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

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

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

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

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

  3. Modes of transportation

  4. TRANSPORTATION STARTEGY Choice of Transport For example, what are the factorsinfluencing the choice of the transportation mode to bring DVD playersfromKorea to Germany or coffee beansfromEcuador to Canada ? Manyfactors are affecting transportation and cost. You have to considerthem all prior to choose the mode of transportation.

  5. TRANSPORTATION STRATEGY • Distance: Inlandorigin, international, inland destination • Nature of product • Value of product • Dimensions of shipment (volume and weight) • Quantityto export • Expecteddate of shipping

  6. TRANSPORTATION STRATEGY • Deliverytime to respect • Package for the hardest portion of transportation. • Potentialdamage or theftrisks • Itinaryand final destination • Costof transportation

  7. TRANSPORT STRATEGY A good transport strategyis the key to have competitiveadvantage over yourcompetitors • Havingan effective transport strategycaneven position yourcompany to even close deals. • Shipping in Russia or Australiainvolves the samesteps but distance highten the risks and the complexity of the logistics.

  8. CHOICE OF THE TRANSPORTATION MODE 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). 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.

  9. TRANSPORT STRATEGY • A good transport strategyis the key to get a competitiveedge over the competitors, supportingyour team in customer acquisition and retention. • A good transport strategycaneventurnyourdepartmentinto a benefitinstead of an expense. • In your transport strategy, you have to consider the followings: • Different mode of transportation • Differentactorsinvolved • Transport relatedcosts • Choice of mode of transport

  10. CARGO TRANSPORT STRATEGY • INCOMING: • Are yourrawmaterial/components comingdomestically or internationally? • Are theylocated on the production site or in remotewarehouses?

  11. CARGO TRANSPORT STRATEGY • OUTGOING:Finishedproductsshipped: • Directlyfrom production site or sole distribution center? • Fromexternalownedwarehouse? • Froma partnerwarehouse? • Froma warehouse in another country? • Are Moving FTL/FCL Full container loads? • Are moving LTL/LCL Lessthan truck/container loads? • Are moved by integrators?

  12. 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 feethigh cube LCL: Lessthan container load Freight: Merchandize Transit time: Time fromdoororigin to door destination.

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