Transportation decisions are becoming more complex due to greater distances between origin and destination points; multiple choices for transportation modes and carriers; and greater opportunities, as well as risks, across global supply chains.
For this discussion, assume the role of a transportation manager for the ABC Logistics Company. You are asked to evaluate the potential for reducing transportation and warehousing costs by utilizing intermodal transportation and shipment consolidations for large quantities of freight (25,000 pound and more). You must propose at least one new process or rule for transportation cost savings. Be sure to cover the following considerations in your proposal:
-Describe the equipment to be utilized, such as truck trailer-on-flatcar, container-on-flatcar, or intermodal-surface containers.
-Analyze freight rates, and choose between full-truckload (TL) and less-than-truckload (LTL) rates.
-Explain possible ways to reduce administrative costs through the use of technology, and specify a tool or a software application that will be more efficient and effective.
-Describe the impact of intermodal transportation and shipment consolidation on the use of warehouses.
-Specify two practices that may potentially help the organization’s supply chain become more “green.”
Your proposed process must contain two specific areas of savings. Examples of cost savings may include, but not be limited to, reduced fuel costs, reduced freight rates, reduced lead times, savings gained due to new materials handling, order management, or any “green” processes.