Tài liệu tiếng Anh thương mại Chap008 Transportation

Tài liệu tiếng Anh thương mại Chap008 Transportation

Copyright © 2013 by The McGraw-Hill Companies, Inc All rights reserved McGraw-Hill/Irwin

CHAPTER 8: Transportation

• Transport functionality and participants

• Product movement is the movement of inventory to specified destinations

– Restrictive element—in-transit inventory is “captive”, usually inaccessible during transportation

– Flexible element—inventory can be diverted during shipment to a new destination

– Impacts traffic congestion, noise and air pollution

Transport functionality primarily consists of product movement

services

Transport also functions as storage services for products while in a

vehicle

• In-transit inventory is captive in the transport system

• Product can also be stored in vehicles at origin or destination (trailers, trucks, railcars, etc)

• Diversion occurs when a shipment destination is changed after a product is in transit

Two fundamental transport principles

• Economy of scale is the cost per unit weight decreases as the size of the shipment increases

– At least until you totally fill the carrying vehicle!

– Cost decreases because the fixed cost of the carrier is allocated over a larger weight of shipment

• Economy of distance is the cost per unit weight decreases as distance increases

– Often called the tapering principle

– Longer distances allow fixed cost of the carrier to be spread over more miles, lowering the per mile charge

Major relationships among transportation participants

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Transportation infrastructure supports the flow of our nations

economy

Table 8.1 The Nations’ Freight Bill ($ billions)

• Shipper and consignee have a common interest in moving goods from origin to destination within a given time at the

lowest cost

• Carriers desire to maximize their revenue for movement while minimizing associated costs

• Agents (brokers and freight forwarders) facilitate carrier and customer matching

• Government desires a stable and efficient transportation environment to support economic growth

• Public is concerned with transportation accessibility, expense, and standards for security, safety and the environment

Role and perspective of participants

• The Internet now provides the vital communications links between the transactional participants

(shipper-carrier-consignee)

Role of the Internet in transportation

Transportation regulation by the government focuses on

• Economic regulation seeking to make transportation equally accessible and economical to all without discrimination

– Government created infrastructure (roads, canals, ports)

– Intended to prevent carriers from taking advantage of suppliers while ensuring long-term financial stability for carriers

• Social regulation which takes measures to protect public safety and environment

– Department of Transportation (DOT) (1966) has active role in hazardous material safety and driver safety

– Hazardous Materials Transportation Uniform Safety Act (1990) took precedence over state and local regulations

History of transportation regulation

– (e.g Commodore Vanderbilt and the railroad “barons” )

– To stop the railroad monopolies

under ICC oversight

– Entry restrictions for new businesses were relaxed

– Restrictions for types of freight and range of services were abolished

– Individual carriers were given the right to price their services

– Trucking industry’s collective rate-making practices were abolished

– Provide railroad management with freedom necessary to revitalize the industry

– Rail carriers were authorized to use selective pricing to meet competition and cover operating costs

– Carriers given increased flexibility with respect to surcharges

– Contract rate agreements between individual shippers and carriers were legalized

– Rail management given liberal authority to proceed with abandonment of poorly performing rail service

Transportation deregulation (1980)

• Electronic Signatures in Global & National Commerce Act of 2000

– Increased inspections at ports, airport security, and increased security at border crossings

– Only U.S.-built ships operating under a U.S flag with U.S crews can ship goods directly from a U.S port to

another U.S port

Transportation regulation in the new millennium is stimulated by technology and

global issues

Transportation structure

operating within five basic modes

Table 8.1 Nation’s freight bill

Table 8.3 Domestic shipments by mode and revenue

Rail mode has historically handled the largest number of ton-miles within continental

US

hauling specific freight in traffic segments

– Carload

– Intermodal

– Container

and double-stack cars

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Truck mode has expanded rapidly since the end of World War II

– Speed of transit

– Ability to operate door-to-door

distances

manufacturing to wholesalers to retailers

WalMart)

19 and 30% since 1960’s

Federal government

Water mode is the oldest form of US transport dating back to the birth of our nation

