What are the best practices for selecting a transportation mode for a shipment?

1 Define your objectives and criteria

The first step is to define your objectives and criteria for choosing a transportation mode. What are the main goals and constraints of your shipment? For example, you may want to minimize the total cost, meet a certain delivery time, ensure the quality and safety of the goods, or reduce the carbon footprint. You should also identify the relevant criteria that will help you evaluate and compare different modes, such as the distance, the transit time, the frequency, the reliability, the flexibility, the accessibility, the scalability, or the compatibility.

3 Evaluate the origin and destination

The third step is to evaluate the origin and destination of the shipment. Where are you shipping from and to? How far apart are they? What are the infrastructure and service conditions of each location? For example, you should consider the availability and accessibility of different modes, the connectivity and intermodality of the transport network, the customs and regulatory procedures, the traffic and congestion levels, or the weather and seasonal variations. These factors will affect the speed, reliability, and convenience of different modes, as well as the need for transshipment or multimodal transport.

4 Consider the customer requirements

The fourth step is to consider the customer requirements for the shipment. What are the expectations and preferences of your customers? How do they affect your service level and performance indicators? For example, you should consider the delivery time window, the tracking and visibility options, the quality and security standards, the responsiveness and flexibility of the service provider, or the customer satisfaction and loyalty. These factors will influence your choice of mode, as well as your pricing and contract terms.

5 Compare the costs and benefits of different modes

The fifth step is to compare the costs and benefits of different modes based on your objectives and criteria. How do they perform in terms of cost, speed, reliability, and environmental impact? What are the trade-offs and synergies among them? For example, you should consider the fixed and variable costs of each mode, such as the transport, handling, inventory, and administrative costs. You should also consider the benefits of each mode, such as the transit time, the frequency, the reliability, the flexibility, or the environmental impact. You can use various methods and tools to compare different modes, such as cost-benefit analysis, multi-criteria decision making, or simulation modeling.