Transportation

Scalability roa what are my terms of sale what is

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Unformatted text preview: ownership, etc.) Decision to Outsource Transportation Firms choose between ―make‖ or ―buy‖ Commercial carriers ―buy‖ Private fleets ―make‖ External experts move the freight and/or manage the transportation process ―buy‖ Third-party logistics (3PL) ―buy‖ Modal Selection Accessibility Accessibility advantage: Motor carriage Accessibility disadvantage: Air, rail, and water Transit Time Transit time advantage: Air and motor carriage Transit time disadvantage: Rail, water, and pipeline Reliability Reliability advantage: Motor carriers and air carriers Reliability disadvantage: Water carriers and rail carriers Modal Selection Product Safety Safety advantage: Air transportation and motor carriage Safety disadvantage: Rail and water Cost Cost advantage: The cost of transportation service varies greatly between and within the modes Cost disadvantage: Motor carriage and air transportation Modal Selection The nature of a product—size, durability, and value Durability Product value Shipment characteristics—size, route, and required speed Carrier Selection selecting the individual transportation service providers within the mode major difference between modal and carrier selection is the number of options difference is the frequency of the decision type of service provided within a mode impacts carrier selection most carriers have the capabilities to provide a similar level of service Core carrier limited number of carriers leverage its purchasing dolla...
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This note was uploaded on 10/25/2012 for the course WCOB 3613 taught by Professor Jamescrowell during the Fall '12 term at Arkansas.

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