transportation

CHAPTER 8Transportation

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Chapter Objectives• To examine transportation’s role in logistics and

its relationship to the marketing activities of an organization.

• To identify various modes, intermodal combinations, and other transportation enities available for distributing products to customers.

• To summarize transportation regulation and deregulation, and their effects on shippers and carriers.

• To examine global aspects of transportation.


Transportation


Introduction

In United State, transportation expenditures constitute approximately 6.0%of gross domestic product (GDP). In 1999, transportation costs amountedto $554 billion (Delaney, 2000).


Introduction

The rate of growth in the amount spend on freight transportation has beenslower since 1980-81 due to economic deregulation of transportation, introductionof new technologies, and implementation of many leading-edge practices and management philosophies.


Transportation infrastructure supports the flow of our nations economy

Table 8.1 The Nations’ Freight Bill ($ billions)

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• Product movement is the movement of inventory to specified destinations– Restrictive element—in-transit inventory is “captive”,

usually inaccessible during transportation– Flexible element—inventory can be diverted during

shipment to a new destination

• Transportation consumes time, financial, and environmental resources– Transportation is more than 60% of the cost of logistics– One of largest consumers of oil and gas in US– Impacts traffic congestion, noise and air pollution

Transport functionality primarily consists of product movement services


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Transport participants

• Shipper• Consignee (Receiver)• Carrier and Agents• Government• Internet • Public


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• Shipper and consignee have a common interest in moving goods from origin to destination within a given time at the lowest cost

• Carriers desire to maximize their revenue for movement while minimizing associated costs

• Agents (brokers and freight forwarders) facilitate carrier and customer matching

• Government desires a stable and efficient transportation environment to support economic growth

• Public is concerned with transportation accessibility, expense, and standards for security, safety and the environment

Role and perspective of participants


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• The Internet now provides the vital communications links between the transactional participants (shipper-carrier-consignee)– Replacing phone and fax technologies

• Web-based enterprises provide information marketplaces– Freight matching– Fuel, equipment, parts and supplies purchases

Role of the Internet in transportation


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Time dan Place Utility• Logistics mencakup pergerakan produk (materials, parts,

supplies & finished goods) mulai dari titik asal ke titik konsumsi.

• Transportasilah yang menyebabkan terjadinya pergerakan produk, ada 3 aspek transportasi: availability, adequacy, dan cost (AAC)

• Transportasi mencipta: Place utility Time utility (Note: warehousing dan storage utamanya

mencipta time utility)Transportasi menentukan seberapa cepat dan seberapa konsisten produk bergerak dari satu titik ke titik lainnya. Kedua faktor ini disebut time-in-transit dan consistency of service. Jika produk tidak tepat waktu, bisa berakibat lost sales, customer dissatisfaction dan production downtime.

United Parcel Service (UPS), Federal Express (FedEx), DHL, Roadway Package Express (RPS) can increase the time & place utility through fast & consistent delivery.


Transportation – Logistics – Marketing Interfaces

• Availability, Adequacy dan Cost (AAC) dari transportasi sangat penting dalam mencipta place utility dan memberi kontribusi pada time utility.

• Products: produk apa yang dibuat dan kesulitan pengangkutannya, biaya transportasi, ketersediaan alat transportasi dan kapasitas alat angkut sangat memengaruhi pengambilan keputusan produk.

• Pricing: inefisiensi dan biaya berlebihan dalam transportasi akan mendorong harga semakin tinggi

• Target market: kemampuan melayani berbagai pasar bergantung pada banyak faktor, antara lain availability of adequate transportation, cost of transport, dan ability of transportation option sehingga penyerahan produk tepat waktu.

• Purchasing/procurement: availability, adequacy dan cost of transportation memengaruhi what, when dan where dari purchasing dan procurement.

• Facility location: availability, adequacy dan cost dari transportasi menentukan lokasi pabrik, gudang, retail, dsb.


Factors Influencing Transportation Costs

• Product-related factors Density Stowability Ease or difficulty of

handling Liability

• Market-related factors Degree of competition Location of markets Government regulation Balance or imbalance of

freight traffic Seasonality Domestic versus

international movement

McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.


