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Transportation as a Strategic Objective
Many purchasing and supply managers are responsible for buying inbound transportation services for their organizations. Yet, many practitioners may not feel fully "at home" in this complex field, especially with recent deregulations and reregulations.
Transportation Modes, Types, and Options
Most commercial transportation is via rail, pipeline, motor carriage, air, or water. About 75 percent of the agricultural products and manufactured goods tonnage is transported by truck, which is usually faster, more flexible, and more versatile than rail.
Understanding Deregulation and Tariffs
The first wave of transportation deregulation came with the Air Cargo Act of 1977, followed by the Staggers Rail Act of 1980, the Motor Carrier Act of 1980, and the Shipping Act of 1984. These Acts substantially reduced the rules of entry, price discounting, route offerings, service offerings, and the role of the Interstate Commerce Commission (ICC — which became defunct) in regulating the air, truck, rail, and water carriers involved in interstate commerce. These acts provided freedom and ease to negotiate rates, expand private contracting, and offer other services.
Fourteen Steps to an Effective Transportation Program
The following are the basic steps needed to establish and maintain an effective transportation program.
Richard L. Pinkerton, Ph.D., C.P.M.
Richard Pinkerton is department chair and professor of marketing and logistics at The Sid Craig School of Business at California State University, Fresno. Dr. Pinkerton is also a consultant and seminar leader for private industry. He is a former member of the Purchasing Today™ Editorial Review Board, and has been chair of NAPM's Academic Planning Committee, chair of the 1992 NAPM Research Symposium, and representative for NAPM at the 1992 convention of the Chile Procurement Society in Santiago. Dr. Pinkerton has been active in the American Marketing Association and the National Contract Management Association, and is listed in Who's Who in America. He has authored numerous articles, papers, and books including A Purchasing Manager's Guide to Strategic Proactive Procurement (with David N. Burt), American Management Association, 1996. Dr. Pinkerton was also a member of the 1995 U.S. Aid and International Service Corps educational team visiting Slovakia. He earned his BA in economics from the University of Michigan-Ann Arbor, his MBA from Case Western Reserve University, and his doctorate from the University of Wisconsin-Madison.
Edward J. Marien, Ph.D.
Edward Marien is professor and director of logistics and transportation programs for the Management Institute of the School of Business, University of Wisconsin-Madison (UW). He has established two certificate programs at UW, one in Transportation Planning, Pricing, and Costing, and the other in Excellence in Logistics Management, and has been proactive in educational development for over 30 years. Dr. Marien is a consultant to and seminar leader for private industry, and has been active with many professional and trade associations. He has also authored numerous papers and articles. He earned his MBA from Indiana University and his doctorate from Michigan State University.
- Armstrong's Guide To Third Party Logistics Providers and Dedicated Contract Carriers, Transportation Education Specialists, Stoughton, WI, 1995
- NAPM Insights, April 1995, "Supreme Court Rules for Shipper in Undercharge Case" (by Helen M. Pohlig)
- NAPM Insights, February 1995, "Negotiating with Cariers in Light of New Laws" (by W.J. Augello)
- Purchasing Today™, April 1996, "Logistics: The Road Less Traveled?" (by Thomas P. Hommrich)
- Purchasing Today™, March 1996, "Are You a Victim of Off-Bill Discounting?" (by M. Theodore Farris II)
- Transportation & Distribution, November 1996, "Making Logistics Count in Your Company" (by Edward J. Marien)
- Transportation & Distribution, September 1996, "Making Sense of Freight Terms of Sale" (by Edward J. Marien)
- Transportation & Distribution, July 1996, "Contract Carriage with Less Regulation" (by Edward J. Marien)
- Transportation & Distribution, May 1996, "Overcoming Claims as Losing Propositions" (by Edward J. Marien)
FOR FURTHER READING
- Augello, William J. and Pezold, George C. Freight Claims in Plain English, Transportation Consumer Protection Council, Inc., Huntington, NY
- Bard, Edward J., Cavinato, Joseph C., and Coyle, John C. Transportation, Fourth edition, West Publishing Co., 1982
- Cavinato, Joseph C., Langley, John, Jr., and Tyworth, John E. Traffic Management - Planning, Operations and Control, Waveland Press, Reprint of 1987 edition
- Sullivan, Daniel C., Weart, Walter L., and Wilson, Gary S. A Common Sense Explanation to Logistics (series), McGraw-Hill, Inc., College Custom Series, 1995
Information can also be obtained from the following sources:
- A Basic Guide to Exporting
U.S. Department of Commerce, Industry and Trade Administration
Washington, D.C. and District Offices
- Code of Federal Regulations Title 49, Parts 1000-1199
U.S. Government Printing Office, USGPO Stop SSMB, Washington, D.C. 20401
La Chambre de Commerce et d´Industrie de Paris (France)
331/42 89 70 00 (fax) 331/42 89 78 68
- United States Code, Annotated, Title 49 Transportation Sections 101-20200 (1996)
West Publishing Co., P.O. Box 64799, 620 Opperman Dr., St. Paul, MN 55164-0779
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