1. 1 TRANSPORTATION 运输 Chapter 7 Hu Xiongying The Wuhan Institute of Technology

2. 2 COST TRADEOFFS REQUIRED IN MARKETING AND LOGISTICS Marketing Objective: Allocate resources to the marketing mix in such a manner as to maximize the long-term profitability of the firm. Logistics Objective: Minimize Total Costs given the customer service objective where total costs = Transportation Costs + Warehousing Costs + Order Processing and Information Costs + Lot Quantity Costs + Inventory Carrying Costs

3. 3 Growth in Freight Volume 运输量的增长 Source: Robert Delaney, 9th Annual “State of Logistics Report”, 1998

4. 4 Carrier Options (“Modes”) 承运人的可选项（运输模式） PRIMARY 汽车 Motor 铁路 Rail 空运 Air 水运 Water 管道 Pipeline SUB-CATEGORIES 小型包裹承运人 Small Package 第三方 Third Party 联运 Intermodal

5. 5 Legally Defined Forms of Transportation 运输的法定形式 普通承运人 Common Carriers – must carry for any shipper between designated points. 合同承运人 Contract Carriers – between specific company and carrier, usually TL. 免责承运人 Exempt Carriers – exempt from most regulations except safety, mainly agricultural, newspapers, etc. 私有承运人 Private Carriers – normally are “Not for Hire”but may operate “For Hire” under certain strict conditions.

6. 6 FORMS OF TRANSPORTATION BY MODE 各运输模式的运输形式

7. 7 Cost Characteristics by Mode 不同运输模式的成本特征

8. 8 Industry Structure - Motor 50,000 private trucking fleets (but on the decline) 459,000 motor carriers registered in 1998, most are small carriers (70% < 6 trucks) 整车货运 Truckload (TL) (20,000 to 50,000 lbs.)* – rapid expansion since deregulation—many small carriers 零担货运 Less-than-truckload (LTL) (50 to 10,000 lbs.)* –About 150 carriers lbs.(=pounds) 磅

9. 9 “Highway Trains” Additional trailers can be called “pups” Longer Combination Vehicles –Triple Trailers, Rocky Mountain Doubles and Turnpike Doubles –20 states have allowed –Greater competition with rail –Safety concerns Heavier trailers

10. 10 Service Innovations in Rail (some that made it… some that didn’t) 背负式运输 Piggyback – 平板车加拖车 Trailer on flat car (TOFC) – 平板车加集装箱 Container on flat car (COFC) 单元列车 Unit Train 为某货运单位专编的循环直达列车 双层列车 Double Stack 自行拖车 Road-Railers Flexivan Van 有篷货车 Flexible 柔韧性, 灵活的, 柔软的, 能变形的,

11. 11 Water 内陆航道 Inland (rivers, etc,) 湖泊 Great Lakes 沿海岸线 Intracoastal (along US coasts) 海岸线间 Intercoastal (between US coasts) 国际间的深海区 International Deep Sea

12. 12 Airline Passenger Miles What are two reasons for the downturn in 2001?

13. 13 Sudden Impact Change in air travel market –Inconvenient, slower than before –Value and importance in business travel declining –Potential exit of major carriers 5th year of losses –New entrants: low-cost carriers –Less profitable regional markets in danger Pressure to meet profits –Labor cutbacks –Revenue gains from increasing load factor –U.S. “Desert fleet” at approximately 15% (820 planes since 9/11) Hawk & Horst and Ransburg & Johnson presentations, au03 Entrant 进入者, 新到者, 新工作者, 新会员, 大学新生, 参加竞赛者

14. 14 Air Cargo For time-sensitive and high-value goods Incidental to air passenger businesses Where do most of the flowers imported into the U.S. come from and how? From South America through Miami by air. Incidental adj. 附带的, 非主要的, 偶然的, 容易发生的 n. 伴随事件, ( 用复数 ) 杂项、杂费

15. 15 Pipelines A major carrier of freight based on intercity ton-miles but only –4% of total revenues

16. 16 Third Parties 第三方 运输经纪人 Transportation brokers – arrange motor carrier shipments 货运转运人 Freight forwarders - consolidate small shipments and make money on the margin, e.g., between LCL & CL on containers 托运人协会 Shippers’ associations - Shipper (non- profit) groups pool shipments to get better rates 联运营销公司 Intermodal marketing companies (Shipper’s Agents) – provide piggyback services to shippers, work closely with RR’s 第三方物流服务提供商 Third-party logistics service providers – may involve more than just transportation services, especially the management aspect

