Exam 10: Global Transportation Planning

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This is due to the extended origin to destination distance,number of transfers between carriers,and varying climatic conditions.Loss and damage risks also include theft,hijacking,vessel sinking,and collision.

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Routing planning and delivery scheduling activities are not trivial-they affect costs,impact customers,and can cause major headaches if not properly managed.Globally,over $1 trillion is spent on freight transportation services.Carriers must develop more efficient routes that maximize equipment capacity utilization.They also need to use routes that minimize tolls,port costs,and route-related surcharges.
Conceptually,these are not difficult problems to understand but they can be challenging to solve,particularly with the long distances and multiple route options involved in global transportation.
It would be easy to assume that route planning is the responsibility of the carrier.In general,that is true,but global transportation managers must not take a total hands-off approach to this topic.They should be involved because effective routing impacts customer satisfaction,supply chain performance,and organizational success.Transit time and on-time performance depend heavily on proper scheduling and sequencing of stops.Effective routing also helps avoid risky locations,poorly equipped ports,and congested border crossing points that may drastically delay cargo flows.Product safety is the third concern when developing routes,particularly for surface transportation.Major trouble spots for hijacking and product theft such as the Gulf of Aden and the South China Sea should be factored into route planning.Land routes with poor quality roads and freight handling capabilities also pose problems.Sometimes a more expensive indirect or circuitous route is used to mitigate these safety risks.

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The transaction channel is that part of the logistics channel management that deals with when,where,and how goods,and their ownership is transferred.
The management of this is required to ensure that the buyer (importer)protects their financial interests and reduce risk.These risks could be no delivery of products after payment is made,or that the products are low quality or that the products might arrive damaged.
The seller (exporter)must also ensure that they are able to perform beyond the basics of product quality,price,and quantity.In global transactions,it is also important to clarify the location and point in time at which legal title for the goods transfers from the exporter to the importer.
When transfer of title occurs is important.Once that transfer occurs responsibility shifts.These responsibilities include making key decisions regarding mode and carrier selection,insurance coverage,carrying costs and routing.The transfer of ownership also determines who is responsible for payment of transportation services,insurance,and import duties.Finally,ownership determines responsibility for compliance with government regulations,management of the goods while in transit,and financial liability in the event of freight damage,loss,or delay.