test 3 Flashcards
Packaging
refers to materials used for the containment, protection, handling, delivery, and presentation of goods
3 general functions of packaging
Promote, protect, identify
3 kinds of information to properly design packaging
- Severity of the distribution environment
- Fragility of the product to be protected
- Performance characteristics of various cushion materials
Unit Loads
Big pallets of product. Hard to pilferage from and forces mechanical labor rather than human. Sometimes theres too much shit for resellers though if they are selling to small quantities
A basic unit
also called a pallet or skid. should be less than 50 pounds
Materials handling
short-distance movement that usually takes place within the confines of a building such as a plant or DC and between a build and a transportation service provider
two categories of materials handling equiptment
Storage equipment: shelves racks bins
Handling equipment: carts cranes lift trucks etc
Transportation
The actual, physical movement of goods and people between two points
How different processes are affected by mode of transportation
Transportation costs - affected by mode
Inventory requirements - influenced by mode
Packaging requirements - dictated by mode
Carrier classification rules - dictate package choice
Airfreight
The fastest for trips over 600 miles. Best suited for high value low volume products or products with small life cycle
Motor carriers
biggest strength is flexibility.
LTL: 150-10,000 pounds. utilize ups fed ex etc
TL: More than 10,000 pounds. Shipments move directly from shipper to cosignee
Pipelines
slowest method. One way only. High fixed cost but low cost per unit (most reliable) (cheapest)
Railroads
Dominated by four carriers. Not the best or worst on anything
Water freight
low value and can hold highest high volume. Sometimes unrealiable
Intermodal
refers to transportation when using a container or other equipment that can be transferred from the vehicle of one mode to the vehicle of another mode without the contents being reloaded or disturbed
What are freight forwarders
Exists by offering a service to shippers that must use LTL rates because they do not generate enough volume to use TL rates. 3PLs find clients with complimentary transportation to maximize equipment utilization.
What are brokers vs 3PLs
Both try to find another party (freight forwarder) to ship goods for LTL. 3PLs do not consolidate the goods while brokers do
What are Parcel carriers
Specialize in carrying Goods that weigh up to 150 pounds
Environmental Protection agency
federal regulatory agency established to protect human health and the environment. Current concerns are noise and air pollution as well as resource conservation
Federal Aviation Administration
has primary responsibility for air transportation safety
US coast Guard
has safety regulation responsibilities for marine safety considerations
Economic regulation
Refers to control over business practices and activities such as entry and exit, pricing, service, accounting, and financial issues, and mergers and acquisitions
Surface transportation board
Has primary responsibility for resolving railroad rate and service disputes and potential rail mergers
Transportation carriers classifications
For hire - Common, Contract, exempt
Private
Common Carriers
Serve general public
Contract Carriers
Offer specialized service to customers on a contractual basis
Excempt Carriers
Exempted from economic regulation due to legislation
Private Carriers
Companies whose primary business is other than transportation and provide their own transportation service (Exempt from economic regulation)
Transportation Management
refers to the buying and controlling of transportation service by either a shipper or consignee1
Transportation rates three factors
Product, Weight, distance. Weight x rate = transportation charge
Amodal shipper
Refers to a transportation manager who purchases a prespecified level of transportation service and is indifferent to the mode(s) and or carrier(s) used to provide the actual transportation service.
Shippers are more concerned with
Transportation metrics rather than the mode
Bill of lading
a delivery receipt when products are tendered to carriers
4 classifications of Bill of Lading
- Straight bill of lading
- Order bill of lading
- Long-form bill of lading
- Preprinted short-form bill of lading
Freight bill
Invoice submitted by the carrier requesting to be paid
Internal vs External audits
Internal - Conducted to detect current errors that result in overcharges and to
External - work is done by independent 3rd party to find errors
Freight claims
Refers to a document that notifies a carrier of wrong or defective deliveries, delays, or other delivery shortcomings
Demurrage
Penalty payment made to the railroad for keeping a railcar beyond the time when it should be released back to railroad
Detention
Penalty for keeping a truck too long when it should be back on road
Routing
Process of determining how a shipment will be moved between origin and destination1
Expediting
Involves the need to rapidly move a shipment to its final destination
Non tariff barriers
Limits the amount or product (either in units or by value) that may be imported from any one country during a period of time
Embargos
the prohibition of trade between particular countries
Commonly used documents for international shipments at point of importation
Certificate of origin
Commercial invoice
Shipper’s export declaration (SED)
Shipper’s letter of instruction (SLI)
Incoterms
Terms of sale for international shipments
Factors for macroenvirnomental influences (6)
Cultural Demographic Economic Natural Political Technological
Four Methods of payment
Cash in advance
Letters of credit
Bills of exchange
Open account
Payment method
Should be established at the time that a shipment price is decided upon
International Freight Forwarders
Specialize in handling either vessel shipments or air shipments
International Airfreight 3 types
Charted aircraft
Integrated air carriers
Scheduled air carriers
