Sunday, May 20, 2018

Lowering the Cost of Intermodal Transportation in Canada

As of this year, Canada’s mode of transferring goods throughout the country has been on the rise as more products are being shipped at a higher rate. This requires companies to use the services of intermodal transportation companies. Intermodal transportation allows a company to transport multiple products in special containers using various modes of transportation.

What makes intermodal transportation different is that a product can be shipped with different modes of transportation. Freights can be switched in or out without having to physically move the product from one mode of transportation to another.

The primary goal of logistics is to have the product shipped at an optimal level that will assist in adding value to an organization while decreasing cost. The benefit of intermodal transportation is that it is very inexpensive. Shipping a product by train is said to be a lot cheaper while the prices generally stay the same. One the most important benefits is that it allows an organization flexibility in choosing the way a product is moved. This article will discuss a few ways in which intermodal transportation can be achieved in a cost-effective manner.
  1. Planning: Planning how a product is going to be shipped is a simple way to keep from piling up unnecessary costs. Most companies will make it easier on service providers by simply making sure the logistics company gives proof of delivery.
  2. Communication: The company that is shipping the product and the company that receives the product must be in constant communication, because as the saying goes, time is money. If the product doesn’t get shipped off on time or doesn’t make it to its prioritized destination, money can be lost. If the product isn’t moved for a period of time money can be lost.
  3. Equipment Cost: Companies have the choice of moving product by plane, by train or by truck. When extra equipment like cranes are needed to move product from one mode of transportation to another the infrastructure cost can go up. To combat this, using only two forms of transportation at best or just the cheapest mode of transportation goes a long way.
  4. Doing the Product Shuffle: Moving one product to more than one mode of transportation can risk the product being damage which can increase overhead cost. Decide early on the route through which the product is going be sent and what form of transportation will be used in order to eliminate damaged goods.
  5. Load Tracking: Keep a close eye on the company’s product. An organization should always be aware of where a product is going and when at all times. The company that receives the product should let you know the moment the product is received. 
Hopefully this information can assist a company in using intermodal transportation intelligently to deliver a quality product without high overhead cost.

Author: verified_user