Chapter 13 transportation management

Quản lý vận chuyển: sự phối hợp của lập kế hoạch, lịch trình, công nghệ và vận hành xe vận chuyển hàng hóa tuân thủ pháp luật. Bên cạnh đó, là hoạt động quản lý thương mại, quản lý nhân viên, quản lý các vấn đề bảo vệ môi trường và các xu hướng vận tải.

CHAPTER 13

Transportation Management

Learning Objectives

• To explain contemporary transportation management

• To discuss how rates are determined

• To learn about modal and carrier selection

Learning Objectives

• To distinguish among various transportation documents

• To illustrate select activities associated with making and receiving shipments

• To learn about transportation service quality

Transportation Management Key

Transportation Management Key

Contemporary Transportation Management

• Transportation management

─ refers to the buying and controlling of

transportation service by either a shipper or

Contemporary Transportation Management • Transportation managers also involved in other

operations of the firm

– Marketing

– Manufacturing

– Outbound shipping– Purchasing

Rate (Pricing) Considerations

Rate (Pricing) Considerations

• Rate Determination

– Weight x rate = transportation charge

– Transportation rates based on three factors • Product

• Weight • Distance

Rate (Pricing) Considerations

• Rate Determination

– Commodity rate

• One specific rate for every possible combination of product, weight, and distance

– Class rate system

• System to simplify rate determination

• Freight classification used to simplify the number of commodities

• National Motor Freight Classification (NMFC)

Rate (Pricing) Considerations

Rate (Pricing) Considerations

• Rate Determination

– Factors used for determine product’s freight classification

• Density

– refers to how heavy a product is in relation to its size– Viewed as primary factor for setting a product’s

classification

• Stowability

– refers to how easy the commodity is to pack into a load– possible considerations involve the commodity’s ability to

be loaded with hazardous materials and ability to load freight on top of the commodity

Rate (Pricing) Considerations

• Rate Determination

– Factors used for determine product’s freight classification

• Ease of difficulty of handling

– refers to challenges to handling that might be presented by a commodity’s size, weight, and so on

• Liability for loss and damage

– considers, among others, a commodity’s propensity to damage other freight, its perishability, and its value

Rate (Pricing) Considerations

Rate (Pricing) Considerations

Rate (Pricing) Considerations

• Rate Determination

– Commodity Classification Standards Board develops and maintains commodity freight

Rate (Pricing) Considerations

Rate (Pricing) Considerations

• Rate and Service Negotiations

– Both rates and service levels may be negotiated due to economic deregulation

– Allows transportation managers to take advantage of trade-offs between price and service

Rate (Pricing) Considerations

Rate (Pricing) Considerations

• Rate and Service Negotiations

– Domestic terms of sale

• When freight charges are paid for a particular domestic shipment

– Transportation cost analysis

Modal and Carrier Selection

• Two-step process

– First determine appropriate mode(s)

– Then select carrier(s) within the chosen mode(s)

• Carrier selection is more challenging

– Difficult to be aware of every possible carrier – Lack of agreement on the number of relevant

factors

Modal and Carrier Selection

• Amodal shipper

– Refers to a transportation manager who purchases a prespecified level of transportation service and is indifferent to the mode(s) and or carrier(s) used to provide the actual transportation service.

• Research indicates shippers are more

interested in transportation metrics than in modes

• Documentation

– Serves practical function

• What, where, and how much is being transported

– Potentially provides legal recourse

– Transportation department is responsible for

completing all documents needed to transport the firm’s products

• Bill of lading

– Functions as a delivery receipt when products are tendered to carriers

• Bill of lading classifications

– Straight bill of lading – Order bill of lading

– Long-form bill of lading

– Preprinted short-form bill of lading

Documentation

• Freight bill

– Invoice submitted by the carrier requesting to be paid

– Freight bill-paying service

– Automated service in attempt to pay carriers within a specific number of working days

• Work is performed by an independent third party to detect errors in freight bills

Documentation

• Freight claims

– Refers to a document that notifies a carrier of wrong or defective deliveries, delays, or other delivery shortcomings

– Concealed loss or damage difficult for shippers and carriers

• Refers to situation where loss or damage is not

apparent until after a shipment has been unpacked

Making and Receiving Shipments

• Key area of decision making in transportation management involves making and receiving shipments

– Refers to tactical planning and control of shipments along with supervision of freight loading and unloading

Source: John E Tyworth, Joseph L Cavinato, and C John Langley, Traffic Management: Planning, Operations,

and Control (Prospect Heights, IL: Waveland Press, 1991).

Making and Receiving Shipments

• Consolidating small shipments

– Shipments > 150 and < 500 pounds

– To get a lower rate, shipment consolidation may occur: aggregating customer orders across time or place or both

Making and Receiving Shipments

Making and Receiving Shipments

• Demurrageand Detention

– Demurrage

– Penalty payment made to the railroad for keeping a railcar beyond the time when it should be released back to railroad

– Detention

– Same concept as demurrage except it usually refers to the trucking industry

Making and Receiving Shipments

• Routing

– Process of determining how a shipment will be moved between origin and destination1

Making and Receiving Shipments

• Tracking and Expediting

– Tracking

• Refers to determining a shipment’s location during the course of its move

– Expediting

• Involves the need to rapidly move a shipment to its final destination

Transportation Service Quality

• Macroenvironmental changes have caused organizations to demand higher levels of service quality

• Economic deregulation allowed for both price and service competition resulting in a need to measure performance

• Can measure performance through the use a performance scorecard

Transportation Service Quality

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