Transportation Selection Criteria - Logistics and Supply Chain Management

Transport Selection Criteria

The tasks of choice, as is known, are decided on the basis of any criteria. Most choice tasks in transportation are complex multicriteria tasks. The main transportation selection criteria - is the cost (cost) of delivery, the time spent on transportation, the quality of the transport and related services, the performance of additional services, etc.

The choice of transportation option for a cost (cost) criterion is carried out by comparing the cost values ​​for different delivery options, which depend on at least two main factors: the distance between the sender and the receiver and the volume (mass) of the cargo presented for transportation.

The speed (term) of delivery is a temporary criterion, which is interrelated with the value. The delivery time criterion is given priority in cases of urgent, urgent orders.

The criterion of the quality of the transport service is a complex criterion, including the compliance with the terms of individual operations and the time of the full delivery cycle, ensuring the safety of the goods transported, the readiness to implement an individual approach to servicing, the reputation of the transport operator in the market, the safety, effectiveness of the applied methods of managing logistics risks , for example reliability of insurance protection, etc.

When you organize the delivery of different goods, the selection criteria may vary due to different cargo properties, order parameters and other factors.

Choosing a delivery option for one criterion is more straightforward. However, such situations are very rare and the choice of alternatives in transportation is not often made according to one criterion, since the best option, for example, on the delivery time can be so expensive that it will be unacceptable in terms of cost parameters; and the best option for the cost criterion may be too long or unreliable.

If several criteria are decisive when choosing a transportation option, then the choice of the option is made using methods for solving multi-objective problems that involve a compromise solution. Models of choice of the transportation option should assume the possibility of adjusting the system of criteria, setting the importance (weighting coefficients) and ranking the criteria, finding the best solution for equal or different importance of the selection criteria.

Transportation can be carried out by the own transport of the enterprise owning the goods, or with the involvement of logistic intermediaries that perform separate transportation operations or a set of logistics services, so one of the procedures for choosing transportation along with the choice of mode of transportation and modes of transport is < strong> choice of logistics intermediaries: carriers, freight forwarders, etc.

The choice of the logistics intermediary in transportation is carried out according to a number of criteria (Table 8.3).

Table 8.3. Carrier selection criteria

Criterion (metric)

Rank

Reliability of delivery time (transit)

1

Door-to-door delivery tariffs (costs)

2

Total transit time DTD

3

The carrier's willingness to negotiate a tariff change

4

Financial stability of the carrier

5

Availability of additional equipment (for processing)

6

Stability of Service Delivery

7

Availability of additional services for the picking and delivery of goods

8

Loss and theft of cargo (safety of cargo)

9

Forwarding of shipments

10

Qualification of personnel

11

Monitoring of shipments

12

The carrier's willingness to negotiate a service change

13

Flexibility of transport routing schemes

14

Line service

15

Request procedure (transportation order)

16

Quality of the organization of sales of transport services

17

Availability of specialized equipment

18

To select a carrier, you can use several of the most significant criteria from the number shown in Table. 8.3. Logistic intermediaries in transportation can be regarded as providers of transportation services, and to choose the best of them you can use the vendor selection algorithm discussed in Ch. 5.

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