A Critique on Private Carrier Requirements
This is module 8.4:
The professional logistics manager must develop a knowledge base that is integrated with other disciplines. Transportation is one of the highest cost areas in logistics management. The corporate board requests an analysis on the private carrier legal form of transportation. Based on what you read in this module, please critique the private carrier requirements by taking an opponent or proponent point of view.
Professional Logistics Manager
Logistics management deals with all supply chain demands by customers through effective planning, control, and movement of goods and services from one point to another (Stadtler, 2015). Transportation is one of the highest cost areas in logistics management. A private carrier legal form of transportation is a carrier operating under an absolute agreement in each case and who either makes a choice of accepting or rejecting any request by the client to carry goods.
Critique of Private Carrier Requirements
The corporate board of the company has asked the logistics manager to conduct an analysis of the private carrier form of transportation by critiquing the private carrier requirements accordingly. As a logistics manager, one should keep track of transport costs and efficiency when transporting products to customers.
To begin with, when there is no special terms set in the contract, a private carrier has no lien over the goods and services of the consignor. This creates risks of loss to the consignee. The logistics manager faces a challenge when choosing the best vendors with the capacity to offer transportation facilities (Monczka et al., 2015). Also, there is a problem for the private carrier in choosing the most suitable routes for transportation of goods and services from the company to the destined customers.
