TOPIC1 The role of freight transportation in logistics and supply chain management-2013-SIFT.pptVIP

CH1 The role of freight transportation in logistics and supply chain management The major objectives: 1. Definition: transportation management, logistics management, supply chain management. 2. Identify the total-cost analysis 3. Examine the quality of service and customer satisfaction 4. Discuss the role of transportation in a supply chain 5. Discuss the impact of transport on the economic development Definition Transportation - activity in moving both freight and passengers from one given location to another one - transportation is a service that can not be stored Transport Management - to PLAN, IMPLEMENT CONTROL the purchase and consumption of freight transport services in order to achieve organisational goals and objectives The Role of Transport Management TM in the past… With the advent of downsizing and rightsizing, the job of TM is being diminished in many firms. Its responsibilities are being transferred to Purchasing, Marketing Logistics Management areas, sometimes even being outsourced to a 3rd Party (3PL). The Role of Transport Management Past duties of a Transport Manager Fleet management Coordinator/Liaison with other departments Current duties of a Transport Manager Procurement of transport services (Carrier selection) Scheduling and routing Administration The Role of Transport Management Current duties of a Transport Manager (cont’d) Loss Damage prevention Occupational Health Safety (OHS) management Claims Track Trace and Despatch Rates negotiation Contract development and management Fleet management The Role of Transport Management TM now… The role of TM in business has received increasing recognition over the past 20 years. The cost of transport can sometimes represent between 9-30% of total company expenditure. Therefore, this function is often considered where large savings can be made through effective management. Definition - the process of p