BMGT 372 Exam 1

large variety of services, many types of carriers
good avail, access, and transit times, can be affected by weather, traffic
focus: manuf goods
link to retail

limited service avail
low access
long transit times
poor customer service

good for: long dist, lg vol bulk shipments

fastest way; very $$
reliable but can be affected by weather

cheapest
good for long dist low val high density cargo - containerized shipping
avail for intl and domestic shipping
slow

for petroleum products
investments high, op cost low
two major pipelines: Trans-Alaska and Colonial

takes approx 18-20 days for a barrel to travel the length

both parcel post, air and ground, express companies and USPS
deliver smll pkg fast but at rel high cost
e-commerce and catalog/mail order retail

use of two/more carriers/modes of transport
used to counter weaknesses
Common types: truck-rail (piggyback, TOFC/COFC, roadrailers), air-truck, truck-water, air-rail; container ships impt

intermediaries that supply all/part of other firms logistics challenges
service btwn shippers and carriers
adv: contract carriage, mgmt of transport functions

arrange and coordinate transport for shippers and carriers
negotiate rates, oversees shipments for a commission
can handle the transport arrangements of almost any product to virtually any location
has adapted well to internet-based transactions and tracking

collects small shipments and consolidates them for bulk shipping discounts
able to supply lg, stable volumes to carriers and reasonable prices to shippers
span all modes of transport
best sources of assistance on export regulations, doc, shipping methods, and foreign importing

Price club concept, achieved through consolidation, club members

specialize in the use of multiple modes of transport (TOFC, COFC)

ICC created

dereg rail

dereg trucking

Dereg trucking

ICC Abolished; Surface Transportation Board created in DOT

product rel
mkt rel
customer service rel

weight-to-vol ratio: low density products cost>high density

degree to which a product can fill available space

diff to handle products are more $$

easily damaged, hazardous, and high value products are costly

for both intramode and intermode competition

distance of mkt/shipping big determinant

adds costs and changes pricing

costs/pricing det by a bal of product into/out of a mkt

speed/time in transit
mkt coverage
avail, dependability, consistency
loss and damage perf
flexibility
I and stockout costs
vol of customer business

based on the costs, perceived value of the service provided

FOB terms dictate the logistics responsibilities

simplified common carrier pricing, which replaces ridiculously outdated discount pricing structure

provides all carrier info
spells out title
dictates contract terms

carrier's invoice for shipment movement charges

used to doc and process damaged/delayed shipment claims

describes commodities, price, pmt terms, transport, insurance, and special arrangements

lists items, stops, wt, case count, BOL#, etc

export declarations, licenses

concentration, dispersion, shipment, interchange

cost assoc

tracking is an added service

allows managers to change orig shipping orders and max savings via shipment control

allows for changes in destination en route

service that assists w/LVL to VL consolidation

charges for retaining trailers/rail cars beyond an agreed time

stopping to load/unload, paying var rates based on wt and stops

allows for stopping to convert a shipment into another form

refrigeration, heating, ventilation

efficient # of carriers
negotiating/contracting w/carriers
est pricing and service lvls w/carriers
consolidate/org shipments for efficiency and TL/VL discounts
monitor service quality and correct poor perf

-consolidation/breakbulk
-product mixing
-customer service support
-contingency protection and smoothing
-manuf support

receiving
transferring
selecting/picking
loading shipping

transfer shipments directly to outgoing trailers w/o stopping in btwn. Elim inventory

usually ST for JIT, QR, crossdocking
slotted into categories based on fixed/variable slots
fixed slotting: productivity gains through familiarity
dynamic slotting: setup flexibility

Warehouse Management Systems

available to gen public for rent/lease for:
gen merchandise
bulk storage
household goods
refrigerated
bonded/customs
special commodity

product testing
pricing
assembly
labeling
order fulfillment
data interchange

public for LT arrangement for custom/tailored warehousing services
special/custom services; pricing and fees secondary
support challenges faced by seasonal cycles, increases in geographical coverage, test mkting, international operations

comm problems
lack of specific services
space shortages

req no capital investment
flexibility in space capabilities
reduced risk assoc w/building ownership
poss tax adv
knowledge of exact costs
some insulation from labor disputes

control
flexible
pot less $$
better use of humans
tax benefits
intangible benefits

lack of flexibility
financial constraints
rate of return