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supply chain final 2-2.pptx
- 1. Commerce Course title: Supply chain management Course code: COM-512 Instructor : Rubab Anum lecture No. 12 Class: Bs 6th
- 2. Content : Mode and Functional Control of Transportation Decision to Outsource Transportation Modal Selection `
- 3. Chapter 10 Transportation—Managing the Flow of the Supply Chain Part-II
- 4. Modes of Transportation Intermodal Transportation Use of two or more different modes in movement Greater accessibility Overall cost efficiency Facilitates global trade Development of standardized containers that are compatible with multiple modes. Product-handling characteristics Containers freight Trans load freight
- 6. Functional Control of Transportation Which department will be responsible for transportation? Organizations Procurement (notes are below) Marketing
- 7. Decision to Outsource Transportation Firms choose between “make” or “buy” Commercial carriers “buy” Private fleets “make” (a number of vehicles or aircraft operating together or under the same ownership) External experts move the freight and/or manage the transportation process “buy” Third-party logistics (3PL) “buy”
- 9. Source of material:: Source: Book https://docs.google.com/viewer?a=v&pid=sites&srcid=ZGVmYXVsdG RvbWFpbnxxdWFsaXR5NHRvcHxneDoyMDcyNjEwMjg2NmI4NDE0 I Internet: https://scm.ncsu.edu/scm-articles/article/transportation-outsourcing- decisions https://www.supplychain247.com/article/7_functional_transportation_management_syste m_options_with_roi/3gtms
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- Transportation is a key supply chain process and must be included in supply chain strategy development, network design, and total cost management. ... Fulfillment of supply chain demand can be accomplished through five modal options or the intermodal use of truck, rail, air, water, and pipeline transportation. Mode of transport is a term used to distinguish between different ways of transportation or transporting people or goods. The different modes of transport are air, water, and land transport, which includes Rails or railways, road and off-road transport. Other modes also exist, including pipelines, cable transport, and space transport. Human-powered transport and animal-powered transport are sometimes regarded as their own mode, but never fall into the other categories. In general, transportation is used for moving of people, animals, and other goods from one place to another. The means of transport, on the other hand, refers to the (motorized) vehicles necessary for transport according to the chosen mode (car, airplane, ship, truck and rail). Each mode of transport has a fundamentally different technological solution, and some require a separate environment. Each mode has its own infrastructure, vehicles, and operations.
- the different modes of transport are air, water, and land transport, which includes Rails or railways, road and off-road transport. Other modes also exist, including pipelines, cable transport, and space transport. Mode of transport is a term used to distinguish between different ways of transportation or transporting people or goods. The different modes of transport are air, water, and land transport, which includes Rails or railways, road and off-road transport. Other modes also exist, including pipelines, cable transport, and space transport. Human-powered transport and animal-powered transport are sometimes regarded as their own mode, but never fall into the other categories. In general, transportation is used for moving of people, animals, and other goods from one place to another. The means of transport, on the other hand, refers to the (motorized) vehicles necessary for transport according to the chosen mode (car, airplane, ship, truck and rail). Each mode of transport has a fundamentally different technological solution, and some require a separate environment. Each mode has its own infrastructure, vehicles, and operations.
- Mode of transport is a term used to distinguish between different ways of transportation or transporting people or goods. The different modes of transport are air, water, and land transport, which includes Rails or railways, road and off-road transport. Other modes also exist, including pipelines, cable transport, and space transport. Human-powered transport and animal-powered transport are sometimes regarded as their own mode, but never fall into the other categories. In general, transportation is used for moving of people, animals, and other goods from one place to another. The means of transport, on the other hand, refers to the (motorized) vehicles necessary for transport according to the chosen mode (car, airplane, ship, truck and rail). Each mode of transport has a fundamentally different technological solution, and some require a separate environment. Each mode has its own infrastructure, vehicles, and operations.
