Strategic Channel Intermediaries: Ports • Port selection is a very important part of the international logistics strategy. • Different ports often specialize in different types of shipments. • Selecting the wrong port can add miles, time, and therefore cost to a shipment not appropriately routed. • Overall door-to-door transit time and variability are important factors.
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Strategic Channel Intermediaries: Ports Port selection is a very important part of the international logistics strategy. Different ports often specialize.
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Strategic Channel Intermediaries: Ports
• Port selection is a very important part of the international logistics strategy.
• Different ports often specialize in different types of shipments.
• Selecting the wrong port can add miles, time, and therefore cost to a shipment not appropriately routed.
• Overall door-to-door transit time and variability are important factors.
Customer Service
Providing the customer with what they need in a way that provides value to them
Make them happy!!!!
Who is your customer?
Elements of customer service
• Dependability
• Time
• Convenience
• Communications
• Honesty
• Knowledge of who they are and what they do!!!
Resource allocation
The difficulty comes in tailoring each country’s customer service mix
Cost vs. service
Barriers to Customer Service
• Controllable factors
–Short term decisions vs. long term benefits
• Uncontrollable factors
–Customers/employees/service providers, etc.
Customer Service Performance
Always learning, always improving
Know what your customers value and monitor the system you have in place to deliver it!
“If you do not measure it you cannot manage it”
“Make it easy for them to shop in your store”
What are the customer service variables that must be
addressed?
Global Transportation
The mode of transportation decided upon after evaluating the trade-offs must fit with the system
Speed/Reliability/Flexibility/Cost/Security
Profit Contribution
The Transportation System• The Role of Transportation
– Move the product– Provide advantage— “on time low cost ??”– Add value—Time and place
Supply Chain management
Logistics
Transportation
“Logistics managers are finding that they need to do
much more in terms of conceptualizing, designing, and implementing logistics
initiatives that may be effective globally”
IT IS A SYSTEM!!!!
John Coyle
Modes of Transportation
1. Water—Vessels, Barge
2. Motor -- Trucks
3. Rail
4. Air
5. Pipeline
Rail-Air-Road-Water-Pipeline
• Cost vs. Speed
• Packaging vs. risk of damage
• Flexibility vs. dependability
• Product vs. mode
Domestic Water Carriers
• Relatively low cost mode; do not own the rights-of-way; easy entry and exit.
• Typically a long distance mover of low value, bulk-type mineral, agricultural and forest products
• Low rates but long transit times
• Low accessibility but high capability
Domestic Water
• Internal water carriers- rivers• Great Lakes carriers• Coastal carriers• Intercoastal carriers
Long Distance – Low Value – High Density
Rail
One can move a great deal of product vs. road or air
Is it timely enough for your needs?
Limited access points
Rail
• Advantages– Low rates– Safety– Reliability
• Disadvantage– Accessibility– Transit time
Long distance- high volume
Intermodal Transportation
• Refers to use of two or more modes of transportation cooperating on the movement of shipment by publishing a through rate.
• Logistics managers are looking for the best way to move shipments and these often attempt to take advantage of multiple modes of transportation, each of which has certain
useful characteristics.
Intermodal Transportation
Cultural bias towards using only one mode and this makes change more difficult.
Is this still true today???
• Certain types have been fairly well developed, such as rail/water, motor/water, rail/motor, and motor/air.
Intermodal Transportation: Containerization
• “Land bridge” concept may apply for international shipments where oceans are separated by a large land mass.
• For example, containers moving from Japan to Europe may dock at Long Beach, CA, transfer the containers to a railroad, and reload the containers onboard another ship in Norfolk, VA., continuing on to a European port.
Intermodal Transportation: Piggyback
• Trailer-on-Flat-Car (TOFC)
• Over the road trailers ride in special rail cars.
• Takes advantage of motor flexibility and rail’s long haul economic advantage.
• Multiple service plans for shippers.
• Some railroads provide varying levels of service, differentially priced.
Intermodal Transportation: RoadRailers
• Newest concept referred to as a “RoadRailer”• Essentially a trailer that has been reinforced to ride
on a rail bogey and be coupled together directly without first being placed on a rail flat car
• Saves weight and locomotive power and thus fuel for the railroad
• Special lower rates• Motor competitive transit times