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Managing Global Freight Distribution Using New Strategies and Tactics

An Elective Session of the Supply Chain and Logistics Management Certificate Program

About This Program

In today’s global economy, every company is, or soon will be, engaged in trade outside the 48 contiguous United States. It is important to understand the differences involved in shipping or receiving goods that must be moved by means other than the continental rail system or the interstate highway system. Each company needs to have the knowledge necessary to use every tool available to ship and receive its freight. This course is designed to give the participant that capability.

This course is interactive. We will concentrate on the issues which are important to the group and will use examples pertinent to the industries represented in each seminar. We will explore packaging and transportation options appropriate for each industry’s type or category of product. A major topic of discussion will be about third party logistics providers including warehouse and international freight forwarders, brokers, and NVOCC operators; their role, cost, benefit, and selection criteria. We will cover international carriage and documentation considerations from both import and export points of view. In a greatly expanded section on e-Logistics, we will look at every aspect of how the Internet has changed the environment across the supply chain. This section alone is worth attending this seminar.

Who Should Attend

This seminar is designed for personnel with some traffic experience who wish to broaden their knowledge. It is also recommended for Traffic Managers wishing to update their skills to include the latest technology and expand their abilities to include the global transportation perspective. Purchasing Managers, Customer Service Managers, Logistics Managers, and executives with oversight responsibility for these areas would also benefit from attending this seminar.



1. Assess differences between domestic and global thought processes.
2. Assemble a global transportation team.
3. Include global packaging considerations to avoid big problems.
4. Evaluate customs House Brokers, International Freight Forwarders, OTI/NVOCC’s, and freight brokers; what are the differences and why do you need them?
5. Understand the latest issues surrounding deregulation, Ocean Shipping Reform, NAFTA, and GATT.
6. Use the power of the new INCOTERMS.
7. Measure the productivity and efficiency of your operation.
8. Manage e-Logistics: What it is and why you need to use it now.
9. Use e-Commerce: Where B2B and B2C fit in the Traffic Manager’s world.
10. Use e-Procurement: What it means to you and why it is a useful tool.
11. Understand Internet based solutions: 4PL, Tracking and Tracing, Logistics Portals and other tools; are they useful to you?
12. Understand the "disintermediation" of service providers: how it affects you.
13. Understand your Supply Chain processes and how to manage them.
14. Use EDI: principles and uses in Traffic Management.
15. Consider self invoicing.
16. Use information as power and how, why, and what to collect.
17. Assess third party logistics providers: are they cost effective?
18. Evaluate current trends in the use of computerized Traffic Management and Load Planning Systems.
19. Read and understand carrier tariffs for air, ocean, and motor.
20. REALLY calculate Landed Cost.
21. Consider 9 things when choosing a carrier.
22. Understand Export Licensing: are you involved?
23. Understand the essentials of Duty Drawback.
24. Use Letters of Credit – when and why.
25. Manage the 16 problems most frequently encountered when trying to collect against letters of credit.
26. Satisfy foreign import requirements to avoid expensive and time consuming fixes.

Program Outline

1. Global Transportation: The Big Picture
The domestic thought process. The global thought. The global team. The global package considerations.
Global logistics considerations. Putting it all together.

2. Domestic Vs. International Requirements
Overseas Issues and Opportunities. Import, export, domestic traffic management. Use of CHB, IFF, freight brokers, NYOCC (OTI) in the United States. Where does FMC and IATA fit in? The Ocean Shipping Reform Act of 1998. NAFTA, GATT, the Caribbean, U.S. possessions: where do they fit in?

3. Incoterms
The International Chamber of Commerce [ICC]. Common areas of importance to sellers and buyers. Thirteen most common incoterms. Four basic categories. Applied to transportation modes. Major changes. When does ownership of the goods transfer? Key points.

4. International Transportation
Carrier freight costs. Some global tariff specifics. Air vs. water comparisons. Time definite service. Carrier dependability considerations. Landed cost. Export licensing. Import requirements. Financial instruments. Draft requirements. Letters of credit – why? Reliability and flexibility of letters of credit. Inflexibility. Distribution requirement. Duty drawbacks.

5. Use of Computers In Traffic Management
Role of computerization in traffic. Freight audit. Use of routing software for drop shipments. Use of transportation management systems for truck and load planning. Order/logistics management systems. Working with other systems and hosts. Other applications. Timeshare software. Using today’s technology to save time and money. Your success now linked to technology.

6. E-Logistics: Today’s Competitive Tool
E-logistics: what is it and why do you need it now? Transporters move to deliver utilizing e-commerce. Why the Internet? E-commerce: where B2B and B2C fit in our world. E-procurement: what it means to you. Internet based solutions. Supply chain processes in the connected world. The "disintermediation" of service providers. ASP vs. desktop; what’s the difference?

7. Third Party Logistics Providers
Third party logistics – what is it? What a third party transportation logistics provider should have. Third party warehousing services. Available third party traffic/transportation services. Types of third party logistics providers. The thirteen common reasons to choose outsourcing. The five most important considerations to include when choosing a contract. Logistics firms. Third party pricing strategies. The common denominator. Ten steps to choosing a third party provider. Single sourcing. Downside considerations include.

8. Measuring Productivity and Improvement
Defining a standard. Using the SCOR model. Supply Chain Performance Indicators. What some other companies are doing. Some measurement elements to consider. Standard metrics to consider. Other delivery performance metrics to consider. Enabling processes. Delivery processes. Summary of implementing KPI’s.

9. Intermodalism
What is it? Why now? Saving money via intermodal. Short haul intermodal. The Landbridge concept. Third party originator. Marketplace needs – carrier responses. When to specify a particular mode. EDI – a strong link. Advanced shipment notification (EDI 856). Defined EDI message types. Bar code scanning for data collection. Drayage – weak link in intermodal. Solutions to local drayage problems. Equipment innovations

10. Review and Summary