World class transportationChapter 9

Transportation systemProvides opportunity for growth

under competitive circumstancesFacilitates companies to exploit

economies of scaleFacilitates deeper penetrationMore efficient and lower the

transportation cost, lower the selling price

Principles of transportation function1. Continuous flow2. Optimize unit of cargo3. Maximum vehicle unit4. Adaptation of vehicle unit to volume

and nature of traffic5. Standardization6. Compatibility of unit load equipment7. Minimum of dead weight to total weight8. Maximum utilization of capital,

equipment and personnel

Transportation objectives

1. Decision on service level2. Costs incurred3. Level of flexibility and control

over transportation activities4. Trade off between customer

service levels and costs

Selecting mode of transportMain type of modes1. Common carriers2. Contract carriers3. Private carriers4. Freight forwarders5. Speed post

Transportation functionEvaluation and control1. Customer perception

measurement2. Best practice bench marking3. Customer satisfaction

measurement

Transportation documents

1. Bill of lading2. Packing list3. Shipper’s letter of instruction4. Shipment of dangerous goods5. manifest

1. Bill of LadingIt is a contractIt is a receipt for all goodsIt is a certificate of title

TypesUniform BOLIntermodal BOL

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