Chapter 7 Flashcards
Example of mode of transportation and logistics
Motor Carries
Rail Carries
Air Carries
Water Carries
Pipeline Carries
is necessary for moving purchased materials from suppliers to buyers, moving WIP materials within a firm, moving finished goods to customers, returning or recycling goods, and also storing these items along the way in supply chain.
Logistics
are needed for commerce to exist in any industrialized society.
Effective logistics system
creates time utility by determining how deliveries can be made in a timely manner and where items should be held prior to delivery.
Logistics function
is created when customer get things delivered to their desired locations.
Place utility
The process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods including services and related information from the point of origin to the point of consumption for the process of conforming to customer requirements.
Logistics
for ____ in particular, __ is what creates the flow of goods between supply chain partners, such that costs, service requirements, competitive advantage, and profits can be optimized.
supply chain
logistics
moving people and things from one place to another
transportation
LEGAL FORMS OF TRANSPORTATION
For-hire transportation services companies are classified as:
Common carriers
Contract carriers
Exempt carriers
Private carriers
offer transportation services to all shippers at published rates between designated locations.
Common carriers
must offer transportation services to the general public without discrimination, meaning they must charge the same rates for the same service to all customers.
Common carriers
legally bound to carry all passengers or freight as long as there us enough space, the fee is paid, and no reasonable grounds to refuse exist.
Common carriers
Serves the general public
Common carriers
might also be common carriers, however, as such, they are not bound to serve the general public.
Contract carriers
serve specific customer under contractual agreements
Contract carriers
Typical contacts are for movement of a specified cargo for a negotiate and agreed-upon price.
Contract carriers
some __ have specific capabilities that allow them to offer lower prices than common carriers might charge for the same service.
Contract carriers
exempt for the regulation of services and rates.
Exempt carriers
transport certain exempt products such as produce, livestock, coal, garbage, or newspaper.
Exempt carriers
school, buses, taxis, and ambulance is an example of ________
Exempt carriers
was originally established to allow farmers to transport agricultural products on public roads, but today the status has been broadened to include a number of commodities
Exempt status
T.o.F
All carriers can also act as exempt carriers for these specific commodities and routes
True
not subject to economic regulation and typically transports goods for the company owning the carrier.
Private carriers
Firm transporting their own products typically own and operate fleets of trucks and/or airplanes, large enough to make transportation less what it would be if the firm hired a transportation provider.
Private carriers
_________ and _______ of product movement also play a major roles in the ownership of the private carriers
Flexibility and control
are the most flexible mode of transportation and account for 70% of all the freight tonnage moved in the United States which is by far the largest of the five modes.
Motor carriers (or trucks)
offer door-to-door service, local pick up and deliver, and small well as large shipment hauling.
Motor carriers
it has a low fixed and variable costs, can compete favorably with rail and air carriers for short medium hauls (distances shorter than 1,000 miles), and still competitive with other form of transportation for long cross-country shipments, particularly if there are multiple delivery locations.
Motor Carriers
Can also offer a variety of specialized services from refrigerated, to livestock, to automobile hauling.
Motor Carriers
Most often classified as less-than-truckload (LTL) carriers or truckload (TL) carriers.
Motor carriers
moved small packages or shipment that take up less than one truck load, and shipping fees are higher per hundred weights (cwt) than TL fees, since the carrier must consolidate many small shipments into one truckload and then break the truckload back down into individual shipments at the destination for individual deliveries.
LTL Carriers
using ___ is much less expensive alternatives than using a __ carrier
LTL carriers
LT carrier
can also be classified based on type of goods they haul
Motor carriers
carry the majority of goods shipped in the united states
General freight carriers
most favorable when the distance is long and the shipment are heavy or bulky
Rail carriers
relatively slow and inflexible: however they are less expensive than air and motor carriers and can compete fairly well on long hauls
Rail Carriers
point-t0-point pickup and delivery service
Rail carriers
are also somewhat of a disadvantage compared with motor carriers with respect to shipment damages, equipment availability, and service frequency.
Railroads
very expensive relative to other modes but also very fast, particularly for long distances
Air Carriers
account for only small portion of total freight hauled, since aircraft cannot carry extremely heavy or bulky cargo
Air carriers
the best transportation mode for light and high value goods.
