In: Operations Management
Freight transportation performance can be improved by making specific changes within individual modes. Discuss which mode has the largest negative impact and discuss at least two types of improvements that can be made and the impact they will make on performance.
Freight transportation refers to physical movement and merchandise of goods and cargo by using various modes of transport like road, air and sea. Among all the modes of transportation, road transport has the largest negative impact on environment and economy. Road transport is the major contributor to global warming. Increase in number of vehicles on road and fuel consumptions has increased pollution and traffic congestions. Two types of improvements that can be made to reduce its negative impact are –
1. In order to reduce the multiple shipments in one direction, load consolidation could be used. This refers to combining the multiple shipments into one full truckload. This will reduce the fuel consumption.
2. By applying congestion charge we can reduce traffic congestions in heavy traffic areas. As only important transportations would take place to avoid the congestion charges.
There could be various other measures like increase in the use of vehicles powered by non-fossil fuels, addition of bio fuels to petroleum mix, putting loading time restrictions, etc. All these improvements can be done to reduce the negative impact of freight transportation.