Bundling in Intermodal Transportation
The development of the intermodal transport system revolutionized the way of doing business across the world by ensuring the effective delivery of goods and commodities when needed. As a consequence, it reduced significantly the time required for goods produced to be delivered to the customer and manufacturers receiving raw materials in good time. It enhances the global market and formed a foundation for globalizations. The introduction of bundling, the process of transporting goods of different flows in one common means, has greatly improved the efficiency of delivery of goods and has kept the industry at par with improving technology (Hu, Corman, and Lodewijks, 2015). Bundling comes with various advantages such as improved efficiency of the delivery system, improved market share and cost benefits both to the customers and the service providers. Bundling efficiency is determined by the well-planned networks that are used, the frequency of the services and the quantity of load to be transported through the network. All these factors determine the cost effectiveness of the bundling network which in turn determines the efficiency of the network. According to Macharis, (2016) bundling of containers is either direct, hub-and-spoke or line bundling depending on the distance and cost of choosing one bundling technique over the other. This paper will, therefore, discuss different bundling techniques used in practice and how they affect the cost of transporting goods across the globe. In practice, development of effective bundling networks can significantly improve efficiency and the cost of transporting goods in the global market thus enhancing profitability and global business.
References
Hu, Q., Corman, F., & Lodewijks, G. (2015, September). A Review of Intermodal Rail Freight Bundling Operations. In International Conference on Computational Logistics (pp. 451-463). Springer, Cham.
Macharis, C. (2016, August). Analysis of Cost Allocation Techniques for Freight Bundling Networks in Intermodal Transport. In Computational Logistics: 7th International Conference, ICCL 2016, Lisbon, Portugal, September 7-9, 2016, Proceedings (Vol. 9855, p. 209). Springer.
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