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ISQA 439

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

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ISQA 439

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  1. ISQA 439 Logistics Global Supply Management

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

  3. Logistics Management • Transportation Modes • Truck • Rail • Air • Marine • Pipeline • Intermodal

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

  5. Carrier Types • Common Carriers • Asset Based • NVOCC • Contract Carriers • Private Carriers • Exempt Carriers

  6. 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

  7. Transportation Modes • Air • High Value • Time Sensitive • Highest Cost • Lowest Total Volume

  8. Transportation Modes • Truck • Goes Almost Anywhere • Flexible • Second Highest Cost • Second Highest Total Volume

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

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

  11. 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

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

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

  14. Intermodal Transportation • Containers • Barges • Trailers • Flatcar • Ro-Ro Vessels • Bulk Carriers

  15. 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 Logistical Cost Factors

  16. 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 Transportation Issues

  17. 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

  18. 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.

  19. 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

  20. Finding and Managing Global Suppliers • Foreign Purchasing Offices • Brokers • Trading Companies • Directories • Trade Shows • Foreign Embassies

  21. FOB and INCO Terms • FOB Origin • FOB Destination • 11 INCO Terms

  22. INCO Terms

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