Equipment to Be Utilized
This operation will use intermodal-surface containers. This decision is attributable to the fact that intermodal containers will provide fast-paced cargo shipping for the company at relatively cheaper operational costs. The company will save a significant amount of funds and the elimination of unnecessary repackaging and offloading of cargo that is characteristic of other equipment. The size of these containers will also favor the business (Irvin, 2014). On average, the intermodal containers measure about 8 feet breadth and 8 feet height with lengths of up to 40 feet. It implies this equipment will carry voluminous cargo and result in the creation of generally higher operational efficiency.
Analysis of Freight Rates
Because the business mostly deals with the high volume destinations, full truckload shipping is the best alternative. Full truckload will offer lower costs for the business, considering that it is inclined to offer better rates. Full track loading is also faster compared to the other alternative. This fact is considering that full truckload shipments only travel towards one direction and have fewer stops (Mansini, Savelsbergh & Tocchella, 2012). It helps in the reduction of risks that may increase in the time it takes to reach destinations.
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Possible Ways to Reduce Administration Costs
Intermodal transportation and shipment consolidation on the use of warehouses will result in the improvement of quality control (SteadieSeifi, Dellaert, Nuijten, Van Woensel & Raoufi, 2014). Intermodal transportation and shipment consolidation allow warehouses to perform quality control measures immediately shipments reach warehouses, thus cumulatively resulting in the reduction of chances of wasting time during quality control.
Impact of Intermodal Transport
Analysis of the transport network
It will help devise strategies in the consolidation of shipments while also minimizing the number of trucks used. Further, it will save on costs associated with both labor and transportation.
Analysis of warehouse design Efficiency
It will allow the company to work within a limited warehouse space by improving the warehouse layout, thereby helping reduce both labor and energy costs.
References
Irvin, L. (2014). Final Report for the National Center for Intermodal Transportation for Economic Competitiveness (No. NCITEC Project No. 015105-016).
Mansini, R., Savelsbergh, M. W., & Tocchella, B. (2012). The Supplier Selection Problem with Quantity Discounts and Truckload Shipping. Omega, 40 (4), 445-455.
SteadieSeifi, M., Dellaert, N. P., Nuijten, W., Van Woensel, T., & Raoufi, R. (2014). Multimodal Freight Transportation Planning: A Literature Review. European Journal of Operational Research, 233 (1), 1-15.
