chapter 5 Flashcards
(15 cards)
Role of transportation in the supply chain
Omnichannel retailing =Online mulrile channels
Fast delivery = Amazon effect,
Expectation of same / next day delivery
Globalization =Increased variability in lead time
Transprtationshion management and strategies
Mode and carrier selection
Core carrier concept
Outsourcing; 3PLS partnership & strategic alliances
Envionment engery and sustainablity
Last mile delivery
International transportation
Mode and carrier selection
Problem recognition, search,choice/selection,post choice evaluation, feedback
Decision between mode/carriers
Core carrier concept
Understanding the carriers ideal requirements and having the shippers freight closely match thoes requirements
Use tech to optimize cost and service aspects of the relationship
Make choice mutually beneficial for the carrier and shipper
Envionment engery and sustainablity
Most organizations believe that succeding long term in green initiatives occurs by coordinating and collaborating w/ suppliers, supply chain partners and logistics service providers
Last mile delivery
Final components of the transportation process
Delivering to customers
International transportation
Typically international transportation costs represent a much higher percentage of merchandise value than is the case in domestic transportation
Higher costs come from all the logistics required
Motor
75% of all come from motor
-Competes with air for small shipment
–Efficiences from terminal pick up / delivery options
Compete with rail for larger shipments
-General fright
–Used intercity for smaller items
Specialized carrier
Rail
Costs less basied on wright than air and motor
-Disadvantage
–Longer transit time
–Deparchures are less frequent
Air
shorter transit time but higher cost
Cant hold as much weight
Water
Lower cost
Not susseptisble to damage/ theft
Heavy bulky items
Key performance indicators
Managing strategic intivaties=Benchmarking
Appraise and dvelop suplliers =Supplier audits
Service to customers =Customer surveys/feedback
Mode and carrier selection
Freight forwarders
=Consolidates small shipment into a large one
Shippers associations or cooperatives=Anti- trust, nonprofit cooperative
Transportation or freight brokers=
Arranges shipments for a fee
Intermodal marketiting companies or shipping agents =
specialize in piggy back services
Small package carriers=
Ex
Fedex, ups
Can get to hard to reach spots
Regulated by the ffa
Transportation pricing
Benefits of 3PLs
