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Logistics Management

Logistics Management. Transportation Systems CASM Traffic Management. Why Is Transportation Function So Important In The Logistics Function?. __________________________________ __________________________________ __________________________________ __________________________________

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Logistics Management

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  1. Logistics Management Transportation Systems CASM Traffic Management

  2. Why Is Transportation Function So Important In The Logistics Function? • __________________________________ • __________________________________ • __________________________________ • __________________________________ • __________________________________ • __________________________________ • __________________________________

  3. Characteristics Of Each Mode • Market Structure • Industry Structure • Cost Structure • Legal Categories • Current Issues • What are the current policy issues? • What are the current industry issues?

  4. Basic Modes Of Transportation • Trucks • Trains • Boats • Planes • Pipelines • Other Third Party Providers

  5. Third Party Transportation Providers • Intermodal Marketing Companies (IMC) • Small Package Carriers • Freight Forwarders • Shipper’s Associations • Freight Property Brokers • Freight Contractors

  6. Issues To Consider In The Selection Of A Transportation Provider • Need for operating authority • Rates • Financial issues • Liability • ___________________________________ • ___________________________________ • ___________________________________

  7. Ethics In Carrier Selection • Is there such a thing as ethics? • What are the ethical issues that need to be addressed for both transportation buyers and suppliers? • What can a company and individuals do to avoid the appearance of impropriety during the carrier selection process?

  8. Ethics Defined…. “If there is such a thing as ethics then no act can be either right or wrong at the same time and the very same act cannot change from right to wrong over time”

  9. Ethical Issues In Carrier Selection • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________

  10. Understanding the corporate mission Understanding the departmental mission Understanding the selection process Establish Criteria for selection Identify potential suppliers Select suppliers and deliver request for proposal Analyze RFP Award Business Monitor Performance The CASM Process

  11. Criteria For Selecting Suppliers • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________

  12. Carriers Make Good Partners When…. • Financially strong • Use information technology • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________

  13. Shippers Make Good Partners When…. • Financially strong • Use information technology • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________

  14. Steps In The RFP Process • Establish Team (Logistics Council) • Develop Bid Specifications • Screen Suppliers • Develop and Write RFP • Bid Evaluation • Supplier Selection • Contract Written and Signed

  15. RFP Should Include…. • Summary of company • Selection criteria • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________

  16. Negotiations Begins... • Identify areas where bids did not meet criteria • Now is the time to ask for the extras • Request suppliers make a formal process proposal • Have questions • Push all areas of uncertainty

  17. Carrier Negotiations Session • Now the fun begins • Read the case • Select the Shipper/Carrier Strategy • Go to it! • Finalize the agreement • Sign IT! • Discussion about Negotiations Session

  18. Transportation Management What are the various activities involved? • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________ • ___________________________________

  19. The Regulatory Environment1870’s to 1997 • 1870’s-1920’s • 1920’s-1940’s • 1940’s -1970’s • 1970’s-1980’s • 1980’s-1996 and beyond!

  20. Shipping Documentation • Freight bills • Bills of lading • Manifests • Waybills • Other assorted documents • Delivery receipts • OS and D reports

  21. Pricing Markets • Published Tariffs • Contracts, Contracts and Contracts • Spot Market • Exempt Market

  22. Levels of Carrier Liability • Common Law • Bill of Lading • Bailment Relationships • Extraordinary • Ordinary

  23. Claims Management Process • Shipper’s Job (Prima facie case) • Carrier Defenses • Never Got It • Bill of lading exceptions • warehousemen liability

  24. Time Limits For Filing Claims • Shipper has 9 months for filing claim • Carrier has 30 days to acknowledge claim • Carrier has 120 days to answer (yes or no) • Carrier can notify shipper every 60 days until claim is settled • Shipper has 2 years and 1 day to file suit against carrier!

  25. Now IT is your Turn! Try and solve the claims situations!

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