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SCM 355 Important Concepts Chapter 17

SCM 355 Important Concepts Chapter 17 - SCM 355 Important...

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SCM 355 Important Concepts Chapter 17 (Purchasing Services) Transportation Management (Exhibit 17.1) Deregulation of Transportation and A New Role for Purchasing Transportation deregulation A new role for purchasing A Decision –Making Framework for Developing a Transportation Strategy (Exhibit 17.2) Determine when and where to control transportation (shipping) (Exhibit 17.3) Identify key transportation performance variables (Exhibit 17.4) Total cost Speed Reliability Capability Accessibility Select a transportation mode Advantages and disadvantages of transportation modes (17.5) Common (public) carriers Contract carriers Private carriers Exempt carriers Negotiate transportation rates and service levels Outsourcing Logistics to Third-Party Logistic (3PL) Providers Select providers Gain access to critical and timely data Develop systems visibility to material shipments Develop closer relationships with fewer providers Establish companywide contracts Purchasing Services and Indirect Items
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