University of Waterloo Domestic Transportation and International Shipping HW answer few questions ,see attachment for details~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

University of Waterloo Domestic Transportation and International Shipping HW answer few questions ,see attachment for details~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Domestic Transportation and International Shipping, Spring 2020: Assignment #1
1
Due: Thursday June 4, 4:00 p.m. (Windsor time)
Submit through Blackboard “Assignments”
Question 1 (4 marks)
Your company has established an (outbound) physical distribution system that moves products
between your factories, warehouses, and customers efficiently, economically, and reliably. As a
result, your company sells all products using FOB Destination terms of sale.
Today, a member of your company’s sales force told you that one customer wishes to make all
their purchases from your company under FOB Origin terms of sale. Should your company agree
to that customer’s request to purchase under FOB Origin terms of sale?
Required
a.
List two reasons for agreeing (i.e. pros) to the customer’s request.
b.
List two reasons for not agreeing (i.e. cons) to the customer’s request.
Question 2 (7 marks)
Lambert Aluminum Products Ltd.
Adapted from a case by N.A. Glaskowsky, Jr., D.R. Hudson, and R.M. Ivie [1992], Business
Logistics Management, 3rd ed. (Fort Worth, TX: Dryden Press), pp. 289-292.
Lambert Aluminum Products Ltd. manufactures a wide line of aluminum products, including window
frames, screens, screen doors, patio and lawn furniture, and a variety of small aluminum hardware
items.
Sam Walters, Lambert’s Logistics Manager had just retired, and Ed Reinhart had been promoted
to fill his position. During his last day in the office, Walters briefed Reinhart on various aspects of
Lambert’s logistics operations. It was apparent that most matters were going well. However, one
issue needed to be resolved: motor carrier less-than-truckload (LTL) service from a number of
Lambert’s aluminum suppliers in the Chicago area to Lambert’s manufacturing plant in Atlanta.
Walters handed Reinhart a copy of a report that had recently been prepared by one of his staff; this
is reproduced in Exhibit 1. “You’ll have to make a decision about this, and I’d suggest you think
it out pretty carefully before you call the shot. Good luck. So long.”
Required
1.
Which of the four carriers should Reinhart choose for transporting Lambert’s inbound
aluminum shipments from Chicago to Atlanta? Support your recommendation. (3 marks)
2.
Are O.S.&D., schedule reliability, claims processing, and special services good criteria to
use when selecting carriers? Why or why not? (2 marks)
3.
What performance criteria other than O.S.&D., schedule reliability, claims processing, and
special services might Reinhart want to consider? Why? (2 marks)
Domestic Transportation and International Shipping, Spring 2020: Assignment #1
2
Exhibit 1
MEMORANDUM
TO:
Sam Walters, Logistics Manager
FROM:
Barb Westfall, Logistics Analyst
DATE:
January 12, 2016
SUBJECT:
Chicago-Atlanta LTL Service
You will recall that last June, we started buying most of our aluminum materials from vendors in
the Chicago area, rather than from East Coast suppliers. For the past six months, we have been
monitoring LTL services from Chicago to Atlanta by the four motor carriers we’ve been using. Each
carrier has handled about 25% of our traffic from the Chicago area.
These four carriers are the only ones whose operations completely fit our needs for single-carrier
service from our suppliers in Milwaukee, Chicago, Gary, and South Bend, to Atlanta. Using any
other carriers would require interlining1 , which we feel should be avoided if at all possible.
The problem is that each of these carriers is “good news and bad news.” We are concerned with
carrier O.S.& D.2 , schedule reliability, claims handling, and some occasional special services such
as tracing. There is a lot of variation among these carriers in regard to these criteria.
Doing business with four carriers is too much. We want good service, and it would be desirable
to use only the one or two best carriers and drop the others. Also, if we concentrate our business
with one or two, we will have more clout with them.
Here is what we’ve learned over the past six months.
