Contract Warehousing.
Public warehousing services provided for a fee, typ-
ically with guaranteed serviced levels.
Examples: Caterpillar Logistics Services, Dry Storage.
2.
Subprocessor.
Outsourcing of assembly or subprocessing. Usually performed
with labor-intensive process or high fixed-asset investment when customers
need small orders. These channel players are also beginning to take on tradi-
tional wholesale distribution roles.
Examples: Steel processing, kitting of parts in electronics industry.
3.
Cross-Docking.
Trucking companies service high-volume inventory needs by
warehousing and backhauling product on a routine basis for customers’ nar-
rower inventory needs. Driver picks inventory and delivers to customer after
picking up the customer’s shipment.
Examples: Industrial repair parts and tools, various supply industries.
4.
Integration of Truck and Rail (Intermodal).
Joint ventures between
trucking and rail companies to ship large orders door to door from supplier to
customer, with one way-bill.
Examples: Very economical for large orders, or from manufacturer to cus-
tomer for a manufacturer with a broad product line.
5.
Roller Freight.
Full truckload is sent from manufacturer to high-density cus-
tomer markets via a transportation company. Product is sold en route, and
drivers are directed to customer delivery by satellite communication.
Examples: Lumber products, large, moderately priced items with commodity-
like characteristics that allow for routine orders.
6.
Stack Trains and Road Railers.
Techniques to speed movement and elimi-
nate handling for product to be shipped by multiple formats. The importer might
load containers directed to specific customers on a truck body in Hong Kong,
ship direct, and unload onto railcars, which can eliminate two to three days’
transit time. Large customer orders using multiple transportation techniques.
Examples: Importers.
7.
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