Logistics in commerce flashcards

Topic 4: Logistics in commerce

What are the three functions of transport in the supply chain?

Time, place and quantity: transport delivers the right quantity of goods to the right place at the right time.

Road vs rail transport

Road (delivery vans, trucks, couriers): door-to-door and flexible, but limited loads and congestion. Rail (freight trains): cheap for heavy, bulky loads over long distances, but fixed routes and usually needs road at each end.

Sea vs air transport

Sea (ferry, tanker, container ship, cargo liner): cheapest for heavy, bulky goods internationally, but slow. Air (freight planes): fastest over long distances for perishable, urgent or valuable goods, but the most expensive.

What are the advantages and disadvantages of pipelines?

Advantages: continuous flow, low running and labour costs. Disadvantages: very high cost to build, carries only liquids and gases, and leaks can be hard to find.

Which six factors affect the choice of transport method?

Nature of goods, urgency, cost, security, distance and reliability of the transporter.

Which transport method suits fresh flowers sent abroad for a festival, and why?

Air freight, refrigerated: the flowers are perishable, urgent and valuable for their weight, so the high cost is justified.

What is containerisation?

Packing goods into standard-sized sealed containers that move between ships, trains and trucks without being unpacked, cutting handling, damage and theft.

What is transshipment?

Transferring containers from one ship or vehicle to another at a hub port on the way to their destination.

What are the five functions of warehousing in the supply chain?

Links with seasonal production, links with demand, protecting supply, price stability and logistics postponement.

Bonded vs cold storage warehouse

Bonded: holds imported goods until customs duty is paid. Cold storage: refrigerated or frozen storage for perishable goods such as food and medicines.

What is a regional distribution centre (RDC)?

A large warehouse owned by a retail chain; suppliers deliver full loads to it and it sends mixed loads to the chain’s shops in that region.

Name three uses of automation in warehousing and two benefits

Uses: robotics, automated sorting and voice picking. Benefits: any two of lower labour costs, less human error, improved picking accuracy, improved inventory control and improved customer service.