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ISQA 439. Logistics Global Supply Management. Logistics. The Buyer Always Pays the Freight Who Arranges/Manages Freight is Open to Negotiation Transportation Prior to Deregulation Transportation Today. Logistics Management. Transportation Modes Truck Rail Air Marine Pipeline
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ISQA 439 Logistics Global Supply Management
Logistics • The Buyer Always Pays the Freight • Who Arranges/Manages Freight is Open to Negotiation • Transportation Prior to Deregulation • Transportation Today
Logistics Management • Transportation Modes • Truck • Rail • Air • Marine • Pipeline • Intermodal
Third Party Logistics Firms • Freight Forwarders • Customhouse Brokers • Shippers’ Cooperatives • Freight Brokers • Parcel Delivery • Air Express • 4PL
Carrier Types • Common Carriers • Asset Based • NVOCC • Contract Carriers • Private Carriers • Exempt Carriers
Intermodal Transportation Standardization • Container Sizes • Standard 20’ and 40’ • 44’ Refrigerated • 48’ • New 53’ • Stacking Mechanisms • Container Lifting • Interconnection • Pallets • Chassis • Ship container slots • Double Stack Rail Cars • Container Handling • Dockside Cranes • Container Yard • Top Lifters • Straddle Carriers
Transportation Modes • Air • High Value • Time Sensitive • Highest Cost • Lowest Total Volume
Transportation Modes • Truck • Goes Almost Anywhere • Flexible • Second Highest Cost • Second Highest Total Volume
Transportation Modes • Rail • Bulk Commodities • High Density • Coal, Ores • Grains • Steel • Lumber • Middle Cost • Highest Total Volume
Transportation Modes • Water • Ocean • Bulk • Container • VLCC • River / Coastwise • Tug & Barge • Next Lowest Cost • Next Lowest Volume
Waterways • America’s 26,000 miles of inland waterways: • Move 600 million tons/year. • Indirectly involve 800,000 jobs. • Transport $100 billion in interstate and international trade
Transportation Modes • Pipelines • Any Liquid or Liquefiable Products • Oil • Gas • Coal • Chemicals • Lowest Cost • Middle Volume
Major Western Pipelines • Oregon Pipelines • Gasoline • 380 mi • Gas Transmission • 824 mi • Gas Distribution • 12,112 mi • Total Pipelines • Nearly 14,000 mi
Intermodal Transportation • Containers • Barges • Trailers • Flatcar • Ro-Ro Vessels • Bulk Carriers
Inbound Raw Material RM Inventory Costs In-Plant Logistics Finished Goods Inventory Costs Documentation Costs Packaging Loading Line-haul Transportation Security Costs Customs Clearance Local Transportation Unloading Unpacking Material Handling Inventory Costs Pull/Pack/Ship Local Transportation to Final Customer Logistical Cost Factors
Bill of Lading Freight Bill Freight Claim (Loss or Damage Claim) FOB Point INCO terms Consolidation Combine Inbound and Outbound Vol Break Bulk Demurrage Detention Transload Facilities Transportation Issues
Traffic Management • Manage Inbound and Outbound Transportation Requirements • Track Rates and Commodity Classifications • Choice of Mode • Carrier Selection • Routing and Scheduling • Consolidation • Track and Trace • Custom Equipment • Manage Carrier Relationships
Comparing Modes • Each transportation mode satisfies specific needs in carrying goods across the country and around the world. • Each mode has distinct advantages over others in certain areas.
Global Supply Management • Cautions: • Evaluation of Sources • Lead Times and Variability • Logistical and Delivery Problems • Quality Questions • Political Issues • Labor Conflicts • Security • Finding Real Total Cost
Finding and Managing Global Suppliers • Foreign Purchasing Offices • Brokers • Trading Companies • Directories • Trade Shows • Foreign Embassies
FOB and INCO Terms • FOB Origin • FOB Destination • 11 INCO Terms