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SCM 404 Exam 2 > Chapter 10 > Flashcards

Chapter 10 Flashcards

1
Q

Transportation

A
  • Involves the physical movement of goods between origin and destination points
  • Transportation systems links geographically separated partners and facilities in a company’s supply
  • Transportation facilities the creation of time and place utility in the supply chain
  • Has a major economic impact on the financial performance of businesses
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2
Q

Roles of Transportation in SCM

A
  • Provides the critical links b/w these organizations, permitting goods to flow between their facilities
  • Transportation service availability is critical to demand fulfillment in the supply chain
  • Transportation efficiency promotes the competitiveness of a supply chain
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3
Q

Challenges of Transportation Role in SCM

A
  1. Supply chain complexity
  2. Competing goals among supply chain partners
  3. Changing customer requirements
  4. Limited information availability
  5. Synchronizing transportation with other supply chain activities
  6. Transportation capacity constraints
  7. Rising transportation rates
  8. Governmental requirements for transportation industry
  9. Regulation is growing in areas where the transportation industry has the potential to impact the quality of life, safety of citizens and growth of commerce
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4
Q

Modes of Transportation:

A

(in order from most common to least)

  1. Truck
  2. Rail
  3. Air
  4. Water
  5. Pipeline
  6. Intermodal Transportation
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5
Q

Truck Mode:

A

Role: Move smaller shipments in local, regional and national markets

  • Low fixed costs, high variable
  • Best at Accessibility, worst at Cost

Strengths:

 - Accessible
 - Fast and versatile
 - Customer service

Weaknesses:

 - Limited Capacity
 - High Cost
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6
Q

Rail Mode:

A

Role: Move large shipments of domestic freight long distances

  • High fixed costs, low variable

Strengths:

 - High capacity
 - Low cost

Weaknesses:

 - Accessibility
 - Inconsistent service
 - Damages rates
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7
Q

Air Mode:

A

Role: Move urgent shipments of domestic freight and smaller shipments of international freight

  • High variable costs, low fixed costs(due to fuel, maintenance and salaries)
  • Best at transit time, worst at cost

Strengths:

- Speed
- Freight protection
- Flexibility

Weaknesses:

 - Accessibility
 - High Cost
 - Low Capacity
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8
Q

Water Mode:

A

Role: Move large domestic shipments via rivers and canals and international shipments via oceans

  • High fixed versus low variable
  • Very bad at reliability and security

Strengths:

- High Capacity
- Low Cost
- International Capabilities

Weaknesses:

- Slow
 - Accessibility
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9
Q

Pipeline Mode:

A

Role: Move large volumes of domestic freight long distances

  • High fixed versus low variable
  • Good reliability, security and cost

Strengths:

 - In-transit storage
 - Efficiency 
 - Low Cost

Weaknesses:

 - Slow
 - Limited network
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10
Q

Modal Selection (Accessibility, Transit Time, Reliability, Product Safety & Cost)

A 
Accessibility
     - adv: Motor
     - dis: Air, Rail & Water
Transit Time
    - adv: Air & Motor
    - dis: Rail, Water & Carriers
Reliability
    - adv: Motor & Air
    - dis: Water & Rail
Product Safety
    - adv: Air & Motor
    - dis: Rail & Water
Cost
    - adv: cost of transportation service varies greatly b/w and w/i the modes
    - dis: Motor & Air
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11
Q

Modal Selection

A
  • Nature of a product
  • Durability
  • Product Value
  • Shipment characteristics
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12
Q

Carrier Selection

A
  • Selecting the individual transportation service providers within the mode
  • Major difference between modal and carrier selection is the number of options
  • Difference is the frequency of the decision
  • Type of service provided within a mode impacts carrier selection
  • Most carriers have the capabilities to provide a similar level of service
  • Core Carrier( limited # of carriers, leverage its purchasing dollars)
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13
Q

Rate Negotiations

A
  • Centralized freight rate negotiations
  • Developing contracts with carriers for a tailored set of transportation services at a specific price
  • Leveraging volume with a small set of carriers
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14
Q

Shipment Preparation

A
  • Corporate transportation routing guide
  • Last-minute, cost-saving decisions
    • Consolidate freight
    • Coordinate shipment deliveries
    • Take full advantage of container capacity
    • An accurate freight count should be taken
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15
Q

Freight Documentation

A
  • Bill of Landing
  • Freight Bill
  • Freight Claims Form
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16
Q

Bill of Landing

A
  • Originates the Shipment
  • Provides all the information the carrier needs
  • Stipulates the contract terms, including carrier’s liability for loss and damage
  • Acts as a receipt for the goods the shipper tenders to the carrier
  • In some cases, shows certificate of title to the goods
17
Q

Freight Bill

A
  • Carrier’s Invoice for carrier charges
  • Lists:
    • Shipment
    • Origin/Destination
    • Consignee
    • Items
    • Total weight
    • Total charges
18
Q

Freight Claims Form

A
  • Filed with the carrier to recoup monetary losses resulting if carrier fails to protect the shipment
    Carriers are not liable for freight claims if the damage is attributable to:
    • Natural disaster or “act of God”
    • Military attach or similar “act of public enemy”
    • Government seizure of freight or “act of public authority”
    • Failure to adequately package the freight or negligent “act of the shipper”
      -Extreme fragility, perishability or similar problematic “inherent nature of the goods”
19
Q

Maintain In-Transit Visibility

A
  • Manage key events as product moves across the supply chain
  • Technology facilities the ability to monitor product
  • Visibility tools must be linked to other capabilities and processes to have an impact on supply chain event management
20
Q

Monitor Service Quality

A
  • Analyze the outcome of all their transportation strategy, planning and decision-making
  • Key requirement for service quality monitoring is information
21
Q

Transportation Metrics

A
  • Key Performance Indicators (KPIs):
    • Evaluates:
      • Current Performance vs. historical results
      • Internal Goals
      • Carrier Commitments
    • Challenge lies in narrowing down metrics available to monitor performance to a mangeable number of KPIs
    • Primary categories of transportation KPIs include service quality and efficiency
22
Q

Transportation Management Systems (TMS)

A
  • Critical applications include the following:
    • Routing and Scheduling
    • Load Planning
    • Status Tracking
    • Appointment Scheduling

SCM 404 Exam 2 (2 decks)

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