Anderson Freight Lines
O.S.& D.: They have a nearly perfect record on O.S.& D. They’ve never been short, and there has
only been one damage experience over the six months. One of their terminal forklift drivers
apparently ran his fork tines through a carton of screening and didn’t tell anyone about it. We
caught it on inbound inspection. They were very apologetic and sent us a cheque the next week.
They are very good on paying attention to “FRAGILE” markings.
Schedule Reliability: Miserable. Either their drivers can’t find Atlanta, or their dispatchers don’t
know where it is. We never know when a shipment will arrive. LTL time has been as little as 24
hours from South Bend and as much as two weeks from Milwaukee. There has been a bit of
1
“Interlining” occurs when two or m ore carriers transport the sam e shipm ent. Carriers m ay exchange
equipm ent, however in m otor carriage, interlining typically is done by unloading the shipm ent from one carrier’s
vehicle and transferring it to the other carrier’s vehicle.
2
“O.S.&D.”: “over, short, and dam aged”
Domestic Transportation and International Shipping, Spring 2020: Assignment #1
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improvement over time, but nothing worth talking about. According to their drivers, their terminals
in Chicago and Gary are too small and the terminal docks are badly crowded.
Claims Processing: Practically nothing to process, as noted under O.S.& D. above. The one time
they damaged a shipment they paid the claim immediately.
Special Services: No tracing capability at all. They are as courteous and polite as can be, but trying
to find out where our stuff is like punching a balloon.
Braid Express Lines
O.S.& D.: So-so performance. A few cartons lost and a few damaged over six months. They may
not understand that aluminum is not steel. The shortages have been irritating because Braid
seems to lose “all of something” instead of “one of each”, and a few times this has shut down
production assembly of some of our products for a day or two.
Schedule Reliability: Close to clockwork. Braid has a solid reputation for reliability in maintaining
their schedules. If they say a Chicago supplier’s shipment will be here in 48 hours, you can bet on
it (unless, as in a few cases, it never arrives at all).
Claims Processing: Not so good. A combination of a very hard-nosed attitude and delay.
Sometimes they try to push off concealed damage as the supplier’s responsibility. Most of our
claims are eventually paid, but the hassle index is pretty high, and it takes a lot of time, phone calls,
and correspondence to settle a claim.
Special Services: Tracing has been excellent on the few occasions we’ve needed it. Also, they are
really good on not holding up delivery to us when their peddle3 schedule is light: they deliver
whatever has come in.
Cranberry Trucking
O.S.& D.: Our experience has been pretty good, with only a few problems. They don’t do too well
on multiple carton shipments; we’ll get 16 of 18 cartons together in 72 hours, but the other two
cartons will arrive a week later. There have been only a few slightly damaged shipments.
Schedule Reliability: Much more reliable than Anderson, but not quite as reliable as Braid. There
seems to be a consistent problem in vendor shipments originating on Fridays. For some reason,
these tend to get delayed and often will arrive later than a shipment picked up the following
Monday.
Claims Processing: Very hard-nosed on the few claims we’ve had. A couple are still unpaid. One
of their people told us, “Since you guys are manufacturers you ought to be able to repair this stuff
instead of claiming the whole value.”
3
“Peddle runs” or “peddling” refers to pickup and/or delivery by a vehicle on a route consisting of m any
custom er stops, rather than m ovem ents directly between a custom er and the carrier’s term inal. If there are
only a few pick-ups or deliveries on a route, the carrier m ight delay dispatching the vehicle until m ore pickups
and/or deliveries can be m ade.
4
Domestic Transportation and International Shipping, Spring 2020: Assignment #1
Special Services: They are “willing” to trace, but they don’t do a good job: they just go through the
motions. However, they are generally good on delivery, even late in the day.
Doolan Motor Freight
O.S.& D.: Almost as good as Anderson. Very little damage and only one short shipment over the
six months, and all of this was in the first three months. There has been no O.S.& D. with Doolan
in the last 90 days.
