CHAPTER 9 – DELIVERING YOUR PRODUCTS OR SERVICES Flashcards
Products that are being transported
Cargo/freight
If you’re the one sending the freight, you’re the ___. The place from which you ship the freight is the ___.
-shipper
-origin
If you’re the one to whom the freight is being sent, you’re the___. The place where you have the freight delivered is the ___
- recipient
- destination
– Each combination of an origin (O) and a destination (D)
O-D Pair
the time that it takes cargo to get from its origin to its destination
Transit time
– method you use to ship products from an origin to a destination
Mode of transportation
When you choose a transportation mode for an OD pair, you create a ___.
lane
seven primary modes of transportation cover the vast majority of logistics scenarios:
-pipeline
-ocean
-barge
-rail
-truck
-parcel
-airplane
For liquids and gases, ___are often the cheapest, safest, and most reliable form of transportation.
pipelines
For most products moving from one continent to another,___ or ___ are likely to be the lowest-cost option.
cargo ships or freighters (steamships)
The companies that operate these cargo vessels are called__
steamship lines.
The most common freighters these days are(4)
container ships; bulk carriers; tankers; and roll-on, roll-off vessels.
Cargo that isn’t liquid is called__
dry goods cargo
designed to carry break bulk dry goods that are loaded in standardized sea containers.
Container ships
____ haul bulk dry goods that don’t need to be placed in containers, such as ores.
Bulk carriers, called bulkers
haul liquids, especially petroleum and liquefied natural gas.
Tanker ships
are used to transport cars and other large items that need to be driven or dragged on and off the ship.
Roll-on, roll-off vessels, called ROROs,
There are two kinds of dry goods cargo:
Bulk dry goods
Break bulk dry goods
are commodities like coal and iron ore that can be poured into the ship’s storage area, called the hold
Bulk dry goods
type of dry goods cargo – are placed into containers.
Break bulk dry goods
The sea containers can be quickly loaded and unloaded from a ship using ___, which has greatly increased the speed and efficiency of global supply chains.
gantry cranes
he unit of measure for container ships is ___.
20-foot equivalent units (TEUs)
– If you ship an entire container from one destination to another
full container load (FCL)
– Sometimes, several smaller shipments are combined in a single container
less than container load (LCL)
For big, heavy cargo that needs to travel long distances over land, __ are often the way to go.
railroads
enclosed, providing the greatest flexibility and protection for cargo
Boxcars
used for food products that need to be temperature-controlled.
Refrigerated boxcars
used for bulk cargo such as grain and coal.
Hopper cars
haul liquids and compressed gases
Tankers
haul just about everything else
Flatcars
– For a train to pick up and deliver cars, it needs____.
– Many factories and distribution centers that ship a lot of cargo on trains have their own set of tracks installed, called ___
- railroad tracks
- rail spurs
— a facility that railroads use to move cargo between trucks and trains.
railroad ramp
One of the most common ways to ship cargo overland is to use __
big trucks.
Some people call these trucks ___, but the professionals refer to them as ___
-18-wheelers
-tractor-trailers
The companies that operate these big rigs are called ___
carriers.
you can choose any origin and destination, and generally pay a flat rate per mile.
full truckload (FTL)
your cargo is combined with other shippers’ cargo in the same trailer.
less than truckload (LTL)
Many shippers use ___as their threshold. Any shipment that is lighter than ___ should be LTL, and any shipment heavier than this should be FTL
15,000 pounds
The price that you would pay to hire a truck today
Spot market rate
If you ship frequently you can negotiate lower rates with a carrier.
Contracted Rates
Types of Trailers (3)
Dry Vans
Flatbeds
Refrigerated Trailers
– big aluminum boxes with wheels on the bottom
Dry Vans
– good alternatives for cargo that doesn’t need protection from the elements and that’s easier to load and unload from the side
Flatbeds
are similar to dry vans, except that they are insulated and have a refrigeration unit mounted in the front that cools the air inside
Refrigerated Trailers – Reefers
If you’re sending a relatively small load, such as a couple of boxes, you’ll probably choose a ___
parcel carrier
With the rise of e-commerce, ____ has become much more important for many retail supply chains.
parcel shipping
For cargo that needs to travel long distances quickly, the best option usually is an___
airplane
Air cargo is often loaded into special containers called___ that are designed to protect both the cargo and the airplane.
igloos
– modes are combined to move a product from origin to destination
Multimodal
– Moving a shipment from one mode to another
Transloading
Your choice of transportation mode for your freight shipments depends on three factors:
Product characteristics:
Facility characteristics:
Time constraints:
– a document that specifies rules about which modes to use and which carriers to select based on factors such as the type of cargo, the size of the load, and the O-D pair.
Routing Guide
– The process of picking up a load at Point A and dropping it off at Point B seems to be pretty straightforward, but carriers also need to find a customer that will pay them to pick up a load at Point B and bring it back to Poin
Backhaul
– The goal of ___ is to balance the needs of your customers with the cost of meeting their needs.
inventory management
– inventory level reaches zero
Stockout
Any store, factory, or distribution center employs eight high-level processes for physical inventory:
- receiving
- put-away
- inventory counts
- picking
- packing
- shipping
- yard management
- over, short, and damage
– The process for accepting inventory when it arrives
– involves scheduling appointments for deliveries to occur, along with unloading the goods and performing a quality inspection
a. Receiving
Receiving is often done at a___ — a part of the facility that’s designed to make loading and unloading freight on trucks or railcars easy.
loading dock
– After products have been received and passed a quality inspection, they need to be stored so that you can find them when you need them.
