Transport management is a vital component of supply chain management. Considering the above factors, the following activities are carried out.
- Maintaining and tracking of transportation rates of various modes
- Selecting the best mode.
- Choice of specific carriers or intermodal combinations
- Decision making and planning of routing and scheduling of trips.
Planning of the freight transit system is mostly critical on factors as cost, speed and reliability. The product should reach the right destination on time at the lowest possible cost. Optimising the transit system is the principle objective of a transport management system.
For this purpose, the following factors should be taken into account.
- Types of Product
- Quantity to be transported
- Destination of the goods(local or international)
- Alternative routes available
- Modes of transport available
- Available inter-nodal options
- Urgency of delivery
