In actual competitive environment, all businesses are searching for ways to win the larger market share, maximize efficiency, diminish capital inputs, and gain speed throughout their supply chains. The globalization of business has increased the need for global supply chains that are longer, more composite, and intrinsically costlier. The main purpose of supply chain management is to deliver the right goods to the right place at the right time and at the same time to maintain cost efficiency. Thus transportation plays significant role of interlink among all other elements of supply chain which, cooperating, gives result in the form of converting resources and materials into consumer goods. The ability of any transportation system to return and deliver items on a timely basis is equally important and ties into a company’s overall strategy of time-based competition. This issue becomes more important if the carried items have expiration date. The significance of this factor in the completion can’t be overestimated, if you organize well your delivery chain you save money and time by choosing the most flexible strategy of transportation. There are six main modes of transportation: road, rail, marine shipping, inland water shipping, air, and pipelines. This paper will look into two modes, which are railway and road transport.
The freight railroad industry plays a significant role in the national economy as a mainstay of transportation for a lot of fundamental industries and most for export and import operations. Today’s railroad systems offer dependable and consistent schedules that could be included in the planning of economic activities such as production and distribution. The demand for freight carriage is derived from the demand for the goods themselves. No intrinsic value, or utility, arises from moving a trainload of coal, grain, or imported goods; rather, the value of the transportation derives from the value of consuming or using the goods at