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C Asm

The document discusses the evolution of air transportation in supply chain strategies. It covers topics like the growth of air transport, the impact of deregulation, adaptations post-9/11, and the use of air transport for value-added services. It also examines other transportation modes like road, rail, and water.

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hassaanrazaaa
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24 views16 pages

C Asm

The document discusses the evolution of air transportation in supply chain strategies. It covers topics like the growth of air transport, the impact of deregulation, adaptations post-9/11, and the use of air transport for value-added services. It also examines other transportation modes like road, rail, and water.

Uploaded by

hassaanrazaaa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Aviation Security Management

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Air Transportation in Evolving
Supply Chain Strategies
Chapter 3

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Evolution of Air Transportn in Supply Chain Strategies
Air Transportation Growth
Over the last decade, air transport in the US has surged,
impacting costs, service, and competitiveness.
Deregulation Impact
After deregulation, there was a shift in transport
strategies towards employing diverse methods

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Evolution of Air Transportn in Supply Chain Strategies
Evolution Post-9/11
The 9/11 attacks prompted shifts in logistics practices,
emphasizing security and efficiency.
Differentiated Approaches
Providers now prioritize speed and flexibility over
traditional low-cost models.

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Evolution of Air Transportn in Supply Chain Strategies
Value-added Services
Air transport now includes storage, catering to various
supply chain stages.
Economic Impact
Logistics costs are declining due to technology and supply
chain improvements, but still challenges persist.

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Transportation Modes - Air
Five Primary Modes
Water, rail, pipeline, road, and air are the fundamental
modes used in supply chains.
Distinct Attributes
Each mode possesses unique characteristics that supply
chain managers must consider for effective customer
demand fulfillment.

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Transportation Modes - Air
Air Transportation
Air transport is the newest and fastest-growing mode for
long-distance goods transportation.
Speed Advantage
Its primary advantage lies in speed, offering rapid coast-
to-coast delivery within hours, in contrast to other modes
that may take days.

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Transportation Modes - Air
Growth Trends
From 1996 to 2006, airfreight volume and revenue
significantly outpaced road and rail transportation,
indicating its increasing importance.
Limiting Factors
Despite its advantages, air transportation is constrained
by factors like aircraft availability, load size, and weight
lift capacity.
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Transportation Modes - Road
Post-World War II Surge
Road transportation, dominated by trucks, has surged
since World War II, now constituting nearly 80% of
transportation costs for U.S. businesses.
Door-to-Door Service
Trucks offer versatile door-to-door service for products of
various sizes and weights, covering both short and long
distances.
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Transportation Modes - Road
Cost Dynamics
While road terminals require small fixed-cost investments
compared to rail, high variable costs like drivers' wages
and fuel pose financial challenges.
Challenges and Considerations
Ongoing challenges include high maintenance costs,
driver shortages, and safety concerns in material
handling, impacting road transportation efficiency.
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Transportation Modes - Road
Cargo Classifications
Auto carriers are categorized into small-parcel ground
carriers, less-than-truck-load (LTL) carriers, and truckload
(TL) carriers based on load size and weight.

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Transportation Modes – Rail and Water
Rail Transportation Dominance: Historically, rail
transport dominated US logistics pre-World War II, but its
significance has declined compared to road transport
today.
Speed and Flexibility: Rail transport is slower and less
flexible than roads but excels in moving large tonnages
over long distances.

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Transportation Modes – Rail and Water
Intermodal Solutions: Intermodal providers use
piggyback systems to merge rail's long-distance
capabilities with road transport's door-to-door service,
reducing damage and delays.
Ancient Roots of Water Transport: Water transportation,
dating back to ancient times, evolved with technological
advancements from sails to steam and diesel motors.

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Transportation Modes – Rail and Water
Infrastructure and Bulk Transport: The US has extensive
waterways, making water transport cost-effective for
moving bulk commodities over long distances.
Challenges and Adaptations: Despite cost-effectiveness,
water transport requires suitable infrastructure and
collaboration with auto carriers for seamless services.

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