Schedule Reliability: They are consistent, but they are very slow. On the average, they are by far
the slowest of the four trucking companies in regard to shipment transit time, and there has been
no noticeable improvement. Our guess is that they do a lot of LTL “accumulating” to raise their
average vehicle dispatch weight. Their slowness is enough to cause an occasional problem with
materials availability in our plant.
Claims Processing: Excellent in the several cases we’ve had with them. The best of the four
carriers (except perhaps for Anderson where we’ve only had one claim). They have a good
reputation for fast and reasonable claims processing.
Special Services: Tracing and expediting with Doolan is like walking through a swamp with a very
accurate compass. They will tell us exactly where our shipment is, but then they don’t move it any
faster than they were moving it in the first place.
DOMESTIC
TRANSPORTATION
AND INTERNATIONAL
SHIPPING
INTRODUCTION TO
BUSINESS LOGISTICS
MANAGEMENT
WHAT IS BUSINESS
LOGISTICS MANAGEMENT?
“Business logistics management”
refers to the activities involved
in planning, implementing, and
controlling the movement and
transformation of raw
materials, in-process inventory,
finished goods, and related
information, from the original
source to the final customer,
for the purpose of meeting
customer requirements.
BUSINESS LOGISTICS
MANAGEMENT ENCOMPASSES
MANY AREAS
• Inbound and outbound transportation
• Inventory management
• Warehousing and distribution centre
management
• Order management
• Protective packaging
• Materials handling
• Purchasing and procurement
• Return goods and scrap disposal
• Logistics network planning
• Customer service
… as well as management of logistics
information, technology, and interorganizational relationships.
THE GOAL OF BUSINESS
LOGISTICS MANAGEMENT
To ensure the availability of the
right products and services,
• in the right quantity,
• in the right condition,
• at the right place,
• at the right time,
• for the right customer,
• at the right cost,
• by the right way.
Why logistics?
Another reason why logistics is so
important:
Logistics delivers joy worldwide.
www.youtube.com/watch?v=VC
h6HnXHKRc
www.youtube.com/watch?v=VC
h6HNXHKRc
Google search:
Youtube UPS We love
logistics commercial
“When its planes in the sky
For a chain of supply,
That’s logistics…”
SOME FUNDAMENTAL
CONCEPTS OF LOGISTICS
THAT YOU MUST KNOW
EFFECTIVE LOGISTICS
MANAGEMENT REQUIRES A
SYSTEMS APPROACH.
Effective logistics management requires a
systems approach; that is, recognizing
the interdependencies of the various
components of the system.
A systems approach involves recognition
of the “Total Cost Concept”: any
analysis of the costs and performance
of logistics / supply chain activities
must consider the costs and
performance of the entire system, and
not just the individual components.
THERE ARE FIVE
TRANSPORTATION MODES.
An “intermodal shipment” (or “multimodal
shipment”) refers to a shipment that
uses two or more transportation modes
on its journey from shipper to
consignee.
SHIPPERS SHIP, CARRIERS
CARRY, AND CONSIGNEES
RECEIVE.
• A “shipper” is a person or organization
that gives an item to a carrier to be
transported to a consignee.
• A “carrier” is a person or organization
who transports goods or passengers.
• A “consignee” is the person or
organization to whom a shipment is
being sent (in other words, a
consignee is the receiver of the
shipment).
• A “third-party logistics provider” (or
“logistics intermediary”) is a person or
organization, other than the shipper,
consignee, or carrier, who offers
logistics-related services.
SHIPPERS SHIP, CARRIERS
CARRY, AND CONSIGNEES
RECEIVE.
Your aunt in Vancouver sends you a box
of cookies by Canada Post.
Identify the logistical roles of each of the
participants in this scenario.
“TITLE” AND “POSSESSION”
ARE TWO DIFFERENT THINGS.
The expression “taking title” means
owning an item; the expression “taking
possession” refers to physically having
an item.
