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Lecture Logistics management: Lecture 17 - Dr. Khurrum S. Mughal

In this chapter, the following content will be discussed: Describe the structure of supply chains, describe the bullwhip effect, describe the issues affecting supply chain management, describe B2B and B2C electronic commerce, describe global issues in supply chain management,. | 1-1 Logistics Management LSM 730 Dr. Khurrum S. Mughal Lecture 17 1 6-2 Transport Choices CR (2004) Prentice Hall, Inc. · Primary intercity carriers - Air - Truck - Rail - Water - Pipe · Coordinated services - Piggyback - Birdyback - Fishyback · Small shipment carriers - UPS - Federal Express - Postal services - Bus Package Express · Agents - Freight forwarders - Shipper associations · Others - Autos - Bicycles - Taxis - Human - Electronic 6-3 Importance of Modes CR (2004) Prentice Hall, Inc. By Products Hauled · Air -- very high - valued, time sensitive products · Truck -- moderately high - valued, time sensitive products. Many finished and semifinished goods · Rail -- low - valued products including many raw materials · Water -- very low - valued products moved domestically, high - valued if moved internationally · Pipe -- generally limited to petroleum products and natural gas 6-4 Importance of Modes (Cont’d) By Volume Moved Percent Transportation of total mode volume Railroads 36.5% Trucks 24.9 Inland waterways 16.3 Oil pipelines 22.0 Air 0.3 Total 100.0 CR (2004) Prentice Hall, Inc. 6-5 Performance Overview Relative Costs of Performance CR (2004) Prentice Hall, Inc. Price, Mode ¢/ton - mile Rail 2.28 Truck 26.19 Water 0.74 Pipeline 1.46 Air 61.20 6-6 Legal Classification Common carriers Contract carriers Private Agents Documentation Bill of lading Freight bill Freight claims Damage, Loss & Delay Claims Overcharge Claims Free trade zones Documentation Modes International Transportation CR (2004) Prentice Hall, Inc. 6-7 Foreign (Free) Trade Zone CR (2004) Prentice Hall, Inc. | 1-1 Logistics Management LSM 730 Dr. Khurrum S. Mughal Lecture 17 1 6-2 Transport Choices CR (2004) Prentice Hall, Inc. · Primary intercity carriers - Air - Truck - Rail - Water - Pipe · Coordinated services - Piggyback - Birdyback - Fishyback · Small shipment carriers - UPS - Federal Express - Postal services - Bus Package Express · Agents - Freight forwarders - Shipper associations · Others - Autos - Bicycles - Taxis - Human - Electronic 6-3 Importance of Modes CR (2004) Prentice Hall, Inc. By Products Hauled · Air -- very high - valued, time sensitive products · Truck -- moderately high - valued, time sensitive products. Many finished and semifinished goods · Rail -- low - valued products including many raw materials · Water -- very low - valued products moved domestically, high - valued if moved internationally · Pipe -- generally limited to petroleum products and natural gas 6-4 Importance of Modes (Cont’d) By Volume Moved Percent Transportation of total mode volume Railroads .