Ontario 2013 International Transport and logistics Chapter 2: Strategies and actors

FREIGHT TRANSPORTATION MODES There are four (4) freight transportation modes + intermodal that regroups 2 or more of these modes: Road: Involve in almost every pick-up / delivery Ocean: Containers or bulk Air: Airlines or integrators Rail: Intermodal: Flexibility

Modes of transportation OceanRoadAirRail DistanceLong750km and less Short, mid and long Long HandlingFewManyThe most. Conveyers by courriers Few StrenghtsFCL, LCL dry Box containers and bulk, intermodal Door to door, intermodal Fast Emergencies Intermodal WeaknessesLong transitLot of rulesFew spaceLong transit CostGood HighLow

TRANSPORTATION STARTEGY Choice of Transport For example, what are the factors influencing the choice of the transportation mode to bring DVD players from Korea to Germany or coffee beans from Ecuador to Canada ? Many factors are affecting transportation and cost. You have to consider them all prior to choose the mode of transportation.

TRANSPORTATION STRATEGY Distance: Inland origin, international, inland destination Nature of product Value of product Dimensions of shipment (volume and weight) Quantity to export Expected date of shipping

Delivery time to respect Package for the hardest portion of transportation. Potential damage or theft risks Itinary and final destination Cost of transportation TRANSPORTATION STRATEGY

TRANSPORT STRATEGY Having an effective transport strategy can even position your company to even close deals. Shipping in Russia or Australia involves the same steps but distance highten the risks and the complexity of the logistics. A good transport strategy is the key to have competitive advantage over your competitors

CHOICE OF THE TRANSPORTATION MODE Remember: The CARRIER is the extension of your service: They are a key element in customer satisfaction and in the establishment of a long term relationship with your customers. Before choosing the mode of transportation, the EXPORTER needs to consider the following points: 1.Know is own needs 2.Understand the customer needs and capacity 3.Evaluate the different carriers: Reliability 4.Obtain the right price (minimum of 2-3 quotes).

TRANSPORT STRATEGY A good transport strategy is the key to get a competitive edge over the competitors, supporting your team in customer acquisition and retention. A good transport strategy can even turn your department into a benefit instead of an expense. In your transport strategy, you have to consider the followings: Different mode of transportation Different actors involved Transport related costs Choice of mode of transport

CARGO TRANSPORT STRATEGY INCOMING: Are your raw material/components coming domestically or internationally? Are they located on the production site or in remote warehouses?

CARGO TRANSPORT STRATEGY OUTGOING: Finished products shipped: Directly from production site or sole distribution center? From external owned warehouse? From a partner warehouse? From a warehouse in another country? Are Moving FTL/FCL Full container loads? Are moving LTL/LCL Less than truck/container loads? Are moved by integrators?

ACRONYMS Cargo: Merchandize ETD: Estimated time of departure ETA: Estimated time of arrival FCL20: Full container load 20 feet FCL40: Full container load 40 feet FCL40HC: Full container load 40 feet high cube LCL: Less than container load Freight: Merchandize Transit time: Time from door origin to door destination.