Taking title (taking ownership) to an item
does not necessarily mean taking
possession and taking possession
does not necessarily mean taking title.
“TITLE” AND “POSSESSION”
ARE TWO DIFFERENT THINGS.
Carriers always take possession of the
goods they transport, however they
usually do not own (take title) those
goods.
TRANSPORTATION
MOVEMENTS (AND SHIPMENTS
AND PASSENGERS) CAN BE
DOMESTIC OR INTERNATIONAL.
TRANSPORTATION
MOVEMENTS (AND SHIPMENTS
AND PASSENGERS) CAN BE
DOMESTIC OR INTERNATIONAL.
• A “domestic” movement refers to the
movement of cargo and/or passengers
between an origin in one country and a
destination in the same country.
• An “international” movement refers to
the movement of cargo and/or
passengers between an origin in one
country and a destination in another
country.
“LANDED PRICE” REFLECTS
THE BUYER’S TOTAL COST.
“Landed price” (also called “landed cost”)
refers to the price paid for a product by
the buyer, plus transportation and any
other costs to get the product to a
specified point (often the buyer’s
facility).
LOW-VALUE PRODUCTS
CANNOT AFFORD HIGH-COST
LOGISTICS.
THE MAJOR DETERMINANT OF
THE PROFITABILITY OF A
LOGISTICS SYSTEM IS THE
CHARACTERISTICS OF THE
PRODUCT BEING MOVED.
There are two general forms in which
products can be moved and stored:
• in bulk (“bulk cargo”)
• in packages (“packaged cargo” or
“general cargo”).
THERE ARE TWO GENERAL
FORMS IN WHICH PRODUCTS
CAN BE MOVED.
In bulk (“bulk cargo”):
The product is moved in an
unpackaged or loose state and, as a
result, must be handled by shovel,
pump, bucket, scoop, vacuum, etc.
THERE ARE TWO GENERAL
FORMS IN WHICH PRODUCTS
CAN BE MOVED.
In packages (“packaged cargo” or
“general cargo”):
These products typically are
manufactured items, and generally are
of a higher value per unit weight than
is bulk cargo.
There are two general ways to move
packaged cargo:
● in containers (“containerized cargo”)
● on a piece-by-piece basis (“breakbulk cargo”).
Most containers are intermodal…
The form in which a product is
moved or stored may change
during its journey through the
supply chain.
Why is the difference between
bulk products and packaged
products relevant?
• Most of Canada’s exports are bulk
products
• Most of the world’s exports are bulk
products
• Most developing countries are
developing through bulk products
• Bulk products move by different
transportation vehicles than do
packaged products.
THERE ARE TWO GENERAL
FORMS IN WHICH PRODUCTS
CAN BE MOVED.
What is the major advantage of shipping
products as bulk cargo rather than as
packaged cargo (general cargo)?
What is the major problem with shipping
products as bulk cargo rather than as
packaged cargo?
A BIT ABOUT
PRODUCT DENSITY
The relationship between a
product’s weight and its physical
size is summarized by its
“density”.
density =
shipping weight
shipping size
A QUICK QUIZ
1. Which weighs more: a kilogram of
bricks or a kilogram of feathers?
2. Which takes up more space: a
kilogram of bricks or a kilogram of
feathers?
3. Which has a higher density: a
kilogram of bricks or a kilogram of
feathers?
4. Which costs more to ship: a kilogram
of bricks or a kilogram of feathers?
WHAT SHOULD YOU DO
NOW?
•
Download the Course Notes (from
Blackboard “Resources”)
•
Download the Additional Documents
(from Blackboard “Resources”)
•
Print the maps (part of the Additional
Resources)
•
Decide what to do about the Course
Outline (from Blackboard “Syllabus”)
•
Review this lecture
•
Try the review questions.
REVIEW QUESTIONS:
ANSWERS
1.
2.
3.
4.
5.
6.
