4.

Deliver Ch 3

ADE Business Communication Page 1

Spring 2023
 Four Categories

1. Plan
2. Source
3. Make
4. Deliver
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 PLAN
Demand Forecasting
Product Pricing
Inventory
Management

DELIVER SOURCE
Order
Procurement
Managemenet
Credit &
Deivery Scheduling
Collections
Return Processing

MAKE
Product Design
Production Scheduling
Facility Management

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 Delivery

• The carrying and turning over of goods,

to a designated recipient or recipients.

• The act of taking something to a person

or place.
• The act or manner of delivering
something.

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 Delivery Scheduling (90)
- For most modes of transportation there are 2 types of delivery options:

- DIRECT DELIVERIES
- One Originator location → One receiving location

- MILK RUN DELIVERIES

- One originator location → Multiple receiving locations
- Multiple originator locations → One receiving location

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 Direct Deliveries

Associated with

- Order size = shipping size (or very close)

- Shipping size is → FTL (or close)
- Larger volume of few items
- Routing is a matter of choosing the shortest &
lowest cost path

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 Milk Run Deliveries

Associated with:
• Small Delivery Quantities of different products
• Lower Frequency of deliveries
• Routing & Sequencing of pick-ups and
deliveries
• More efficient use of the mode of
transportation used.
• Fewer and larger deliveries
• Good for consolidated pallets
• Excellent for small orders/ high rotation
products

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 Delivery & Distribution channels
D.Channel- Is the
Delivery- the act of method a company uses to get
its products into the
taking something to a person or
marketplace for consumer use
place (whether it is an
(Marketing Channel), such a:
intermediate product, a
commodity, an equipment, a B2B - Whole-saler (distribution
finished product, etc.) centers), Retailer (grocery,
convienience, drugstores),
Distributor, Outlet/ Mall

B2B / B2C- Street market,

Internet, Vending machines,
Door to Door, Catalog,
Telephone
8 Channels of Distribution for Marketing
(Infographic + Animation) | Brafton

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 Order Management (82)
Customer pass an Order → Sales process order into
System → Sales get confirmation or alternatives on
vol and dates → System confirms suppliers credit
and back orders → Sales confirms or provide
feedback to customer → Order is confirmed (or not)
→ Info is internally processed through:
BOM´s, MRP, MPS, Warehouse Delivery, Inventory, X-Dock
availability, index vs. Forecast, Invoicing, Open collections, IM,
etc.

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 Everything comes together

BOM INVENTORY

PLANNING

PURCHASING

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 Order Form
BOM

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 Delivery Sources

• Single Product Locations

- Single of narrow range of related items are shipped

• Distribution Centers (DC´s)

- Large shipments arrive from single product facility (could be
various of these)
- Could be used a X-Dock (where shipments are broken into smaller
lots and combined with other products)

Book pages 92-93

… Get examples

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 Distribution Centers and X-Dock

→ Look for a DC, X-dock or

Warehouse video.
- Briefly describe the video and what
have you learned.

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 Physical Distribution
Bulk
- In
large quantities, where a large
capacity container is the unit delivered.

Semi- Bulk – In quantities of Semi-bulk

about 1 ton or so

Palletized
- Limited by the pallet size + defined height

Per unit
- By individual unit, or small
packages or container (i.e. box, drum,
package, etc)

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 Permissible weight

Most common one is Europe: 25-26 Tons in a 40” container

or large truck and a 3 axles Lorry (platform)
–> Including Load + Container Tare Weight (MMA – Masa Máxima
Autorizada)

• http://ec.europa.eu/transport/modes/road/weights-and-dimensions_en.htm
• Pesos | Ministerio de Transportes, Movilidad y Agenda Urbana (mitma.gob.es)
Mobility and Transport - European Commission. 2020. Weights And Dimensions - Mobility And Transport - European Commission.
[online] Available at: <https://ec.europa.eu/transport/modes/road/weights-and-dimensions_en> [Accessed 11 March 2020].

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 Airfreight containers types and dimensions

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 Liquids transportation (Bulk)

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 Dry containers - 💬1 - Want standard shipping container dimensions? [Your 2023
guide] (container-xchange.com)

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 Ship, train & truck containers

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 Pallets:
Is a flat, wooden structure that’s usually used for
handling transport, storing goods, and freight
shipping.
There are generally two types of pallets used for
shipping:
•Euro-Pallets – A standard European pallet
specified by the European Pallet Association
(EPAL). Euro-pallets’ standard size is 1200 x
800m

•Standard Pallets – A standard pallet is, nothing

more than a standard wooden pallet. A standard
UK pallet size is 1200 x 1000m.

•How many pallets can you fit in a 20”, 40”

container or “regular” truck?

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Palletized load
http://www.onpallet.com/index.php
Transport cost and insurance
• Cost depends on value of cargo
and also:
➢Nature of goods
➢Mode of transport
➢Geography
➢Type of coverage

• Usually set on basis of insured

value:
• Insured value = value of goods
(CIF) plus 10-20%
 Volumetric Weight
• Or - Dimensional weight,
• Pricing technique for commercial freight transport (including courier and postal
services). Uses an estimated weight that is calculated from the length, width and
height of a package.
• Quite dofferent:

• Here - the importance of volume weight by considering volume of cargo and actual
weight of cargo at an equilibrium point.

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BackHauls or Return Trips

• For every type of transportation there is a main route(starting point) and

the returning one (going back home)

• One of the biggest challenges in transportation is securing load on the

return trip
– Otherwise, such vehicle or container will have to return empty
– The main route cost will be increased as the fixed costs of the returning
trip will have to be included

• When contracting transportation services, check if you are the main trip or
the returning one.
– Normally, returning ones will be at better/ lower cost than the main
route.
Backhaul is the return movement of a truck from its original destination to its original point of origin,
especially when carrying goods back over all or part of the same route.
http://www.shipnorthamerica.com/htmfiles/glossary/gloss_shipterms_back.html
Assignment: Look for a European pallet &
calculate
o Indicate the pallet dimensions missing.

o Indicate the max height allowed and where did you get the
information or why do you assume such height.

o Indicate the dimensions of at least 3 boxes (L*W*H) in cm.

o Indicate the number of layers of each box that you can accommodate
- you can combine the 3 boxes in one pallet or (only one box
size per layer) or
- Do 3 scenarios with (each pallet with only 1 box size)
o Within excel- show the max boxes you can accommodate per layer
→ Load in the e-study Word or Excel is fine.
CONCLUSION:

What have you learned?

Deliverables for Next clas: