2. Chapter 11: Strategic Leadership Chapter 17 Transport management

3. Chapter 11: Strategic Leadership Outline This chapter covers the following aspects: Strategic transport management Tactical transport management Operational principles

4. Chapter 11: Strategic Leadership Government policy instruments affecting the transport industry Legislation Direct supply Fiscal measures Monetary measures Moral appeal and persuasion Policies relating to strategic commodities

5. Chapter 11: Strategic Leadership Government policy instruments affecting the transport industry (continued) Procurement policy Provision of information Research and development

6. Chapter 11: Strategic Leadership Selecting transport services Efficiency considerations: – Volume of traffic – Opportunity to obtain back hauls – Labour specialisation – Core versus non-core business – Capital investment choices

7. Chapter 11: Strategic Leadership Selecting transport services (continued) Effectiveness considerations: – Suitability – Accessibility – Goods security – Transit time – Reliability – Flexibility

8. Chapter 11: Strategic Leadership Selecting transport services (continued) Selection of a specific carrier: – Technical capability – Operational capability – Acceptable price

9. Chapter 11: Strategic Leadership Service comparison of transport modes

10. Chapter 11: Strategic Leadership Consolidation of traffic The concept of a consignment Methods of traffic consolidation: – Consolidation of through-movements – Traffic pooling and distribution – Reducing trip frequency – Other methods of consolidation

11. Chapter 11: Strategic Leadership Consolidation of traffic

12. Chapter 11: Strategic Leadership Unit loads and containers A collection of items grouped together by being bound as a package, stacked securely on a portable platform (for example, a pallet) or packed into a container. Containers are rectangular, box-like devices used to consolidate, store, protect and handle a number of items as a freight unit.

13. Chapter 11: Strategic Leadership Unit loads and containers (continued) Advantages of unitised loads: – Improved efficiency – Easier identification and tracing – Better security – Better space utilisation – Shorter transit time

14. Chapter 11: Strategic Leadership Unit loads and containers (continued) Containers reduce: – handling; – vehicle turnaround times; – theft and damage; and – labour requirements. Intermodal transport: – A logistically linked movement using two or more modes of transport on the line-haul part of the route

15. Chapter 11: Strategic Leadership Use of containers to facilitate loading, carriage and unloading

16. Chapter 11: Strategic Leadership Guidelines for routing and scheduling long-distance trips Continuous flow Maximum unit size Maximum vehicle size Maximum mass-carrying capacity in relation to total vehicle mass Adaptation of vehicle unit to volume and nature of traffic

17. Chapter 11: Strategic Leadership Guidelines for routing and scheduling long-distance trips (continued) Standardisation Compatible unit load equipment Long-haul freight consolidation Maximum utilisation of inputs

18. Chapter 11: Strategic Leadership Guidelines for routing and scheduling collection and delivery trips Cluster the service points as densely as possible. Cluster service points according to daily trips. Determine routes starting with the furthest service point. Sections of a route must not cross.

19. Chapter 11: Strategic Leadership Guidelines for routing and scheduling collection and delivery trips (continued) Two routes must not overlap. Use the largest available vehicles. Collect and deliver in the same trip. Minimise the distance the heaviest loads will travel. Avoid single service points located far from a cluster. Avoid narrow time windows at service points.

20. Chapter 11: Strategic Leadership Clustering service points

21. Chapter 11: Strategic Leadership Construction of routes

22. Chapter 11: Strategic Leadership Co-ordinating incoming traffic Overview Tracking and tracing Expediting (including cross-docking) Diversion and reconsignment In-transit privileges Demurrage and detention