1. Supply Chain Management (SCM) Transportation/International Issues
Transportation Strategy
Transportation Management
Third Party Logistics
International Flows
Compiled by:
Alex J. Ruiz-Torres, Ph.D.
From information developed by many.

2. Transportation Strategy
Approach to the movement of goods between points in the SC.
Focus areas:
Speed.
Accuracy in delivery.
Efficiency/Cost.
Based on the selection of modes of transportation and service types:
Ground (truck or rail), Air, Water.

3. Transportation Strategy
Maritime
Rail
Slowest modes.
Most cost effective modes.

4. Transportation Strategy
Truck: multiple options
Multiple types of vehicles
Dedicated transport of a full container for a single customer (called TL = truckload)
Consolidated shipment for multiple customers in the same container (called LTL = less than truckload).

5. Transportation Strategy
Air
fastest
most expensive
limited sizes
most regulated.

6. Transportation Management
Selection among the multiple transportation services options available.
Combination of modes: Multi-modal transportation.
Functions of speed, shipment size, and cost.
Routing decisions for distribution
What is the sequence of stops for a delivery truck.

7. Third Party Logistics (3PLs)
A 3PL is a firm that provides outsourced logistics services for part, or all of their supply chain management functions including:
Transportation
Warehousing
Order processing
Customer service
Third party logistics=outsourced logistic services
Most transportation is provided by 3PLs – logistics companies.

8. International Flows
Today’s SC are global, this implies constant flow of goods across national borders.
Customs brokers are the companies/individuals who have the know-how and legal authorization to complete importing/ exporting processes.
Involves the preparation of documents and/or electronic submissions, the calculation and payment of taxes, duties and excises, and facilitating communication between government authorities and importers and exporters.

9. International Flows
Customs brokers in the United States prepare and submit documentation to notify or obtain clearance from government agencies such as the U.S. Food and Drug Administration, the U.S. Department of Agriculture, and the Fish and Wildlife Service.
They also arrange the transshipment and local delivery of merchandise via trucking companies.

10. International Flows
Multiple steps and many organizations involved.