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Transportation: A Global Supply Chain Perspective 9th Edition PDF – eBook

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Download Transportation: A Global Supply Chain Perspective 9th Edition PDF – eBook

Contents
Preface xv
About the Authors xviii
Part I
Chapter 1 Global Supply Chains: The Role and Importance of
Transportation 3
TRANSPORTATION PROFILE: Critical Role of Transportation in Global
Economy 4
Introduction 5
Global Supply Chain Flows 5
The Economic Basis and Logic of Improved Global Trade 10
Absolute and Comparative Advantage 11
Contributing Factors for Global Flows and Trade 12
Population Size and Distribution 12
Urbanization 16
Land and Resources 16
Technology and Information 17
Globalization 18
Supply Chain Concept 19
Development of Concept 19
GLOBAL PROFILE: EU: Be a Player, Not a Follower 19
ON THE LINE: Port Tracker Calls for Strong Annual Growth in First Half
of 2017 24
Summary 26
Study Questions 27
Case 1-1: Clearfield Cheese Company Case: A Sequel 28
Case 1-2: TEA Logistics Services, Inc. 30
Notes 31
Chapter 2 Transportation and the Economy 32
Introduction 33
Up and Down with the Big Muddy 33
Historical Significance 34
Economics of Transportation 35
Demand for Transportation 35
Passenger Demand 36
Transport Measurement Units 37
ON THE LINE: Cass Freight Index Paints Optimistic Future 37
Demand Elasticity 39
Freight Transportation Demand 40
Service Components of Freight Demand 42
TRANSPORTATION PROFILE: Uber Freight Makes Official Entrance into Trucking
Market 44
Value of Goods 45
Gross Domestic Product (GDP) 48
Environmental Significance 49
The Environment 49
Safety 50
Social Significance 50
Political Significance 51
Summary 51
Study Questions 52
Notes 52
Case 2-1: Highways Galore 53
Case 2-2: Transportation and Economic Activity 54
Chapter 3 Transportation Technology and Systems 55
TRANSPORTATION PROFILE: Cold Chain Pharma Logistics Is Heating Up 56
Introduction 57
Information Requirements 58
Quality Standards 58
Multidirectional Flow 59
ON THE LINE: Maersk Makes Bold Bid at Differentiation by Teaming
with CRM Giant 60
Decision Support 61
Transportation Software 61
Transportation Management Systems 62
Additional Applications 66
Transportation Software Selection and Implementation 66
Needs Assessment 66
Software Selection 67
Implementation Issues 68
Transportation Equipment Technology 69
Sustainability Initiatives 70
TRANSPORTATION TECHNOLOGY: The Electric Truck Race 71
Safety Efforts 72
Cargo Security Innovations 72
Emerging Technologies 73
Autonomous Transportation 74
Blockchain for Freight 75
GLOBAL PERSPECTIVES: Shipping Without Sailors 75
Next Generation TMS 76
Summary 77
Study Questions 78
Notes 78
Case 3-1: my IoT Inc. 81
Case 3-2: Vital-E Nutrition 82
Chapter 4 Costing and Pricing for Transportation 83
TRANSPORTATION PROFILE: Disintermediation to Hit Freight Brokerage 84
Introduction 85
Market Considerations 86
Market Structure Models 86
Theory of Contestable Markets 87
Relevant Market Areas 88
Cost-of-Service Pricing 89
Value-of-Service Pricing 93
Rate Making in Practice 99
General Rates 99
Rate Systems Under Deregulation 105
Special Rates 106
Character-of-Shipment Rates 107
ON THE LINE: Werner CEO: Truckload Rates Getting Back to “Equilibrium”
After Slump 108
Area, Location, or Route Rates 109
Time/Service Rate Structures 110
Other Rate Structures 111
TRANSPORTATION TECHNOLOGY: Freight Payment Versus Freight
Settlement 113
Pricing in Transportation Management 114
Factors Affecting Pricing Decisions 114
Major Pricing Decisions 115
Establishing the Pricing Objective 116
Estimating Demand 117
Estimating Costs 118
Price Levels and Price Adjustments 119
Most Common Mistakes in Pricing 121
Summary 122
Study Questions 122
Notes 122
Case 4-1: Mid-West Trucking 124
Case 4-2: Hardee Transportation 125
Appendix 4A: Cost Concepts 127
Accounting Cost 127
Economic Cost 127
Social Cost 128
Analysis of Cost Structures 128
Rail Cost Structure 133
Motor Carrier Cost Structure 133
Other Carriers’ Cost Structures 134
Notes 134
Appendix 4B: LTL and TL Costing Models 136
Operational Activities 136
Cost/Service Elements 136
TL Costing 136
Equipment Cost Data 137
LTL Costing 140
Equipment Cost Data 140
Conclusion 145
