2.1 Discussion Assignment - Cost Structures of Various Modes of Transportation
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contained in the Bellevue University Online Library Database System are highly
recommended. After reading through the article, review the article using the following
format with the headings indicated in bold below:
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Reference
: Roberts, K. (n.d.). Pursuit - the journal of undergraduate research at the
university of ...https://trace.tennessee.edu/cgi/viewcontent.cgi?
article=1133&context=pursuit
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Summary
:
Transportation costs are one of the leading financial concerns a company will have to
endure to be successful. We think of transportation cost and associate them with freight and non
living things, but people are also part of transportation cost. Does your company deal with
clientele and must meet them away from your actual place of work? You will have to buy plane
tickets, one of the most expensive transports, to get your employees where they need to go to
negotiate with or service customers. “Transportation alone costs US businesses over $1.04
trillion (or 10.4% of total revenue), according to the 2019 Annual State of Logistics report”
(Roberts, n.d., p. 3). Transportation cost is also determined by what is being shipped. For
example if you are shipping a raw material such as metals, you will not concern yourself with the
transit time so much as you are shipping a commodity; your main concern will be the cost
associated with shipping this material not the time it takes to get there. Optimizing routes is a
sure fire way of cutting down on fuel cost and drivers you have to pay. If you are shipping
hazardous materials you will be limited to carriers who have the special equipment necessary to
ship these goods. If you are shipping frozen goods you of course will have to select a company
that has freezer capabilities for this assignment.
Fuel prices are one of the leading factors in transportation cost. Diesel fuel is the
lifeblood of all motor vehicle transportation. As its price increases we can expect a price increase
to transport goods even a short distance. Government regulations will limit who you can work
with and what kind of procedure you can use. Service is one of the main factors a company will
use in hiring carriers. Future projects must also be taken into account when selecting carriers.
Rarely can we have one firm handle 100% of our transportation cost. A lot of times many firms
will have to be employed to get the job done especially in a larger operation.
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Critique:
My understanding of the topic increased due to this article. It is common sense but we
must think of what we are shipping and the services available to use. If we need a refrigerator or
freezer to keep products fresh we must seek out companies with the equipment necessary to
transport these goods. We don’t always think of people as transportation costs but they also cost
money to move from one place to another. This is whether we transport them by car, train, boat,
or plane. Depending on how many people you are transporting and how far the cost can grow
