Week 4: Export Logistics / Transport Decisions

Question 1

Logistic Activities across Typical Supply Chain

Answer 1

Sourcing
- Selecting best suppliers according to price, quality, service and delivery time

Making
- Producing goods and services in a cost-efficient way

Delivery

• Fulfilling customers’ demands cost-effectively and reliably
• Delivery times getting faster e.g. Amazon delivery service

Returning
- Handling returns from customers to suppliers in a way that minimise waste

Question 2

Logistics Involves Management of:

Answer 2

• Order Processing
• Inventory
• Transportation
• Warehousing
• Materials Handling
• Packaging

Question 3

Logistics Problems:

Answer 3

• Human Error
• Transport Delays
• Manufacturing Problems
• Poor Communication
• Lack of Planning
• Absence of information transparency in the supply chain

Question 4

Transport Choices Impacts on:

Answer 4

• Frequency/regularity of shipment
• Stock requirements (to ensure ‘economic’ transport sizes)
• Time lag in final distribution
• Most inexpensive mode of transport = boat

Question 5

Impacts Attractiveness of Transportation Mode:

Answer 5

Cost 
Speed 
Reliability 
Capability 
Capacity 
Flexibility

Question 6

Multimodalism

Answer 6

Process of providing door to door / warehouse to warehouse service to the shipper that embraces two or more modes of transport

Question 7

Containerisation

Answer 7

A system of intermodal freight transport using intermodal containers / have standardised dimensions

Containerisation explains a 320% rise in bilateral trade over the first five years after adoption and 790% over 20 years

Question 8

Containerisation Benefits:

Answer 8

• Standardisation
• Flexibility – carry wide variety of goods
• Costs – 20x less than bulk transport
• Velocity
• Warehousing – simpler / >$ packaging
• Security & Safety

Question 9

Containerisation Problems:

Answer 9

• Site Constraints
• Capital intensiveness – container handling infrastructures
• Stacking
• Repositioning
• Theft and Losses
• Illicit Trade

Question 10

TEU

Answer 10

Twenty-Foot Equivalent Unit

• Used to measure ship’s cargo carrying capacity

Question 11

Freight Forwarder

Answer 11

• A company that receives / ships goods on behalf of other companies