The transition from freight consolidation to logistics(7)

The transition from freight consolidation to logistics

R.K.Cheungetal./JournalofTransportGeography11(2003)245–253

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Fig.3.BreakdownofoperatingcostsofatypicalCFS

company.variationsindemand.Inevitablythedemandpatternleadstoperiodsofunder-useofspace,whichgivenitshighcost,representsasigni cantine ciency.Attemptstominimiseleasingcostsbyrentingfewermoduleswillgiverisetocongestionduringpeakperiods.

TheCFSindustrythatisrelativelypassiveinnature.Consolidatorsrelyoninformationprovidedbytheirprincipalclients,theforwarders,toplanoperations.Thecontractsissuedbytheforwarderdetailtheservicechargesperunitvolumeofcargoestobehandledduringthecontractperiod.Theydonotprovidespeci csontheactualvolumethatwillbedelivered,northeactualtimesofarrivalanddeparture.Inevitablythismakesitverydi cultfortheconsolidatortoundertakeresourceplanning.Cargoarrivalnoticesareissuedonaverageonetotwoweeksinadvance,andtheactualarrivalofthevehicleiscon rmedafewhoursbeforehand.Thisimprecisionmakesitdi cultfortheconsolidatorstoforecastdailyoperations,ingthede nitionofanorderasacargowithanindividualinvoice,andtakingasamplefromoperationsduringoneweekduringthepeakseason,itwasfoundthatanordercouldstayinthewarehouseoftheCFSforaslongas10daysoraslittleas2hwhiletheaveragedwelltimewasslightlylessthanfourdays.Fig.4showsthedistributionofthedwelltime.

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