Industrial Transportation Management

Industrial Transportation Management - Industrial...

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Industrial Transportation Industrial Transportation Management Management
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7-2 Transportation Management Activities and Strategy 1. Negotiate rates and product classifications 2. Select carriers and routes 3. Contract for rates, service, and volume 4. Freight/shipment consolidation – build density and volume to get lower prices from carriers 5. Monitor service: not each load, but reviewing carrier performance metrics on regular basis 6. Reduce number of carriers
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7-3 Bases for Rates Cost of Service (we already covered) Distance, Weight/Density, Stowability, Ease or difficulty in loading/unloading, Susceptibility to damage and theft Value of Service – demand side Product value Affects carrier liability in case of loss or damage Affects carrier ability to pass along cost increases -how significant are transport costs to product price? Transportation competition
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7-4 Determining Rates Information needed for rate determination may include: Origin and destination by city or zip code Whether carrier will load/unload Dimensions (cube) of load Number of units Weight National Motor Freight Classification number Description of material to be moved
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7-5 Routing Shippers have the right to select the route to shipment destination More often need to be specified for hazmat Generally are computer generated Alternative routes and carriers are also important – risk management
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7-6 Carrier Selection Criteria On-time pick-up On-time delivery Safety record Tracking/communication
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This note was uploaded on 03/05/2010 for the course LSCM 360 taught by Professor Martins during the Fall '08 term at Iowa State.

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Industrial Transportation Management - Industrial...

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