORTATION

Transportation in logistic activity can help the movement of an inventory from one place to another place. There are five mode in transportation that is Road, Railways, Air, Pipeline and Sea. Road is way or path between two or more places. It can allow easy travel for the transportation to move. It also lower total cost between the other mode of transportation.

 Railway is where a train runs along a set of two parallel steel rails, known as a railway or railroad. Air transportation is fixed-wing aircraft, commonly called airplane. Cost for company to send their product by using this mode transportation is high. Pipelines transport is sends goods through a pipe most commonly company used this mode of transportation is to sent liquid and gases Sea transportation is movement by means of a watercraft such as a barge, boat, ship or sailboat. This mode of transportation is used by the company when they want to export their product to the other country in large quantity.

Transportation is the professional area of logistics that geographically moves and positions inventory. Because of this fundamental importance and visible cost, transportation has traditionally receive considerable managerial attention. Almost all enterprises, big and small, have managers responsible for transportation. There are three factors that fundamental to transportation performance which are cost, speed and consistency.

The cost of transport is payment for shipment between two geographical locations and the expenses related to maintaining in-transit inventory. Logistical system should utilize transportation that minimizes total system cost.

 Speed of transportation is the time required to complete a specific movement. Speed and cost of transportation are related in two ways. First transport firm capable of offering faster delivery typically change higher rates for their services. Second the faster the transportation services is, the shorter the time interval during which inventory is in transit and unavailable.

Transportation consistency refers to variations in time required to perform to specific movement over a number of shipments. Consistency reflects the dependability of transportation. When transportation lacks inventory safety stocks are required to protect against service failure, impacting both the seller’s and buyer’s overall inventory commitment.

Transportation is the professional area of logistics that geographically moves and positions inventory (Bowersox et al, 2013).

 From the interview that we have made, transport that Vance.Bioenergy company used is tanker, container and ship.

Tanker is used when the raw material from supplier was send to Vance.Bioenergy company. Before they receive the raw material from the supplier, the tanker’s driver will give a letter from their company which said the tanker just bring for example raw material vegetables oil only and Halal. If the tanker is use for bring other than vegetable oil, Vance.Bioenergy company will not receive the raw material that the tanker bring.

Container is used when Vance.Bioenergy company need to sent their product to the port.

Ship is use when the product from this company need to export to the other country.

 Factor that this company used the transportation is price. They used the services of transportation everyday. If the carrier agent cannot give the competitive price, the company will find another transport.