REVIEW QUESTION
Toronto Consumer Products (TCP) Ltd. (head
office in Toronto) purchased a machine from
Chicago Tool Works Ltd. (head office in
Chicago, Illinois). The machine was shipped
from the Chicago Tool Works factory in
Toledo, Ohio, to TCP’s factory in Windsor.
TCP hired Stevens Trucking Company to
transport the machine to Windsor. In turn,
Stevens Trucking Company subcontracted
the transportation to Rapid Transportation
Ltd., which delivered the machine to the
Windsor factory.
a.
Identify the logistical roles of each of the
participants in this scenario.
b.
Where does transfer of possession occur in
this scenario?
c.
What can we say about the transfer of title in
this scenario?
d.
Is this a domestic shipment or an
international shipment?
Presenting …
LOGISTICS
GEOGRAPHY
LOGISTICS
GEOGRAPHY
INTRODUCTION
The “Commonwealth”
(“British Commonwealth”)
A formal organization consisting of countries that
are former British colonies or protectorates.
• Europe: United Kingdom, Cyprus, Malta
• North America: Canada, Bahamas, Belize,
Jamaica, Trinidad & Tobago, many others
• South America: Guyana
• Africa: Ghana, Kenya, Nigeria, South Africa,
Tanzania, Uganda, Zambia, etc.
• Asia: India, Bangladesh, Malaysia, Pakistan, Papua
New Guinea, Singapore, Sri Lanka, etc.
• Pacific Ocean islands: Fiji, Tonga, Tuvalu, etc.
• Australia
• New Zealand.
LOGISTICS
GEOGRAPHY
CANADIAN
IMPORTS AND
TRADING
PARTNERS
The Canadian
Import Situation, 2018
Goods imported into Canada (% of total
dollars) from:
• Total imports: $607 billion
• U.S.A.: 64.4%
• [ European Union: 10.4% ]
• China: 7.6%
• Mexico: 3.5%
• Germany: 2.6%
• Japan: 2.1%
• South Korea: 1.3%
• United Kingdom (1.3%).
How do most imports get from
U.S.A. to Canada?
How do most imports get from
U.S.A. to Canada?
How do most imports get from
U.S.A. to Canada?
Total freight flows (both ways) between
Canada and U.S.A. (2014):
•
•
•
•
•
•
total: $658.2 billion
53.8% of total dollar-value by truck
15.8% by rail
13.5% by pipeline
5.9% by water
4.3% by air.
How do most imports get from
China to Canada?
How do imports get from
China to Canada?
International Seaports On The
West Coast Of Canada
• Port of Vancouver, B.C.
• Port of Prince Rupert, B.C.
Port of Vancouver, British Columbia
Port of Vancouver, British Columbia
Port of Prince Rupert, British Columbia
Port of Prince Rupert, British Columbia
International Seaports On The
East Coast Of Canada
• Port of Montreal, Quebec
• Port of Halifax, Nova Scotia
Port of Montreal, Quebec
Port of Montreal, Quebec
Port of Halifax, Nova Scotia
Port of Halifax, Nova Scotia
How do imports get from
China to Canada?
What two routes could imports moving
eastward from China to Canada follow
to get to Ontario or Quebec?
Map source: The Railway Association of Canada
The Panama Canal
What About Toronto?
Toronto:
• largest consumer market in
Canada
• many warehouses and
distribution centres located
nearby
• home to Canada’s busiest airport
• not as important logistically as
some smaller Canadian places.
Watch for another …
LOGISTICS
GEOGRAPHY
Coming soon to
Your classroom!
INTRODUCTION TO
TRANSPORTATION
WHAT IS
TRANSPORTATION?
WHAT IS
TRANSPORTATION?
Transportation is a “conveyance”: a
method of moving passengers
and/or goods from Point A to Point
B
Implication:
Transportation typically is not
demanded for itself; that is, demand
for transportation is derived from
the demand for the people or goods
that are being moved.
WHAT IS
TRANSPORT…
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