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Traffic and Transportation Management In A Changing Environment

A Required Session of the Supply Chain and Logistics Management Certificate Program


Who Should Attend

This seminar is designed for personnel with little or no experience, as well as those with years of experience but no formal training. It is also recommended for Traffic Managers, Purchasing Agents, Customer Service Supervisors, Physical Distribution Managers, Warehouse Supervisors, Shipping and Receiving Supervisors, Logistics Managers and anyone interested in learning, reviewing and updating skills and techniques in traffic and transportation management. Also, this program will be beneficial to executives with traffic management oversight responsibility who want to increase their technical knowledge of inbound and outbound freight movements affording the best service at the lowest overall cost.
Traffic Management (Two Power-packed Sessions)

About This Program

Traffic management, at first glance, appears to be concerned only with the simple movement of goods from point “A” to point “B.” However, this “simple movement” has an enormous effect on marketing, purchasing, manufacturing, quality control, and, ultimately, your customers. This seminar is designed to give you practical techniques for improving inbound freight control, carrier supply management, shipping, and distribution.
Management personnel new to the field of traffic management will benefit greatly from the tools and techniques presented in this program. Experienced managers and supervisors will also benefit from our instructors in-depth knowledge and experience in this field. The tools include negotiating, carrier selection, budgeting, service concerns, claims filing, and interfacing with all the other departments of your company. Our intensive format emphasizes practical skills to enable you to achieve the best possible service at the lowest possible cost.
Outbound shipment control, multiple shipment consolidation, and load shipment accumulation are critical in the logistics environment--where time is money. As for incoming shipments, we will show you that much can be done to improve service and reduce costs on the vital materials and supplies that your company needs on a consistent delivery basis. We will also show you that consistent carrier service, as a vital part of the physical supply “Order Cycle Time,” will mean reductions in inventory levels and the carrying and handling costs involved. Join us for this rewarding seminar!


1. Identify both your inbound and outbound tonnage for presentation to your carriers in exchange for contract rates and freight discounts.
2. Prepare both truckload and LTL “Bid Package” carrier solicitation letters and emphasize those points that can help your company get better service at the lowest cost.
3. Understand the significance of F.O.B. designation and terms of sale in purchase and sales agreements.
4. Devise ways to cut freight traffic costs, improve carrier service, reduce order cycle time, and increase control of inbound shipments.
5. Understand the inherent advantages, disadvantages, costs, and benefits in using the various modes of transportation.
6. Evaluate carriers to determine high-quality performance through quality surveillance measures and carrier reports.
7. Choose the appropriate freight payment plan and learn how accounting and traffic can use the available data.
8. Understand the use of private carriage as an alternative mode of transportation and its role as a traffic management tool.
9. Establish more supplier oriented relationships with your carrier base.
10. Cut costs by consolidating inbound and outbound freight movement.
11. Understand the key factors in basic tariff pricing, freight classifications, discounts, and negotiated contract rates.
12. Develop the proper procedures, packaging, filing time-frames, documentation,etc., for freight loss and damage claims.
13. Use diversion, reconsignment, expediting, and tracing to your advantage and learn how to exercise these privileges.
14. Negotiate more effectively with carrier pricing and operations personnel.
15. Develop a freight traffic budget for your expenses using present volume and current freight expenditures.
16. Evaluate and select the best carriers based on pricing, on-time performance, service factors, and equipment availability.
17. Analyze the terms and conditions of a standard bill of lading and their implications.
18. Improve the productivity and synergy of the traffic function by coordinating with purchasing, manufacturing, distribution, sales and /or marketing.

Program Outline

1. Introduction to Transportation
History of the role of transportation in America. Significance of transportation in the corporate structure. A typical organization chart. Impact of deregulation.
2. Modes of Transportation
Inherent Advantages and Disadvantages of Modes. Carriers: intermodal, NVOCC, brokers, shippers , and agents. Bulk transportation: pipeline, railroads, TOFC, COFC and domestic barge lines. Cargo capacities. Ocean carriage and containerization. Truckload carriers. Less than truckload carriers. LTL system map. Private carriage and its role. FTL and LTL accessorial services. Small shipment carriers.
Specialized carriers.
3. Transportation Documentation
Key documents and shipper/carrier responsibility. Bill of lading. Tracking and tracing.
4. Outbound Shipments to Customers
Review of terms of sale. Terms of sale vs. freight terms. Carrier selection criteria for customer service. Cost reduction opportunities. Just in time implications. Meetings with marketing and sales. Meetings with other functional organizations.
Keeping knowledge current.
5. Inbound Shipments From Vendors
Inbound controls = job security. Review of terms of sale (vendor). Carrier selection criteria – the fewer the better. Order cycle time and need for consistency. Cost reduction opportunities - inbound. Vendor routing guide. Vendor routing letter – sample. Meetings with purchasing.
6. Transportation Pricing
Classification of freight – why and how. National motor freight classification guide. Key elements and factoring in pricing. Basic tariff pricing. Typical motor tariff. Typical ocean tariff. Typical airfreight tariff. Rate comparisons. FAK – freight all kinds.
7. Freight Bills and Freight Claims
Freight payment. Freight audit – types. Freight audit – benefits. Reports from freight payment. Sample report. Determining liability in damage claims. Claims handling methodology. The relationship of packaging to claims. Packaging design criteria (to reduce claims). Fifteen fundamental principles of packaging protection. Types of packaging for selected product categories. Shipment testing. Claim types. Relationship between cargo claims and sales. Returns.
8. Transportation Contract Preparation
Benefits of a transportation contract. What customers need to know from carriers prior to negotiations. What carriers need to know from you prior to negotiations. Transportation contract specifications. Sources of information – internal. Collection of data and bid package preparation. Selection of carriers to receive bid package. Carrier bid proposal review process. Communicating with and working with carrier. Final carrier selection and contract submission. Why contracts should be used.
9. Freight Cost Budget Preparation
Determining volume and freight expenditures. Presenting results to top management. Outsourcing.
10. Review and Summary
Fundamentals of transportation – the beginning. Next learning steps. Conclusion – the future of corporate transportation.