User:Tianxiaozhang/沙盒

Summary Transportation is a very important part of the supply chain. There are four main transportation methods: Air Transport, Railway Transport, Road Transport and Water Transport. The transportation methods are always evolving in order to meet the needs for suppliers and consumers. Among those methods, the most commonly used are air freight and ocean freight because they have more combined advantages. Therefore, it is essential to understand them before making a firm decision of the most suitable method. Air freight and ocean freight each has its own characteristics. Air freight has shorter lead time compare to ocean freight, but it is a lot more expansive. Therefore, it is better to use for emergency orders or transporting products with shorter shelf lives. On the other hand, ocean freight is slow but cheaper, so it is ideal for bulk products, agricultural products and low-valued products. They are secure in different ways. For examples, air freight is better for valuable goods because it has better protractions of the cargos, and ocean freight is generally used for hazardous materials because the chances of spills are limited. Furthermore, ocean freight is more environmental friendly because it operates far away from populated areas, but air freight causes air pollution more directly by emission during the flight. At the end of the analysis, Ericsson, a multinational company, is chosen as an example to demonstrate the strengths of the two methods in particular situations. Therefore, the cost can be reduced, yet not causing any accumulation in inventory. It concluded that the benefits of using air freight are shorter lead time, and it is very safe to transport valuable products. On the other hand, the draw backs are that it is too expensive and it has a huge environmental impact. For ocean freight, the benefits are that it has a low cost, as well as little air and noise pollution. Therefore, it is ideal for hazardous products. Nevertheless, ocean freight also has drawbacks, such as water pollution and longer lead time. This report recommends that the suppliers have to choose their transportation method wisely according to the situation they have at hand, and not to stick to one particular method. Also, there are many cargo companies that provide a combination of ocean and air freight, so the suppliers can benefit from both methods. As a result, transportation will be much simpler for suppliers, and it will be easier to save money and time.