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2023 | OriginalPaper | Chapter

2. Fundamentals for the Procurement of Transportation Services

Author : Philipp Sylla

Published in: Electronic Procurement of Transportation Services

Publisher: Springer Fachmedien Wiesbaden

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Zusammenfassung

This chapter aims to provide the fundamental knowledge for the procurement of transportation services which is needed for the following chapters. First, transportation will be defined and its links to processes within business logistics and the interdependencies to logistics planning will be presented. Afterward, the focus on road transportation within this thesis will be justified and the relevant aspects in terms of vehicles, logistics units, and processes will be discussed.

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Cp. Lambert et al. (1998), p. 217. In a broader definition, transportation also includes the activity of carrying people from one place to another (cp. Gleißner and Femerling (2008), p. 40).

Cp. Gleißner and Femerling (2013), p. 51; Pfohl (2018), p. 169. Internal locations are all physical locations where a company stores or processes goods which are owned by the company.

European Logistics Association (2005), p. 54.

Cp. Fleischmann (2008), p. 3. Some authors also include monetary and financial flows (cp. Göpfert (2016), p. 59; Muchna et al. (2018), pp. 10–11).

Goods are all means which are directly or indirectly used to satisfy the needs of humans (cp. Blum et al. (2003), p. 5). The focus within this work will be on tangible goods which have a physical substance. Such goods can be consumer goods (i.e., goods used by end consumers) or producer goods (i.e., goods which are used as input for the production of other goods) (cp. Bardmann (2014), pp. 226–227). Throughout this thesis, the terms products and goods will be used interchangeably.

Cp. Fleischmann (2008), p. 8; Gleißner and Femerling (2008), p. 12; Pfohl (2018), pp. 14–16.

Micro-logistics focuses on the logistics activities of single economic entities (cp. Pfohl (2018), p. 15).

Business logistics deals with the flow of goods and information to achieve the business objectives of companies (cp. ten Hompel and Heidenblut (2011), p. 321). Company logistics is sometimes used as an alternative term for business logistics (cp. Gudehus and Kotzab (2012), p. 21; Scott-Sabic (2005), p. 191).

Manufacturing logistics deals with the flow of goods needed as input for production within companies and the result thereof (cp. Hausotter (1994), p. 14).

In contrast to manufacturing companies, retail and wholesale companies pursue only the exchange of goods without significantly processing them (cp. Kotzab (2012), pp. 217–218). While retail companies sell goods to end consumers, wholesale companies sell goods to customers who are not end consumers, i.e. manufacturing companies or other retail and wholesale companies (cp. Magnus (2007), pp. 11–12; Samadi (2009), p. 8).

Meta-logistics covers the cooperation between independent organizations of micro-logistics systems (cp. Gleißner and Femerling (2008), p. 12).

Cp. Pfohl (2018), p. 189.

Cp. Muchna et al. (2018), p. 29.

Cp. Fleischmann (2008), p. 5.

Cp. Fleischmann (2001), p. 6.

Cp. Günther (2006), p. 14.

Cp. Sheffi (1985), pp. 10–11.

Cp. Geoffrion and Powers (1995), p. 107.

Cp. Mazbic-Kulma (1984), p. 460.

Source: own representation adapted from Reuter and Rohde (2015), p. 243.

Cp. Albrecht et al. (2015), p. 155.

Mathematical models to optimize master planning have been developed since the early sixties (cp. Stadtler (2012), p. 111). Today, the literature provides various models whereby mixed linear programming models are often used (cp. Mula et al. (2010), pp. 379–380).

Cp. Fleischmann et al. (2012), pp. 71–72.

Cp. Cavinato (1990), pp. 197–198. The place of departure denotes the location where the transport of goods begins and the place of arrival is the location where the transport of goods ends (cp. Kamphausen (1994), p. 14).

Cp. Ballou (2004), pp. 171–176; Bowersox et al. (2002), pp. 339–347; Stock and Lambert (2001), pp. 322–328.

Cp. Gleißner and Femerling (2013), pp. 85–86.

Cp. Bundesamt für Güterverkehr (2015), p. 8; Eurostat (2018).

