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Answer to #1
F
This type of error is referred to as refusals. No contacts are people who are not accessible on the first and second contact.
Answer to #2
The bill of lading is probably the single most important transportation document. It originates the shipment, provides all the information the carrier needs to accomplish the move, stipulates the transportation contract terms including the scope of the carrier's liability for loss and damage, acts as a receipt for the goods the shipper tenders to the carrier, and in some cases shows certificate of title to the goods.
The bill of lading is created by the shipper of the goods and is either negotiable or nonnegotiable. A straight bill of lading is nonnegotiable, and the carrier must deliver the goods only to the specific receiving organization and destination in return for freight charge payment. An order bill of lading is negotiable and serves as a title to the goods listed on the document. The owner of the goods has the right to transfer title to the goods to another party and reroute the shipment to a location other than the one listed on the bill of lading.
Bills of lading also differ by type of move and whether the transportation is domestic or international.
The freight bill is the carrier's invoice for the fees the carrier charges to move a given shipment. The freight bill lists the shipment, origin and destination, consignee, items, total weight, and total charges. The freight bill differs from the bill of lading in that the freight bill sets forth the charges applicable to the shipment while the bill of lading sets forth the terms of the shipment and is a document of title.
A freight claims form is a document that the transportation buyer files with the carrier to recoup monetary losses resulting from the carrier's failure to properly protect the freight. The shipper must file in writing freight claims with the carrier within a timeframe specified in the contract. Freight claims can be filed for visible damage or shortages that are detected when the product is received and inspected, for concealed losses that are not discovered until packages are opened, or for financial losses due to unreasonable delays.
Carrier liability is limited if the shipper elected to send the goods under a released value in exchange for lower freight rates. Carriers are not liable for freight claims if the damage is attributable to some uncontrollable factor, such as a natural disaster, military attack, extreme fragility, etc.
Answer to #3
F
The number of no contacts in survey research has been increasing because of the proliferation of answering machines, mobile phones, and the growing use of caller ID to screen calls.
Answer to #4
Carrier selection is a specialized purchasing decision that typically will be made by a logistics, transportation, or traffic manager who has expertise and experience in the purchase of transportation services. After the modal decision has been made, attention turns to selecting the individual transportation service providers within the mode. Like the modal decision, carrier selection is based on a variety of shipment criteria and carrier capabilities: transit time average and reliability, equipment availability and capacity, geographic coverage, product protection, and freight rates.
A major difference between modal and carrier selection is the number of options. Modal selection involves six primary options, but the carrier selection may involve fewer or many more alternatives. In the case of rail transportation, many markets are only served by a single carrier and the choice is limited. At the other extreme is truckload transportation where dozens of carriers serve a particular market.
Another difference is the frequency of the decision. Carrier selection requires more active and frequent engagement of the transportation buyer than does the more long range modal selection decision. This engagement does not focus on choosing a new carrier for each freight move; it focuses more on the transportation buyer remaining vigilant and managing the performance of chosen carriers. It is critical to monitor each carrier's service level and freight rates on an ongoing basis. Should carrier performance deteriorate, it may be necessary to select new service providers.
The type of service provided within a mode impacts carrier selection. Most carriers have their roots in one of two types of servicedirect service or indirect servicebetween which customers must choose.
Within a mode, most carriers have the capabilities to provide a similar level of service, but these service levels can and do vary greatly from one transportation company to another. Also, since the cost structures are essentially the same for carriers in a given mode, their rates tend to be aligned for a given movement.
Given this similarity, transportation rates tend not to be the most important criterion in carrier selection.
Service performance is the key determinant for this decision. Carrier selection research suggests that reliability of on-time delivery and on-time pickup, technical capabilities, carrier response to emergencies, information sharing, freight damage experience, carrier financial stability, and total transit time are among the most important criteria to transportation service buyers.
Carrier selection strategy commonly focuses on concentrating the transportation buy with a limited number of carriers. Using a small group of carriers helps the organization leverage its purchasing dollars for lower overall rates, build relationships with service providers who gain a better understanding of freight flows and requirements over time, and effectively monitor performance of the carrier base. In many cases, the core carriers become an indispensable extension of the organization's transportation management team; they are able to manage freight flows across the supply chain with limited direction or oversight. The ability to rely on the transportation expertise of trusted core carriers also allows the organization to focus its attention on other supply chain issues.
Answer to #5
T
Answer to #6
A critical transportation management issue is modal selection; it affects how quickly and efficiently products will flow across portions of the supply chain. If an organization has determined that controlling the transportation process and using external service providers (for-hire carriers or 3PLs) are in its best interest, it must then determine which mode(s) of transportation to use. Choosing among the six modal options is a function of three factorsmodal capabilities, product characteristics, and modal freight pricing.
