Share
Explore BrainMass

Modes of Transportation/Logistics Performance

1. What modes of transportation are best suited for large, low-value shipments? Why?

2. How can a supplier with a lower price end up costing the buyer more than a supplier with a higher price?

3. What is the impact of lack of coordination on the performance of a supply chain?

4. Suggest logistics performance priorities for the following, and briefly explain why you have to come to your conclusions:

a. A low-fare(no frills) airline such as Ryanair, Kulula Air,or Easy Jet
b. A fast food chain such as Macdonald's,Nandos or KFC
c. An overnight parcel service such as TNT or DHL
d. A University/Polytechnic annual set-up for various students' registration process
e. An NGO like the Red Cross

Solution Preview

1. What modes of transportation are best suited for large, low-value shipments? Why?

The best mode of transportation for large, low-value shipments are ones in which the freight is as cheap as possible. This might be water or train, depending on the origin/destination of the product. Sometimes product is shipped via train and then delivered by truck (this is called intermodal). Infant formula is often shipped in this manner.
Often, large, low-value shipments can be put on as a "back haul" which is a system in which one company may need to ship a load to one area, and another area takes advantage of an empty truck in the area and fills it with their product to cheapen the freight. In this manner both companies save, since the truck is utilized completely.
Since value is low, there is not a great need of urgency (concern over tying up resources) or in security, so trucking would be a good way to go.

2. How can a supplier with a lower price end up costing the buyer more than a supplier with a higher price?

A supplier ...

Solution Summary

The response explains shipping options for mass products, supply chain and value issues, the importance of an efficient supply chain, and logistic priorities for several companies and situations.

$2.19