Supply chain logistics management l.jpg
Advertisement
This presentation is the property of its rightful owner.
1 / 57

Supply Chain Logistics Management PowerPoint PPT Presentation

Supply Chain Logistics Management Transportation Infrastructure & Regulation Role of Transportation in Logistics & Supply Chain Management Industry Deregulation Transportation Functions, Principles, Participants Transportation Regulation Transportation Industry Structure

Download Presentation

Supply Chain Logistics Management

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Supply chain logistics management l.jpg

Supply Chain Logistics Management

Transportation Infrastructure & Regulation


Slide2 l.jpg

  • Role of Transportation in Logistics & Supply Chain Management

  • Industry Deregulation


Slide3 l.jpg

  • Transportation Functions, Principles, Participants

  • Transportation Regulation

  • Transportation Industry Structure

  • Transportation Services


Slide4 l.jpg

  • Transportation Functions, Principles, Participants

    • Transportation Functions

    • Transportation Principles

    • Transportation Participants

  • Transportation Regulation

  • Transportation Industry Structure

  • Transportation Services


Slide5 l.jpg

  • Transportation Functions, Principles, Participants

    • Transportation Functions

      • Product Movement

      • Product Storage

    • Transportation Principles

    • Transportation Participants

  • Transportation Regulation

  • Transportation Industry Structure

  • Transportation Services


Slide6 l.jpg

Product Movement


Slide7 l.jpg

Product Storage


Slide8 l.jpg

New Destination

NORFOLK

Diversion

Original Destination

NEW YORK

Los Angeles


Slide9 l.jpg

  • Transportation Functions, Principles, Participants

    • Transportation Functions

    • Transportation Principles

      • Economy of Scale

      • Economy of Distance (Tapering Principle)

    • Transportation Participants

  • Transportation Regulation

  • Transportation Industry Structure

  • Transportation Services


Slide10 l.jpg

Economies of ScaleThe more items (weight) is transported, the less the transportation costs per item (unit of weight)

$100/book

Transportation Cost per Book

$.10/book

1

1000

Number of Books in Shipment


Slide11 l.jpg

Economies of DistanceTapering PrincipleThe larger the distance, the less the transportation costs per unit of distance (e.g., per mile)

$.10/mile

Transportation Cost per Mile

$.05/mile

Tapering Principle

$50/mile

1 mile

500 miles

1000 miles

Shipment Distance


Slide12 l.jpg

  • Transportation Functions, Principles, Participants

    • Transportation Functions

    • Transportation Principles

    • Transportation Participants

  • Transportation Regulation

  • Transportation Industry Structure

  • Transportation Services


Transportation participants l.jpg

Transportation Participants

I need something shipped at the lowest possible cost!


Transportation participants14 l.jpg

Transportation Participants

I need something shipped at the lowest possible cost!

I need something delivered at the lowest possible cost!


Transportation participants15 l.jpg

Transportation Participants

Carriers: We have the equipment!


Transportation participants16 l.jpg

Transportation Participants

Carriers – we can find a shipper!

Shippers – we can find a carrier!


Transportation participants17 l.jpg

Transportation Participants

the transportation system is vital for the country’s economic health


Transportation participants18 l.jpg

Transportation Participants

purchase fuel, transportation equipment, supplies


Transportation participants19 l.jpg

Transportation Participants

track shipments

purchase fuel, transportation equipment, supplies


Transportation participants20 l.jpg

Transportation Participants

track shipments

purchase fuel, transportation equipment, supplies

match products needing to be shipped with available capacity


Transportation participants21 l.jpg

Transportation Participants

Creates demand for transportation by purchasing products


Slide22 l.jpg

  • Transportation Functions, Principles, Participants

  • Transportation Regulation Transportation Industry Structure

  • Transportation Services


Slide23 l.jpg

  • Transportation Functions, Principles, Participants

  • Transportation Regulation

    • Types of Transportation Regulation

    • History of Transportation Regulation

  • Transportation Industry Structure

  • Transportation Services


Slide24 l.jpg

  • Transportation Functions, Principles, Participants

  • Transportation Regulation

    • Types of Transportation Regulation

    • History of Transportation Regulation

  • Transportation Industry Structure

  • Transportation Services


Types of transportation regulation l.jpg

Types of Transportation Regulation

Economic

  • Investments in transportation infrastructure

  • (e.g., highways, airports, ports)

