Phrase Warren Buffett
Price is what you pay, value is what you get
What is the trade-off between low cost and high service?
transportation is largest element of logistics cost (rising fuel costs, environmental cost of carbon footprint)
transportation managers are responsible for inventory to be positioned in a timely and economical manner
What are the economic drivers that influence rates?
Distance
Weight
Density
Handling
Liability
What are the costing methods to allocate costs?
Variable Costs
only incurred if you operate the vehicle
Fixed Costs
not influenced by shipment volume, must be covered by contribution above variable costs
Joint Costs
for example backhaul from a destination
Common Costs
incurred on behalf of all or selected group, for example terminal or management expenses
What are the pricing strategies used to set rates?
Cost-of-Service Strategy
cost of service + percent profit margin
Value-of-Service Strategy
based on value received by the shipper
Combination Pricing Strategy
combination of both
CAPEX vs. OPEX
Capital Expensive
charte hire of the ship, depreciation costs, capital investments (containers, port facilities, upgrade fuel system etc.)
Operational Expensive
port charges which varies on size, length of stay of the ship, amount of fuel consumption (mainly variable costs)
What are the problems and challenges in moving special cargos?
coordination
manpower
preparation
time sensitive?
where to load?
special requirements?
which port of loading? flexible?
when moving cargo?
liability?
What is the key document involved in transportation?
BILL OF LADING
legal document issued by a carrier to a shipper that details the type, quantity and destination of the goods being carried
serves as a shipment receipt, must accompany the shipped products
contract between carrier and shipper
bill of lading can prevent asset theft
represents the agreed terms and conditions
What is a shipper, carrier, consignee?
shipper: company/person who is owner of commodities shipped
carrier: company/person who transports commodities
consignee: company/person who receives commmodities
Incoterms 2020
EXW
FCA
FAS
FOB
CFR
CIF
CPT
CIP
DPU
DAP
DDP
Ex Works
Free Carrier
Free Alongside Ship
Free on Board
Cost & Freight
Cost, Insurance & Freight
Cost Paid to …
Carrier & Insurance Paid to …
Delivered at Place Unloaded
Delivered at Place
Delivered Duty Paid
Zuletzt geändertvor 2 Jahren