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Transportation & Distribution Management - Essay Example

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This report discusses transportation management of one of the leading logistics companies in particular carrier selection process, documentation and shipper-carrier…
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Transportation & Distribution Management
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Transportation & Distribution Management

Download file to see previous pages... Transportation plays an important role in manipulating logistic.
The vision of FedEx supply chain services is to become the world leader in global integrated logistics management, supply chain solutions and time-definite delivery (FedEx, 2014a). In the international market, FedEx faces competition from DHL, UPS, foreign postal authorities like Deutsche post and TNT N.V, freight forwarders, passenger airlines and all-cargo airlines.
There are three important aspects of transportation management: Carrier selection, documentation and shipper carrier relationship. Carrier selection process includes the activities of identifying and procuring the best modes, the best carrier for each mode and best rates (Younkin, 2006).
Companies tend to have a carrier mix like combination of aircrafts and road vehicles to order to have smooth operations, speed delivery at a low cost. Fed EX has a great air-and-ground network which facilitates the quick delivery of time sensitive shipments that deliver the shipment in one to two days with guaranteed delivery time. Its transports approximately 4 million packages and 11 million pounds of freight daily.
For smooth functioning and fast delivery across the globe FedEx has mix of air and delivery fleet which consists of 650 aircrafts and 48000 motorized vehicles. FedEx has collaborated with more than 375 airports worldwide for the landing of its aircrafts without any difficulty.
In October 2013, FedEx added first new Boeing 767-300 freighter in its air fleet. This is a major step in company’s strategic aircraft fleet modernization program as it is a more efficient and lower emission aircraft. 767 replaced MD 10 aircraft and is 30 percent more fuel efficient and incur 20 percent less unit operating cost (FedEx, 2014a).
FedEx also provided a customized carrier to transport the skeleton of Wankel T-Rex dinosaur. In that customized lorry temperature was kept at 22C and each crate of bone was surrounded by ...Download file to see next pagesRead More
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