Learning Block 6: Transportation Operations AND Learning Block 7: Customer Service Operations Overview

Transportation Operations

Focus on the timely movement of materials and products within an organization and between organizations

Motor Carriers

• Most widely used domestic mode of transportation

• mode of choice for high-value, time-sensitive goods

• Challenges: rising costs, driver shortages, competition

Rail Transport

• Mode of choice for large volumes and when shipment distance exceeds 900 miles

• Used for long-distance movement of low-value raw materials and manufactured products

• Equipment organized in loads

• Challenges: large investment in terminals, equipment to begin operations, capacity as volume surges, a virtually unchangeable track infrastructure

Manifest Trains

A train made up of different types of cars and loads

Unit Trains

A train made up of one load type and one type of car

Intermodal Trains

Trains that carry truck trailers and shipping containers

Air Transport

• Often viewed as too expensive and used only in emergencies

• Ecommerce and the growth of supply chain initiatives have contributed to an increase in demand for this mode of transportation

• Is projected to continue growing

• The mode of choice for shipping small quantities of high-value and low-weight semi-finished and finished goods

• Challenges: cost issues for profitable growth, competition, security, environmental sustainability, reliance on fossil fuels, impact of carbon footprint

Water Transport

• The major mode for international trade and dominates other modes in international freight revenue

• Slow but offer tremendous capacities for volume freight, efficient fuel consumption, and low cost

• They handle a wide variety of goods from low-value commodities to imported automobiles

• Challenges: capacity, trade imbalances, rising costs, piracy, careful planning when transporting perishable cargo

Liner Services

A service that operates on a fixed schedule with established port rotation; fixed frequency (weekly, monthly); and publish dates at ports

Charter Services

A service in which a shipowner contracts the use of its vessel to another party

Container Ships

A cargo ship built specifically to carry its load in truck-size containers that can be offloaded directly onto a truck or other mode of transportation

Bulk Carrier

A ship designed to transport unpackaged bulk cargo (ex. grains, coal, cement)

Tankers

Ships designed to carry bulk quantities of liquid cargo

Pipeline Transport

• Called the hidden giant of transportation

• Used for handling inter-city ton-mileage of freight, typically petroleum and natural gas

• The most economical form of transportation with the lowest cost per ton-mile

• The U.S. has the largest network of any nation

• Challenges: issues of safety and security

Customer Service Operations

The delivery of satisfaction; it covers all aspects of the supply chain but is most often assigned to either logistics or sales

Order Cycle

The process that runs from the placement of the order to the receipt of the order, including transmittal, processing, preparation, and shipping