Transportation Optimization
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.
Your 200- to 250-word proposal is due by Day 3 of the week. Support your proposal with the data from credible sources, such as your textbook, professional business publications, and articles assigned in this week’s required and recommended readings. Reference your sources of information in a proper APA style according to the guidelines suggested by the Ashford Writing Center.
Transportation Optimization
Name
Course
Institution
Date
* Describe the equipment to be utilized, such as truck trailer-on-flatcar, container-on-flatcar, or intermodal-surface containers.
The equipment to be used is the intermodal-surface containers intermodal-surface containers where there are shipping and freight options that combine trailer-on-flatcar (TOFC) and container-on-flatcar (COFC). TOFC includes the truck semitrailers that are part of railroad trains and in COFC there are containers (Compton's by Britannica, 2019). The intermodal makes it possible to cover more states and transit using different transportation lines.
* Analyze freight rates, and choose between full-truckload (TL) and less-than-truckload (LTL) rates.
Pricing will focus on the full-truckload (TL) load rates where the full truck cargo is placed in the trucks, and there is up to 25,000 lbs worth of products to be shipped in different locations and then heading to ports. In the case of ports, the LTL rate is used as there will be different freight containers from multiple shippers. The carrier size and productivity are considered when evaluating the need to increase volume and carrier performance (Miller & Muir, 2020).
* 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.
The Electronic Data Interchange (EDI) Company will send shipment data and information electronically to partners when necessary. The company will customize data feeds to meet user needs and deliver as required. Another option is the Application Programming Interface (API) and web services trucking to tailor logistics solutions and pass i...