17. 17 Mode/Carrier Selection 模式 / 承运人选择决策过程 问题发现 Problem recognition 搜索过程 Search process 选择过程 Choice process 事后评估 Post-choice evaluation

18. 18 U.S. FREIGHT EXPENDITURES ($ billions) 美国运费支出 Source: US Dept. of Transportation, Bureau of Transportation Statistics, 1997

19. 19 U.S. TON -- MILES OF FREIGHT 美国以吨 · 英里计的运输量 Source: U.S. Dept. of Transportation, Bureau of Transportation Statistics, 1997

20. 20 Comparison of US Domestic Transportation Modes Economic characteristics »Cost »Market coverage »Degree of competition »Predominant traffic »Average length of haul »Equipment capacity Predominant 卓越的, 支配的, 主要的, 突出的, 有影响的 Haul 用力拖拉, 拖, 拉 length of haul 运距

21. 21 Comparison of US Domestic Transportation Modes Service characteristics –Speed (time-in-transit) –Dependability (consistency of service - delivery time variability) –Market coverage (door-to-door) –Loss and damage –Flexibility (handling a variety of products and meeting shipper’s needs) –Ability to provide more than basic transportation service (become part of shipper’s overall marketing and logistics programs) Dependability 可信任, 可靠性

22. 22 Relative Modal Service Characteristics 各运输模式的服务特征

23. 23 Factors Influencing Transportation Costs 影响运输成本的因素 产品相关因素 Product-related factors 密度 Density – weight/volume ratio 可装载性 Stowability – unusual sizes 搬运的难易程度 Ease or difficulty of handling 可靠性 Liability – carrier may assume 市场相关因素 Market-related factors 竞争程度 Degree of competition 市场位置 Location of markets 政府管制 Government regulation 出入市场的运输量是否平衡 Freight traffic into and out of a market 产品是否在国内还是在国际间运输 Domestic versus international movement

24. 24 TRANSPORTATION MEASUREMENTS 运输衡量 By zip code, channel, customer group, product Consolidation/Pooling Opportunities (inbound and outbound) Damage activity (by carrier and shipment size) Carrier activity (volumes and dollars) Consolidation 巩固, 合并

25. 25 TRANSPORTATION COST ANALYSIS Sample Overview 运输成本分析 Data Included Carrier Name Total Weight Deficit Weight (“Wind”) Origin Zip Code Destination Zip Code Amount Paid Commodity classification Bill of Lading Reference bill of lading 提货单 Deficit 赤字, 不足额

26. 26 KEY MEASUREMENT TASKS TRANSPORTATION COSTS If possible, track freight bills to individual orders by referencing the bill of lading Recognize the difference in costs per lb. of different size shipments Differentiate between "customer“ shipments and "stock transfers" Delete obvious errors (e.g., excessive $ & wt.) Be very careful here Use the first3 digits of the "zip code" to create geographic market areas and/or freight consolidation territories Breakdown costs into matrix-like combinations of: – Shipment type (customers vs. Transfers) – Company origins – Destination areas – Shipment size – Mode – Product/freight class

27. 27 12 WAYS TO CUT FREIGHT COSTS 削减货运成本的 12 种方法 Negotiate Round-Trip Rates Discount Re Multiple Pick- Ups of "LTL" Shipments Evaluate Contract Vs. Private Fleet Modes Combine LTL for Break Bulk Distribution Base Rates On Limited Carrier Liability Utilize New Rail Options/Services Assist Carriers In Identifying Needs for Services Peg Negotiated Rate to Performance (Service Level) Match & Consolidate Inbound & Outbound Shipments Utilize Scheduled Delivery Programs Identify High Volume Routes/Lanes Match Carrier Imbalanced Routes with Volume Lanes Re: Rate of Exchange 兑换率 pick-up 提取, 搭便车 break-bulk cargo 杂货，普通货物 A limited train or bus 直达的火车或汽车 Peg 稳住市价 ( 股票 ), 钉住 ( 指价格、汇价等 ) Scheduled 预定的

28. 28 GREATER COST SAVINGS CAN BE ACHIEVED BY SHIFTING TRAFFIC TO LESS EXPENSIVE MODES THAN BY NEGOTIATING GREATER DISCOUNTS 选择更便宜的运输模式而不是更大的折扣会获得更大的 成本节约

29. 29 Carrier Pricing 承运人定价 递送定价 Delivered pricing –To retail stores (“Free-on-Board”) –To other locations 服务成本定价 Cost-of-service pricing 服务价值定价 Value-of-service pricing 数量折扣 Quantity discounts 补贴 Allowances –Legal Mileage credits, Customer pickup*, etc. –Illegal Discriminatory or predatory *This is a major issue in Consumer Goods.