Put-away
The spot where you store a particular product is called a __.
location
Distribution centers often have thousands of locations, all managed by a ___
warehouse management system (WMS).
– (division) One section of a warehouse might have small locations for light items; another area may have large locations on the floor for heavy items.
Slotting
There are two common approaches to physical inventory counts:
traditional approach
cycle counting
shut down a facility during a slow time of year to count everything, one item at a time
traditional approach –
– they divide the facility and count a little bit of it at a time throughout the year.
cycle counting
– When a customer wants a product that you’ve been storing in your distribution center, you need to pick that item off the shelf (or off the floor) and get it ready for shipping.
d. Picking
– uses sophisticated routing algorithms to translate customer orders into pick paths that minimize time and distance for the people or robots that will pick the orders.
Warehouse execution system (WES)
– give pickers visual cues that help them work faster and more accurately
Pick-to-light systems and other displays
– have conversations with pickers, telling them where to go and what to pick, and confirming that they’ve done the work correctly.
Pick-to-voice systems
– is a form of protection; it’s like an insurance policy against all the handling and environmental threats that your product will face from the time it leaves your facility until the time your customer is ready to use it.
Packing
By far the most common form of packaging is__, also known as __ or just __.
- cardboard
- corrugated fiberboard
- corrugate
The mode of transportation you choose determines how you need to prepare the freight for shipment, including getting the paperwork and labeling correct.
Shipping
– contract between a shipper and a carrier which specifies the terms of their agreement
– issued by the carrier to the shipper and serves as a receipt to prove that the carrier has picked up the material and agreed to deliver it
Bill of Lading (BoL)
– a three-letter code that represents a particular shipping arrangement, so when you specify the ___ it immediately becomes clear who will pay for each part of the shipping process
International Commercial Terms (Incoterms)
Incoterm – everything, including shipping costs and all duties, will be paid by the shipper
DDP (short for Delivered Duty Paid)Incoterm
Incoterm – shipping will be paid by the seller, but duties will be paid by the recipient.
DAP (short for Delivered at Place) Incoterm
Incoterms are used around the world and are periodically updated by the __
international Chamber of Commerce.
An important, often-overlooked aspect of managing a distribution facility is ____, which is the process of tracking the trailers in your parking lot.
Yard Management
A carrier shows up, unloads your freight from its trailer, and then leaves. Another carrier backs up to your loading dock, puts your cargo on its trailer, and carries it away
Live load and unload
when a truck arrives at the destination, it drops off the trailer and leaves. You can load a trailer and have it ready for the truck to hook up and haul away when it arrives.
Drop and hook
– When you have lots of inventory, either in a store or in a warehouse, lots of things can go wrong.
– To deal with these issues, you should have an ___
over, short, and damage (OS&D) process
Two of the most important decisions you can make are when to order more inventory and how much to order. The approach you use to make that decision is called your ___
inventory policy
– A mathematically precise approach to choosing the perfect order quantity, or lot size
– The ___ formula balances the cost of placing an order against the cost of holding inventory.
Economic Order Quantity (EOQ)
– The items that are managed by an inventory policy
Stock Keeping Units (SKUs)
– approach to inventory ordering
– In a ___system, you pick a lot size for each SKU, and the lot size never changes. When you use all the items in a lot, another full lot is waiting behind it
kanban
Five categories of material handling equipment
Transport equipment
Positioning equipment
Unit load formation equipment
Storage equipment
Identification and control equipment
includes anything that’s used to move a product from one place to another. Forklifts are common types of transport equipment. Conveyors and cranes are also common, especially in automated facilities
Transport equipment
moves products over small distances, such as within a particular work area
Positioning equipment
Combining several items into a single container or unit load can make it easier to move them
Unit load formation equipment
When products are bundled together into a single unit, like when they are placed on a pallet, they are called a __
unit load.
enables you to increase the amount of material that you keep in a particular area: your storage capacity.
Storage equipment
provides a whole other floor for storing materials.
mezzanine
In automated facilities, the storage equipment may also handle transport, picking, and put-away
automated storage and retrieval systems (AS/RS)
helps you keep track of inventory.
Identification and control equipment
common, and reading them requires bar code printers and readers.
Bar codes
small electronic chips that store identification data (like a serial number) and then communicate wirelessly with devices called RFID readers
RFID tags
fly around inside of a distribution center or a trailer yard performing fully automated physical inventory counts
Drones
___ are often designed around pallets because unit loads are an efficient way to move products
Traditional distribution centers
Rather than shipping the entire pallet, a ___ ships widgets out one at a time to 100 different customers
fulfillment center
– a strategy that can lower costs and improve service for you and your customers
– companies that specialize in logistics hired by other companies
Third-party Logistics provider (3PL)
A company that handles trucking
Asset-based 3PL
A company that handles warehousing
Non-asset-based 3PL
A company that handles kitting, packaging, or returns processing
Value-added service
A company that helps navigate the movement of freight between carriers
Freight forwarding service
A company that works with foreign governments to move freight across borders
Customs brokerage service
A company that provides temporary workers to reduce the need for full-time employees
Flexible workforce or workforce augmentation service
