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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