The Definitive Guide to Transportation: Principles, Strategies, and Decisions for the Effective Flow of Goods and Services : 9780133449099

The Definitive Guide to Transportation: Principles, Strategies, and Decisions for the Effective Flow of Goods and Services

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Pearson Higher Ed USA
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The proper management of transportation processes and issues is critical to fulfilling customer demand, and to the ultimate success of a supply chain. Now, there’s an authoritative and comprehensive guide to managing transportation processes and operations in any supply chain. Authored by leading expert Thomas Goldsby alongside the Council of Supply Chain Management Professionals (CSCMP), this text focuses on the key principles, strategies, and decisions required for the cost-efficient, effective flow of goods between sellers and buyers. Coverage includes: 

  • Basic transportation management concepts and their essential roles in demand fulfillment, including transportation links, efficiency, and aligning capabilities with customer requirements
  • Key elements, processes, and interactions of transportation operations management, including transportation modes, execution, and control
  • Design principles and strategies for establishing efficient, effective, and sustainable transportation operations, including functional control, terms of sale, outsourcing, modal and carrier selection, rate negotiation, contracting, consolidation, 3PLs, sustainability, and overcoming barriers to success
  • The critical role of technology in managing transportation operations and product flows, including the latest TMS tools for routing, scheduling, load planning, carrier selection, load tendering, status tracking, appointment scheduling, performance reporting, scorecarding, and auditing
  • Requirements and challenges of planning and moving goods between countries, including freight flows, intermodal options, planning/execution, ocean shipping and international air services; customs; global challenges, and regulation
  • Best practices for assessing performance using standard metrics and frameworks, including KPIs, tradeoff analysis, and more
Table of contents
Chapter 1  Transportation in Business and the Economy     3

Transportation and Logistics     4
Transportation and the Supply Chain    6
Transportation and the Economy     7
Transportation, Society, and the Environment    10
Summary     12
Endnotes     12
Chapter 2  A Survey of Transportation Modes     15
An Overview of the Modes     15
The Five Modes of Transportation     17
   Road Transportation    17
   Rail Transportation     25
   Water Transportation     31
   Air Transportation     36
   Pipeline Transportation     37
Intermodal Transportation     38
Summary    44
Endnotes     45
Chapter 3  The Economics of Transportation     47
Accounting Costs and Economic Costs     47
Fixed Costs and Variable Costs     48
Carrier Cost Metrics    50
Carrier Pricing and Costs for Shippers     54
Expressions of Transportation Rates     56
Additional Services and Fees     59
Summary     61
Endnotes     62
Chapter 4  The Transportation Services Market     63
Private Transportation     63
   Private Road Fleets    63
   Advantages of Private Road Fleets     65
   Other (Nonroad) Private Fleets     66
Outsourcing Transportation     67
   Contract Carriage (2PLs)     67
   Third-Party Logistics Providers (3PLs) 67
   Lead Logistics Providers/Integrators (4PLs)     70
   Freight Forwarders     71
   Difference Between 3PLs and Freight Forwarders     72
   Brokers     73
Summary    74
Endnotes     74

Chapter 5  An Overview of Transportation Management     79

Transportation Management Decision Making    79
Network Design     80
   Typology of Transport Networks     81
   Optimization    83
   Heuristics and Simulations    84
Lane Analysis    85
Mode and Carrier Selection    90
Service Negotiations    94
   Shipper—Receiver Negotiations     94
   Shipper—Carrier Negotiations    96
   Contract Versus Spot Rates     96
   Contractual Provisions     97
Service Evaluation     99
Dock- and Movement-Level Decisions     102
Transportation Documentation     103
   Documents Common to Domestic and International Transportation    104
   Documents Exclusive to International Transportation     106
Summary     108
Endnotes     109
Chapter 6  Transportation Technologies     111
Understanding the Need for Technology: The Bullwhip Effect    113
Technology Architecture     115
   Hosted Systems/Hosted Software     115
   Software as a Service (SaaS)     115
Electronic Data Interchange (EDI)     116
   What Is EDI?     116
   Benefits and Applications of EDI     118
   EDI Implementation     118
Transportation Management System (TMS)     119
   Benefits and Applications of TMS     120
   TMS Implementation     124
Routing and Scheduling (R&S) Systems     125
   What Are R&S Systems?     125
   Benefits and Applications of R&S Systems     126
   R&S System Implementation     128
Automatic Identification    129
   What Is Automatic Identification?     129
   Bar Codes     129
   The Serial Shipping Container Code (SSCC): A Special Tool in Transportation Management     130
   Radio Frequency Identification (RFID)     133
Control and Monitoring Systems     136
   What Are Control and Monitoring Systems?     136
   Location Monitoring Systems    136
   Temperature Control and Monitoring Systems     138
Summary     140
Endnote     141
For Further Reading     141
Chapter 7  Transportation’s Role in Logistics and Supply Chain Strategy     143
Lean Logistics     143
Shared Transportation Resources     146
Merge-in-Transit (MIT)     147
Vendor-Managed Inventory (VMI)     149
Collaborative Planning, Forecasting, and Replenishment (CPFR)     150
Collaborative Transportation Management (CTM)     151
Summary     154
Endnotes     155
Chapter 8  Transportation and Global Supply Chains    157
Need for Global Supply Chains     160
International Modes of Transportation    161
   International Ocean Transportation    162
   International Air Transportation    168
   Intermodal Transportation    174
Enablers and Key Players in Transporting Goods to Global Supply Chains    179
Incoterms    180
Key Documents Used in Enabling Transportation for Global Supply Chains     185
Summary     187
Endnotes    188
Chapter 9  Transportation and Sustainability     189
Transportation’s Role in Sustainable Supply Chain Management    190
   The Need for Sustainability in Transportation     191
Triple Bottom Line (TBL)     197
Potential Solutions to Make Transportation More Sustainable    199
Summary    202
Endnotes     203