Appendix 4C: Yield Management Pricing 146
Seat Allocation 146
Overbooking 148
Suggested Readings for Part I 151
Part II
Chapter 5 Motor Carriers 154
TRANSPORTATION PROFILE: Increasing Complexity in Parcel 155
Introduction 156
Industry Overview 156
Significance 156
Types of Carriers 156
Number of Carriers 159
Market Structure 161
Competition 161
Operating and Service Characteristics 162
General Service Characteristics 162
Equipment 163
Types of Vehicles 164
Terminals 165
Terminal Management Decisions 169
Fuel Management 170
Cost Structure 178
Fixed Versus Variable Cost Components 178
ON THE LINE: The Never-Ending Truck Driver Shortage 179
Economies of Scale 181
Private Trucking 184
What Is Private Trucking? 184
Current Issues 186
Safety 186
Technology 187
Driver Turnover 188
Green and Sustainable Operations 189
TRANSPORTATION TECHNOLOGY: Truckers Prepare for Era of Driverless
Trucks—Coming Sooner Rather than Later 190
Financial Stability 191
Summary 191
Study Questions 193
Notes 193
Case 5-1: Hardee Transportation 196
Case 5-2: Cyclone Transportation 197
Chapter 6 Railroads 199
TRANSPORTATION PROFILE: Capturing Inventory In-Transit on Rail 200
Introduction 201
Industry Overview 202
Number of Carriers 202
Competition 203
GLOBAL PERSPECTIVES: Florida East Coast Railway to Be Acquired
by Grupo Mexico 205
Operating and Service Characteristics 206
General Service Characteristics 206
Constraints 208
Strengths 208
Equipment 209
Service Innovations 210
ON THE LINE: Schneider and CSX Ink New Rail Service Contract 213
Cost Structure 214
Fixed Costs 214
Semivariable Costs 215
Variable Costs 215
Economies of Scale 216
Financial Plight 217
Legislation Reform 218
Improved Service to Customers 219
Current Issues 219
Alcohol and Drug Abuse 219
Energy 220
Technology 221
TRANSPORTATION TECHNOLOGY: GAO Report Calls on Congress to Extend
Positive Train Control Deadline 221
Future Role of Smaller Railroads 222
Customer Service 223
Drayage for Intermodal Service 223
Summary 224
Study Questions 224
Notes 225
Case 6-1: CBN Railway Company 227
Case 6-2: Rail Versus Pipeline Investment 228
Chapter 7 Airlines 229
TRANSPORTATION PROFILE: Air: Ending on a High Note 230
Introduction 230
Industry Overview and Significance 231
Types of Carriers 231
Private Carriers 231
For-Hire Carriers 231
Market Structure 232
Number of Carriers 232
Competition 233
Intermodal 233
Intramodal 234
Service Competition 234
Cargo Competition 234
Operating and Service Characteristics 235
General 235
GLOBAL PERSPECTIVES: Air Cargo Link to Trade Growth 235
Speed of Service 236
Length of Haul and Capacity 236
Accessibility and Dependability 238
Equipment 238
Types of Vehicles 238
Terminals 239
ON THE LINE: USPS and FedEx Express Re-up on Air Transportation
Partnership 239
Cost Structure 240
Fixed- Versus Variable-Cost Components 240
Fuel 241
Labor 242
Equipment 242
Economies of Scale/Economies of Density 243
Rates 245
Pricing 245
Operating Efficiency 245
Current Issues 246
Safety 246
Security 247
Technology 248
Summary 248
Study Questions 249
Notes 250
Case 7-1: NextGen Technology 251
Case 7-2: Airline Consolidations 252
Chapter 8 Water Carriers and Pipelines 253
TRANSPORTATION PROFILE: Inland Waterways Realize Volume Increase 254
Introduction 254
Brief History of Water Transportation 254
Water Transport Industry Overview 255
Significance of Water Transport 255
Types of Carriers 257
TRANSPORTATION TECHNOLOGY: Federal Maritime Commission Hosts
Blockchain Discussion 258
Number and Categories of Carriers 259
Competition 259
Operating and Service Characteristics 260
Equipment 262
Cost Structure 266
Current Issues 267
Brief History of Pipelines 268
Pipeline Industry Overview 269
Significance of Pipelines 269
Types of Carriers 270
Ownership 270
Number of Carriers 271
Operating and Service Characteristics 272
Relative Advantages 272
Relative Disadvantages 273
Competition 273
Equipment 274
Commodity Movement 275
Cost Structure 276
ON THE LINE: OPEC’s Production Cuts Are Greatly Overrated 277
Summary 278
Study Questions 279
Case 8-1: Great Lakes Carriers: A Sequel 281
Case 8-2: The Keystone Pipeline 283
Suggested Readings for Part II 284
Part III
Chapter 9 Third Party Logistics 287
TRANSPORTATION PROFILE: Key Criteria for Evaluating Potential 3PL Providers 288
Introduction 288
