Supply Chain Logistics Overview

Shipping Documentation

  • An important part of shipping operations.

  • Accurate records ensure correct products are placed in the right vehicles for delivery.

Dispatch List / Shipping Schedule

  • Dispatching: Prioritizing all jobs related to shipping goods.

  • Dispatch list: A list of those jobs in priority sequence.

  • Updated at least daily or at shift changes.

  • Includes:

    • Trailer loading schedule (what trailer arrives at what door).

    • All orders on each trailer with paperwork.

    • Special shipments (e.g., shipping equipment to another warehouse).

    • Express package pick-ups (FedEx, UPS).

Shipping Manifests

  • A list of items in a vehicle’s cargo.

  • Different types used based on operation size.

  • Includes customer addresses, invoice numbers, and package weights.

  • Ensures correct packages end up on the correct trailer.

    • Manual manifests: Handwritten lists (rarely used today).

    • Two-part label manifests: Computer-printed labels attached to the package exterior; one section is torn off as the delivery record.

    • Hand-held bar code manifesting: Uses bar code labels and scanners; data transmitted to a computer. Common for express package deliveries (FedEx, UPS, DHL).

Load Weight Limits

  • Shipments must not exceed legal weight limits for the transport vehicle.

  • Weights are recorded on the shipping manifest to ensure proper transport fees and compliance with legal limits.

  • Packages are weighed on scales and verified against the weight indicated on the container.

  • In major centers, this is handled by the transportation department using computerized information.

Shipping Order

  • A document specifying products to be shipped, customer information, and mode of transport.

  • Includes the picking ticket list; items are checked off as they are packaged.

  • Includes any special requirements for packing and shipping.

Chapter 8 Overview: Dispatch and Tracking Operations

  • Purpose: To explain dispatch and tracking of products as they are transported throughout the supply chain.

  • Most products are shipped using more than one mode of transportation and often internationally.

Chapter 8 Objectives

  • Explain shipping documentation.

  • Describe the main factors related to vehicle routing.

  • List ways to track cargo within the yard.

  • List ways to track cargo en route.

  • Describe key features of intermodal transportation.

  • Describe basic customs terminology and documentation.

Carrier Freight Bill

  • An invoice given to the shipper or consignee by the carrier for payment of services.

  • Includes:

    • Carrier’s name

    • Pro number

    • Shipper’s name and address

    • Consignee’s name and address

    • Description of the goods

    • Rate charged

    • Freight terms

    • Total charges due

Delivery Receipt (D/R)

  • Issued by the carrier and signed by the customer as proof of delivery (POD).

  • Contains the same information as the bill of lading or the freight bill.

  • Both the carrier and the customer retain a copy.

  • Any damages to the freight should be noted on the D/R.

Bills of Lading

  • Issued by a carrier or shipping department acknowledging that specific goods have been received on board for shipment.

  • A through bill of lading involves at least two different modes of transport.

Routing

  • Routes can be chosen manually or with advanced computer systems.

  • Factors considered:

    • Distance

    • Customer requirements

    • Driver availability

    • Vehicle restrictions (e.g., trailer length limits)

    • Highway construction and road closures

    • Multiple calls per trip

    • Multiple day trip

    • Simultaneous delivery and collection options

Regulations

  • Federal regulations pertain mostly to hazmat transport.

  • State governments can regulate which roadways freight carriers can use.

  • States can require carriers to use the National Network of federally maintained highways unless the driver is seeking food, fuel, rest, repairs, or to reach a delivery point.

  • Highly populated areas may have time restrictions on when deliveries can be made.

Hazmat Routing

  • Carriers transporting hazmats must comply with “non-radioactive hazardous material” routes.

  • Carriers must route vehicles away from heavily populated areas, places where crowds assemble, tunnels, narrow streets, and alleys.

Tracking Cargo Movement: Yard Management Systems

  • Keeping track of containers and trailers is important for cost control.

  • Lost or detained containers can incur significant costs in detention fees or lost business.

  • Yard tracking and management systems can be manual or computer-based.

  • Objectives:

    • Monitor and control traffic as it arrives, is loaded/unloaded, and leaves.

Terms To Know

  • Certificate of Origin: A document attesting to a shipment’s country of origin.

  • Duty (Trade): A tax levied by government on the importation, exportation, or use and consumption of goods.

  • Export: Products produced in one country and sold in another.

  • Free Trade Agreements: Agreements between countries that eliminate tariffs, import quotas, and preferences.

  • Import: Products bought in one country and produced in another.

  • Intermodal Transport:

    • Shipments moved by different types of equipment combining the best features of each mode.

    • The use of two or more different carrier modes in the through movement of a shipment.

  • Import Quota: A limit on the quantity of a good that can be produced abroad and sold domestically.

Intermodal Transportation

  • Movement of goods in one loading unit or vehicle using several multiple modes of transport without handling the goods themselves in changing modes.

  • Standardized containers and pallets allow for quick transfer of loads between modes with little personnel.

Intermodal Containers: ISO Containers

  • ISO has standardized container size and design for worldwide use.

  • Rectangular boxes suitable for ship, rail, and truck.

  • Made of steel, with open or closed tops, or refrigerated.

  • Constant height and width, varying lengths of 20 feet, 40 feet, and 53 feet.

  • Container ship capacities are defined by twenty-foot equivalent units (TEU) or forty-foot equivalent units (FEU).

    • Example: a ship carrying 3,000 FEU can carry 3,000 40-foot containers or 6,000 20-foot containers.

Yard Management System

  • Assists in scheduling and directing traffic flow.

  • Documents activities and locations of shipments and vehicles.

  • Coordinates vehicle arrival in staging areas.