Chapter 10  The Future of Transportation     207

Changes Affecting Consumer Shopping Behavior     209
   Internet Retailing (IR)     209
   Additive Manufacturing/3D Printing     210
Changes in Technology    213
   Self-Driven Vehicles     213
   Intelligent Transport System (ITS)     216
Geopolitical, Legislative, and Societal Changes     217
   Rising and Erratic Fuel Prices     217
   Global Warming and Greenhouse Gases     219
   The Need for Infrastructure to Support Growing Populations     219
   Increasing Demands for Security and Safety in Transportation     221
Summary     222
Endnotes     223
For Further Reading     223
Index     225

 The most authoritative, up-to-the-minute guide to planning, running, measuring, and improving supply chain processes and operations related to transportation

Features & benefits

The complete guide to planning, implementing, measuring, and optimizing world-class supply chain transportation and delivery processes 

  • Covers planning, designing, controlling, and coordinating all facets of supply chain transportation – including the special challenges of global environments
  • Introduces crucial concepts including transportation links, efficiency, modes, execution, control, TMS technology, metrics, and more
  • For all supply and operations management practitioners and students concerned with transportation and related processes
  • Co-authored with the world-renowned Council of Supply Chain Management Professionals (CSCMP)
Author biography
Dr. Thomas J. Goldsby is Professor of Logistics at The Ohio State University. Dr. Goldsby has published more than 50 articles in academic and professional journals and serves as a frequent speaker at academic conferences, executive education seminars, and professional meetings around the world. He is co-author of Lean Six Sigma Logistics: Strategic Development to Operational Success and Global Macrotrends and Their Impact on Supply Chain Management. He serves as Associate Director of the Center for Operational Excellence, research associate of the Global Supply Chain Forum, and a Research Fellow of the National Center for the Middle Market, all with The Ohio State University. Dr. Goldsby has received recognitions for excellence in teaching and research at Iowa State University, The Ohio State University, and the University of Kentucky. He is co-editor of the Transportation Journal and co-executive editor of Logistics Quarterly magazine. He serves on the boards for the American Society of Transportation & Logistics and Supply Chain Leaders in Action, the Research Strategies Committee of CSCMP, and as a reviewer for the Gartner Top 25 Supply Chains, LQ Sustainability Awards, SCLA Circle of Excellence Award, CSCMP Supply Chain Innovation Award, and University of Kentucky Corporate Sustainability Award programs. He has conducted workshops and seminars throughout North America, South America, Europe, Asia, and Africa.

Dr. Deepak Iyengar received his Ph.D. in the area of Logistics and Supply Chain Management from the University of Maryland, College Park. His areas of research and teaching include logistics and sustainability in supply chains. He is currently an Assistant Professor at Central Washington University, Ellensburg in the Department of Supply Chain Management. Dr. Iyengar has published works in leading supply chain and logistics journals like Journal of Business Logistic, International Journal of Physical Distribution & Logistics Management, and Transportation Journal, to name a few. In addition, he has mentored students and led projects using the methodology of Lean Six Sigma to various 3PLs.

Dr. Shashank Rao is the Jim W. Thompson Assistant Professor of Supply Chain Management at Auburn University. He holds a B.S. in Environmental Engineering, an M.B.A. in Marketing, and a Ph.D. in Operations and Supply Chain Management. Along with his academic training, Dr. Rao has several years of industry experience in the banking and engineering sectors. He has also served as a consultant to manufacturers and retailers on issues like order fulfillment and distribution management. His research interests focus on retailing, order fulfillment, and logistics customer service. He has published several articles in academic and professional journals of repute such as the Journal of Operations Management, Journal of Business Logistics, International Journal of Logistics Management, International Journal of Physical Distribution and Logistics Management, Industrial Management, Industrial Engineer, and more. He also serves on the Editorial Review Board of the Journal of Business Logistics, the Journal of Supply Chain Management, and the Journal of Operations Management, along with serving as an Associate Editor at the Journal of Organizational Computing and Electronic Commerce. He is a frequent speaker at academic conferences, executive education seminars, and professional meetings, and also conducts hands-on training on supply chain technologies like TMS, ERP, and Routing Systems.

The Council of Supply Chain Management Professionals (CSCMP) is the preeminent worldwide professional association dedicated to the advancement and dissemination of research and knowledge on supply chain management. With nearly 10,000 members representing nearly all industry sectors, government, and academia from 67 countries, CSCMP members are the leading practitioners and authorities in the fields of logistics and supply chain management.

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