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Transportation in Supply Flow Networks: The Critical Processtworks

Federal Highway Administration's Freight Discussion Series -- December 2000

William DeWitt, Ph. D.
Teaching Professor
University of Maryland, College Park


Transportation and Supply Flow Networks


Supply Flow Networks

Complements of Webster's Third New International Dictionary


Supply Flow Networks. "Earth to Earth flows with value added processes"


Significance of Supply Flow Networks


Freight Transportation Importance


Transportation as a Major Cost Component of Logistics

Source Transportation Costs($ Billions) Transportation % of Logistics Costs Transportation % of Sales
Delaney
1998
499
(Approx. 6% GNP)
58  
Davis & Drumm
1997
  45 4.08
Morreale & Prichard
1996
  43.4 3.13

Transportation Essential Linkage for International Supply Chains (Sine Qua Non)


Increased Sourcing and Market Distance Mean Increased Transportation


Increased Speed of Transportation Systems


Growing Transportation Complexity/Options and Trade-offs (Customization and Multimodal)


Transportation and Urban Congestion


In-transit (Dynamic) Inventory Will Rival Storage (Static) Inventory


Increased Information and Communications Systems for Transportation


Wrap-up: Transportation and Supply Flow Networks

Updated: 03/31/2011
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