World class transportation Chapter 9

Transportation system Provides opportunity for growth under competitive circumstances Facilitates companies to exploit economies of scale Facilitates deeper penetration More efficient and lower the transportation cost, lower the selling price

Principles of transportation function 1. Continuous flow 2. Optimize unit of cargo 3. Maximum vehicle unit 4. Adaptation of vehicle unit to volume and nature of traffic 5. Standardization 6. Compatibility of unit load equipment 7. Minimum of dead weight to total weight 8. Maximum utilization of capital, equipment and personnel

Transportation objectives 1. Decision on service level 2. Costs incurred 3. Level of flexibility and control over transportation activities 4. Trade off between customer service levels and costs

Selecting mode of transport Main type of modes 1. Common carriers 2. Contract carriers 3. Private carriers 4. Freight forwarders 5. Speed post

Transportation function Evaluation and control 1. Customer perception measurement 2. Best practice bench marking 3. Customer satisfaction measurement

Transportation documents 1. Bill of lading 2. Packing list 3. Shipper’s letter of instruction 4. Shipment of dangerous goods 5. manifest

1. Bill of Lading It is a contract It is a receipt for all goods It is a certificate of title Types Uniform BOL Intermodal BOL

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