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