Mind map

Ch. # 9: D E L I V E R Y.

Ruby Gómez Spanish

Map content

G. Ruby Gómez Castellanos. - A01227400. Referencia: Johnson, F., Leenders, M. R., Flynn, A. E. (2006). Purchasing and supply management [Digital Version PDF] (Fourteenth Edition). New York: McGraw-Hill.
Logistics.
- Part of the supply chain that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information, from the point of origin to the point of consumption; to meet customers' requirements.
Transportation.
- Majority of logistics costs.
- JIT, purchasing systems, global sourcing and outsourcing are crucial for decision making.
- 3PLs provide logistics services such as: warehousing, outbound and inbound transportation, freight bill auditing and payment, cross-docking, and so on.
- Regulation and deregulation.
  - Controlled at the federal, state, and provincial levels.
- Supply involvement in 2 areas
  - Direct functional responsibility
  - Working with managers from other functions.
- Modes and carriers.
  - Means of mobility:
    - Land (rail, road, and pipeline).
      - Road
        Less than truck load (LTL)
        Truckload (LT)
        Small parcel, ground.
    - Water.
    - Air.
    - Radio Frequency (RF).
      - Transportation of information.
        Wireless, copper wire, fiberoptic cable.
    - Intermodal.
      - Containers on flatcars (COFC)
      - Truck trailers on flatcars (TOFC) = piggyback systems.
    - Pipelines.
      - Products on liquid or gaseous state.
- Service providers.
  - Freight forwarders.
  - Brokers.
  - Customs house brokers.
Types of carriers
- Common carriers.
- Contract carrier.
- Exempt carriers.
- Private carrier.
Specialized service options.
- Expedited transportation.
- Same-day service.
Selection of mode an supplier.
- Key selection criteria:
  - Required delivery time.
  - Reliability and service quality.
  - Available services.
  - Type of item being shipped.
  - Shipment size.
  - Possibility of damage.
  - Cost of the transport service.
  - Carrier financial situation.
  - Handling of claims.
  - Private fleets.
Incoterms
- FOB
- CFR
- CIF
Rates and pricing.
- 2 categories of carrier rates:
  - Line haul rates.
  - Accessorial rates.
- 4 basic types of rate discounts:
  - Aggregate tender rates.
  - Flat percentage discounts.
  - Increased volume-increased discount percentage.
  - Specific origin and destination points.
Documentation on freight shipments.
- Bill of lading.
  - Variations on the bill of lading:
    - Uniform straight bill of lading.
    - Unit bill of lading.
    - Uniform order bill of lading.
- Freight bill.
- Freight claim.
- Unconcealed loss or damage.
- Concealed loss or damage.
Expediting and tracing shipments.
- Expediting:
  - Applying pressure to a supplier, to encourage faster-than-normal delivery service.
- Tracing.
  - Follow-up items that have been shipped but have not yet been received.
On-premise vs off-premise web-based IT Delivery.
- On-premise: a company purchases a software package; pays a licensing fee, and installs, operates, and maintains that software at company's location.
- Off-premise: Aplicación Service Providers house the software in one location and many users access it.
Development of transportation and logistics strategy should include:
- Value analysis of alternatives.
- Price analysis.
- Consolidation of freight, where possible.
- Analysis and evaluation of suppliers.
- Reassessment of the possibilities of using different transport models.
- Development of a closer relationship with selected carriers.
- Cost analysis/reduction.
- Outsourcing, 3PL contracting out.
- Safety considerations.
- Environmental factors.