Ch 9

intermodal transportation

2/ more modes of transportation are combined to deliver a shipment of goods

green logistics

A philosophy of understanding and working to reduce the ecological impact of logistics in both the forward and reverse supply chain

RO-ROs roll-on-roll-off

A type of intermodal transportation that allow truck trailers and containers to be directly driven on and off the ship, without use of cranes

distribution center

A warehouse that forms outbound specific product assortments which are then shipped to the customer

zone of rate freedom

Allows carriers to charge fees over their variable costs, up to a set limit

tariffs

An official list or schedule showing the duties, taxes, or customs imposed by the host country on imports/exports

Transportation management systems

Applications allow firms to select the best mix of transportation services and pricing to best determine the best use of containers or truck trailers, to better manage transportation contracts, to rank transportation options, to clear customs, to track fuel usage and product movements, and to track carrier performance

miscellaneous rates

Apply to contract rates that are negotiated between two parties and to shipments containing a variety of products

commodity rates

Apply to minimum quantities of products that are shipped between two specific locations

class rates

Based on the particular class of the product transported --some products have higher published ____ than others

Motor Carrier Act of 1935

Brought motor carriers under ICC control, thus controlling entry into the market, establishing motor carrier classes of operation, setting reasonable rates, mandating ICC approval for any mergers or acquisitions, and controlling the issuance of securities

value-of-service pricing

Carriers price their services at competitive levels that the market will bear

Pipeline carriers

Carries oil,natural gas, coal slurry and other liquids/gases

General freight carriers

Carry the majority of goods shipped in the US and include common carriers

consolidation warehouses

Collect large numbers of LTL shipments from nearby regional sources of supply, where these are then transported in TL/CL quantities to a manufacturing or user-facility located at some distance from the consolidation center

Intermodal marketing companies (IMCs)

Companies that act as intermediaries between intermodal railroad companies and shippers

freight forwarders

Consolidate a large number of small shipments to fill entire truck trailers or rail cars that transport items at truckload or carload prices

Interstate Commerce Act of 1887

Created Interstate Commerce Commission (ICC) that required rail carriers to charge responsible rates, to publish rates, file them with ICC, etc

Department of Transportation Act

Created the Department of Transportation (DOT) to coordinate the executive functions of all gov't entities deailing with transportation-related matters

time utility

Created when customers get products delivered at precisely the right time, not earlier and not later

place utility

Created when customers get things delivered to the desired location

Returns management systems

Developing and implementing efficient methods fir transporting and storing returns while seeking to recover some value, if possible, from the returned items. Activities include environmental compliance with substance disposal and recycling, composing operating and repair instructions, troubleshooting and warranty repairs, developing disposal guidelines, designing an effective reverse logistics process, and collecting returns data.

transportation deregulation

Encourages competition and allows prices to adjust as demand and negotiations dictate

transportation intermediaries

For-hire agencies that bring shippers and transportation providers together

Contract carriers

For-hire carriers not bound to serve the general public. Serve specific customers under contractual agreements

Exempt carriers

For-hire carriers, exempt from regulation of services and rates

Third-party logistics services (3PLs)

For-hire outside agents that provide transportation and other services including warehousing, document preparation, customs clearance, packaging, labeling, and freight bill auditing

granger laws

In the 1870s made Congress realize the impact of railroad monopolies

ICC Termination Act of 1955

Interstate Commerce Commission was eliminated

Market positioned strategy

Locates warehouses close to customers, to maximize distribution service and to allow the firm to generate transportation economies by using TL and CL deliveries to each warehouse location

reverse logistics

Management of product returns, A unique form of inbound logistics whereby suppliers try to underbid each other to win a purchase order

Shipping Act of 1984

Marked the end of the initial push by Congress to deregulate transportation

Less-than-truckload (LTL) carriers / truckload (TL) carriers

Move small packages or shipments that take up less than one truckload

container-on-flatcar (COFC)

One form of intermodal transportation; standardized shipping containers are transported via rail flatcar, and can also be placed on a truck chassis and on an ocean-going container ship

Civil Aeronautics Act of 1938

Promoted the development of the air transportation system and promoted air safety and airline efficiency by establishing Civil Aeronautics Board to oversee market entry, etc

coal slurry

Pulverized coal that is suspended in water

Transportation Act of 1920

Returned railroads to private ownership

square root rule

Suggests that the system average inventory is equal to the old system inventory times the ratio of the square root of the new number of warehouses to the square root of the old number of warehouses

supply chain visibility

The ability of supply chain members to see what is happening to inventories up and down the supply chain

market dominance

The firm with the dominant position in the market, selling the most units of product

treshold costs

The firm's variable costs and the ICC determined whether the firm was in a market dominant position (absence of market competition)

lead logistics provider (LLP) / fourth-party logistics provider (4PL)

