Question

Discussion: "Terminal. Any location where freight and passengers either originate, terminate or are handled in the transportation process," I am thinking terminals have a greater function than just a place to change modes of transportation. When every you handle freight, it cost money, but freight needs to be distributed, not every customers needs 18000 TEUs of one thing. So things like TEUs may need to be broken down into smaller shipments. What I am thinking about right now is Velocity of distribution, Every time freight it touched cost money, Every time freight is touched it loses velocity in the supply chain. The other issue that concerns me is the capacity of one mode of transportation as it transition's to the next mode of transportation

Answer 1

answer-

In today’s ecommerce marketplace, high-velocity distribution centers are increasingly considered to be “strategic assets of a retailer’s business, With its potential to significantly impact cost and service, companies should closely scrutinize their distribution network to ensure optimal effectiveness . Companies find that cross-docking allows them to take costs out of their supply chains and accelerate the velocity of inventory, so they can get their products to market more quickly and economically, Companies continue to look for creative solutions to help control transportation costs,

a manufacturer that was regularly shipping between its warehouses coast to coast. “By using intermodal instead of truck, they cut costs by 42 percent. For another client, changing packaging and product design helped to increase freight density and, thereby, lower freight costs .

To increase velocity of distribution. Look for a partner with the capacity to hold inventory in facilities close to your customers, this way you can speed up your time between purchase and delivery. Company should choose those ways to transport or distribute which can cut down the cost as well as increase performance of transportation.