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Transportation Options
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Huffman Trucking Co. o Albany Advantages Disadvantages o Pontiac Advantages Disadvantages Hangzhou, China o FedEx o Company Resembling FedEx
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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
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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
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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
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Primary modes of transportation for Riordan Industries Truck, railroad, air, and water Intermodal transportation Three manufacturing facilities include : Albany, GA, Pontiac, MI, Hangzhou, China.
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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
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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.
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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
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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.
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