In this chapter, the following content will be discussed: Describe the structure of supply chains, describe the bullwhip effect, describe the issues affecting supply chain management, describe B2B and B2C electronic commerce, describe global issues in supply chain management,...
Logistics Management LSM 730 Lecture 17 Dr Khurrum S Mughal 1-1 Transport Choices • Primary intercity carriers − Air − Truck − Rail − Water − Pipe • Coordinated services − Piggyback − Birdyback − Fishyback CR (2004) Prentice Hall, Inc • Small shipment carriers − − − − UPS Federal Express Postal services Bus Package Express • Agents − Freight forwarders − Shipper associations • Others − − − − − Autos Bicycles Taxis Human Electronic 6-2 Importance of Modes By Products Hauled • Air very high - valued, time sensitive products • Truck moderately high valued, time sensitive products Many finished and semifinished goods • Rail low materials valued products including many raw • Water very low high - valued products moved domestically, valued if moved internationally • Pipe -natural gas generally limited to petroleum products and CR (2004) Prentice Hall, Inc 6-3 Importance of Modes (Cont’d) By Volume Moved Transportation mode Railroads Trucks Inland waterways Oil pipelines Air Total Percent of total volume 36.5% 24.9 16.3 22.0 0.3 100.0 CR (2004) Prentice Hall, Inc 6-4 Performance Overview Air generally fast over long distances and a fair degree of relative variability Water is very slow and moderately reliable Pipe is very slow but reliable Truck is moderately fast and reliable Rail is slower and less reliable than truck Relative Costs of Performance Mode Rail Truck Water Pipeline Air CR (2004) Prentice Hall, Inc Price, ¢/ton-mile 2.28 26.19 0.74 1.46 61.20 6-5 Legal Classification Documentation • • • • • • International Transportation CR (2004) Prentice Hall, Inc Common carriers Contract carriers Private Agents • Bill of lading Freight bill Freight claims • Damage, Loss & Delay Claims • Overcharge Claims • • • Free trade zones Documentation Modes 6-6 Foreign (Free) Trade Zone To domestic markets Duties paid Customs Duty free zone Products from abroad Manufacturing and/or storage Products to foreign markets No duties paid CR (2004) Prentice Hall, Inc 6-7 ... very low high - valued products moved domestically, valued if moved internationally • Pipe -natural gas generally limited to petroleum products and CR (2004) Prentice Hall, Inc 6-3 Importance... associations • Others − − − − − Autos Bicycles Taxis Human Electronic 6-2 Importance of Modes By Products Hauled • Air very high - valued, time sensitive products • Truck moderately high valued,... Performance Mode Rail Truck Water Pipeline Air CR (2004) Prentice Hall, Inc Price, ¢/ton-mile 2.28 26.19 0.74 1.46 61.20 6-5 Legal Classification Documentation • • • • • • International Transportation