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33 Outsourcing: services and decision criteria

Rushton, Alan Kogan Page ePub

33

Outsourcing: services and decision criteria

Introduction

In the final section of Chapter 4 it was noted that probably the most important channel decision for those operating in distribution and logistics is whether to use an own-account (in-house) operation or whether to outsource to a third-party logistics (3PL) service. The breakdown of the use of outsourcing in different countries was outlined using data from a few recent studies. This chapter, and the next two chapters, are all concerned with outsourcing, beginning here with a review of the different outsourcing services that are available. Chapter 34 describes the detailed steps of an approach for the selection of a service provider; Chapter 35 considers the important question of contractor management. Continuing developments in logistics outsourcing were covered in Chapter 5, where the concept of fourth-party logistics (4PL) was described.

This chapter begins with a description of the various outsourcing operations and services that are offered by third-party logistics service providers. The question of whether to adopt a dedicated or a multi-user approach is reviewed. The drivers and drawbacks of outsourcing are also discussed. Finally, the critical factors of choosing between different service providers are considered.

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20 Receiving and dispatch

Rushton, Alan Kogan Page ePub

20

Receiving and dispatch

Introduction

Both the receiving and the dispatch areas of a warehouse are critical to its successful operation. Receiving is important, as it forms the basis for all the subsequent activities of the warehouse. For example, goods need to be passed through receiving rapidly so that they quickly become available for picking customer orders, and this must be carried out with a high degree of accuracy to ensure that the correct goods are received and located in their assigned locations. The dispatch activity is critical, as it is the customer-facing aspect of the warehouse and therefore it must operate effectively to ensure that all goods are dispatched to the customers on time. Operational failures in either of these areas will quickly result in service-level failures, which may be damaging to the company and may be costly to rectify.

Receiving processes

The receipt of goods into a warehouse needs to be a carefully planned activity. In most large warehouses, incoming vehicle loads are booked in advance so that the appropriate resources can be allocated to the activity. On arrival, drivers report to the gatehouse, where staff check the vehicle documentation and direct the driver where to go, either directly to an unloading bay or to a parking area.

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26 Rail and intermodal transport

Rushton, Alan Kogan Page ePub

26

Rail and intermodal transport

Introduction

Around the world both the developed and rapidly developing nations are investing very large sums of money in developing their transport infrastructures. Roads, airports, seaports and railways are all being developed, especially in countries such as China and India. Massive investments in both high-speed passenger and freight rail systems are being made. China alone is investing something in the order of hundreds of billions of US dollars in passenger and freight rail lines. A 2,298 kilometre (1,428 mile) high-speed passenger rail line from Beijing to Guangzhou in south-eastern China opened at the end of 2012 with a planned extension to Hong Kong. It has been compared with the development of the rail network in the United States at the start of the 20th century . China is by no means alone in recognizing the environmental and economic benefits of rail links especially over long distances.

This chapter is primarily concerned with intermodal transport. However, as railways play a key role in transporting intermodal containers as well as carrying large volumes of bulk freight such as coal, grain, fuel and other bulk commodities, some wider information on rail transport has been included.

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36 Security and safety in distribution

Rushton, Alan Kogan Page ePub

36

Security and safety in distribution

Introduction

Terrorist attacks and crimes against vehicles and property have sadly become almost an everyday feature of life in todays world. The costs associated with the disruption caused by these events are difficult to quantify but are all too real to the victims. Management time, replacement of assets, service failures, increased insurance costs, legal costs and general upheaval are some of the consequences that may be expected.

Since the attacks on the World Trade Center in New York and the Pentagon in Washington, DC on 11 September 2001, the whole area of logistics security has attracted a lot of attention from national governments. One direct response to these terrorist outrages is a number of initiatives instigated by the United States government. CustomsTrade Partnership against Terrorism (CTPAT), Free and Secure Trade (FAST), Container Security Initiative (CSI), and Advanced Manifest Regulations (AMR) the 24-hour rule were introduced to reduce the likelihood of another attack. As we all know, terrorist attacks have by no means been limited to the United States, and this has led to questions being asked about supply chain vulnerability.

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29 Road freight transport: planning and resourcing

Rushton, Alan Kogan Page ePub

29

Road freight transport: planning and resourcing

Introduction

In this chapter the emphasis is on the means of planning and resourcing for road freight transport. Some of the key planning aspects for road freight transport are discussed in the first section. Various fleet management information systems are outlined. These are aimed specifically at assisting the transport manager to monitor, control and administer fleet operations.

Road-freight transport operations can be broken down into two main types primary transport and secondary transport. It is noted that because of service imperatives and the multi-drop nature of most secondary transport operations, they are usually planned and run using routeing and scheduling tools and techniques.

It is also shown that road-freight transport resources need to be assessed in two different areas planning and operational. Planning is where the basic resource requirements for transport are determined by the identification of the appropriate number and type of vehicles and drivers that are needed for the fleet to undertake an operation in the medium or long term. Operational is where the aim is to maximize the utilization and effectiveness of existing resources on a daily basis. However, both of these objectives can be achieved using the same method, which is by routeing and scheduling either manually or using a computer package. This, then, provides the main content for this chapter.

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