3 Transportation Services and Management

3 Transportation Services and Management - 3 Transportation...

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3 Transportation Services and Management
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3 Transportation Services and Management 2 Switching Milk Cans from a Farmer’s Buggy to a Truck on a Rural Road, 1929
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3 Transportation Services and Management 3 Shippers Firms that consign or receive goods for transportation Customers of logistics service providers Shippers’ concerns in logistics decisions: Costs Inventory requirements e.g., decisions on which warehouse/DC to store the inventory (e.g., close to customers or not) Some factors affect each other e.g., transport mode and package design, carriers, and ports, etc. Transportation Services 交付
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3 Transportation Services and Management 4 Shippers’ concerns in logistics decisions : (continued) Order management e.g., special customer request (Is consolidation possible or not?) Customer service level requirements on speed, accuracy, protection, etc. Next, we will focus on the transportation services available for shippers Transportation Services E.g. Sequence
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3 Transportation Services and Management 5 Small - Volume Shipping Parcels are packages weighing up to 150 pounds Parcel carriers are firms that specialize in small packages ( 150 pounds) Examples UPS FedEx DHL USPS
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3 Transportation Services and Management 6 Less - than - truckload (LTL) Shipping Less-than-truckload (LTL) 150 to 10,000 pounds Too big to be handled manually, too small to fill a truck LTL trucks carry shipments of different customers simultaneously Leaders of the industry in the USA Yellow Freight Roadway Express ABF Freight System
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3 Transportation Services and Management 7 LTL Shipping Less-than-truckload (LTL) (continued) Transportation process (domestic) Local pick-up by small trucks Shipments are taken to the terminal In the terminal, shipments are loaded aboard line haul trucks Line haul trucks go to the terminals near destinations In the terminal, shipments are unloaded to small trucks Small trucks deliver shipments to consignees (regularly) like Bus
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3 Transportation Services and Management 8 LTL Shipping Air Cargos Can be given directly to airlines Can be given to freight forwarders Most are carried on passenger airlines Typical product characteristics High in value Perishable Urgent items Containers are made to fit fuselage (much smaller)
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3 Transportation Services and Management 9 LTL Shipping Freight forwarders (NVOCC) NVOCC: Non-Vessel Operating Common Carrier They are agents who represent the shippers Buy space at TL (truckload) rate and sell at somewhat less than the normal LTL rate of carrier May offer pick-up and delivery services Consolidate shipments Function as the transportation department of small firms May specialize in specific cargoes Do not own vechicle level (Buy big space and sale less space to customer--> earn $)
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3 Transportation Services and Management 10 LTL Shipping Air forwarders
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