  • Enhances security and accountability.

  • Reduces detention time and costs.

Tracking Systems

  • Shipments are tracked during transport to ensure on-time arrival at the right location.

  • The shipper receives a tracking number when the carrier accepts the shipment.

  • The number is attached to the package or container.

  • Customers receive tracking information.

  • Tracking can be manual or automated using bar codes or RFID tags.

  • RFID (Radio Frequency Identification) tags with satellite technology allow real-time shipment tracking.

  • On-board vehicle communications allow drivers to provide real-time status reports, route changes, or delays (via CB, cell phones, or on-board computers connected to headquarters by satellite).

Intermodal Handling Equipment

  • Gantry Crane: (Straddle carrier) Used to lift containers and swap-bodies between road and rail vehicles.

  • Grappler Lift: Similar to a gantry crane but fitted to handle swap bodies.

  • Reach Stacker: A heavy-duty truck used to transfer containers to/from road and rail or to stack containers.

  • Transtainers: Used to transfer containers from sea vessels to road or rail on rails along the dock, with a large boom.

  • Swap-body: Primarily used in road and rail; transferred from truck to rail by an overhead crane.

  • Unaccompanied Trailers: Semi-trailers used on ferries or piggybacked onto another trailer for rail transport without adaptation or personnel.

  • Roadrailers: Semi-trailers designed to run on rails, with retractable road wheels and attachable railway bogie.

Terms To Know

  • Shipping Manifest: A document that lists the pieces in a shipment, covering an entire load, with items, piece count, total weight, and destination for each delivery.

  • Shipping Order: A document that specifies the products to be shipped, customer information and the mode of transport.

  • Tariff: An official schedule of taxes and fees imposed by a country on imports or exports.

Customs

  • Due to the global nature of the supply chain, logistics workers need to understand basic terminology and operations within the global environment.

  • Sale of goods and shipments between countries are controlled by many regulations, agreements and tariffs.

Basic Terminology

  • Exports: Products produced in one country and sold in a foreign country (e.g., a toolbox made in the U.S. and sold in Mexico).

  • Imports: Products produced in a foreign country to be sold in this country (e.g., a car made in Germany and sold in the U.S.).

Intermodal Road Vehicles

  • Skeletal Trailer: A semi-trailer designed to carry ISO containers, fitted with locks but without a loading platform.

  • Extendable Trailers: Skeletal trailers that can be shortened or extended based on container size.

Intermodal Water Transport Vehicles

  • Cellular container ship: A specially designed vessel that holds ISO containers stacked for maximum capacity.

  • Roll-on Roll-off ferry (RO-RO): A ferry designed to carry road or rail vehicles.

  • River Barges: Can be RO-RO equipped or container ships; slow-moving vessels for shipments without time constraints.

Intermodal Rail Vehicles

  • Rolling Motor Way: The rail version of the RO-RO ferry; entire trucks can be driven onto rail wagons.

Double stacking

  • In the United States and some other countries, containers may be double stacked and carried by rail.

Governing Bodies

  • International trade is the exchange of goods and services across national borders.

  • Each country has customs and trade authorities.

  • The United States has several agencies or departments that govern trade with other countries.

  • The U.S. is the world’s second-largest exporter with over 2.1 trillion worth of goods in 2021 and the world’s largest importer, importing more than 2.9 trillion worth of goods that same year. Imports by the U.S. increased more than 22% since 2017. With a population of 330 million people, the U.S. imports 8,900 a year of product for each resident.

  • The U.S. is also a member of international agencies that set global standards.

    • U.S. Customs and Border Protection (Customs) is part of the Department of Homeland Security and collects tariffs on imported and exported goods.

    • The U.S. State Department (State) regulates the trade of firearms and munitions.

    • The Drug Enforcement Agency (DEA) enforces controlled substances laws and works to reduce international illicit drug trade.

    • The Food and Drug Administration (FDA) regulates the import of food, pharmaceuticals, animal feed and cosmetics.

    • The World Trade Organization (WTO) supervises world trade, negotiating trade agreements between countries, and has 164 member countries representing 95% of total world trade.

Trade Regulations

  • The government regulates trade for safety, protecting domestic industry, and ensuring a free and competitive national economy.

  • Important U.S. trade regulations:

    • International Traffic in Arms Regulations (ITAR) regulates the exportation of items with specific military application such as firearms, explosives and certain chemicals.

    • Duties and tariffs are taxes imposed by the government on imports and exports.

    • Quotas are means of protecting domestic industries by restricting the amount of goods that can be imported during a specific time period.

Customs Documentation

  • Special documents required when shipping or receiving items internationally.

  • Commercial Invoice: Must contain port of entry, currency used, country of origin, and additional charges or discounts; for imports into the U.S., invoices must be in English.

  • Import/Export License: The U.S. does not require a license to import goods (except for a few items) but requires an export license for most exporters of goods.

  • Certificate of Origin: Verifies that the goods were produced in that country; the Generalized System of Preferences (GSP) sets standards for determining the country of origin.

  • Customs Entry: A report filed with customs authorities on imported goods; often handled by customs brokers.

  • Insurance Document: A certificate of insurance must be included with the shipment if insurance is required.

Free Trade Agreements

  • Accords between countries to remove barriers to trade by eliminating or reducing tariffs, quotas, and other government restrictions.

  • Example: The North American Free Trade Agreement (NAFTA) between the U.S., Canada, and Mexico, which was updated in 2018.
    Regulatory Initiatives

  • Container Security Initiative (CSI) regulates U.S. imports by screening containers before they leave foreign ports.

  • Advanced Manifest Regulations: Customs requires electronic notification of shipments in advance.