All modes provide the same basic service of moving freight from point to point in the supply chain. However, the modes serve different customer requirements and goods in terms of value, tonnage, and ton-miles. The reason for the different uses is that each mode has unique attributes and capabilities that impact its ability to serve specific customer requirements.
Numerous studies have been conducted over the years to identify the most important performance capabilities in modal selection. These studies commonly identify accessibility, transit time, reliability, and product safety as the key determinants in choosing a mode. Of course, cost is another critical consideration in modal selection.
Accessibility determines whether a particular mode can physically perform the transport service required. Accessibility considers the mode's ability to reach origin and destination facilities and provide service over the specified route in question. The geographic limits of a mode's infrastructure or network and the operating scope that governmental regulatory agencies authorize also affect accessibility. Accessibility problems often eliminate a mode from consideration during the selection process.
Accessibility advantage: Given the road networks in most countries, motor carriage is more accessible to sellers and buyers than any other mode for domestic transportation.
Accessibility disadvantage: Air, rail, and water. All face accessibility limitations due to infrastructure issues. Still, all three modes serve virtually every major market thanks to intermodalism.
Transit time is the total elapsed time that it takes to move goods from the point of origin to the destination (i.e., door to door). This includes the time required for pickup activities, terminal handling, linehaul movement, and customer delivery. Companies typically monitor average transit time for their service providers. Transit time is impacted by the speed of the mode and the ability of the mode to handle pickup and delivery responsibilities.
Transit time advantage: Air transportation is very fast for the linehaul move but loses some velocity as pickup and delivery activities must be handled by truck. Motor carriage is also relatively fast because it can provide more direct movement from origin to destination far more often than any other mode.
Transit time disadvantage: Rail, water, and pipeline are extremely slow with average transit speeds of 22 miles per hour, 59 miles per hour, and 34 miles per hour, respectively.
Reliability is a critical issue. Many companies feel that transit time reliability is more important than speed as it impacts their ability to plan supply chain activities. Reliability refers to the consistency of the transit time provided by a transportation mode. It is easier to forecast inventory needs, schedule production, and determine safety stock levels if it is known with some certainty when goods will arrive.
Reliability is measured by the statistical variation in transit time.
Modal reliability is impacted by a variety of factors including equipment and labor availability, weather, traffic congestion, freight-handling requirements, number of terminal stops involved, and other factors. Internationally, reliability is impacted by distance, port congestion issues, security requirements, and border crossings, especially when the two countries do not have a proactive trade agreement.
Reliability advantage: Motor carriers and air carriers, as they are the most reliable (variability relevant to average transit time).
Reliability disadvantage: Water carriers and rail carriers. With capacity and congestion challenges, they have become less consistent. As a result, some customers have reduced their use of these modes when possible.
Product Safety Safety is critical to the achievement of customer service, cost control, and supply chain effectiveness. From a safety standpoint, goods must arrive at the destination in the same condition they were in when tendered for shipment at the origin. Proper precautions must be taken to protect freight from loss due to external theft, internal pilferage, and misplacement, as well as damage due to poor freight-handling techniques, poor ride quality, and accidents. Safety is often pursued through substantial protective packing.
Safety advantage: Air transportation and motor carriage have the best reputations for product security. Their equipment provides excellent ride quality and protection from the elements. Faster transit times also reduce the opportunity for theft and other mishaps.
Safety disadvantage: Rail and water face significant challenges to maintaining product integrity. Goods moving via rail encounter a great deal of vibration, swaying, and jarring. Water transportation often exposes goods to the elements, excessive movement, and rough handling during the loading and unloading processes.
Cost The cost of transportation is an important consideration in the modal selection decision, especially when a low-value commodity needs to be moved. Transportation costs include the rate for moving freight from origin to destination plus any accessorial and terminal fees for additional services provided. Examples of these additional costs include inside delivery to a retailer located inside a mall, packing freight in crates for international delivery, or setting up a delivery of furniture in a residential location. A number of factors are taken into consideration when freight rates are developed, including weight of the shipment, distance from origin to destination, nature and value of the product, and the speed required.
Cost advantage: The cost of transportation service varies greatly between and within the modes. In general, pipeline, water, and rail service are low cost transportation methods. The tradeoff, of course, is slow speed, which forces a company to hold a greater level of inventory to meet demand during these longer transit times.
Cost disadvantage: Motor carriage and air transportation are high-cost modes compared to the others. On average, motor carriage is about 10 times more expensive than rail, and air service is more than twice the cost of motor carriage.
Given the varying capabilities and cost of each transportation mode, it is obvious that modal selection is not a quick and easy process.
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