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January 2005
Selecting a
mode of transportation without regard to
cost/service options
Often, decisions are made based on a perception that
a simple rule such as "all shipments must be made
within 24 hours"; must always be via air or some
other premium type service. There are generally
alternate less costly means to accomplish the same
delivery or service requirements. For instance, many
if not most over night air shipments going
relatively short distance such as 3‑400 miles
actually move over the road.
Many regional motor carriers provide next day
service at greatly reduced costs. These same
carriers could, if requested provide a delivery
equal to many alternatives offered at highly
inflated costs. Also, many shippers have an
ingrained prejudice against intermodal shipments,
but on the other hand, they also think UPS is great!
UPS is one of the largest intermodal shippers in the
world! Probably many a shipment by UPS has gone by
intermodal anyway, but under the UPS label! LTL
carriers are developing "fast lanes" with guaranteed
service or you do not pay the charges. (But be sure
you review Action No. 101 for a thorough discussion
on small package issues.) Service failures are
expensive.
Finally, "ship next day" does not necessarily mean
the best service! Sometimes waiting another day may
permit a better LTL consolidation and in this
process improve or equal service over the “next
day.” very importantly reduces your costs!!
Importantly carriers publish service days between
any two points, but these are NOT the actual transit
times to expect.
Check your service needs, your costs, the available
service, and then make your informed decision. You
will be glad you did! Logistics personnel must
involve all affected parties making the POLICY
decision in this proposed action before
implementation to insure that each specific
responsible entity knows how their specific area
will be affected and what the benefits are to be
realized from the implementation. In the policy
decision outlined above, the individuals that should
be involved are identified in “Team Group A“.
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