- Procurement Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process. Procurement generally involves making buying decisions under conditions of scarcity. A Transport Management System/Software (TMS) is a logistics platform that allows users to manage and optimize the daily operations of their transportation fleets. It comes under the subset of Supply Chain Management (SCM). Its primary function is to plan and execute the physical movement of goods. Transportation Management Systems can be leveraged within every company's supply chain to drive a for competitive advantages, whether a shipper, broker or logistics service provider. Transportation management software (TMS) has forever changed the logistics and supply chain industry, and as the market data indicates, there is a long runway ahead. Not only has TMS platforms enhanced freight and shipping operations, but it has also pushed logistics and supply chains to frontline Boardroom discussion, as a way to drive a wedge between the leaders and lagards in the business community. There is a reason why the best in supply chain execution blows away the competition. Example of leaders include Amazon, Wal-Mart and 23 others listed in the Gartner Top 25 Supply Chain Leaders. The best TMS platforms allow companies to take in a tremendous amount of data to optimize the shipments of the day, along with taking on massive supply chain network optimization what-if analysis. The long-term strategic analysis to a whole other level by bringing in market data points for "real" benchmark analysis versus the averages-of-averages type of analysis that used to occur in days past. 10 Functional Components of TMS Systems Carrier Management Procurement Management Route & Load Optimization Freight Execution Platform Visibility, Reporting & Analytics Supply Chain Communication Control Tower Logistics and Supply Chain Data Repository Freight Settlement for Audit & Pay Invoicing Functionality Reporting & Business Intelligence (BI) All 10 components are tightly integrated together within the TMS platform to tie all internal and external company stakeholders to its control tower visibility module. The value this brings to each functional area is outlined below: Freight Optimize, plan & execute inbound & outbound product moves, along with analyzing cost and performance of freight provider partners. Manufacturing Visibility to the inbound material required for manufacturing schedule. Distribution Visibility to inbound material required to fill orders. Procurement / Purchasing Vendor management and performance reporting. Finance Freight audit, pay, invoice, calculate accruals and analyze cost performance. Sales Track customer orders and report on performance. Customer Service Track and address orders for customers. Vendors Schedule, manage and report their inbound shipments to their customers. Customers Direct access to order and shipment information. Essentially, the 10 TMS components can be placed into the categories of optimization, execution and reporting & analysis for communication and logistics and supply chain improvement that creates tremendous benefits for its users. With all the touch points involved in a transportation management software implementation one needs to establish a trust-based relationship that will be fully engaged in the process from start to finish. In the absence of a trusted partner dealing with a new system implementation, details can slip through the cracks, exposing weaknesses while simultaneously minimizing the functionality of the final implementation. If your company is considering a change in their transportation management software, InTek would love to be a part of the discussion. As an authorized MercuryGate reseller and integrator InTek can bring its experience and expertise of utilizing the cloud TMS platform for its logistics services managed transportation division.
- Transportation Outsourcing Decisions. According to a KPMG survey, almost 77% of survey respondents outsource at least 10% of their transportation functions. ... Generally, outsourcing can help companies gain competitive advantage. Companies who outsource gain the ability to focus on their core competencies. many manufacturers believe “cost” to be the number one factor in an SCM outsourcing decision. It has been found that companies that outsource transportation have been taking advantage of economies of scale within the motor carrier industry. Motor carrier rates have come down considerably since the Interstate Commerce Commission opened up the industry to more competition. Prior to the Motor Carrier Act of 1980, there were only about 18,000 carriers. Today, there are almost 50,000 carriers. According to Dr. C.G. Bereskin, “…in many ways, the motor carrier industry resembles the economic model of a perfectly competitive industry in which competition, market entries and exits, and a generally homogeneous product works together to force rates toward the minimum, long-run average variable cost (5).” In other words, companies that do not specialize in the transportation function are more likely to be less efficient than the firms that do specialize in transportation. Relative to transportation service providers, these firms have trouble adding value to their supply chain through the possession of assets required for the transportation of goods or the related IT functions. Consequently, many companies are exploring a plethora of transportation related services. They desire the control of in-house transportation and the price of the low cost carrier.
- The comparative advantages behind a modal shift can be in terms of costs, convenience, speed or reliability. For passengers, this involved a transition in modal preferences as incomes went up, such as from collective (public transit) to individual modes (motorbikes, automobiles) of transportation. For freight, this has implied a shift to faster and more flexible modes when possible and cost-effective, namely trucking and air freight. A modal shift can further be nuanced by time shift, for which the use of the same mode takes place at another time period, likely when there is less congestion. In a situation of congestion, it is thus likely that time shift will be preferred to modal shift, particularly if the time shift is relatively marginal (e.g. a few hours). An individual may delay travel at a later time while a freight delivery can be rescheduled.