  • Control of routes, pricing, schedules


Types of transportation regulation26 l.jpg

Types of Transportation Regulation

Economic

  • Investments in transportation infrastructure

  • (e.g., highways, airports, ports)

  • Control of routes, pricing, schedules

Social/Safety

  • Protect the public, the environment

  • Make sure equipment operates safely, cleanly

  • Safe transportation of hazardous materials (HAZMAT)

  • Regulating hours worked


Slide27 l.jpg

  • Transportation Functions, Principles, Participants

  • Transportation Regulation

    • Types of Transportation Regulation

    • History of Transportation Regulation

  • Transportation Industry Structure

  • Transportation Services


History of transportation regulation l.jpg

History of Transportation Regulation

  • Pre-1920 – establish initial government control

    • Act to Regulate Commerce (1887)

    • Interstate Commerce Commission (ICC)


History of transportation regulation29 l.jpg

History of Transportation Regulation

  • 1920-1940 – regulatory formalization, extension to other transportation modes

    • Motor Carrier Act (1935)

    • Civil Aeronautics Act (1938)

    • Civil Aeronautics Board (1940)

    • Federal Aviation Administration (FAA)

    • National Aeronautics & Space Administration (1951)


History of transportation regulation30 l.jpg

History of Transportation Regulation

  • 1940-1970

    • Regulation of water transportation by ICC (1940)

    • Railroad Revitalization and Regulatory Reform Act of 1976

      • AMTRAK

      • CONRAIL


History of transportation regulation31 l.jpg

History of Transportation Regulation

  • 1970-1980 – prelude to deregulation

    • Shift from regulation/control to fostering competition

    • Department of Transportation (DOT) 1961

    • Airline Deregulation Act 1978


History of transportation regulation32 l.jpg

History of Transportation Regulation

  • 1980-2000 – deregulation

    • Motor Carrier Act 1980

    • Staggers (Rail) Act 1980

    • Interstate Commerce Commission (ICC) abolished 1996

    • Ocean Shipping & Reform Act 1998


History of transportation regulation33 l.jpg

History of Transportation Regulation

  • 2000-Present – focus on technology, safety, and security

    • Patriot Act

    • Jones Act


Slide34 l.jpg

  • Transportation Functions, Principles, Participants

  • Transportation Regulation Transportation Industry Structure

  • Transportation Services


Five basic transportation modes l.jpg

Five Basic Transportation Modes

Pipeline


Five basic transportation modes36 l.jpg

Five Basic Transportation Modes

Pipeline

Water


Five basic transportation modes37 l.jpg

Five Basic Transportation Modes

Pipeline

Water

Air


Five basic transportation modes38 l.jpg

Five Basic Transportation Modes

Pipeline

Water

Air

Rail


Five basic transportation modes39 l.jpg

Five Basic Transportation Modes

Pipeline

Water

Air

Rail

Highway


Domestic shipments by mode and volume l.jpg

Domestic Shipments by Mode and Volume


Domestic shipments by mode and revenue l.jpg

Domestic Shipments by Mode and Revenue


Cost structure for each transportation mode l.jpg

Cost Structure For Each Transportation Mode

Rail

  • high fixed costs (land, tracks)

  • low variable costs (operating costs, e.g., labor, fuel)

  • slow, but inexpensive way to transport heavy freight that doesn’t require special handling, long distances


Cost structure for each transportation mode43 l.jpg

Cost Structure For Each Transportation Mode

Highway

  • low fixed costs (government builds, maintains highways)

  • medium-high variable costs (operating costs, e.g., labor, fuel)

  • most accessible mode (more highways than railroads, waterways, pipelines); best for transporting medium to high value products short to moderate distances


