MGT3320 12

MGT3320 12 - 11/3/2009 1 Distribution Management MGT 3320...

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Unformatted text preview: 11/3/2009 1 Distribution Management MGT 3320 Dan C. Parris PhD Fall 2009 – Baylor University Total Transportation Costs United States* Canada* Highway $ 450 $ 12.5 Railroads 36 4.5 Water 22 2.4 Water 22 2.4 Pipelines 9 N/A Air 26 4.3 Freight forwarders 6 3.6 Shipper related 5 N/A Total $ 554 $ 27.3 * In Billions Major Issues Facing the Logistics Industry • Congestion • Mergers and anti ‐ trust concerns • Cargo and liability concerns • Safety regulations 11/3/2009 2 Transportation Industry Segments • Air cargo • Air passenger • Motor freight • Railroad • Marine • Intermodal • Pipeline Third ‐ Party Logistics Suppliers • Integration of services desirable – transport and logistics • Opportunity for logistics/transport companies to provide more value ‐ added services under deregulation • Outsourcing issue for manufacturers • $50 billion industry – Growth market Third ‐ Party Logistics Suppliers • Facilitated by advances in information technology – Logistics deals with the flow of goods and information • TPL providers differentiated on the basis of: – geographic scope – industry specialization • Potential economies of TPL – economies of scale – economies of scope – specialized expertise 11/3/2009 3 The Selection of the FOB Point Determines Four Things 1. Who pays the carrier 2. When legal title to goods being shipped passes to the buyer 3. Who is responsible for preparing and pursuing l i ith th i claims with the carrier 4. Who routes the freight Since deregulation of the transport sector, purchasers are increasingly taking control of transport arrangements as a means of controlling costs Terms of Sale: Possible FOB Points Title passes to buyer Terms of Sale: F.O.B. Origin, Freight Col ect Freight charges paid by buyer Sel er Buyer Buyer - Pays freight charges Buyer - Bears freight charges Buyer - Owns goods in transit Buyer - Files claims (if any) Sel er - Pays freight charges Sel er - Bears freight Terms of Sale: F.O.B. Origin, Freight Prepaid Title passes to buyer charges Buyer - Owns goods in transit...
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This note was uploaded on 03/08/2010 for the course MGT 3320 taught by Professor Parris during the Fall '09 term at Baylor.

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MGT3320 12 - 11/3/2009 1 Distribution Management MGT 3320...

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