Product – Related Factors• Density: menunjuk product’s weight-to-volume ratio low

density (low weight-to-volume ratio) cenderung lebih mahal dibanding dengan high-density product.

• Stowability (cube utilization): derajad sejauh mana suatu produk dapat mengisi space tersedia pada sebuah sarana angkatan. Stowability sebuah produk tergantung pada size, shape dan fragility.

• Ease atau Difficulty in handling: produk yang sulit ditangani biasanya lebih mahal untuk diangkut. Produk yang uniform dalam size atau shape, atau produk yang dapat dimanipulasi lebih murah.

• Liability: memiliki high-value-to-weight ratio, mudah rusak, risiko dicuri, biasanya dikenakan biaya transportasi mahal. Begitu juga kategori produk yang tergolong berbahaya, biaya angkutnya mahal.


Transportation Cost dan Pricing

• Products – Related

Factors

• Market – Related

Factors

Menentukan pilihan

antara 2 basic pricing strategies of carriers:

•Cost–of-service pricing

•Value-of-service pricing


Market – Related FactorsMarket – Related FactorsKeenam faktor Keenam faktor market-relatedmarket-related ini ini memengaruhi:memengaruhi:CostCost dan dan pricing of transportationpricing of transportationTTransportation carrierransportation carrier menggunakan:menggunakan:

Cost of serviceCost of service, atau, atauValue of serviceValue of service, atau, atauJenis strategi penetapan harga lainnya.Jenis strategi penetapan harga lainnya.

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Terms of Sale and Corresponding Terms of Sale and Corresponding Buyer and Seller ResponsibilitiesBuyer and Seller Responsibilities


Strategi Cost of Service PricingStrategi pricing ini menentukan transportation rates pada aras yang bisa menutup fixed costs dan variable cost ditambah profit margin.Ada beberapa kesulitan: Perusahaan harus bisa identifikasi FC dan VC. FC dialokasi ke setiap pergerakan angkutan

(pengiriman barang). FC/unit bisa berubah-ubah tergantung besar/kecil pergerakan angkutan.

• Transportation costs dapat berubah-ubah dalam strategi pricing ini karena 2 faktor:Distance - semakin jauh, transportation rate naik.Volume - terjadi economies of scale ketika

jumlah angkutan semakin besar.


Strategy Value-of-Service Strategy Value-of-Service PricingPricing

Transportation rates Transportation rates pada dasarnya pada dasarnya ditetapkan sesuai kesanggupan pasar ditetapkan sesuai kesanggupan pasar membayar dan didasarkan pada membayar dan didasarkan pada market market demand demand terhadap jasa transportasi dan terhadap jasa transportasi dan situasi kompetitifsituasi kompetitif Upper limit Upper limit rates; yaitu rates; yaitu raterate yang akan yang akan maximizemaximize perbedaan antara perbedaan antara revenuerevenue diterima dan diterima dan variable costvariable cost untuk untuk mengangkut.mengangkut.

Dibedakan :Dibedakan : FOB (Free On Board) PricingFOB (Free On Board) Pricing Delivered PricingDelivered Pricing pembeli diberi harga yang pembeli diberi harga yang

mencakup mencakup deliverydelivery produk tersebut. produk tersebut.Dua Macam : - Dua Macam : - zone pricingzone pricing

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Zone pricingZone pricing: area geografis dikategori menurut : area geografis dikategori menurut zonezone. Setiap . Setiap zonezone mempunyai mempunyai delivery cost delivery cost sendiri–sendiri–sendiri.sendiri.

Basing – point pricingBasing – point pricing: penjual menentukan satu : penjual menentukan satu atau lebih lokasi sebagai atau lebih lokasi sebagai point-of-originpoint-of-origin. Pembeli . Pembeli membayar membayar delivery costsdelivery costs dari dari point-of-originpoint-of-origin terkait. terkait.

Quantity discount (cumulative Quantity discount (cumulative atau atau noncumulativenoncumulative)) Cumulative quantity discountsCumulative quantity discounts: pengurangan harga : pengurangan harga

diberi pada pembeli berdasarkan jumlah pembelian diberi pada pembeli berdasarkan jumlah pembelian selama periode waktu tertentu yang ditetapkan.selama periode waktu tertentu yang ditetapkan.

