This chapter focused on physical flows using transport in supply chains. The characteristics of the five principal transport modes were described and issues in determining freight rates were reviewed, and we also described the various types of loading devices used in international transportation. The role of distribution centres and in particular the concept of factory gate pricing were described. This led us to a discussion around the efficiency and effectiveness of transport services, and developments in international transport networks were also reviewed.
We noted at the outset to this chapter that transport is typically regarded as a non‐value‐adding activity in the supply chain. In conjunction with the understanding that will be gained from studying Chapter 7 on the key roles played by LSPs, and the contributions we will see in Chapter 14 that transport can make around issues concerning sustainability, it is evident that transport plays a vital role in ensuring that supply chains operate both efficiently and effectively.
The next chapter will continue the discussion on transport in the supply chain and will focus upon the critically important topic of security. Chapter 7 will describe and distinguish the various types of logistics service providers and clarify the terminology commonly used.