• Have the highest fixed cost and lowest

variable cost of all modes

• Not flexible, and limited to liquids and gases

Pipeline mode accounts for about 68 percent of all crude and petroleum ton-mile

movements in US

• Accounts for only 1% of intercity ton-miles

• Fixed cost is 2nd lowest but variable costs are

extremely high

high priority or extreme perishability

Air mode is the newest and least utilized transport mode for freight

Comparison of fixed and variable cost structure of each transport

mode

Table 8.4 Cost Structure For Each Model

• Speed is the elapsed movement time from origin to destination

• Availability is ability of a mode to service any given pair of locations

• Dependability is the potential variance from expected delivery schedule

• Capability is the ability to handle any load size or configuration

• Frequency is the quantity of scheduled movements a mode can handle

Operating characteristics used to classify transport modes

Highway transport is appealing partly due to its relative ranking across

characteristics

Table 8.5 Relative Operating Characteristics by Mode

Lowest rank is best

– However, this highway system is in need of widespread repair to sustain the safe movement of over 26 million trucks

• August 1, 2007 a major bridge span of interstate I-35 over the Mississippi River collapses

– Watch video of aftermath by selecting this link (slideshow mode)

deficient

Infrastructure in crisis – US needs a National Transportation Plan

http://www.metacafe.com/watch/1659007/i_35_bridge_collapse/

• Traditional carriers are firms that provide service using only one of the five basic transport modes

– E.g trucking firm or an airline

• Package service uses intermodal transportation (ground and air) to handle small shipments or parcel deliveries

– E.g USPS, FedEx, or UPS

• Intermodal transportation combines two or more modes to take advantage of the inherent economies of each and

provide an integrated service at a lower total cost

– E.g piggyback service integrating rail and motor service

• Nonoperating intermediaries include several business types that do not own or operate equipment

– Act to broker services by other firms

• Ground package service offers regular delivery within metropolitan areas and between cities

• Air package service is a premium service to deliver certain packages door-to-door by next-day or

second-day

Package service provides both regular and premium service

• Same day air

• Next day delivery

• Second day delivery

Examples of expanded parcel carrier services (Optional value-added

services)

• Most widely used systems are

– Trailer on a flatcar (TOFC)

– Container on a flatcar (COFC)

• Trailer or container is hauled by truck at origin and

destination

– Railcar hauls for portion of intercity travel

developed

Piggyback is an intermodal transport that integrates rail and motor

service

• Loads a truck trailer, railcar or container onto barge or ship for the

line-haul movement on inland waterways

• Land bridge concept moves containers in a combination of sea

and rail transport

• Transfer of freight between modes often requires handling

containers and imposition of duties

• Port throughput is big concern for supply chain managers

Containerships are oldest form of intermodal transport

Coordinated air-truck is commonly used to provide premium package

services

• Many smaller cities lack airfreight services

• Costs can leveraged with delivery time by

linking the modes

Non-operating intermediaries do not own their own equipment

• Freight forwarders—businesses that consolidate small

shipments from various customers into bulk shipment for a

common carrier for transport

• Shipper associations and agents—groups of shippers who

employ an agent to consolidate purchases and shipments for

them

• Brokers—intermediaries that coordinate transportation

arrangements for shipper, consignees and carriers, operating on

a commission basis

Sampling of Non-operating Intermediaries

Video on Ethics and future of Transportation (9:00 min.)

• Transportation is single largest element of

logistics cost

inventory to be positioned in a timely and

economical manner

Transportation operations seeks an optimal balance between low cost and

high service

• An effective logistics strategy must understand four interrelated topics

– Economic drivers that influence rates

– Costing methods to allocate costs

– Carrier pricing strategy used to set rates

– Rates and rating mechanics used by carriers

Transportation economics and pricing are concerned with factors that drive

cost

Distance is a major influence on cost

– Labor, fuel, and maintenance

associated with pickup and delivery regardless of distance

– This is called the tapering principle

Weight is the second major factor for most transportation costs

increases until the carrier vehicle is full

load

loads to maximize scale economies

Figure 8.3 Generalized Relationship between Weight and Transportation Cost/Pound

Density is the combination of weight and volume

typically constrained more by cubic capacity than by weight loaded

density increases

costs to be spread over more weight

• Nesting refers to ability of product to be

placed in itself or collapsed for better

stowability

Stowability is how product dimensions fit into transportation

equipment

Handling some products may require special equipment

and unload trucks, railcars, or ships

or pallets will also impact handling cost

Liability includes product characteristics that can result in damage

• Carriers must pay for liability insurance or

accept financial responsibility

• For example - pneumatic dunnage

• Transport lane refers to movements between

origin and destination points

returned empty

can result in higher transport costs

Market factors such as lane volume and balance influence

transportation cost

Variable costs change in a predictable, direct manner in relation to some level of

