Module 8: Transportation Flashcards
Organizations that oversee the third-party logistics operations of their clients.
lead logistics providers (LLPs)
A company that provides air, sea, or land transportation services.
carrier
An organization that helps match carriers to freight, adding value by helping the shipper and carrier obtain better rates and more fully utilize their capacity and equipment.
broker
An organization that serves as a sales department for a domestic organization’s international markets, earning commissions on completed sales. EMCs select distribution channels and markets, arrange promotional campaigns, analyze customer credit information, advise on payment terms, administer documentation, and collect international debts. They may also arrange transportation, provide warehouse space, manage export inventory, and provide break-bulk services.
export management company
An individual or organization who finds appropriate carriers for shippers needing transportation. The broker helps negotiate terms and administers most of the documentation.
freight broker
Transportation available to the public that does not provide special treatment to any one party and is regulated as to the rates charged, the liability assumed, and the service provided. [It] must obtain a certificate of public convenience and necessity from the Federal Trade Commission for interstate traffic. Ant: private carrier.
common carrier
1) Shipments moved by different types of equipment combining the best features of each mode. 2) The use of two or more different carrier modes in the through movement of a shipment.
intermodal transport
A basic method of moving items. Modes include road, rail, air, water (ocean or inland waterway), pipeline, intermodal, and courier or parcel services.
modes of transportation
One who acts on behalf of another (the principal) in dealing with a third party. Examples include a sales agent and a purchasing agent.
agent
A buyer and supplier team with a third party that provides product delivery services. This third party may provide added supply chain expertise
3rd party logistics
The receiver of a shipment of freight.
consignee
[This concept] differs from third-party logistics in the following ways: (1) [this type of] organization is often a separate entity formed by a joint venture or other long-term contract between a client and one or more partners; (2) [this type of] organization is an interface between the client and multiple logistics services providers; (3) ideally, all aspects of the client’s supply chain are managed by the [this type of] organization; and (4) it is possible for a major 3PL organization to form [this tyep of] organization within its existing structure.
fourth party logistics provider
A person who manages the paperwork required for international shipping and tracks and moves the shipments through the proper channels.
customs broker
In transportation, locations where carriers load and unload goods to and from vehicles. Also used to make connections between local pickup and delivery service and line-haul service. Functions performed in [these] include weighing connections with other routes and carriers, vehicle routing, dispatching, maintenance, paperwork, and administration. [They] may be owned and operated by the carrier or the public.
terminals
The function of planning, scheduling, and controlling activities related to mode, vendor, and movement of inventories into and out of an organization.
transportation
The sender of a shipment in a contract of transport.
consignor
An organization that typically purchases goods outright in one country for resale in a different country at a profit. The organization locates buyers and handles all inland and overseas transportation, documentation, and foreign government requirements. Some may perform these services without formally taking title to the goods.
export trading company
In logistics, an established price for the transport of goods, based on any number of factors; e.g., distance, weight, measure, equipment type, package, or commodity.
freight rate
The portion of a transportation journey that moves between two transportation terminals. It is distinguished from and excludes the pickup and delivery portions of a journey used to acquire or distribute LTL freight. For motor carrier transportation, the shipment is loaded in a semi-permanent trailer configuration that maximizes the amount of freight that each driver can legally haul over that portion of the journey. This may involve hauling multiple trailers.
line haul
1) A small shipment that does not fill the truck. 2) A shipment of insufficient weight to qualify for a truckload quantity rate discount (usually set at about 10,000 lbs.) normally offered to a general commodity trucker.
less-than-truckload
Motor vehicles that use the road mode of transportation.
motor carrier
An agreement to ship a minimum of an entire truckload or container load to a single customer. The cargo is typically homogenous and stays on the same vehicle from the origin to the destination.
full truckload
Carriers that deliver/charge only for full truckload shipments.
truckload carriers
The spacing of the width of the rails on a railway track, measured between the inner sides of the rails. In rail transport, this is a key parameter in determining interoperability, since all vehicles must have running gear that is compatible with the spacing. This can vary between countries and cause compatibility issues.
rail gauge
a trailer on a flatcar.
piggyback
A form of water transportation that does not cross an ocean, but instead utilizes coastal and inland waterways to move shipments from maritime ports to their destination. Often used as an alternative to road transportation.
short sea shipping
An international industry trade group that represents the interests of the airline industry.
International Air Transport Association (IATA)
A consolidator of ocean freight shipments that operates similarly to a freight forwarder and issues its own bills of lading, thus acting as a carrier even though it does not own the means of transportation being used.
Non-Vessel Operating Common Carrier (NVOCC)
A large box in which commodities to be shipped are placed.
Container
A shipment that occupies less than the maximum cubic or weight capacity of a container and therefore is shipped in the same container with other LCL cargo.
Less-than-Container Load (LCC)
A self-propelled, pushed, or pulled flat-bottomed ship for use in inland waterways. It is frequently used to transport bulk commodities.
barge
A container that has been filled close to its volume or weight limit, or that holds only one shipper’s order and the shipper has requested it be the only order in the container. See: full truckload.
Full-Container-Load (FCL)
A nickname referring to a mixed mode transport that includes air transport and some intermdiary surface travel. Intermodal air-truck shipments, simply formalize the process and put it under unified management.
