Best Services of Logistics Transportation.pptx

2. Logistics Transportation
• LTL(Less-than-truckload)
• FTL(full truckload shipping)
Truck
 This mode of transportation has seen the most growth over the last 50 years due to trade
liberalization.
 However, the large growth has resulted in significant problems including petroleum fuel
consumption and pricing issues, increased environmental impact awareness, traffic congestion, and
increasing loss and liability resulting from increased traffic accidents Shipment by truck has a
relatively low cost but is subject to many regulations due to their time on state governed highways.

3.  The size and shape of the loads are also highly regulated by governing bodies. Limitations placed on
freight shipments by road coupled with technical and economic factors limit “potential to achieve
economies of scale.”
 Governing bodies dictate the maximum allowable weight for truck shipments within their sovereign
borders. Refer to Table 1.5 for details on the allowable gross vehicle weight by country. This means that
given the current operating environment, truck transportation will only provide a limited amount of
savings resulting from high volume shipments
 Logistics customer services
 An important concept within logistics transportation systems operations is logistics customer service.
This concept is based on the overall scope of the supply chain. Traditionally it has been difficult for
components of the supply chain toed fine their role in the overall customer service delivered to end-
users., the growing trend is for a larger awareness of “their role not only with reference to trading
partners but also to the end customer and at the point to the fact that logistics customer service in the
supply chain functions as communicating vessels”

4.  This is difficult when you consider that companies within the supply chain serve a dual role. They function as
customers of the preceding entity within the supply chain then in turn serve as suppliers for the next link in the supply
chain. This has resulted in companies planning strategically with the end-user in mind.
 “It is the end customer who decides whether the creation and functioning of the entire supply chain are
justified”(Długosz, 2010).
 The design of the supply chain is justified by customer sales. This concept becomes more critical in times of economic
difficulty. This can complicate logistics operations for all entities within the supply chain.
 “Today, shippers expect their logistics providers to take a ‘cradle-to grave’ approach to customer service, providing,
insight, strategic guidance, and a wide range of capabilities from the very beginning to the very end of the supply
chain” (Partridge, 2010). Customer service is a broad term that holds many elements ranging from product availability
to after-sale maintenance.
 Looking at logistics perspective, customer service is the outcome of all logistics activities or supply chain processes.
Corresponding costs for the logistics system and revenue created from logistics services determine the profits for the
company.

5.  Hub consolidation reduces cost consolidation increases conveyance utilization Provides better level of service with
fewer resources The relative distance is lower due to higher degree of circuitry Hub is more economical for smaller
shipmen Demand pattern is highly distributed due to many destinations from each origin and many origins from
each destination Provides alternate access for freight movement.
 The model is centralized and day-to-day operations may be relatively inflexible. Changes at the hub or even in a
single route could have unexpected consequences across the network. It may be difficult or impossible to handle
occasional periods of high demand between two spokes.
 The hub constitutes a bottleneck in the network. Total cargo capacity of the network is limited by the hub’s
capacity. Delays at the hub (e.g., weather) can result in delays across the entire network.
 Route scheduling is more complicated for the network operator. Scarce resources must be utilized carefully to avoid
starving the hub. Careful traffic analysis and precise timing is required to keep the hub operating efficiently.