Transportation Options

Huffman Trucking Co.oAlbany• Advantages• Disadvantages

o Pontiac• Advantages• Disadvantages

Hangzhou, Chinao FedExoCompany Resembling FedEx

Intermodal TransportationoComplicated?o Is it efficient?oHow will we use it?

Small package carriersoReduce overstockoLower cost

RailoShort lineoWhat would we

need?

Technology upgrades:o Shipment trackingo Electronic documentso Inventory systems

Advantageso Local expertiseoReduced workload on current logistics team

memberso Increased accountability

Disadvantageso Increased costso Loss of traceabilityo Increased dependency on logistics partners Conclusion:oRiordan should consider a third party shipper for

international order from the Chinese facility

4R Act◦Railroad Revitalization and Regulatory Reform Act

of 1976 Staggers Rail Act◦Staggers Rail Act of 1980

Greater pricing Streamlining timetables Expediting line abandonment Allowing multiple owners

Primary modes of transportation for Riordan Industries

Truck, railroad, air, and water Intermodal transportation Three manufacturing facilities include :

Albany, GA, Pontiac, MI, Hangzhou, China.

Regulatory Control over RatesoAllowing railroads to charge market ratesoAllowing railroads to focus on the more profitable

freight transportation rather than passenger

Confidential ContractingoGreater Flexibility in negotiations

Conducting Business with large volume shipperso Lower Rates Overall

Option A- Eliminate barges to ShanghaioUse the current trucking company to move cargo

containers directly to the Shanghai port. Option B- Move the China facility operations

to ShanghaioOption “A”, plus the Shanghai infrastructure can

better support global market approaches.

Follow: the recommended approaches of intermodal transport, small packaging, and rail transport.

Act upon: the removal of intermediate shipping via barges in China. oContinue research and highly consider: the

facilities move to Shanghai

Coyle, J. C., Langley, J. C., Gibson, B. J., Novack, R. A., & Bardi, E. J. (2008). Supply Chain Management - A Logistics

Perspective. Mason, OH: Cengage Learning. University of Phoenix. (2013). Virtual Organizations. Retrieved

from University of Phoenix, ISCOM352 - Logistics Management website.