Industry Overview 289
Types of 3PL Providers 290
ON THE LINE: Uber Freight Makes Official Entrance into Trucking Market 294
3PL Services and Integration 295
GLOBAL PERSPECTIVES: Global 3PL Management: Factors to Keep at
Top of Mind 299
3PL User Overview 300
Reasons for Outsourcing 300
Primary Activities Outsourced 302
Results Achieved 303
Establishing and Managing 3PL Relationships 303
Strategic Needs of 3PL Users 307
TRANSPORTATION TECHNOLOGY: The Payoffs of 3PL Investment in IT
Capabilities 309
3PL Versus Private Carrier 311
Operating Cost 311
Summary 317
Study Questions 318
Notes 319
Case 9-1: Closet Concepts Ltd. 321
Case 9-2: C.H. Robinson Worldwide, Inc. 323
Appendix 9A: Third-Party Logistics and TL Auction 326
TL Auction: The Traditional Procedure 326
The limitation with Traditional Procedure 327
A New Recent Approach 328
Future Direction 329
Chapter 10 Transportation Risk Management 331
TRANSPORTATION PROFILE: The New Transportation Risk 332
Introduction 332
Risk Concepts 333
Transportation Risks 334
Product Loss 335
Product Damage 335
Product Contamination 336
Delivery Delay 336
Supply Chain Interruption 337
Security Breach 337
Transportation Risk Management Process 338
Step 1—Risk Identification 339
GLOBAL PERSPECTIVES: Transportation Risk—Who or What Is to Blame? 340
Step 2—Risk Assessment 341
Step 3—Risk Management Strategy Development 342
ON THE LINE: Hedging Those Transportation Bets 344
TRANSPORTATION TECHNOLOGY: Those Things Can Reduce Your Risk 347
Step 4—Risk Review and Monitoring 349
Summary 349
Study Questions 350
Notes 351
Case 10-1: Young Again Pharmaceuticals 353
Case 10-2: RIoT Athletic 355
Chapter 11 Global Transportation Management 357
TRANSPORTATION PROFILE: F4
—Fast Flowing Fast-Fashion 358
Introduction 358
Transaction Processes 359
Terms of Trade 359
Cargo Insurance 362
ON THE LINE: Cargo Theft—A Global Epidemic 364
Terms of Payment 365
Distribution Processes 366
Mode Selection 366
International Air 371
Intermodal Transportation 373
GLOBAL PERSPECTIVES: Are Bigger Ships Better? 377
Carrier Selection 377
Route Selection 378
Delivery Execution 379
Communication Processes 382
TRANSPORTATION TECHNOLOGY: Paperless Global Transportation—Slow but
Steady Progress 387
Summary 391
Study Questions 392
Notes 392
Case 11-1: 3D Printers for the Masses 395
Case 11-2: As the Blade Turns 396
Chapter 12 Governmental Roles in Transportation 397
TRANSPORTATION PROFILE: Late Push to Extend ELD Implementation Date
Nixed by House Vote 398
Introduction 399
Transportation Policy 400
Why Do We Need a Transportation Policy? 401
Who Establishes Policy? 402
ON THE LINE: The Fight Over Five Feet 405
Transportation Regulation 406
Basis of Regulation 407
Responsibility for Regulation 407
The focus of Regulation 410
GLOBAL PERSPECTIVES: State of Ocean Cargo: Carriers Cope with Regulatory
Restrictions 413
A Concise Chronology of Transportation Regulation 418
Transportation Planning, Promotion, and Programs 419
Transportation Planning and the Public Sector 420
TRANSPORTATION TECHNOLOGY: A Unique and Clean Approach to Shore Power 420
An Approach to Public Project Planning Analysis 421
Modal Promotion Activities 423
Paying for Transportation Programs 427
Summary 428
Study Questions 429
Notes 430
Case 12-1: Who Pays the Price? 431
Case 12-2: Federal Highway Infrastructure Funding 432
Chapter 13 Issues and Challenges for Global Supply Chains 433
TRANSPORTATION PROFILE: It’s “Beyond Time” to Modernize U.S. Infrastructure,
U.S. Chamber of Commerce Urges 434
Introduction 435
Transportation Infrastructure 436
Highway Traffic and Infrastructure 437
Railroad Traffic and Infrastructure 438
Waterway Traffic and Infrastructure 439
Talent Management 441
Sustainability: Going Green with Transportation 444
ON THE LINE: Walmart’s “Project Gigaton” Focuses on Major Supply Chain
Greenhouse Gas Emissions Reduction Effort 448
Fuel Cost and Consumption 448
Motor Carriers 449
Air Carriers 450
Water Carriers 450
Rail Carriers 451
Pipeline Carriers 451
Carriers’ Responses 451
Summary 453
Study Questions 454
Notes 454
Case 13-1: Sustainability and Night Delivery 456
Case 13-2: Bald Eagle Valley Trucking 458
Suggested Readings for Part III 459
Glossary 461
Name Index 473
Subject Index 476

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