30. 30 Types of Freight Rates 费率的种类 线路费 Line Haul 等级费率 Class – based on density and value 例外费率 Exception – exceptions to class rates, special rates lower than class rates 商品费率 Commodity – large quantities shipped point-to-point on a regular basis 合同费率 Contract – negotiated between shipper and carrier 通用费率 Freight-all-Kinds (FAK)

31. 31 International Distribution Shipping Options (Cont.) Source: Adapted from David L. Anderson, “International Logistics Strategies for the Eighties,” Proceedings of the Twenty-Second Annual Conference of the National Council of Physical Distribution Management, 1984, p. 363. Used by permission of the Council of Logistics Management.

32. 32 ACTUAL VS. POTENTIAL TRAILER CUBE UTILIZATION Six Weeks Sample

33. 33 POTENTIAL REDUCTION IN TRAILERS Six Weeks Sample Sounds good. What else would you like to know before committing to one of these solutions?

34. 34 Freight Paid - By Size of Shipment Summary By Mode - Three Months Sample

35. 35 QUALITY PROGRAMS IN TRANSPORTATION: 3M CASE STUDY

36. 36 PARTNERSHIP FOCUS The carrier is an extension of 3M. It is directly involved with moments of truth when interacting with 3M, and its customers and suppliers. 3M and the carrier have the responsibility to perform in exact conformance to agreed-upon standards. Such performance has a direct reflection on 3M. we manage the moments of truth can make a vital difference in meeting and How exceeding customer expectations. 3M and the carrier have roles in making "Partners in Quality" a success. 3M's Responsibilities – Meet carrier requirements for safe and timely movement of 3M materials 100% of the time. – Provide a framework for quality improvement - a way to manage the process. – Foster opportunities for carriers to excel in conforming to customer expectations and exceeding performance standards. – Establish mutual agreements reflecting value for both parties. – Encourage open communication for quality improvement and increased customer satisfaction. – Provide prompt, courteous and factual responses to satisfy carrier information needs. – Recognize outstanding carrier quality achievements. – Establish quality improvement teams, as appropriate. Carrier's Responsibilities Just as we require excellence from our people, 3M expects carriers to: – Perform 100% to agreed upon standards and requirements. – Work with their respective 3M shipping location(s) to develop local standards. – Provide prompt, courteous and factual response to inquiries or special requests from 3M, its customers and suppliers. – Be proactive by openly sharing information essential for performance and customer satisfaction. – Communicate its own requirements and expectations for cost and service improvement. – Strive for innovation and technology improvements. – Use measurement and evaluation techniques that display quality performance. – Participate in established quality improvement teams.

37. 37 PARTNERS IN SERVICE EXCELLENCE (A 3M Program) Strategic Objectives… –Establish the customer as the key focus –Reinforce that a strong partnership and that performance is critical to meeting customer expectations –Create an innovative/creative environment between the company, carrier and customer –Recognize company and carrier for service excellence Essentials for Success… –Reliability –Manage Moments of Truth (MOT) –Innovation Source: 3M

38. 38 RELIABILITY 可靠性 Perform the Basics Well Delivered on-time Delivered complete Delivered damage free Driver helpfulness Source: 3M

39. 39 MANAGE MOMENTS OF TRUTH

40. 40 INNOVATION 创新 Provide the customer with innovative/creative solutions and “value-added” programs that support market share growth and improve productivity Source: 3M

41. 41 CRITERIA FOR TRANSPORTATION SUCCESS 运输成功的标准 DEFINE: STREAMLINE: ELIMINATE: RE-ENGINEER: PARTNER: OUTSOURCE: Source: 3M Does it add value? Can it be done more efficiently? Non-value added and inefficient? Start over clean? Customer and carrier alliances? Carriers, third-parties, and trade associations?

42. 42 MORE CRITERIA FOR TRANSPORTATION SUCCESS 更多运输成功的标准 Did you ever wonder why they have all those truck weighing stations along our interstate highways? –To collect statistics on weight & freight ? –To assure the collection of taxes ? –To control contraband ? –To inspect drivers’ logbooks ? –To check shipping documents ? The main reason is….

43. 43 MORE CRITERIA FOR TRANSPORTATION SUCCESS 更多运输成功的标准 Well, those are not the only real reasons. It’s all of the reasons listed above plus …. to make sure the vehicle is not overloaded, properly balanced, and not a hazard.