CH. 9 Logistics SCM 301

miscellaneous rates:

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

two basic pricing strategies:

-cost of services -value of service

five modes of transportation:

-rail -air -water -pipeline -motor (trucking)

Customs-Trade Partnership Against Terrorism (C-TPAT):

a voluntary supply chain security program focused on improving the security of private companies' supply chains with respect to terrorism

real-time location systems (RTLS):

allow tracking of rail cars in real time

commodity rates:

apply to minimum quantities of products that are shipped between two specified locations

class rates:

based on an evaluation of four transportation characteristics: -density -stowability -handling -liability

freight brokers:

bring shippers and carriers together

general freight carriers:

carry majority of goods shipped in U.S.

consolidation warehouses:

collect large numbers of LTL shipments from nearby regional sources of supply and the consolidate and transport in TL or CL quantities to a manufacturing or user facility located at some distance from the consolidation warehouse

right-shoring:

combines near-shore, far-shore. and domestic opportunities into a single, flexible, and cost-driven approach to purchasing and logistics

intermodal marketing companies:

companies that act as intermediaries between intermodal railroad companies and shippers

Non-Vessel-Operating Common Carriers (NVOCC):

consolidate small international shipments from a number of shippers into full container loads and the handle all of the documentation and transportation arrangements from the shippers' dock area

COFC:

container on flatcar (piggyback service)

place utility:

created when customers get things delivered to their desired locations

time utility:

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

risk pooling:

describes the relationship between the number of warehouses, system inventories, and customer service

centralized warehousing system:

fewer warehouses means that outbound transportation costs will be higher and service levels will be lower, but system costs will also be lower

exempt carriers:

for-hire carriers, but they are exempt from regulation of service and rates

public warehouses:

for-profit organizations that contract out or lease a wide range of light manufacturing, warehousing, and distribution services to other ocmpanies

truck-load (TL): carriers:

have trailers dedicated to a single shipper's cargo

green reverse logistics:

include reducing the environmental impact of certain modes of transportation user for returns, reducing the amount of dispose packaging and product materials by redesigning products and processes, and making use of reusable totes and pallets

private carriers:

is not subject to economic regulation and typically transport goods for the company owning the carrier

market positioned strategy:

locates warehouses close to customers to maximize customer service levels

product positioned strategy:

locates warehouses close to the sources of supply to enable the firm to collect various goods while minimizing inbound transportation costs

transportation worker identification credential (TWIC):

mandated by the maritime transportation security act of 2002

transportation intermediaries:

may not own any significant logistics capital assets

contract carriers:

might also be common carries; however, they are not bound to serve the general public

customs brokers:

move global shipments through customs for companies as well as handle the necessary documentation required to accompany the shipments

less-than-truckload (LTL) carriers:

move small packages or shipments that take up less than one truckload, and the shipping fees are higher per hundred weight (CWT) than TL fees

shipper's associations:

nonprofit transportation membership cooperatives which arrange for the domestic or international shipment of members cargo

common carriers:

offer transportation services to all shippers at published rates between designated locations

intermediary positioned strategy:

places warehouses between the sources of supply and the customers

Trailer on flatcar (TOFC):

point-to-point pickup and delivery service using motor carrier trailers and rail flatcars that carry the trailers

value of service:

prices are based on the level of competition and the current demand of service

trading companies:

put buyers and sellers from different countries together and handle all of the export/import arrangements, documentation, and transportation for both goods and services

exception rates:

rates that are lower than the NMFC class rates for specific origin-destination locations or volumes and generally are established on an account-by-account basis

crossdocking:

receive bulk shipments, break them down, repackage various items into outgoing orders, and then distribute these orders to a manufacturing location of retail center

cold chains:

refer to temperature controlled transportation, transfers, and warehousing

reverse logistics:

refers to the backward flow of goods from customers in the supply chain occurring when goods are returned, either by the end-product consumer or by a business customer within the supply chain

decentralized warehousing system:

responsiveness and delivery service levels will increase since goods will be close to customers and can be delivered more quickly

ROROs:

roll-on-roll off

foreign-trade zones:

secure sites within the United States under the supervision of the U.S. Customers and border protection

square root rule:

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

line haul rates:

the charges for moving goods to a nonlocal destination

FOB origin pricing:

the goods become the legal responsibility of the buyer at the supplier's finished goods pickup location

logistics:

the process of planning, implementing, and controlling procedures for the efficient and effective transportation of goods including services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements

horizontal collaboration:

the process of two or more companies cooperating at the same level on a certain market activity to realize benefits they could not achieve independently

FOB destination pricing (free-on-board):

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

intermodal transportation:

the use or combination of the various transportation modes

specialized carriers:

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

empty miles:

trucks coming back from their deliveries empty

cost of service:

used when carriers establish prices based on their fixed and variable costs of transportation

private warehouse:

warehouses that are privately owned and used by an organization