Exam 9: Domestic U.S.and Global Logistics
A ___________________ consolidates large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates.
B
Joxcel Corporation is a company that sells an enormous amount of fine jewelry worldwide from its headquarters in Paris, France.Presently 10% of their revenues come from sales in the United States.Joxcel Corporation would like to grow the business by about 200% over the next three years.Presently, a majority of their product is kept in a private warehouse in France.
While the shipments to United States will always be relatively small in size due to the cost and nature of the product, Joxcel Corporation would still like to take advantage of any possible distribution efficiencies by sending their shipments to a distribution center in United States that can then package their small shipments with other jewelry shipments headed towards common retailers and/or wholesalers.In order to do so they'll need to make accommodations for shipment, find retail and wholesale companies willing to distribute their product, find intermediaries to both help export the product out of France and help import the product into the United States.
Based on the above information and your knowledge of international transportation, answer the questions below in the hopes of providing Joxcel Corporation with some preliminary information that will aid them in creating a successful logistical itinerary:
a.Which modes of transportation should be utilized in getting the product from Joxcel Corporation's warehouse in France to a distribution center in United States? Why?
b.Which intermediaries should Joxcel Corporation consider in finding customers in United States and exporting the product out of a France? Why?
c.Which intermediary should Joxcel Corporation consider in helping them import the product into United States? Why?
d.Briefly discuss their warehousing plan.Does it make sense? Why?
a.Which modes of transportation should be utilized in getting the product from Joxcel Corporation's warehouse in France to distribution Center in United States? Why?
The most likely mode of transportation to get product with such a high cost to weight ratio out of France and into the United States would be air.
The student should probably also include information on how the product will get to the airplane from the private warehouse and from the airplane to the final distribution Center.For this portion of the shipment a motor carrier would most likely be used.Motor transportation is both versatile in terms of the products that it can carry and agile in terms of the locations it can reach.
b.Which intermediaries should Joxcel Corporation consider in finding customers in United States and exporting the product out of a France? Why?
A trading company most likely would be the best answer for this particular question.Trading companies aid foreign sellers in finding foreign buyers.In addition, they can handle the export arrangements, documentation, and transportation of the goods in question.
While the student may also cite foreign freight forwarders, this answer is not as desirable.While a foreign freight forwarder can handle the export arrangements, documentation, and transportation of goods, they typically do not aid foreign sellers in finding foreign buyers.Nonetheless, partial credit may be deserved.
c.Which intermediary should Joxcel Corporation consider in helping them import the product into United States? Why?
Customs brokers aid in moving international shipments through customs.They are knowledgeable on documentation and other customs related areas, thus they make the importation of product easier and they help in answering any questions Customs Officials may have.
Some students may cite that trading company's help make import arrangements also.This would also be an acceptable answer according to the language in the textbook.
d.Briefly discuss their warehousing plan.Does it make sense? Why?
This question is fairly open-ended.The student may comment on the positive and negative aspects of Joxcel Corporation utilizing a private warehouse in France.They may then discuss the benefits of taking their moderate sized shipments that were imported into United States and then consolidating those shipments at consolidation warehouses with other small shipments headed towards common customers.
Explain some intermodal transportation alternatives.
The most common are truck trailer-on-flatcar (TOFC) and container-on-flatcar (COFC), also called piggyback service.The same containers can be placed on board containerships and airliners.Another example of intermodal transportation are RO-ROs or roll-on-roll-off containerships.These allow truck trailers and containers to be directly driven on and off the ship, without use of cranes.
________________ are the most flexible mode of transportation and account for 70 percent of all the freight tonnage moved in the U.S.
Which of the following are intermodal transportation alternatives?
Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal
___________________ are for-profit organizations that contract out or lease a wide range of light manufacturing, warehousing, and distribution services to other companies.
A small LTL shipment that originates on a truck in San Francisco and is moved from San Francisco to Las Vegas where it is unloaded and put onto another truck for final shipment to Phoenix would be considered an intermodal shipment since it utilizes more than one vehicle during shipment.
In a 2016 survey of 3PL usage, 70 percent of shippers and 85 percent of 3PL services said the use of 3PLs contributed to higher logistics costs.
The following are all examples of lean warehousing capabilities EXCEPT:
Reverse logistics can have a positive impact on the environment through activities such as?
International intermediaries can provide shipping, consolidation, and other import and export services.Some examples of these international intermediaries include: NVOCCs and trading companies.
Efficient supply chain management distribution requires that modern warehouses concentrate their efforts on a wide array of warehousing and distribution functions like storing purchases, work in progress inventories, and finished goods inventories, receiving shipments, breaking down shipments, repackaging, and the distribution of components.
Poor logistics management can bring a supply chain to its knees, regardless of the quality of the products.
A private carrier is subject to economic regulation and typically transports goods for the company owning the carrier.
Logistics is what creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized.
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