Transportation Options

 Huffman Trucking Co. o Albany Advantages Disadvantages o Pontiac Advantages Disadvantages  Hangzhou, China o FedEx o Company Resembling FedEx

 Intermodal Transportation o Complicated? o Is it efficient? o How will we use it?  Small package carriers o Reduce overstock o Lower cost  Rail o Short line o What would we need?  Technology upgrades: o Shipment tracking o Electronic documents o Inventory systems

 Advantages o Local expertise o Reduced workload on current logistics team members o Increased accountability  Disadvantages o Increased costs o Loss of traceability o Increased dependency on logistics partners  Conclusion: o Riordan should consider a third party shipper for international order from the Chinese facility

 4R Act ◦ Railroad Revitalization and Regulatory Reform Act of 1976  Staggers Rail Act ◦ Staggers Rail Act of 1980  Greater pricing  Streamlining timetables  Expediting line abandonment  Allowing multiple owners

 Primary modes of transportation for Riordan Industries  Truck, railroad, air, and water  Intermodal transportation  Three manufacturing facilities include : Albany, GA, Pontiac, MI, Hangzhou, China.

 Regulatory Control over Rates o Allowing railroads to charge market rates o Allowing railroads to focus on the more profitable freight transportation rather than passenger  Confidential Contracting o Greater Flexibility in negotiations  Conducting Business with large volume shippers o Lower Rates Overall

 Option A- Eliminate barges to Shanghai o Use the current trucking company to move cargo containers directly to the Shanghai port.  Option B- Move the China facility operations to Shanghai o Option “A”, plus the Shanghai infrastructure can better support global market approaches.

 Follow: the recommended approaches of intermodal transport, small packaging, and rail transport.  Act upon: the removal of intermediate shipping via barges in China. o Continue research and highly consider: the facilities move to Shanghai

 Coyle, J. C., Langley, J. C., Gibson, B. J., Novack, R. A., & Bardi, E. J. (2008). Supply Chain Management - A Logistics Perspective. Mason, OH: Cengage Learning.  University of Phoenix. (2013). Virtual Organizations. Retrieved from University of Phoenix, ISCOM352 - Logistics Management website.