12. What Transport Arrangements Should We Make?

Transport costs for many companies form a large part of total distribution costs and the effective management of the transport function can lead to enhanced profitability both through cost reduction and through service improvements. One of the key questions facing transport managers is what modes of transport are available and how should the choice be made? Each transport mode has its own specific characteristics in terms of cost, flexibility, speed and so on, and the transport decision must be based upon a careful assessment of relative costs and benefits.