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1、7 Industrial Transportation ManagementCHAPTER 7Industrial Transportation ManagementLearning ObjectivesTo examine the background of the transportation management functionTo discuss the functions of transportation managementTo identify the role negotiations play in the transportation management functi
2、onLearning ObjectivesTo examine the new options available for private carriageTo understand the purpose of freight consolidationIndustrial Transportation ManagementKey TermsBill of ladingDemurrage and detentionDiversionExpeditingKey TermsHazardous materialLoss and damagePrivate transportationIndustr
3、ial Transportation ManagementKey TermsRate and service negotiationsRate determinationReconsignmentReparations Key TermsShipment consolidationTracingTransit privilegesRate Determination and Negotiation ActivitiesRate DeterminationFreight ClassificationRate and Service NegotiationsRate Regulatory Bodi
4、esRate DeterminationOften located on carrier websitesInformation needed for rate determination may include:Origin and destination by city or zip codeWhether carrier will load/unloadDimensions (cube) of loadNumber of unitsWeightNational Motor Freight Classification numberDescription of material to 8b
5、e movedFigure 7-1: Page from a Catalog by AW Direct Showing Shipping ChargesFigure 7-2: Page from a Port of Houston Tariff Showing Some Loading, Unloading, and Wharfage ChargesFreight ClassificationFreight classification values relate to handling characteristics of freightMay apply to National Motor
6、 Freight Classification Committee for change in classificationGoods in foreign trade list commodities by harmonized number of Harmonized Tariff Schedule of the United States (TSUSA)Figure 7-3: Motor Carrier Classification Docket Proposal for Changing the Classification of Spark PlugsRate and Service
7、 NegotiationsBoth rates and service levels may be negotiatedLong-term relationships are encouragedNegotiations are subject to antitrust lawsRate Regulatory BodiesU1.S. Department of Commerce Foreign Trade Zone BoardDepartment of Transportation committeesHouse of Representatives subcommitteesPrivate
8、TransportationPrivate transportation is used when firms own and operate their own trucks, railcars, barges, ships, and/or airplanes.Wal-Mart has largest private truck fleet in U.S.7,7967 tractors and 26,117 trailersPrivate trucking providesImproved level of customer serviceAdvertising on the trucksM
9、ay be less expensiveDocumentationBill of ladingStraight bill of ladingOrder bill of ladingLong-form bill of ladingPreprinted short-form bill of ladingFreight billFigure 7-6: A Long-Form Bill of LadingFigure 7-7: A Preprinted Short-Form Bill of LadingFreight Payment and Audit ServicesFreight bills mu
10、st be paid within a specific number of daysPayment services are usedTo detect duplicate billingsTo ensure that proper rate was chargedRoutingShippers have the right to select the carriers along the route to shipment destinationMore often need to be specified for hazmatGenerally are computer generate
11、dAlternative routes and carriers are also importantDiversion and ReconsignmentDiversion occurs when the shipper notifies the carrier, prior to arrival, of a change in destinationReconsignment occurs when the shipper notifies the carrier, after arrival, of a change in destinationTracing and Expeditin
12、gTracing is the attempt to locate lost or late shipments.Done by computer at no costExpediting is rapidly moving a shipment through a carriers system.Both of these are less likely to be used today since shipments can be pinpointed en route and carriers provide better on-time performanceLoss and Dama
13、geShippers and carriers try to resolve firstWhat is the full actual loss?Concealed loss or damageWho takes possession of damaged goods after claim settled?If unresolved, moves to court systemTransit PrivilegesTransit privileges allow cargo to be stopped en route between origin and destination to be
14、unloaded, stored, or processed and then reloaded for delivery to original destination.Often used in household goods moving and storage industryReparationsReparations are payments made to a shipper by a carrier that has charged illegally high rates in the past.Also collected when carriers do not live
15、 up to terms of contracts with shippersDemurrage and DetentionDemurrage is a penalty payment made to the railroad for keeping a railcar beyond the time when it should be released back to railroad.Detention is the word used in the trucking industryCarriers do not want equipment used as temporary warehouse by shipper or consigneeTransportation of Hazardous MaterialsHazardous material is a substance or material in a quantity and form which ma
