SCM 300 – Module 04
Module 04: Move It
(Packaging, Containers, Transportation, and Distribution)
Logistics and Transportation is perhaps the most intimidating aspect of business for many white-collar workers.
Still, it is yet another
aspect of the supply chain that affects nearly every business function.
This lecture illustrates the key “move it” functions:
an item; Putting it into a large container that allows easy transport of high volume shipments, Moving the shipment via one or more
modes of transport; Utilizing warehouses and/or distribution centers, Filling out the key shipping documents, and Preparing shipments
for international distribution.
Basic Logistics Terminology – Slides 03-05
Describe the major Cargo Classifications.
Tie to Ocean Carrier Classifications.
Bulk Cargo – Free flowing cargo, stored loose.
Loaded by shovel, pump, bucket, or scoop.
Ex. Coal, rice, grain, raw
sugar, oil, sulfur.
Breakbulk Cargo – General or packaged Cargo.
Often containerized and measured in TEU’s.
CL, LCL, TL, LTL.
Neo-bulk Cargo – Characteristics of both Bulk and Break Bulk.
Automobiles, logs, steel, cattle.
What does it mean to Cube Out?
What does it mean to Weigh Out?
Cubing Out - When all of the space in the container (or package) has been filled.
Weighing Out - When the container (or package) has been filled with product, such that additional cargo will exceed
the container’s weight limit.
Define: Intermodal and Multi-Modal. Be able to provide examples.
Intermodal – Seamless Multimodal shipment.
No Need to Unload Container, Repackage Products.
One Container for
Multi-Modal - Use of more than one mode of transport during a single shipment.
Why is Logistics critical?
Kraft Foods- Three major customer requirements.
1.wanted to be able to order a wide variety of Kraft’s products and receive the shipment the next day. This
would give them greater flexibility and allow them to hold fewer inventories in their facilities.
2. wanted the option of being able to place large orders directly with the plants in return for significant
3. wanted to “order from one price list and obtain volume discounts based on their entire network of
business relationships with kraft.” They used to have to deal with numerous divisions and pricing systems.
In response to these needs, kraft set up a new logistics system. First, plant based warehouses allowe
customers to place orders for direct plant shipments (DPSs) with any of the plants. At the same time,
regional mixing centers hold the entire line of kraft products.
These mixing centers are located to provide
overnight shipments to maximum number of customers. Kraft also consolidated all of its pricing, ordering,
and invoicing systems into one single system to assure customers received appropriate volume