CARRIERS STRATEGIES

                 

    There are five types of carriers’ strategies that are operating strategies, technology and equipment, the hub-and-spoke route system, marketing and coordination. But, I will explain about operating strategies only. The operating strategies are the rule of efficiency states that it is most efficient to move in a continuous straight line whenever possible. This rule describes the most efficient movement of goods and people. (a) Intermediate handlings should be minimized. This rule of thumb bears special attention when a different transportation firm meets as part of a through move. Rail transports often use run-through trains with the engines and cars remaining intact in interline moves to minimize interchanges time loss. (b) The full capacity of the transportation vehicle should be maximized on each run. Transportation costs of trucks, trains, ships and plane are similar in that the costs of personnel, depreciation, licenses and taxes are relatively fixed costs that are incurred for each run. Each trip should be fully utilized by consolidation cargo with other shippers. (c) Consolidation and break-bulk activities should be used to achieve full capacity for long-haul movement. One means of attaining full equipment use is to use a pickup and delivery network to accumulate freight for the line-haul efficiency. Trucking firms do this with city vehicles that bring different shipments to a terminal for sorting, accumulation and shipping in a bulk quantity to the destination city terminals. For example, shipment from Johor Bahru to Perlis must be fully utilized then do break-bulk. It also can save cost, cost per unit become lower and it also can save time. (d) Empty mileage should be minimized. The cost of moving an empty vehicle is almost that of moving a loaded one without the offset of revenue. Energy is a major cost in transportation systems. In very few instances can a firm afford one-way loaded movements with empty return hauls. The truck is fully loaded by cargo. No empty movement and make sure return to Malaysia with a cargo back. (e) Movements should be scheduled and dispatched so as to fully use labour and equipment in line with the market. Transportation service cannot be stored it is because the service must be in place for the market. This rule calls for the optimal equipment levels to be in place with the required personnel. The transportation should be in scheduled. Neither the equipment nor the required labour should delay the move. For example, a waste occurs when crews arrive for work and there is no equipment available for the trip or little freight to be handled that day.