Non cumulative quantity discountsNon cumulative quantity discounts: pengurangan : pengurangan harga dikenakan pada setiap pesanan dan tidak harga dikenakan pada setiap pesanan dan tidak berakumulasi selama periode waktu tertentu.berakumulasi selama periode waktu tertentu.

AllowancesAllowances: kerap kali penjual memberi : kerap kali penjual memberi pengurangan harga pada pembeli karena yang pengurangan harga pada pembeli karena yang bersangkutan melakukan sendiri fungsi bersangkutan melakukan sendiri fungsi deliverydelivery..


Pricing & negotiation Categories of RatesLine-haul rates

(charges for the movement of goods between two points) & accessorial charges (transporting, handling & servicing a shipment). Consists of class rates; exception rate; commodity rate; and miscellaneous rate.

Rate Bureaus Transportation Service

Characteristics: consistency, time-in-transit, market coverage (door-to-door), flexibility, loss & damage performance, and ability more than just basic service.


Transportation

Rates

Value-of-service Pricing :

•Market demand

•Situasi competitive

Cost of Service Pricing:

•FC

•VC

•Profit margin


Variable costs change in a predictable, direct manner in relation to some level of activity

• Variable costs in transportation are only incurred if you operate the vehicle

• Transport rates must cover these at the very least!

• Generally measured per mile or unit weight or both

– E.g. per ton-miles


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Fixed costs must be paid even when the company is not operating

• Fixed costs are not influenced by shipment volume– Includes vehicles,

terminals, rights-of-way, information systems, and support equipment

• Must be covered by contribution above variable costs on a per shipment basis


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Transportation structure

• Consists of rights-of-way, vehicles, and carriers operating within five basic modes

• A mode identifies basic transportation method or form– Rail– Highway– Water– Pipeline– Air


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Rail mode has historically handled the largest number of ton-miles within continental US

• Track mileage has declined by over half since 1970

• Traffic shifted from broad range of commodities to hauling specific freight in traffic segments– Carload– Intermodal– Container

• New technologies include articulated cars, unit trains and double-stack cars


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Truck mode has expanded rapidly since the end of World War II

• Nearly 1 million miles of highways in U.S.

• Key benefits include– Speed of transit– Ability to operate door-to-

door• More efficient than rail for small

shipments over short distances• Dominate freight moves under

500 miles and from manufacturing to wholesalers to retailers

• Many companies run their own truck fleets as well (e.g. WalMart)


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• Percentage of ton-miles has stayed between 19 and 30% since 1960’s

• Ranks between rail and truck in fixed cost

• Right of way (canals and rivers) maintained by Federal government

Water mode is the oldest form of US transport dating back to the birth of our nation

• Have the highest fixed cost and lowest variable cost of all modes

• Unique transportation mode– Can operate 24 hours

a day, 7 days a week– No emissions– No empty container or

vehicle to return• Not flexible, and limited to

liquids and gases

Pipeline mode accounts for about 68 percent of all crude and petroleum ton-mile movements in US

• Accounts for only 1% of intercity ton-miles

• Fastest of all the modes

• Fixed cost is 2nd lowest but variable costs are extremely high

• Most products air-shipped have high value, high priority or extreme perishability

Air mode is the newest and least utilized transport mode for freight

Transportation Carrier Characteristics

Selain kelima moda transportasi, terjadi juga kombinasi antara moda: rail-motor; motor-water; motor-air; dan rail-water.

Kombinasi antar moda menyediakan layanan khusus (dan kerap kali biaya lebih murah) ketimbang menggunakan moda transportasi tunggal.

Opsi lain transportasi tersedia pula: indirect, special carrier; nonoperating third parties seperti freight forwarder, shipper cooperatives, parcel post, UPS, FedEX, DHL, dsb.

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Bentuk Transportasi yang Ditetapkan Secara Legal Transportasi umum (Common Carrier): sarana angkutan umum menyediakan jasanya ke pengirim barang dengan menetapkan rate yang umum ke tempat tujuan.

