ISQA 439 Logistics Global Supply Management

Logistics  The Buyer Always Pays the Freight  Who Arranges/Manages Freight is Open to Negotiation  Transportation Prior to Deregulation  Transportation Today

Logistics Management  Transportation Modes  Truck  Rail  Air  Marine  Pipeline  Intermodal

Third Party Logistics Firms  Freight Forwarders  Customhouse Brokers  Shippers’ Cooperatives  Freight Brokers  Parcel Delivery  Air Express  4PL

Carrier Types  Common Carriers  Asset Based  NVOCC  Contract Carriers  Private Carriers  Exempt Carriers

Intermodal Transportation Standardization  Container Sizes  Standard 20’ and 40’  44’ Refrigerated  48’  New 53’  Stacking Mechanisms  Container Lifting  Interconnection  Pallets  Chassis  Ship container slots  Double Stack Rail Cars  Container Handling  Dockside Cranes  Container Yard  Top Lifters  Straddle Carriers

Transportation Modes  Air  High Value  Time Sensitive  Highest Cost  Lowest Total Volume

Transportation Modes  Truck  Goes Almost Anywhere  Flexible  Second Highest Cost  Second Highest Total Volume

Transportation Modes  Rail  Bulk Commodities  High Density  Coal, Ores  Grains  Steel  Lumber  Middle Cost  Highest Total Volume

Transportation Modes  Water  Ocean  Bulk  Container  VLCC  River / Coastwise  Tug & Barge  Next Lowest Cost  Next Lowest Volume

Waterways  America’s 26,000 miles of inland waterways:  Move 600 million tons/year.  Indirectly involve 800,000 jobs.  Transport $100 billion in interstate and international trade

Transportation Modes  Pipelines  Any Liquid or Liquefiable Products  Oil  Gas  Coal  Chemicals  Lowest Cost  Middle Volume

Major Western Pipelines  Oregon Pipelines  Gasoline  380 mi  Gas Transmission  824 mi  Gas Distribution  12,112 mi  Total Pipelines  Nearly 14,000 mi

Intermodal Transportation  Containers  Barges  Trailers  Flatcar  Ro-Ro Vessels  Bulk Carriers

Logistical Cost Factors  Inbound Raw Material  RM Inventory Costs  In-Plant Logistics  Finished Goods Inventory Costs  Documentation Costs  Packaging  Loading  Line-haul Transportation  Security Costs  Customs Clearance  Local Transportation  Unloading  Unpacking  Material Handling  Inventory Costs  Pull/Pack/Ship  Local Transportation to Final Customer

Transportation Issues  Bill of Lading  Freight Bill  Freight Claim (Loss or Damage Claim)  FOB Point  INCO terms  Consolidation  Combine Inbound and Outbound Vol  Break Bulk  Demurrage  Detention  Transload Facilities

Traffic Management  Manage Inbound and Outbound Transportation Requirements  Track Rates and Commodity Classifications  Choice of Mode  Carrier Selection  Routing and Scheduling  Consolidation  Track and Trace  Custom Equipment  Manage Carrier Relationships

Comparing Modes  Each transportation mode satisfies specific needs in carrying goods across the country and around the world.  Each mode has distinct advantages over others in certain areas.

Global Supply Management  Cautions:  Evaluation of Sources  Lead Times and Variability  Logistical and Delivery Problems  Quality Questions  Political Issues  Labor Conflicts  Security  Finding Real Total Cost

Finding and Managing Global Suppliers  Foreign Purchasing Offices  Brokers  Trading Companies  Directories  Trade Shows  Foreign Embassies

FOB and INCO Terms  FOB Origin  FOB Destination  11 INCO Terms

INCO Terms