Birdyback
A nickname referring to a mixed mode transport that includes water carriage. As the name signifies, the cargo is loaded into a truck trailer that also spends part of its shipment time on board ship or barge.
Fishyback
A specialized form of containerization in which motor and rail transport coordinate.
trailer-on-a-flatcar (TOFC)
An official schedule of taxes and fees imposed by a country on imports or exports.
tariff
Transportation plans that involve multiple means of transportation and coordinate the physical and information requirements.
multimodal solutions
A specialized form of containerization in which rail, motor, and sea transport coordinate.
container-on-a-flatcar
A rate to ship a specific commodity across a specific origin-destination pairing.
commodyit rate
The degree of change in buyer demand in response to changes in product price. Calculated by dividing the percentage of change in quantity bought by the percentage of change in price. Prices are considered elastic if demand varies with changes in price. If demand changes only slightly when the price changes, demand is said to be inelastic. For example, demand for most medical services is relatively inelastic, but demand for automobiles is generally elastic.
price elasticity
1) In supply chain management, the design of a supply chain’s sourcing, manufacturing, and distribution facilities and information flows to meet the organization’s strategic goals. These strategic goals can include being efficient, responsive, customer-focused, or some other mix of priorities. The design includes determining the best locations, numbers, sizes, capacities, capabilities, and ownership models of facilities to support these goals. 2) In logistics, the design and periodic review of inbound and outbound transportation networks—all types of warehouses by number, location, size, layout, and optimum mix of inventory levels per location—to meet the organization’s strategic goals. Considerations are made to balance tradeoffs between warehouse costs, transportation times and expenses, and customer service goals.
network design
1) A description of products to be supplied under a contract. 2) In project management, the first project planning document that should be prepared. Describes the purpose, history, deliverables, and measurable success indicators for a project. Captures the support required from the customer and identifies contingency plans for events that could throw the project off course. Because the project must be validated for management, staff, and review groups, the statement of work should be a persuasive document.
statement of work
The process of executing requirements for the planning, scheduling, and budgeting of transportation assets, services, and related systems of the shipping process through delivery.
transportation management
1) A contract that lays out the general provisions of a long-term agreement and governs most of the details of future individual contracts or purchase orders for a period of time. 2) In relation to unionized labor, the contract between the labor union and the employer. Syn: master service agreement.
master contract
The ease or difficulty of loading, handling, and storage of shipping items. Used as a factor for determining shipment costs and classifying freight, it considers regulations, liability, and item characteristics (e.g., hazardous materials, excessive weight, irregular shape).
stowability
1) A rate used to improve warehouse order picker productivity by placing items with smaller total cubic space requirements closer to the shipping area. A larger total number of items can be stored near the shipping area in this way, thereby reducing the aggregate order-picking travel time. 2) A freight rate calculated on cargo volume rather than weight.
cube rate
Information collected by an organization on customers, competitors, products or services, and processes. [It] provides organizational data in such a way that the organizational knowledge filters can easily associate with this data and turn it into information for the organization. Persons involved in [these kind of] processes may use application software and other technologies to gather, store, analyze, and provide access to data, and to present that data in a simple, useful manner. The software aids in business performance management and aims to help consumers make better business decisions by offering them accurate, current, and relevant information. Some businesses use data warehouses because they are a logical collection of information gathered from various operational databases for the purpose of creating [this].
business intelligence
The grouping of shipments to obtain reduced costs or improved utilization of the transportation function. Consolidation can occur by market area grouping, grouping according to scheduled deliveries, or using third-party pooling services such as public warehouses and freight forwarders.
freight consolidation
The practice of responding only to issues or events that fall outside a predetermined threshold. Managers are prompted to respond to these critical matters first. This practice is often applied to management of budgets, projects, and risks. Sometimes referred to as management by exception.
exception management
Carrier charges and fees applied when truck trailers are retained beyond a specified loading or unloading time.
detention
A bill of lading issued by a non-vessel-operating common carrier (NVOCC), consolidator, or freight forwarder. It indicates the carrier’s name and lists the master bill of lading.
bill of lading
Carrier’s records indicating the person signing for delivery with the date, time, and other related information.
proof of delivery (POD)
A carrier’s contract and receipt for goods the carrier agrees to transport from one place to another and to deliver to a designated person. In case of loss, damage, or delay, [this] is the basis for filing freight claims.
Uniform Bill of Lading
A bill of lading issued by carriers that are vessel owners, also known as steamship companies. See: bill of lading (uniform).
Master Bill of Lading
The process of determining and reporting the location of a shipment throughout the supply chain channel.
tracking
A freight carrier’s invoice for a shipment.
freight bill
The value of all sales after discounts and rebates have been applied.
bookings
The carrier charges and fees applied when rail freight cars and ships are retained beyond a specified loading or unloading time.
demurrage
A document that compares the freight order invoice as received to the invoice as expected and authorizes payment if the documents are consistent.
freight settlement
The paperless (electronic) exchange of trading documents, such as purchase orders, shipment authorizations, advanced shipment notices, and invoices, using standardized document formats.
electronic data interchange (EDI)
a regular route to pick up mixed loads from several suppliers
milk run
