1. Introduction
Transportation involves the physical movement of goods between origin and destination points.
The transportation system links geographically separated partners and facilities in a company’s supply.
Transportation facilitates the creation of time and place utility in the supply chain.
Transportation also has a major economic impact on the financial performance of businesses.

2. Transportation capacity constraints pose a challenge.
Industry Challenges
Transportation capacity constraints pose a challenge.
Rising transportation rates present another major concern for organizations.
The transportation industry is impacted by governmental requirements that affect cost structures and service capabilities.
Regulation is growing in areas where the transportation industry has the potential to impact the quality of life, the safety of citizens, and the growth of commerce. 2

3. Figure 10.1 Motor Carrier Options3

4. Modes of Transportation
Motor Carrier - Truck
Less Than Truckload (LTL)
Regional – Next Day/2nd Day
Interegional/National – 3rd day/Beyond
Truckload (TL) 4

5. Modes Modes selection issues Shipment size & weight (density) Value
Freight form (unit vs. bulk)
Service requirements
Consignee location (Domestic or International)
Special handling requirements
Cost absorption 5

6. Regional LTL- Next Day, 2nd Day
Butler
Pittsburgh
Consignee
Shipper
Terminal

7. Regional LTL Carrier 7

8. Pittsburgh to San Diego
LTL – National
Pittsburgh to San Diego
Shipper
Pittsburgh
Sort Hub
Akron OH
Terminal
Pittsburgh
Consignee
Terminal
San Diego
Sort Hub
Los Angeles CA
How long?
6 - 7 days

9. National LTL Carrier 9

10. Truckload
Shipper
Pittsburgh
Direct
Consignee
Los Angeles