Transport Network

Transportation and Logistics Goals Amanda Contreras November 16, 2012 640 The central goal of my teleph sensationr is to keep retail legal injurys low. Working with suppliers to ensure their prices are constantly low, but in any case means price changes are kept to a minimum. Aiming to become lowest woo producer, the firm can compete on the price with every other industries and earn higher unit profits. Cost reduction provides the focus of the presidential term strategy. It targets a broad market.Competitive advantage is achieved by driving down be. Price Leadership The Company is healthful known for its Every Day Low Pricing, but is aiming to give the consumer greater value for apiece product category. Through leverage selling general and administrative expenses, the Company can ask suppliers to bring efficiencies in the transportation of items. This can be the supplier to the distribution center, distribution center to the store and also within the store.Since transportat ion can be as much as one-half to two-thirds of the total salute of distributing product it only makes sense to drive is in as many efficiencies into your transportation network as you possibly can. The 1st strategy is to limit the margin that would abide to be paid to a third-party providing that service. The second strategy is controlling the fleet my company can control the quality and timing of the service to activate the freight from the distribution centers to the stores.That 2nd strategy is an meaning(a) goal in reducing labor costs and maximizing the utilization of assets and resources. Currently, the vendor manages nearly all vendor shipments to my company. My company arranges backhaul pick-ups at vendors after one of its trucks makes a delivery to its stores. More stock will be needed prior to the seasonal upturn in sales volume. As sales decline, less merchandise is needed. My company balances the need for speed with the costs ingrained in the mode of transport.This includes the rate charged for the service, minimum weight requirements, loading and unloading facilities, packaging, possible deterioration in transit, and any special services that may be required. The basic modes of transportation are water, rail, force carrier, air and pipeline. Water being the slowest mode with rail, motor carrier, and air following in nine of speed of delivery. Generally, the narrate is reversed when looking at costs. Selection of the appropriate carrier has several steps. firstly the firm selects a transportation mode.The shipper must compare the service desired with the rate or cost of service. Service usually means transit cartridge clip or the time that elapses from the time the consignor makes the goods ready(prenominal) for dispatch until the carrier delivers to the consignee. Once the mode and type of carrier is determined a final determination can be made based on other factors. Accessibility is one such factor. nearly firms have geographic lim its to their routing network. Others may not possess physical access to needed facilities or have the ability to provide the equipment and facilities that movement of a particular commodity may require.Reliability, the consistency of the transit time a carrier provides, is also a key factor. Finally, convenience and communication are other important considerations when selecting a carrier. Measures that a transportation firm would use to judge its performance include orders shipped on time, orders shipped complete, order preparation time, product availability, and transit time. From the customer perspective performance can be gauged from orders received on time, orders received complete, orders received damage free, orders filled accurately, and orders billed accurately.