Current Lecture Lecture 14Chapter 9- Domestic U.S. & Global Logistics-Part 1SCM 3301 1st EditionCurrent Lecture Lecture 14Chapter 9- Domestic U.S. & Global Logistics-Part 1 Definition of LogisticsPlanning, Implementing, Controllingo Movement from suppliers to customerso Movement from customers to supplierso Storage of goods in the Supply ChainPurposeo Time utility-products delivered at the right timeo Place utility-products delivered to right placeThe Objective of Transportation- To satisfy customer requirements while minimizing costs and making a reasonable profit.- Key: Must decide which forms of transportation, material handling and storage, along with the most appropriate vehicle scheduling and routing to use.- SyscoLegal Forms of Transportation- Common Carrierso Offer transportation services to all shippers at published rates, between designated locations- Contract Carrierso Serve specific customers under contractural agreements- Exempt Carrierso Carriers that are exempt from regulation if they transport certain products- Private Carrierso Carriers who transport goods from the company owning the carrierModes of Transportation- Motor Carrierso LTL vs. TL vs. CLo General Freight vs. Specialized (LNG, Chemicals, etc.)- Rail Carrierso Trailer on Flatcar: Container Moved by Railo RTLS (Real-time Location System): RFID- Air Carriers: Speed vs. CostSCM 3301 1st Edition- Water Carriers: Deep-sea Container Ships- Pipeline Carriers: Move petrochemicals- Intermodal: Truck, Ship, & RailConsiderations of the Logistics Manager- Transportation Pricingo Cost of Service Pricing: Based on carriers cost structureo Value of Service Pricing: Based on price market will bearo Negotiated Pricing: Large volume, Negotiated Contracto Terms of Sale: FOB (Destination) or FOB (Origination)o Rate Categories: National Motor Freight Traffic Association- Transportation Security: 9/11- Transportation Regulation and
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