Friday: Transportation management Flashcards
3 ects
Name the 4 parties within transportation
- Shipper: requires the movement of the product from A to B
- Carrier: the party that moves
- Owners and operators of infrastructure
- Regulatory bodies: ex. organizations regulating the transportation, like transportstyrelsen
Name the components of transportations
- Design of the transportation network
- Choice of transportation models
- Transportation-related metrics: measurable values like weight and costs
What kind of delivery is road suitable for?
- Flexible
- Door-to-door shpmnt
- Shorter delivery time
What is the difference between truck-load and less-than-truckload
Truckload: Using the entire truck for one shipment
- minimizing empty travel
less-than-truckload: multiple small shipments in the same truck
- Flexible in local distribution
What kind of delivery is rail suitable for?
- Move large, heavy, high density, low value products over long distances
- Not time sensitive
What are the issues with rail transportation?
Not time sensitive
Track and terminal delays
Vehicle and staff scheduling might complicate
What kind of delivery is water suitable for?
Carring large loads at low cost
Cheap
Issues with water transportation?
Low travel speed, limitation to certain areas, delays at ports, security problems,
goods can be affected due to temperature conditions
What kind of delivery is air transportation suitable for?
- Small, high-value items
- Time sensitive
- emergency shipments that must travel a long distance
Example of emergency goods for air transportation?
Human organs, fish and fruit, spareparts
Issues with air transportation?
Saturation of the aircrafts capacity, good weight balance among items, preparation of loading units, EXPENSIVE
Intermodal transportation
Usage of more than one transportation method
No load breakage, dvs using the same container just moving it
Difference between containers and trailers
Trailers has wheels
Containers dont
What is direct shipping?
No intermediat warehouse. From each supplier to each buyer
+ Short transportation time
-high inventories
Describe direct shipping with milk runs?
Direct shipping but with a route with mutiple stops. Not only one customer
Supplier delivers directly to multiple buyers OR picks up deliveries from many suppliers destined to one buyer location
- Increased coordination complexity
All shipments via central DC
Shipped from suppliers to a central distribution centre, then shipped to buyer location
ex. like Martin and Cervera
+ Controlled transportation costs
+ Big distributor decreases the costs per unit
Describe shipment via intermittent transit point with cross-docking
Suppliers sending their shipments to a transit point, where items are cross-docked and sent to buyers. No storing at the transit point
How does oundbound vs inbound look like considering shipment via intermittent transit point with cross-docking
- Inbound: contains products from suppliers from several buyer locations
- Outbound: contains products to one several buyer from multiple suppliers
Shipping via DC using milk runs
Also name one negative aspect
All suppliers goes to one distributor, that then delivers to each buyer during the same session
- Scheduling, coordiation problems
Taylored network
To taylor the transportation network depending on company type. There can be several transportation options within the company depending on the product
Why is a tailored network important?
Minimizes the transportation and inventory costs
What can be the trade-off of picking a cheaper transportation alternative?
Longer lead times and larger minimum shipment quantities
What can be the trade-off of big inventories?
Reduced safety, increasing transportation costs
Describe temporal aggregation and what that can imply?
TIME-FOCUSED
Waiting for orders under a certain time span and then sending them out together
- Implies reduction of responsiveness and transportation cost
-
Describe temporal consolidation and what that can imply?
EFFICIENCY-FOCUSED
To combine several items from different suppliers before sending them out to enhance efficiency
Tailored transportation
Using different transportation networks based on customer and product. Cant meet all the customer requirements with just one method
What is a TL carrier and when is it suitable?
Large customers
What is a LTL carrier and when is it suitable?
Smaller customers