Air carriers
for movements over water, the only other modal alternative is ___, where the transportation decision is based on timing, cost, and shipment weight.
water carriage
is limited in terms of geographic coverage
Air transportation
very expensive and very slow and inflexible
water carriers
types of water transportation
inland waterway
lake
coastal and intercoastal ocean
global deep sea carriers
are used to haul heavy, bulky, and low value materials such as coal, grain, sand, and compete primarily with rail and pipeline carriers.
inland waterway carriers (mainly barges)
limited to areas accessible by water and hence growth in this area of transportation is also limited.
Inland water transport
typically paired with motor carriers to enable door-to-door pick-up and delivery service
water carriers
made transportation cheaper and more desirable, even with slow transportation times.
deep-sea transportation
can ship items overseas cheaply, because of the ability to consolidate small shipment in containers that are placed on board containerships
small shippers
_____ are very specialized with respect to the products they carry: however, once the initial investment of the pipeline is recovered, there is very little additional maintenance cost, so ___________ tends to be very inexpensive.
pipeline carriers
long-term pipeline transportation
can haul materials that are only in liquid or gaseous state and so the growth potential for ____ is quite limited.
pipeline
one of the items pipelines haul is __ they do this by pulverizing it into small particles and the suspending it in water to form a slurry. when it reaches the destination, the ___ and water are separated
Coal
other items that is transported through pipeline carriers are:
Water
oil
gasoline
natural gas
provide very strategic supply chain services–they enable firms to store their purchases, WIP, and finished goods, as well as perform breakbulk and assembly activities.
Warehouses
allow faster and more frequent deliveries of finished products to customers, which in return can result in better customer service.
warehouses
companies view _____ as a competitive resource.
warehouses
In many cases today, warehouses are not used to store things, but rather to receive bulk shipments, break them down, repackage various items into outgoing orders, and then distribute these orders to a manufacturing location or retail center. These activities are collectively referred as _________
Crossdocking
warehouse is more accurately describe as distribution center
Crossdocking
are used to support purchasing, production, and distribution activities
warehouses
in a _________, a warehouse might be regionally located, with the retailer receiving shipments at the warehouse from many supplier, then breaking these down and reassembling outgoing orders for delivery to each retail location, while using its private fleet of trucks, or for-hire transportation providers to move the orders to the retail locations.
Retail setting
one of the largest e-commerce
Alibaba Group
refers to the warehouse that are privately owned and used by the organization.
Private warehouses
represents the opportunity to reduce the costs of warehousing as well as control the levels of service provided to customers.
Private warehouses
can also enable the firm to better utilize its workforce and expertise in terms of transportation, warehousing, and distribution center activities.
private warehouses
can generate income and tax advantage through leasing of excess capacity and/or asset depreciation.
private warehouses
can be truly massive
private warehouses
are for-profit organizations that contact out or lease a wide range of light manufacturing, warehousing, and distribution services to other companies
Public warehouses
provide a number of specialized services that firms can use to create customize shipment and goods.
public warehouses
services of public warehouses
Breakbulk
Repackaging
Assembly
Quality inspection
Material handling, equipment maintenance, and documentation services
Short-and long-term storage
large quantities of shipments are broken down so that items can be combined into specific customer orders and then shipped out.
Breakbulk
after the breakbulk, items are repackaged for specific customer orders. Warehouses can also do individual product repackaging and labelling.
Repackaging
some warehouses provide final assembly operations to satisfy customer requests and to create customized final products.
Assembly
warehouse personnel can perform incoming and outgoing quality inspection.
Quality inspection
refers to the movement and storage of products from point to point consumption within the firm throughout the supply chain and thus responsible for creating time and place utility
Logistics
to make up for lost time, _________ might also be used, adding yet more cost to the transportation bill.
overnight deliveries
providing adequate transportation and storage, getting items through customs, delivering to foreign locations in a timely fashion, and logistics pricing can all impact the ability of the supply chain to serve a foreign market competitively. in many cases, firm are forced to use outside agents or _______ to move items to foreign locations effectively.
third-party logistics services (3PLs)
some ________ provide complete end-to-end supply chain management services , including network optimization, light manufacturing, and other value added activities.
3PLs
TYPES OF WAREHOUSES
Private warehouses
Public warehouses
also known as returns management
reverse logistics
refers to the backward flow of goods from the customers in the supply chain occurring when goods are returned, either by end-product customer or by a business customer within the supply chain.
Reverse logistics
refers to the movement, storage, and processing of return goods.
Reverse logistics
can represent significant challenges to a supply chain
Return
viewed as unwanted activity of the supply chain management
Reverse logistics
can affect the entire supply chain financially and can have a large impact on how customer views a product brand, potentially impacting future sales.
Poor reverse logistics system