Sarana angkutan kontrak (Contract Carrier): sarana angkutan yang dapat disewa oleh pengirim barang tertentu berdasarkan kesepakatan kontraktual tertentu.

Sarana angkutan khusus (Exempt Carrier): sarana angkutan yang dapat disewa untuk mengangkut produk tertentu.

Sarana angutan milik sendiri (Private Carrier): sarana angkutan ini tidak untuk disewakan; perusahaan menyediakan sarana angkutannya sendiri untuk transportasi produknya.

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Economic drivers influence rates

Distance Weight Density Stowability Handling Liability Market

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Growth of Intermodal Transportation


Highway transport is appealing partly due to its relative ranking across

characteristics

Note: Lower is better

Table 8.5 Relative Operating Characteristics by Mode

Lowest rank is best


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Intermodal CombinationsIntermodal Combinations

Intermodal Combinations yang Intermodal Combinations yang umuumumnya tersedia bagi pengirim-mnya tersedia bagi pengirim-barang (barang (shippershipper):): Trailer-on-flatcarTrailer-on-flatcar ( (TOFC/piggybackTOFC/piggyback)) Container-on-flatcarContainer-on-flatcar(COFC)(COFC) Road railersRoad railers

Lihat Figure 8-4 [p.331]Lihat Figure 8-4 [p.331]


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Selected Form of Intermodal TransportationSelected Form of Intermodal Transportation


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Most widely used Most widely used systems aresystems are Trailer on a flatcar (TOFC)Trailer on a flatcar (TOFC) Container on a flatcar Container on a flatcar

(COFC)(COFC) Trailer or container is Trailer or container is

hauled by truck at origin hauled by truck at origin and destinationand destination Railcar hauls for portion of Railcar hauls for portion of

intercity travelintercity travel A variety of coordinated A variety of coordinated

service plans have been service plans have been developeddeveloped

Piggyback is an intermodal transport Piggyback is an intermodal transport that integrates rail and motor servicethat integrates rail and motor service

Loads a truck trailer, railcar or Loads a truck trailer, railcar or container onto barge or ship container onto barge or ship for the line-haul movement on for the line-haul movement on inland waterwaysinland waterways

Land bridgeLand bridge concept moves concept moves containers in a combination of containers in a combination of sea and rail transportsea and rail transport Common for containers Common for containers

moving from Europe to Pacific moving from Europe to Pacific RimRim

Transfer of freight between Transfer of freight between modes often requires handling modes often requires handling containers and imposition of containers and imposition of dutiesduties Function of ports is to make Function of ports is to make

this seamless and fastthis seamless and fast Port throughput is big concern Port throughput is big concern

for supply chain managersfor supply chain managers

Containerships are oldest form of Containerships are oldest form of intermodal transportintermodal transport

Coordinated air-truck is commonly Coordinated air-truck is commonly used to provide premium package used to provide premium package

servicesservices Many smaller Many smaller

cities lack cities lack airfreight servicesairfreight services

Costs can Costs can leveraged with leveraged with delivery time by delivery time by linking the modeslinking the modes

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Non-operating intermediaries do Non-operating intermediaries do not own their own equipmentnot own their own equipment

FreightFreight forwardersforwarders——businesses that consolidate businesses that consolidate small shipments from various small shipments from various customers into bulk shipment customers into bulk shipment for a common carrier for for a common carrier for transporttransport

Shipper associations andShipper associations and agentsagents—groups of shippers —groups of shippers who employ an agent to who employ an agent to consolidate purchases and consolidate purchases and shipments for themshipments for them E.g. garment industry in E.g. garment industry in

New YorkNew York BrokersBrokers—intermediaries that —intermediaries that

coordinate transportation coordinate transportation arrangements for shipper, arrangements for shipper, consignees and carriers, consignees and carriers, operating on a commission operating on a commission basisbasis Sampling of Non-operating Intermediaries

Strategic Logistic Management - Rudyanto

Nonoperating Third Parties• Freight forwarders• Shippers’ associations or cooperatives• Transportation brokers• Intermodal marketing companies or

shippers’ agents• Third-party logistics service providers

(Ryder Logistics, ROLS (Caliber), Schneider Logistics, Customized Transportation, and Menlo Logistics.

Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin


• Freight Forwarders (FF): menjadi alternatif pengangkutan handal. Freight Forwarders membeli jasa transportasi dari satu atau lebih moda dan melakukan konsolidasi pengiriman-pengiriman kecil dari sejumlah shipper sehingga menjadi pengiriman besar serta biaya angkut lebih rendah.FF bisa domestik atau internasional. Dapat pula melalui laut dan/atau udara.

• Shippers’ association atau Cooperatives: yaitu kelompok shipper melakukan konsolidasi atau distribusi muatan atas dasar nirlaba untuk para anggota dari kelompok demi menjamin tercapainya volume angkutan atau kontrak layanan.


• Transportation Broker: mengatur pengangkutan produk dan mengenakan fee untuk jasa itu. Broker melakukan pengaturan angkutan dan partisipasi dalam negosiasi biaya. Kesepakatan lasimnya dibuat antara broker dengan carrier dimana carrier menunjuk broker tersebut sebagai agennya.Broker berperan mengusahakan muatan agar perjalanan pergi-pulang senantiasa terisi penuh. Broker juga berperan penting jika shipper akan melakukan negosiasi tentang rate, mengawasi pengiriman, dsb.

• Intermodal Marketing Companies atau Shippers’ agent: mirip shippers’ association atau cooperatives kecuali perusahaan mengkhususkan diri pada TOFC/COFC.

• Third-party Logistics Service Providers: pihak ketiga menyediakan layanan logistik (transportasi) untuk perusahaan tertentu.

8-6b


Small Package Carriers• US Portal Service

• UPS (United Parcel Service)

• FedEx

• Many E-Commerce Companies Use Air Express (Amazom.com, Borders Books, and Barnes & Noble).

• Competition: Airborne Express, DHL Airways, Emery Worldwide, FedEX, and UPS.


Major U.S. Agencies Regulating Transportation

• Surface Transportation Board• Department of Transportation• Federal Maritime Commission• Federal Energy Regulatory Commission

Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin


International Distribution Shipping

Options

McGraw-Hill/Irwin

Source: Adapted from David L. Anderson. “International Logistics Strategies for the Eighties, “Proceedings of the Twenty Secong Annual Conference of the National Council of Physical Distribution Management,1984, p.363. Used by permission of the Council of Logistics Management.


Landbridge, Minilandbridge, Landbridge, Minilandbridge, MicrobridgeMicrobridge

• Landbridge: suatu layanan dimana kargo dari luar negeri melintas suatu negara dalam perjalanan ke negara lain.

• Minilandbridge (minibridge): kargo dari luar negeri bermula atau berakhir pada satu titik di dalam negara tertentu (port-to-port transportation).

• Microbridge: layanan ini menyediakan transportasi door-to-door di dalam suatu negara

• Dengan semakin menguatnya blok perdagangan bebas (misal AFTA, NAFTA) berbagai implikasinya terhadap transportasi antar negara anggota perlu dicermati mencakup availability dari moda transportasi, rates, regulatory, restriction, service level dan aspek-aspek lain dari transportation mix.

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Global Aspects of Global Aspects of TransportationTransportation

• Pengelola transportasi yang terlibat dalam pasar internasional harus menyadari & memperhatikan layanan, biaya, dan ketersediaan moda transportasi di dalam dan antar negara-negara.

• Umumnya opsi yang tersedia adalah transportasi udara dan air, kecuali negara-negara tersebut berada dalam satu benua yang terhubung satu dengan lainnya sehingga dimungkinkan angkutan darat.

• Perbedaan antara moda-moda transportasi disebabkan oleh pajak, subsidi, regulasi, carrier milik pemerintah, geografi dan faktor lainnya.

• Transportasi intermoda lebih sering terjadi dalam pergerakan produk secara internasional.

• Biaya transportasi internasional biasanya merupakan presentasi lebih tinggi dari nilai merchandise itu sendiri.


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transportation

Documents

freight transportation

transportation expenditures

transportation accessibility

transportation infrastructure

new destination transportation

time place utility

daripurchasing dan procurement

cost of transport