Truck factoring involves a trucker’s ability to insure their cargo and to assign credit risk. The role of transport is to facilitate the movement of goods. This may include storage or pre-positioning, manufacture, or points of use. It can also be between the hubs and distributions, distribution point to end use, hubs to end use, or return to end use back to hub and pre-positioning points or manufacturers. The destination and source may be in the same country. It could be in a different country if it is international movement. Here are five essentials you will need to run a transportation business:
Operations transportation strategy
The transportation strategy depends on the needs within the organization. It varies from one organization to another and from situation to another. There are the factors to consider when developing a transportation strategy:
* The quantities that need to be moved over a period of time
* Capacity of transport modes available
* How to control the function of whether to lease, manage, or outsource your own fleet.
* How to recognize transport service providers
* Number of hubs, destinations, and pre-positioning locations
* Environmental issues such as infrastructure, taxes, government legislature, climate, etc.
* The distances to be covered
* Nature of supplies, goods, and products to be transported
* Human resources
* Available transport modes and relative costs
* Routes and origins
* Circumstances such as nature of disaster
These factors are valid for emergency and non emergency situations.
Managing transport providers
Sometimes you will need to make the decision to use external transport providers. There has to be a structured approach to the selection. There also has to be subsequent monitoring and control of the provider or providers selected. There are a number of significant issues to be considered. This is to ensure that a reputable provider will provide the required level of service at an acceptable cost.
There are two kinds of transport movement in an emergency. One of them is called local transport movement. This is done within a specific country. This generally involves road transport. This can involve movement of heavy loads from airports, ports, and railheads. The loads can also be from depots and warehouses. The other type of movement is called international movement. Sometimes local environment will not always be able to supply products and services needed to fulfill the needs that are identified in an emergency environment. This type of movement is done to insure efficiency. This lets logisticians focus on their core job. Certain aspects of the movement are handled by these service providers.
Planning and scheduling movements
Routine movements takes place on a regular basis. This movement needs to be planned from the outset. Non-routine movements can occur on ad hoc basis. This type of movement can be planned when the need arises.
Route planning and scheduling
The transport officers need to be involved in the development of the distribution plan for efficient route planning and scheduling. They at least need to be aware of it. They need to understand it as well.