Lecture 1b

Question 1

What are the 5 types of LSP’s?

Answer 1

Hauliers: transport
Freight Forwarders: a contractor that organises transport
Non-vessel-owning common carriers: own the containers + legal obligation
Couriers: transport
Integrators: full load, door to door (UPS)

Question 2

What are the three main components of generalised costs?

Answer 2

financial costs, time taken, effects of loss damage and delay

Question 3

LSP’s versus 3PL’s

Answer 3

LSP’s provide multiple logistic services, 3PL’s are often integrated

Question 4

What is outsourcing?

Answer 4

The transfer to a third party of the management and delivery

requires Service Level Agreement (SLA)

Question 5

What is offshoring?

Answer 5

The transfer of a specific process to lower cost locations in other countries

Question 6

What are generalised costs?

Answer 6

Demand for transport is not simply dependent on financial costs but on overall opportunity costs

3 components:
Financial costs
Time taken
Effect of loss, damage and delay

Question 7

What is consolidation?

Answer 7

A process of reducing costs by utilising available transport solutions