The lead logistics provider manages all of the firm's 3PLs

piggyback service

The loading of shipping containers or truck trailers on a rail flatbed car (aka COFC and trailer-on-flat-car)

Warehouse management systems

The proper storage and movement of inventory and minor manufacturing such as assembly or labeling activities within the warehouse, and movement of shipments onto the transportation carrier

Rail carriers

They are a type of exempt carriers

load brokers, transportation brokers

They bring shippers and transportation companies (mainly truckers) together. Legally authorized to act on the shipper's or carrier's behalf and typically these companies are hired because their extensive knowledge of the many transportation alternatives available or the many shippers needing transportation

trailer-on-flatcar (TOFC) service

This offers point-to-point pick-up and delivery service using motor carriers and flatcars that carry trailers

Intermediary positioned strategics

This places warehouses midway between the sources of the supply and the customers

Motor carriers

Trucks. The most flexible mode of transportation

high-speed trains

Typically passenger trains are averaging about 70 mph although top speeds can reach 120 mph

North American Free Trade Agreement (NAFTA)

US made a promise to Mexico that Mexican truckers were allowed to operate in the US

cost-of-service pricing

Used when carriers desire to establish prices that vary based on their fixed and variable costs

private warehouses

Warehouses that are owned by the firm storing goods

breakbulk

When large quantity shipments are broken down so that items can be combined into specific customer orders, and then shipped out

private carriers

common, contract, or exempt for-hire transportation service

deep-sea transportation

have made water transportation cheaper and more desirable

shippers' associations

non-profit membership cooperatives which make domestic or international arrangements for the movement of members' cargo

common carriers

often transportation services to all shippers at published rates, between designated locations

electronic invoice presentment and payment (EIPP)

sending and receiving invoices and payments online, represents one of the most commonly used B2B transactions, and it's designed to create greater efficiencies among the companies using the technology

FOB (free-on-board) destination pricing

supplier will be the legal owner of the product until it safely reaches its destination

water carrier

water transportation

cross-docking

A continuous replenishment logistics process at a distribution center, where incoming goods are sorted and/or consolidated, and then shipped out to their final destinations, without the need to store the goods. Generally takes place within 24 hours, sometimes less than a hour, after shipment arrivals and is used to replenish high-demand inventories

Transportation Act of 1940

Established ICC control over domestic water transportation

Transportation Act of 1958

Established temporary loan guarantees to railroads, liberalized control over intrastate rail rates, amended the rule of rate making to ensure more intermodal competition, etc

public warehouses

For-profit organizations that contract or lease various warehousing and distribution services to other companies

Federal Aviation Act of 1958

Gave Federal Aviation Administration (FAA) the authority to prescirbe air traffic rules, make safety regulations, and plan the national airport system

Reed-Bulwinkle Act

Gave groups of carriers the ability to form rate bureaus or conferences wherein they could propose rate changes to the ICC

Product positioned strategy

Locates warehouses close to the sources of supply, to enable the firm to collect various goods and then consolidate these into TL or CL quantities for shipment to customers

collaborative transportation management

Logistics providers and shippers working together and sharing forecasting, planning, and replenishment information to optimize transportation vehicle usage

transportation security

Providing protection to transportation companies against unlawful activities such as terrorism

exception rates

Published rates that are lower than class rates for specific origin-destination locations or volumes

Straggers Rail Act of 1980

Rail carriers free to charge rates within zone of rate freedom

FOB origination prices

The buyer may decide to purchase goods and supply their own transportation to the shipping destination; in this case, the supplier quotes the lower

line haul rates

The charges of moving goods to a nonlocal destination

Ocean Shipping Reform Act of 1998

The requirement for ocean carriers to file rates with the Federal Maritime Commission came to an end

Railway Passenger Service Act

To perserve and improve the rail system's ability to service passengers

specialized carriers

Transport liquid petroleum, household goods, agricultural commodities, building materials, and other specialized items

hybrid centralized distribution system

Using IT systems to combine a more decentralized warehousing system with a central control of stocks

logistics audits

With the passage of time, logistics characteristics all tend to change, requiring firms to periodically audit their logistics system with the objective of finding an optimal mix of both cost and service