flawless transportation execution also requires strong working relationships B u s i n e s s F i n a n c e
In 4-5 pages, list and discuss:
1. Discuss the major challenges of seaport operations in their quest to remain competitive.
2. There are several types of ancillary service providers. Name three that focus on international transportation and describe the type of service they provide.
3. What is intermodal transportation and what are its benefits in international trade?
4. Define direct service.
5. Define indirect service.
6. What are the most pressing issues in intermodal transportation market?
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Once Planned, Execution is Hands-On and Visible
Transportation execution is a multi-party, multi-tier effort that occurs among many supply chain partners. This type of collaboration is at key and is required to supports a multitude of rating and tariff options, including a need to support parcel rating.
Planning Against Failure
There is an argument that says even the best plan falls apart in the face of the realities of execution, whether it is unavailable capacity, limited dock space or order variability. The ideal is for a solution to consider active execution level constraints (dock capacity, throughput, available carrier and fleet capacity, etc.) concurrently during the planning process. While not everything can be anticipated, there is much that can and the more that is considered upstream allows for the facilitation of more complex strategies, greater value realization, and minimal user intervention (Brasca, 2012).
The tendering flow should include collaboration through carrier portals, EDI, and email, and aligned to respect your specific business rules for carrier selection. To provide real time feedback to the logistics planner for required execution, the organization needs to capture, save, and display an allowance amount (or any other benchmark amount).
The execution of the products transportation global journey often involves multiple carriers from different modes, numerous border crossings, and long distances. The risk of disruptions, delays, damage, and other problems make for an eventful time whether you are importing electronics or exporting fresh produce. Whether the issue is securing enough capacity, avoiding system bottle- necks, or keeping costs under control, the Transportation Profile reveals that global transportation execution is anything but a “set it and forget it” activity. Overcoming these potential challenges to move products safely and quickly across borders requires great attention to detail and internal expertise. Flawless transportation execution also requires strong working relationships with capable transportation service providers. Following an overview of global freight flows, this chapter spotlights the key players in global transportation execution transportation companies, party logistics firms, port operators, and ancillary service providers (Coyle, 2016).
Global transportation can be very challenging as it involves long distance flows of product across multiple borders using multiple modes and carriers. This creates disruption, delay, and damage risks. When moving cargo internationally, direct exporter to importer moves are used for short-distance, cross-border movements by truck or rail. Indirect moves via ocean or air are used for intercontinental cargo movements. Intermodal transportation the use of two or more modes of transportation in moving a shipment from origin to destination is widely used to improve accessibility and cost efficiency of global transport. Intermodal freight is either containerized or requires trans-loading. The vast majority of finished goods move in containers due to their enhanced safety, handling speed, and service availability (Coyle, 2016).
Global transportation may subject freight to a variety of damage risks. It is critical to protect products as they are packed in shipping cartons and to protect the cartons when they are packed in the shipping container. Exporters and importers must be prepared to comply with a wide variety of government regulations aimed at transportation safety, environmental impact reduction, and security. Ocean carriers have a huge role in global transport, moving 60 percent of trade value. Ocean transport customers can choose between liner service and charter service, based on their needs. A variety of vessel can carry an endless array of commodities. International air cargo transportation is a critical mode for time-sensitive, high-value freight. Over 35 percent of trade value moves via air. International air cargo moves on air freighters and passenger planes. The rates are based on weight or space utilization (dim weight), whichever is higher (Coyle, 2016).
3PL Service Providers
A variety of 3PL service providers international freight forwarders, customs brokers, and export packers help exporters and importers move international freight quickly and efficiently. Seaports and airports are critical links in the global supply chain, providing the infrastructure, equipment, and labor needed to efficiently load, unload, and transfer freight between carriers. When cargo reaches the destination country, it must receive government approval to enter the country and travel to the final destination. Customs clearance involves entry, arrival, examination, classification, taxation, and release of cargo (Brasca, 2012).
Executing Transportation Plans
Execution of the transportation plans ensures the following is in place and active: Tendering & Booking: Electronically through automated methods including auto-faxing, e-mails (text or HTML), XML and EDI; hybrid electronic methods via the user interface or booking portal; or manual methods including telephone and fax offering a load to a carrier and efficiently managing their response is a key element of effective transportation execution. Shipment documentation is a core component of the logistics process and should include the Truck: Bill of Lading (BOL), Master Bill of Lading (MBOL), Air: Airway Bill (AWB), House Way Bill (HWB), Ocean: Bill of Lading (BOL), Parcel: Carrier compliant parcel labels. Tracking & Proof of Delivery (POD) with data such as advanced shipment notices, booking confirmations, carrier statuses, proof of delivery and more using electronic messages empowers effective monitoring and performance management of the shipment process.
As companies continue to focus on proper and successful execution of their supply chain logistics activities, they must remain cognizant of the fact that the planning process must be understood and completed as well as supported by all levels of the organization for the execution process to attain the goals sought after. Whether execution or planning, in the world of transportation, the two are intertwined and consequently, to achieve the ideal of value maximization, solutions must bridge the gap. They must allow constraints to be concurrently considered during the planning process, planning should be iterative and not static, and planning must be interoperable with the variability of execution.
Brasca, F. (2012). The Debate: Transportation Planning versus Transportation Execution. Supply Chain Nation. Retrieved from http://blog.jda.com/the-debate-transportation-planning-versus-transportation-execution/
Coyle, John J., Novack, Robert A., Gibson, Brian J. (2016). Transportation: A Supply Chain Perspective (8th Ed.). Boston, MA: Cengage Learning.
Delaney, R. (1999). A Look Back in Anger at Logistics Productivity. 10th Annual State of Logistics Report. Retrieved from http:// R. (2013). An Exploration of Healthcare Inventory and Lean Management in Minimizing Medical Supply Waste in Healthcare Organizations. Ann Arbor, MI: ProQuest
USDOT. (2012). Transportation Risk Management: International Practices for Program
Development and Project Delivery. Federal Highway Administration Executive Summary. Retrieved from http://international.fhwa.dot.gov/scan/12030/12030.pdf