Inbound Transportation Case Study Essay

The cost associated with the physical transfer of goods is an essential piece of information in the negotiation of an international trade transaction. To maintain a product’s competitiveness, the seller must make sure that his cost is as low as possible. However, in any particular supply chain, this cost is made up of a number of cost elements corresponding to services that enable physical linkages between supply chain members. These elements cannot always be clearly quantified beforehand.

Answer 1- The first question which shows the two new options how impact transfer and customer might freight cost and the answer for this question is given in first alternative and second alternative which is elaborated above.

Reduced need for higher capacity at the supplier. This would be reduced because suppliers would not need to size their operations to deliver on the “one shot large volume order” and would be able to space these in time with orders at

(b) Cost of Finished Goods Sitting Idle in the Warehouse: They are able to ship out   finished products effectively.

In addition to the objectives stated above, management wished to evaluate an alternate mode and methods of transportation. The company could stop the use of the freezer cars for delivery up to Butte, Montana, and use trucking instead. The delivery to the retail outlets would also continue to be done by motor carrier. It was decided that if any changeover is economical for the company and the new system (if any at all) works well for Tender Most in 2011, in subsequent years, similar feasibility exercises could be carried out for other products. The cost for common-carriage TL transportation was estimated to be $12.60 per cwt. from Kentucky to Butte, MT (minimum load of 30,000 lbs.). The lead time for this option is 3 days with a standard deviation of ½ day.

Second, costs could be reduced by consolidating deliveries so as to eliminate the additional cost of transporting less-than-full truck loads. Additionally, packaging could be standardized so as to reduce changeover times on the production floor. Should none of these options (or any appropriate combination of them) be acceptable, Kemps may need to consider discontinuing the relationship with the customer.

Consolidated needs to have a central warehouse location with small regional supply centers because it would be easier to supply one warehouse

The cost in transportation rates will increase for MARS Inc. with this change. The Portland supplier’s location to MARS Inc. based on the current situation charges “per hundredweight is $10 for carload lots of 50,000 pounds. The less than carload rate is $15 per hundredweight.” While anything coming from the Columbus supplier was offered just-in-time delivery service at no charge to MARS Inc. Also, this will affect the EOQ’s because dealing with the Columbus supplier they were located close enough that they offered JIT delivery which allowed the reduction minimizing “work-in-process inventories (waste) by reducing lot sizes in order to increase production efficiency and product quality.” Now, with the change, it will force MARS Inc. to spend money on warehousing and carrying cost due to the one week replenishment cycle the Portland supplier has.

Airborne Express has long differentiated itself in the market by structuring itself as a big business only carrier. They have specialized in large unit deliveries through metropolitan areas. Everything they do is aimed to optimize the delivery process and slash cost where ever possible. However, Airborne is now faced with a huge decision. They must decide whether to step away from their differentiation strategy to match the new pricing tactics of the market UPS and FedEx or to continue the old norm of delivery pricing. The new distance-based pricing strategy threatens Airborne’s consistent strategy to cut prices. Clients will seek to ship packages at the lowest cost. The short distance deliveries will be ruled by UPS and FedEx since they are the once who are

Outsource warehousing to Global Logistics (GL) which will provide a centralized warehousing in Atlanta: Goods will be transported in bulk from Waltham to Atlanta and GL would take responsibility of inventory-control and delivery to the customers. This way SG would not have to bear the warehouse rental charges and could focus on increasing sales and develop newer products to meet customer needs.

It would then be directly stocked in the Kansas City distribution center and used to replenish the warehouses. They expect that very little would need to be shipped back to the Los Angeles warehouse after the new system was operating for about six months.

Define the effect of transportation on the situation Greater prospects are available for truckload shipping volumes with consolidated distribution centers and assorted product shipments. This would necessitate fewer outbound shipments, with each in larger quantities for better transportation savings. The possible longer distances from distribution centers to customer locations might be the only disadvantage to transportation cost.

This research paper is written to explain the importance of globalization and supply chain management of the United Parcel Service (UPS). In this document, the reader will obtain the history and development of UPS as well as the supply chain strategy and strategic network optimization developed for their business. In addition, this report will also discuss the distribution network of UPS and how it operates to deliver packages to their destinations around the

SCM can be divided into three main groups: purchase, manufacture, and transport (Thomas et al., 1996). The focus is on transportation. There are different modes of transportation. These modes of transportation fall under three basic types and they are: land (road, rail and pipelines), water (shipping) and air. Transportation plays a connective role among the several steps that result in the conversion of resources into useful goods for the ultimate consumer. It is the planning of all these functions and sub-functions into a system of goods movement in order to minimize cost and maximize service to the customers that constitutes the concept of business logistics. The system, once it’s put in place, must be effectively managed (Fair & Williams, 1981). What are the advantages and disadvantages of these modes of transportation in logistics?

Transport plays a critical role in the supply chain and according to Bhattacharya et al. (2014) it is becoming one of the key components of the whole supply chain valuation for many organizations. Transportation is the movement of good from one location to another. Supply chain is a network of individuals, organizations, activities, resources and technology that is involved in formation and sale of a product, which is from the delivery of source materials from the supplier to the manufacturer, through to the end user. Hopkins (2007) states that supply chain professionals look at whole business procedures, which is from raw materials to manufacturing, wholesaling and retailing. And by