BMO 2201 Lecture Notes - Lecture 8: United States Postal Service, Common Carrier, Carbon Footprint
24 Dec 2018
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Document Summary
Highway transport is appealing partly due to its relative ranking across characteristics. Non-operating intermediaries do not own their own equipment: freight forwarders. Businesses that consolidate small shipments from various customers into bulk shipment for a common carrier for transport: shipper associations and agents. Groups of shippers who employ an agent to consolidate purchases and shipments for them: e. g. garment industry in new york, brokers. Intermediaries that coordinate transportation arrangements for shipper, consignees and carriers, operating on a commission basis. Transportation operations seeks an optimal balance between low cost and high service: transportation is single largest element of logistics cost. Environmental cost of carbon footprint: transportation managers are responsible for inventory to be positioned in a timely and economical manner. Economic drivers influence transport rates: distance, weight, density, storability, handling, liability, market. Distance is a major influence on cost: directly contributes to variable expenses.
