Flashcards
chapter 6 transport in supply chains
Cards in this deck (18)
- 1Choosing which mode(s) to use for freight transportation depends on:• Volume and value of the freight
• Distance to be travelled
• Availability of different services
• Freight rates to be charged - 2why is no simple linear relationship between the freight rate charged and both the weight of the freight and the distance to be travelled.-logistics service provider (LSP) will still have to recover certain fixed costs regardless of the distance to be travelled
-• For heavier shipments, the rate per kilo will typically decrease as the fixed costs can be spread over a larger weight.
-For bulky or difficult to handle shipments, LSPs will typically apply volumetric charging based on the dimensions of the consignment. - 3Intermodal transport:freight moves within a loading unit (intermodal transport unit), which may move upon a number of different transport modes, but the freight remains within the unit at all times. e.g. containers on ships, trains and trucks
- 4Mode Relative costs and operating characteristics ROADFixed cost (FC) is low as the physical transport infrastructure such as motorways are in place through public funding. Variable cost (VC) is medium in terms of rising fuel costs, maintenance and increasing use of road. Operating characteristics (OC):
• Speed, availability, dependability, frequency
– Limited capacity on weight and volume - 5Mode Relative costs and operating characteristics RAILFC is high due to expensive equipment requirements and VC is relatively low. (OC):
• Speed, dependability, frequency, capability to move larger quantities of freight - 6Mode Relative costs and operating characteristics AIRFC is relative low, but high VC includes fuel, maintenance, security requirements. (OC):
• Speed, availability, dependability, frequency
– Limited capacity on uplift, cannot directly link individual consignors and consignees - 7Mode Relative costs and operating characteristics WATERFC is medium, VC is low due to the economies of scale. (OC):
• Capability to uplift large volumes of freight, availability, dependability, frequency
– Slow, cannot offer direct consignor-to-consignee connectivity - 8Mode Relative costs and operating characteristics PIPELINEFC is high due to right of way, construction and installation, but VC is relatively low. (OC):
• Dependability
– Limited number of situations when it can be used - 9CCConsolidation centers (CCs) were added and served to consolidate deliveries from multiple suppliers into full loads, which could be delivered onwards to the DCs.
- 10DCDistribution center (DC): a type of warehouse where many products are delivered by different suppliers, preferably in full truck loads. Each DC services a number of retail stores in the regional area. DCs can be further categorized as:
• Regional distribution centers (RDCs)
• National distribution centers (NDCs) - 11Factory gate pricing (FGPthe use of an ex-works price for a product plus the organization and optimization of transport by the purchaser to the point of delivery.
• FGP saves money for the retailer due to increased supply chain visibility and better management of transport leading to reduction in delays in their inbound logistics.
• Retailers are also looking at further improving their efficiency by increasing the back loading of store delivery vehicles and the consolidation of smaller loads into consolidation centers.
• Enables suppliers to focus on their core competencies as the retailer organizes the transportation. - 12The efficiency and effectiveness of transport services are impacted by a variety of issues:• Congestion problems
• Waste – including empty running of vehicles
• Carbon emissions
• Regulatory directives on maximum permitted working time
• Road user charges
• Skill shortages - 13inefficiencies and waste:• Excessive waiting time
• Poor turnaround time
• Low vehicle fill rates
• Poor asset utilization
• Unnecessary administration
• Excessive inventory holding - 14FCL LCLfull container load
less than full container load - 15Consignor vs. Consignee.... A consignor is the person who sells goods or sends the goods. The consignee is the person to whom the goods are transferred, and sometimes this person is the actual buyer of the goods and sometimes not.
- 16Pre-Carriage – Carriage – On-Carriage –Pre-Carriage – The movement that happens BEFORE the container is loaded on the ship
Carriage – The movement that happens while the container is ON BOARD the ship
On-Carriage – The movement that happens AFTER the container is discharged from the ship - 17Chargeable weight:the greater between actual weight and volume weight
- 18Why transportation is a derived demand?The demand for transport is a derived demand, an economic term, which refers to demand for one good or service in one sector occurring as a result of demand from another. Users of transport are primarily consuming the service not because of its direct benefits, but because they wish to access other services.
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- Logistics Flashcards on chapter 6 transport in supply chains, created by A K on 23/05/2018.
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- A K · May 2018
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- May 23, 2018
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