Experts believe that there are limits for influencing the choice of transportation mode and that road transportation will remain the dominant mode (cp. Hofmann and Gebert (2010), p. 66). A recent study has analyzed the impact of three different scenarios on the use of rail transportation in Germany. While some scenarios are expected to lead to a significant increase of rail transportation, road transportation still plays a leading role in all scenarios (cp. Lobig et al. (2016), p. 14).

ETMs have a long tradition in road transportation (cp. Schieck (2008), p. 395). Already several years ago, numerous ETMs could be used to support transactions for road transportation (cp. Hoffmann (2001), p. 275).

A motor vehicle is intended for use on roads and drives with mechanical propulsion which includes sources such as petrol, diesel, gas turbine, or electric battery but not human or animal power (cp. Rushton et al. (2014), p. 434).

Cp. Lowe (2002), p. 207; Rushton et al. (2014), p. 434. Trailers (including drawbar and semi-trailers) drive on the road but must be drawn by a motor vehicle (cp. Rushton et al. (2014), p. 434).

Cp. Hoepke and Brähler (2008), pp. 21–27; Brähler (2008), pp. 119–125.

Cp. Large (2012), pp. 43–44.

Cp. Rushton et al. (2014), p. 432.

These levels are based on the logistics literature (cp. Gudehus and Kotzab (2012), p. 330; Large (2012), pp. 45–51).

Cp. Diederich (1977), p. 214; Isermann (1998), p. 24; Koch (2012), p. 41; Martin (2016), p. 59.

Cp. Koch (2012), p. 41; Martin (2016), pp. 62–69.

Cp. Bahrami (2003), p. 21; Brähler (2008), p. 119.

Hazardous goods (or dangerous goods) pose significant risks for health, safety, or the environment. Therefore, they typically require special attention including packaging and labeling when they are stored or transported (cp. Khan and Yu (2019), p. 330). Reefer cargo comprises a variety of temperature-sensitive goods within a range of temperatures between -35°C and approximately + 20°C. Legal requirements may be relevant for reefer cargo, e.g. the proof and control of compliance with the required temperature intervals (cp. Hasselmann (2008), p. 571).

Cp. Deuter et al. (2015), p. 1106. For example, cans, pouches, bags, crates, or drums can be used for packaging (cp. Large (2012), p. 46).

Cp. Gudehus and Kotzab (2012), p. 330.

A load unit is a collection of goods combined in a load carrier larger than the area module 600 mm × 400 mm (cp. Large (2012), pp. 47–48). A load carrier is a medium for carrying the goods (cp. ten Hompel and Heidenblut (2011), p. 166).

For a good overview of different pallet types, cp. Martin (2016), pp. 65–68.

There can be transport units with and without drive (cp. Gudehus and Kotzab (2012), p. 336). Within this work, transport units will be the largest logistics units without drive which can be used for road transportation.

Containers and swap bodies need trailers and motor vehicles to be moved on the road. A container is a stackable box that is designed to carry goods and allows horizontal and vertical transfers, e.g. 20 or 40 foot ISO containers (cp. Eurostat (2010), p. 52). In contrast to a container, a swap body has supporting legs that can be folded away when not required (cp. Rushton et al. (2014), p. 420).

Source: own representation.

Cp. Schuh et al. (2013), pp. 148–149; Weber and Kummer (1998), p. 33.

Cp. Meyer (2011), p. 27. There can be different tours, e.g. collection tours, delivery tours, and collection and delivery tours (cp. Gudehus and Kotzab (2012), p. 736).

A transport chain is a system of technical and organizational processes which is tied together to move persons or goods from a source to an end (cp. Schramm (2012), p. 35).

Transshipment denotes an activity whereby goods are loaded from one logistics system onto another. It is usually applied when there are good reasons for a change of transportation mode or vehicle type and often takes place at special locations, e.g. container terminals, railway terminals, or warehouses (cp. Alt and Cathomen (1995), p. 88; Higginson and Bookbinder (2005), p. 75; ten Hompel and Heidenblut (2011), p. 319).

Cp. Alt (1997), p. 149; Bahrami (2003), p. 32; Thoma (1995), pp. 20–21.

Some researchers believe that purchasing and procurement are different (cp. Baier (2008), pp. 13–14; Kaufmann (2002), p. 9; Mohr (2010), p. 26; Münch (2015), p. 43). In contrast, other researchers do not see a need to distinguish between the meaning of procurement and purchasing (cp. Kaufmann (2002), p. 9; Monczka et al. (2009), p. 8; Stolle (2008), p. 16). The last view will be followed within this thesis and the terms procurement and purchasing will be used interchangeably.