activity

• Variable costs in transportation are only

incurred if you operate the vehicle

least!

both

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Fixed costs must be paid even when the company is not operating

volume

– Includes vehicles, terminals, rights-of-way,

information systems, and support equipment

variable costs on a per shipment basis

Joint costs are created by the decision to provide a particular service

• Typical example is the implicit decision to incur

a joint cost for a backhaul from a destination

Bandit

costs based on assessment of back-haul

Common costs are incurred on behalf of all or a select group of

shippers

examples

activity for that customer

• Cost-of-service strategy

• Value-of-service strategy

• Combination pricing strategy

• Net-rate pricing strategy

Carrier pricing strategies for setting rates follows one or two of the following

approaches

Carrier pricing cost-of-service strategy

• Cost-of-service is similar to cost-plus pricing

strategy for manufacturing

• Carrier estimates cost of providing service then

adds on a percent profit margin

value goods or in highly competitive situations

Carrier pricing value-of-service strategy

• Value-of-service price is based on value as perceived by the

shipper rather than the carrier

– E.g 1980’s FedEx overnight delivery

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Carrier pricing combination strategy

• Combination price is set at a value between

cost-of-service minimum and value-of-service

Carrier pricing net-rate strategy

• Net-rate is a simplified pricing format made

possible by deregulation

charges are rolled into one all-inclusive price

• Pricing is tailored to the individual

Rates and rating mechanics used by common carriers

• Class rates are the price in dollars and cents per hundredweight

to move a specific product between two locations

• Classification is the grouping of similar products into uniform

classes that are assigned a rating

• Rate determination is based on the classification rating,

shipment origin, and destination

• Cube rates replace the 18 traditional freight classifications of the

NMFC with five cube groupings

• Commodity rates are for a large quantity of product which

moves between two locations on a regular basis

• Exception rates are special rates to provide prices lower than

the prevailing class rates

• Special rates and services include

– FAK rates, Joint rates, Transit services, Split delivery, etc.

• How much are you shipping?

• What are you shipping?

• How far are you shipping from origin to destination?

Three factors determine the base rate

Special rates and services

• Freight-all-kind (FAK) rates allow a mixture of different products

to be transported under a negotiated rating

• Joint rates can be negotiated if shipper needs to use a

combination of carriers

• Transit services permit shipments to be stopped at an

intermediate point between origin and destination for special

processing

• Diversion and reconsignment allows changing the destination

and/or consignee prior to arrival at the original destination

• Split delivery is delivering portions of a shipment to multiple

destinations

• Product storage services

– Demurrage (rail) charge for holding a railcar for more than 48

hours before unloading

– Detention (motor) charge for holding a truck for more than a

few hours before unloading

Key elements of operational management

– An integral information technology solution to help oversee

day-to-day activities

Consolidation

• Consolidation is combining LTL or parcel shipments moving to a general location

• Shift to “response-based” logistics has made the industry rethink consolidation

to shipments as they come

• Example is UPS nightly sorting of package freight for intercity movement

– Proactive approach includes preorder planning of quantity and timing with the shipper to facilitate consolidated

freight movement

carriers share transportation consolidation and

productivity gains

• Both parties seek the lowest total logistical cost

consistent with the shipper’s needed service level (i.e

delivery time)

• Tracing is procedure to locate lost or late shipments

– i.e tracking with RFID and GPS systems

• Expediting involves the shipper notifying carrier that it

needs a specific shipment to move quickly and with no

delays

with federal regulations

Control responsibilities include tracing, expediting and driver hours

administration