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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
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.
- Fall '12