Lecture 4 Flashcards
What does EDI mean?
Electronic Data Interchange
What is EDI?
An inter-organizational information system that is intended to facilitate computer-to-computer exchange of data among multiple business trading partners
In which way do products move through the chain? (5 steps)
supplier -> manufacturers -> warehouses -> stores -> customers
What is Consolidation Warehousing?
Small flexible shipments incoming to the warehouse and sending large, economical shipments out
What is Cross-docking?
Having large economical shipments coming into the warehouse and sending small, flexible shipments out.
True or False
Brick and mortar is a direct channel
True
Which layer is an In-house shipper and what are the services they offer?
1PL
Services: manufacturer, retailer
“Do it yourself logistics”
Which layer is a carrier and what are the services they offer?
2PL
Services: transporter
“Hire a transporter”
Which layer is a logistic service provider (LSP) and what are the services they offer?
3PL
Services: brokerage, transport, freight forwarder, warehousing, storage
“Can provide all SC services”
Which layer is a Lead Logistic Provider (LLP), Consultant and what are the services they provide?
4PL
Service: lead logistic provider
“Strategy and integrate several SC’s
What does 5PL include?
E-commerce services
What is the control tower for?
coordinating deliveries
What are multimodal solutions?
a transportation solution that seeks to exploit the strengths of multiple transportation modes through physical, information, and monetary flows that are as seamless as possible.
Which are the 3 most common incoterms?
EXW
DAP
DDP
What does the incoterm EXW mean?
EXW → Ex Works
The buyer bears almost all costs and risks during the entire process. The only task of the seller is to ensure that the buyer has access to the goods. If the buyer has access everything becomes his responsibility (including loading the goods)
Transfer of risk from seller to buyer: in the warehouse of the seller’s office from where the goods are collected.
What does the incoterm DAP mean?
DAP → Delivered at place
The seller bears the costs and risks of transporting the goods to an agreed address. The goods are classified as delivered when they have arrived at the address and are ready for unloading. Export and import responsibilities are the same as with DAT.
Transfer of risk from seller to buyer: when the goods are ready to unload at the agreed address.
What does the incoterm DDP mean?
DDP → Delivered duty paid
The seller bears almost all responsibility during the entire shipping process. You bear all costs and risks of transporting the goods to the agreed address. The seller also ensures that the goods are ready for unloading, carries out export and import responsibilities, and pays any duties.
Transfer of risk from seller to buyer: when the goods are ready to unload at the agreed address.
What does the incoterm FCA mean?
FCA → Free Carrier
It is the seller’s duty to deliver the goods to the buyer’s carrier at an agreed location. The seller is also obliged to clear the goods for export.
Transfer of risk from seller to buyer: When the buyer’s carrier receives the goods.
What does the incoterm CPT mean?
CPT → Carriage Paid to
Same seller responsibilities as with FCA but one difference: the seller also pays the delivery costs. It is the seller’s responsibility to clear the goods for export.
Transfer of risk from seller to buyer: When the buyer receives the goods.
What does the incoterm CIP mean?
CIP → Carriage and Insurance Paid to
Same seller responsibilities as CPT with one difference: the seller also pays for the insurance of the goods. The seller is only obliged to pay the minimum possible coverage, if the buyer wants more extensive insurance this must be arranged by the buyer.
Transfer of risk from seller to buyer: When the buyer’s carrier receives the goods
What does the incoterm DAT mean?
DAT → Delivered at Terminal
The seller is responsible for the costs and risks of the delivery of goods to an agreed terminal. This terminal can be an airport, warehouse, road, or container depot. The seller arranges customs clearance and unloads the goods at the terminal. The buyer arranges the customs clearance and any related rights.
Transfer of risk from seller to buyer: At the terminal
What does the incoterm FAS mean?
FAS → Free alongside ship
The seller bears all costs and risks until the goods are delivered next to the ship. The buyer then assumes the risk and takes care of the export clearance and import clearance.
Transfer of risk from seller to buyer: When the goods are delivered alongside the ship
What does the incoterm FOB mean?
FOB → Free on Board
The seller bears all costs and risks until the goods are delivered on board the vessel. They also arrange the export clearance. The buyer bears all responsibilities once the goods are on board.
Transfer of risk from seller to buyer: when the goods are delivered on the ship
What does the incoterm CFR mean?
CFR→ Cost and Freight
The seller has the same responsibilities as with FOB but also has to pay the costs of transporting the goods to the port. As with FOB, the buyer bears all responsibilities once the goods are on board.
Transfer of risk from seller to buyer: when the goods are on the ship
What does the incoterm CIF mean?
CIF → Cost, Insurance and Freight
The seller has the same obligations as with CFR but also has to pay the insurance costs. As with CIP, one is only obliged to pay the minimum cover. If the buyer wants more extensive insurance, he must pay for this himself.
What are the 4 transportation ways
Highway
Water
Air
Rail
What are the different types of trucks? (3)
- 2 axels (max 18 tonnes)
- 3 axels (max 25-26 tonnes)
- specialist vehicles
Truckers are not allowed to drive more than _ hours per day and must take a __ minute break after max __ hours
9 hours per day
45 minute break after 4.5 hours
The pricing of air transport is sensitive to
Size and weight
What is a collo/colli?
a package or packaging unit of goods. 17 colli on a delivery note means that the consignment exists out of 17 packaging units.
What is an europallet?
a standardised pallet used across Europe and much of the rest of the world, the size is 120cm x 80cm.
What is a container?
a large matel box that is 20’ or 40’ of size. A 40’ container is 2 TEU (twenty foot equivalent unit)
What are key points for the selection of a distribution center? (6)
→ location near delivery points cuts transportation costs.
→ cost of transporting products from a distribution center to customers and consumers is based on fuel prices as well as driver and truck maintenance costs.
→ location with rails access to cut shipping costs on large volumes of heavy product that do not require precise delivery times
→ labour & community acceptance
→ scalable storage requirements
→ lease or buy?