Slide44 l.jpg

Highway

  • LTL – less than truckload

  • TL – truckload

  • Specialty


Cost structure for each transportation mode45 l.jpg

Cost Structure For Each Transportation Mode

Water

  • moderate fixed costs (ships and freight handling equipment)

  • low variable costs (operating costs, e.g., labor, fuel)

  • very slow, but inexpensive way to transport large, heavy freight over long distances (e.g., oceans, rivers, inland waterways, lakes)


Cost structure for each transportation mode46 l.jpg

Cost Structure For Each Transportation Mode

Cost Structure For Each Transportation Mode

Air

  • low fixed costs (aircraft and freight handling equipment)

  • highest variable costs (e.g., labor, fuel, maintenance)

  • very fast; used for transporting high value and/or high perishability product over short to medium distances.


Cost structure for each transportation mode47 l.jpg

Cost Structure For Each Transportation Mode

Pipeline

  • highest fixed costs (right of way & construction costs of equipment)

  • lowest variable costs (no significant labor or fuel costs)

  • slow, but dependable (e.g., no weather, traffic disruptions); no flexibility with regard to types of products that can be transported – must be liquid (e.g., petroleum)


Slide48 l.jpg

  • Transportation Functions, Principles, Participants

  • Transportation RegulationTransportation Industry Structure

  • Transportation Services


Slide49 l.jpg

  • Transportation Functions, Principles, Participants

  • Transportation RegulationTransportation Industry Structure

  • Transportation Services

    • Non Operating Intermediaries

    • Traditional Transportation Carriers

    • Package Services

    • Intermodal Transportation


Slide50 l.jpg

  • Transportation Functions, Principles, Participants

  • Transportation RegulationTransportation Industry Structure

  • Transportation Services

    • Non Operating Intermediaries

      • Freight Forwarders

      • Transportation Brokers

      • Shipper Associations/Cooperatives/Agents

    • Traditional Transportation Carriers

    • Package Services

    • Intermodal Transportation


Slide51 l.jpg

  • Transportation Functions, Principles, Participants

  • Transportation RegulationTransportation Industry Structure

  • Transportation Services

    • Non Operating Intermediaries

      • Freight Forwarders

      • Transportation Brokers

      • Shipper Associations/Cooperatives/Agents

    • Traditional Transportation Carriers

    • Package Services

    • Intermodal Transportation


Slide52 l.jpg

  • Transportation Functions, Principles, Participants

  • Transportation RegulationTransportation Industry Structure

  • Transportation Services

    • Non Operating Intermediaries

      • Freight Forwarders

      • Transportation Brokers

      • Shipper Associations/Cooperatives/Agents

    • Traditional Transportation Carriers

    • Package Services

    • Intermodal Transportation


Slide53 l.jpg

  • Transportation Functions, Principles, Participants

  • Transportation RegulationTransportation Industry Structure

  • Transportation Services

    • Non Operating Intermediaries

      • Freight Forwarders

      • Transportation Brokers

      • Shipper Associations/Cooperatives/Agents

    • Traditional Transportation Carriers

    • Package Services

    • Intermodal Transportation


Slide54 l.jpg

  • Transportation Functions, Principles, Participants

  • Transportation RegulationTransportation Industry Structure

  • Transportation Services

    • Non Operating Intermediaries

    • Traditional Transportation Carriers

    • Package Services

    • Intermodal Transportation


Slide55 l.jpg

  • Transportation Functions, Principles, Participants

  • Transportation RegulationTransportation Industry Structure

  • Transportation Services

    • Non Operating Intermediaries

    • Traditional Transportation Carriers

    • Package Services

    • Intermodal Transportation


Slide56 l.jpg

  • Transportation Functions, Principles, Participants

  • Transportation RegulationTransportation Industry Structure

  • Transportation Services

    • Non Operating Intermediaries

    • Traditional Transportation Carriers

    • Package Services

    • Intermodal Transportation


Slide57 l.jpg

  • Piggyback

  • Trailer on Flat Car (TOFC)

  • Container on Flat Car (COFC)

  • Fishyback

  • Trainship

  • Containership

  • Coordinated Air/Truck


  • Login