Cp. Kaufmann (2001), pp. 39–40. Procurement can denote “[…] a functional group (i.e., a formal entity on the organizational chart) as well as a functional activity (i.e. buying goods and services)” (Monczka et al. (2009), p. 8). The chosen definition for this work shows that procurement is understood in terms of the functional activity.

A service is “[…] a change in the condition of a person, or of a good belonging to some economic unit, which is brought about as the result of the activity of some other economic unit, with the prior agreement of the former person or economic unit” (Hill (1977), p. 318).

Cp. Gudehus (2012), p. 1013.

Services can be consumer services or business services: Consumer services are delivered to individuals or groups of individuals, whereas customers of business services are companies or organizations (cp. Homburg and Garbe (1999), pp. 42–43).

Cp. Large (2017), pp. 9–10.

Cp. Irlinger (2012), pp. 13–15; Janker (2008), pp. 17–18; Koppelmann (1995), p. 87.

Cp. Arnold (1997), pp. 10–13.

Cp. Janker (2008), p. 17.

Cp. ibid, p. 17; Koppelmann (1995), pp. 96–97.

Cp. Irlinger (2012), p. 15.

Cp. Muchna et al. (2018), p. 49.

Cp. Dehler (2001), p. 207; Schönherr (2015), p. 45.

Cp. Hofmann and Nothardt (2009), p. 95; Muchna et al. (2018), p. 45.

Cp. Hausladen (2020), p. 7; Fleischmann (2008), p. 7.

Cp. Buer (2012), p. 1; Gleißner and Femerling (2008), p. 28.

Cp. Bendul (2014), pp. 137–138; Seiler (2012), p. 16.

Source: own representation.

Cp. Leitner (2015), p. 25; Wieske (2008), pp. 29–30.

Cp. Hornby and Turnbull (2010), p. 1415.

Cp. Bowersox et al. (2002), p. 331; Cavinato (1990), p. 42; Ghiani et al. (2005), p. 199; Seiler (2012), p. 16. According to German law, a carrier is the party of a carriage contract that is obliged to move the freight to the place of arrival and to deliver it there to the recipient (cp. Cardeneo (2008), p. 734; Walther (2009), p. 220).

Cp. Wu (2004), p. 67.

For example, brokers and freight forwarders act as transportation intermediaries (cp. Bowersox et al. (2002), p. 331).

Cp. Monczka et al. (2009), pp. 43–68.

Cp. Bundesamt für Güterverkehr (2006), pp. 1–4; Bühler (2006), pp. 136–137; Caplice (2007), pp. 423–424; Garrido (2007), p. 1068; Liedtke (2006), pp. 81–82; Meier (2016), p. 188; Mes et al. (2009), p. 208; Otto (2004), p. 63; Schubert (2013), pp. 33–34.

Cp. Bühler (2006), pp. 136–137; Garrido (2007), p. 1068.

The transport order fulfills a similar purpose as the purchase order for buying goods.

For example, a proof of delivery may document that the shipped goods have reached the entitled destination (cp. Hasan and Salah (2018), p. 46781).

Source: own representation.

Cp. Liedtke (2006), p. 80; Schubert (2013), p. 34.

Cp. Lundin and Hedberg (2012), p. 240.

This has also been called a dedicated relationship, cp. Caplice (2021), p. 11.

Cp. Buer (2012), pp. 8–9. Sometimes, shippers and transportation service providers also work together over a longer period without an explicit and legally binding transportation contract (cp. Schubert (2013), pp. 33–34). These cases shall also be subsumed under the contract market procurement of transportation services. For further types of transport contracts, cp. Caplice (2021), pp. 13–14.

Source: own representation.

Title: Fundamentals for the Procurement of Transportation Services
Author: Philipp Sylla
Publisher: Springer Fachmedien Wiesbaden
Book: Electronic Procurement of Transportation Services
Print ISBN: 978-3-658-40402-4

Electronic ISBN: 978-3-658-40403-1

Copyright Year: 2023
DOI: https://doi.org/10.1007/978-3-658-40403-1_2

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Zusammenfassung

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