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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
(Approx. 6% GNP)
Davis & Drumm
  45 4.08
Morreale & Prichard
  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: 3/31/2011
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