The Important objectives if a carrier are to manage its operations effectively and efficiently , and to provide better consumer services . The important areas that require management's attention can be summarized as pricing and negotiations , routing and scheduling , service offering ( including fleet mixed) , amidst a scenario of competition and required marketing activities .
For this these are the decision areas for Transporters .
1) Pricing and Negotiation :- Pricing of transportation services could be mainly cost - based or based on the value provided to the customer and the customer's ability to pay ( as in the case of private trucking operators) . In any case , a knowledge of cost involved in providing the service is essential .
There are several useful ways of looking at costs associated with transportation operations . One way is to separate the total costs into the following components .
a) Direct Costs :
b) Indirect Costs :
Another useful ways to think of cost is in term of
a) Fixed Costs :
b) Variable Costa :
c) Semi Variable Costs :
For system of negotiation to be successful , the following conditions should also hold :
----- Existence of a simple rating system which is easily understandable and applicable . This rating system should be based on a uniform method for all the shipper's/receiver's location and commodities .
------ Price stability for the shipper for an established period of time .
------ Volume stability for the shipper for an established period of time .
------ Simplifies freight bill payment .
------ Ability to integrate with electronic data interchange system and computerized rating and auditing .
2) Routing and Scheduling :- In general , the benefits of a carrier by improving routing and scheduling can be summarized as :
----- Greater vehicle utilization .
----- Improved the more consistent customer service .
----- Reduced transportation expenses .
----- Reduced capital investment in equipments .
----- Increased competitive advantage .
Carriers are becoming more and more sophisticated in these areas ,
For this these are the decision areas for Transporters .
1) Pricing and Negotiation :- Pricing of transportation services could be mainly cost - based or based on the value provided to the customer and the customer's ability to pay ( as in the case of private trucking operators) . In any case , a knowledge of cost involved in providing the service is essential .
There are several useful ways of looking at costs associated with transportation operations . One way is to separate the total costs into the following components .
a) Direct Costs :
b) Indirect Costs :
Another useful ways to think of cost is in term of
a) Fixed Costs :
b) Variable Costa :
c) Semi Variable Costs :
For system of negotiation to be successful , the following conditions should also hold :
----- Existence of a simple rating system which is easily understandable and applicable . This rating system should be based on a uniform method for all the shipper's/receiver's location and commodities .
------ Price stability for the shipper for an established period of time .
------ Volume stability for the shipper for an established period of time .
------ Simplifies freight bill payment .
------ Ability to integrate with electronic data interchange system and computerized rating and auditing .
2) Routing and Scheduling :- In general , the benefits of a carrier by improving routing and scheduling can be summarized as :
----- Greater vehicle utilization .
----- Improved the more consistent customer service .
----- Reduced transportation expenses .
----- Reduced capital investment in equipments .
----- Increased competitive advantage .
Carriers are becoming more and more sophisticated in these areas ,
