Chapter 11 Transportation: Managing the flow of suply chain
TRANSPORTATION
In few words: is the art
of movement of people
or goods between
original & final
destination
Has a major economic
impact on the financial
performance of business
With efficient , effective
transportation can build global
supply chains
It must have: availability,
capacity & cost that those
affect the number, location
to supply
Them capabilities
must align with the
company's goals
Efficiency promotes supply
chain competitiveness
It will be affected by governmental like
requirements that afeect cost structures
&service capabilities
In USA government regulation of
transportation has focused on
copetition and pricing.
Environmental sustainability is also
addressed by government regulations
The approach in customs in the United
States is directed to health, safety and
terrerismo while in Mexico the customs are
concerned about raising money
Mode of transportation
Truck
Rail
Air
Pipeline
Plane
Railroads
Most economic structure
Provide the most economical form of transportation
Liquids & gases
Expensive and emergency mode
Economic structure
Water
Is a high variable cost
business
Ocean
transportation of
goods is not
cheaper.
Hire carriers
Truckload (TL)
15,000 pounds or more
Less than truckload (LTL)
150 pounds to 15,000 pounds
Small packeging carriers
150 punds
Intermodal trasportaations
Refers to the use of two or more carriers of different modes
Terms of sales
Clarify the delivery & payment terms agreed upon a seller & a buyer
INCOTERMS
International transactions
FOB
EX WORKS
FCA
CIP
CIF
DAP
DAT
CPT
DDP
FAS
Transit time
adventage
Air transportations is very fast
disadventage
Nonetheless water, pipeline and rail
are extremely slow
Modal capacities
Must be matched to the total weight and dimensions of shipments
Rate negociation
These negociation focus on developing contracts with carriers
for a tailored set a transportations services & rates that fairly
compensated the carriers
Shipment preparation
Set in mention by request, replenishment signal or preschedule order.
Maintain a trasportation routing guide
Are simple 1 or 2 page online documents that plainly state shipment requirements
Freight documentation
Bill of landing
Is the most important transportation document
It's create by the shipper of the goods to originate the shipment
Freight bill
Carrier's invoice
Claims form
Monetary loss
Clames of damage
Natural disaster
Miliraty attack
Act of public authority
Act of the shipper
Inherent act of goods
KPI's
Key performance indicators
Are objective measures of carrier of private fleet
performance that are linked to supply chain sucess
contemporary supply chain profile
Supplier
Manufacture
Wholesaler
retailer
Customer
The
challenge
Is to manage the
entire logistics system
in such a way in order
to full meets and
exceeds custmer
expectations
Good logistics is business
power: it means that
logistics helps to build
costumer loyalty
Logistics management
The art and science of management,
engineering and technical activities
concerned with requirements, desing and
suplying and maintaining resources to
support activies, plans & operations.
Physical distribution
This had a focus on the outbound
side of the logistics systems (is like
plan to market
Business sector
Inbound logistics
materials management to support manufacturing
Outbound logistics
Plan distribution to support marketing
Business logistics
Military logistic
Event logistic
service logistic
There are: The aqcquisitions, scheduling &
management of facilities.
Value added roles of logistics
1. Form utility
2. Place utility
3. Time utility
4. Quantity utility
5. Possesion utility
Logistics activities
Transportation
Warehousing & storage
Packing
Inventory control
Procurement
customer service
Facility locations
Order fulfillment
Major cost categories
Warehousing and inventory cost
Transportation cost
Inventory cost is the
is the expenses
associated with
holding goods in
storage
The largest cost categories
Transportation
Inventory cost
Logistic in the economy
If more goods & service
are produced, total
logistic cost will increase
Interfaces with:
Operations
Cost reduction
Other areas
Like Finance area & accounting
Marketing
4'P
Order cycle
Is the time that
elapses from when a
customer place an
order until the order
is received
Dollar value
Affects
Warehousing
Inventory
Transportation
Spatial relantioship
The location of fixed
points of the logistic
sistem with respect to
demand and suplly
points (ass lots of
examples on the class)