Purpose



PurposeThis report was requested by Mr. Andrew J. Bardsley the tutor of “Managing in a transport and logistics environment” subject. This assessment is one need for the academic studies and it will be a measure for my general understanding and efforts on the subject. Introduction Have you ever wonder from where all those different fancy cars come! Was your answer “ the agency”?. If you thought a littel farther, you will find that there are many other places that your car gets through in order to reach this country and that requist various procedures, documents and contracts. The transporting service is not easy as buying a new car and drive it home. The reason behind you driving this car is because a long integrated chain that aims to accomplish your needs. On this report, Chevrole cars imports chain will be identified through the appropraite transportation mode, network design and costs to be considered of the shipper and the carrier.Findings“Chevrolet cars” is one brand of USA General Motors and it has many manufactures to produce cars parts. In Brazil, Kazakhstan, Mexico, Thailand, Viet Nam, China, India, Australia, Russian Federation, South Korea, Canada and 15 plant in USA.[1] Chevrolet cars has a good reputation and a good pricing system. The main dealer in Bahrain is Chevrolet agency in Sitra. These cars are sold in many stores such as: Montreal, Montana motors, Bahrain credit, Kuwait finance house, National motor company.Some of Chevrolet destinations in Bahrain[2][3][4][5][6]: These countries that contains “ Chevrolet plants” shares the raw materials and cars parts that most of which are shipped by maritime for the long distance countries and by road or rails for the short distances. In case of emergencies those materials could be shipped by aircraft but it would be expensive. The network design is used in this step is “direct shipping” where the raw materials are going to be directly shipped to the manufacture to produce cars parts.From Chevrolet assembly manufacture to New York port:53340195580The distance needed to deliver cars from General Motors plant to New York Port is 618 mile which will take around 9 hours and 19 min by road [7] (pic1). The multiple Auto truck is able to carry around 12 cars in single voyage. Considering cars quantity sent from the factory to the port, definitely using auto trucks is not the best option. In other word, using railways is the best option, though, it is inflexible mode.-8826570485Actually, trains offer lower transport rates then auto trucks which will be estimated by 100$ to 200$ per day. While one auto truck costs 50$-100$ per day. One more advantage is, the train offers more security through the closed containers(Pic2) which will also reflect on reducing damage possibilities caused by flying debris or weather conditions and protect the paint from dust. Moreover, using railways is an energy efficient that produce less carbon dioxide compared to trucks. But still after filling the containers, container trucks need for transfer the shipment to-from the train.[8]711203377565From New York port to Khalifa Bin Salman port:9525231140After transferring operation, cars will be driven in to a special Pure Car Carriers(PCC)(Pic5). This vessel advantages are that it is designed in many levels to allow the maximum use of space, known by the high speed and it don’t need a special method for loading or unloading shipment.[9] The reasons behind choosing the maritime transportation: the vessel allows more shipment, carry more weight and larger quantities, cheaper because of fuel costs. In other words, carrying hundreds of cars in one long voyage that takes 2 months is more cost and environmental effective than carrying same quantity in 10 trips by a plane. And the schedule of the shipment is identified below.From Khalifa Bin Salman port to the assembly center and to the distribution destinations:571563500When the vessel lands on Bahrain port, the cars are driven straight to the assembly center where all cars are parked under a specific order. The companies that requested a door to door shipment will receive their orders via haulers since others come in person. Both, haulers and those companies need Auto trucks to transport cars. Road transportation is the only method that could be used on Bahrain lands. This method is common of traffic and accidents, but it is flexible where the hauler can identify the traffic locations by satellites network and give directions to the driver to change the route. More other advantages of this mode are, that it has lower maintenance costs compared to maritime and railways, it takes less time and costs to transport shipments on the short distances and it has no fixed schedules same as other modes. Transport Network designs for the suppliers, company and the carriers[10]: AuthorityNetwork designReason Raw material (supplier)Direct shipping systemBecause the suppliers send the raw materials directly to the manufactures to produce cretin types of cars parts.Parts manufacturesWhen cars part are ready, it is sent directly to the main manufacture in USA to assemble Chevrolets cars.Railway (Carrier)Milk run systemBecause the shipment is loaded and unloaded in each station.Maritime (Carrier)The cars are assembled in Pure Car Carriers (PCC) ready to be transported to many destinations. This vessel heads to many countries unloading these cars till it reaches Bahrain.Hurlers (carrier)when the cars are placed on the storage center of Khalifa port , the haulers starts to carry their cars by Auto trucks and send them to various destinationsThe diagram is showing the reason why Milk run system is the best for Chevrolet cars :Shipping via distributing center via milk run system could be the best system to be adopted by Chevrolet company. That reasoned by the different destinations that Chevrolet sends their cars to, which could be local or a global consumers. That system is able reduce fuel costs, empty running, the number of voyages and saves more time. Chevrolets costs considerations of[11]:The carrier (least expenses)The shipper (speed)In spite of the high security technologies, still the Piracy and theft are major worries for the carriers. Specially for vessels that moves through the Arabian seas. Even if cars vessels are not highly at risk which goes for the heavy shipment but still the risk is not zero and it can’t be stopped whereas it can be recovered. Since the shipment is insured, the carriers will be more comfortable to trade in risky areas.Insurance is also made to release carriers from the responsibility of damaging shipments and compensate the owner. Transportation through road always has some congestions which delay is one of its results. The carrier can’t avoid the delay responsibility where the purchaser could ask for a discount which will result in reducing the carrier profits. That also applies on maritime and railway which will reflect negatively on the organization reputation.When the shipment is unloaded from the vessel, it should be stored in some areas of the port and that is considered as an added facility which the carrier is charged on. And it is counted on the total costs that the shipper pays. Owning Vehicle or assets like warehouses could be expensive and it is not cost effective since it is not regularly used. Actually warehouses costs are calculated according to BD/Ft which means if it’s not uses it’s a sure loss for the company’s money. All maritime carriers charges their customers less when there is a long journey. It is charged upon BD/mile. But that decision in not carelessly made. The company has a specific calculations of fuel costs, insurance, customs duties and duties paid when passing through some countries seas. That not only applied on maritime but also for road or railway where the companies give their customers discounts in order to keep a good reputation, get more dealers and stay longer on business.The carrier may have Inspected costs that is caused by damage of the vehicle or when the time is short and more workers are needed. When shipping any material “Door to door service” should be considered if the dealer don’t own a transportation method. This service means more money , but some companies offer good services with low prices and the shipper must be knowledge of these companies in order to find the best price that suites his requirements and standards.Renting auto truck for transporting cars in enclosed containers is more expensive and it can be replaced by open truck specially if the weather won’t affect the cars.Storage time is important where if customers receiving time is delayed, cars are charged extra for staying longer in storage. Cost per trip and destinations by miles must be calculated adding loading, unloading charges and customs duties in all transporting modes.The costs of equal transportations must be compared (air-maritime) (rail-road) in order to reduce the costs and save more money and time. Extra Service means more charge but sometimes it is needed in order to meet with the consumer’s expectations and give the selling company a good reputation. It may charge more for the shipper (cars dealer) but also he is going to compensate it in the price sold. Conclusion Chevrolet, sends hundreds of cars from one country to other using several modes and network designs with the best consideration of costs for both the carrier and the shipper. he brand of USA General Motors cars has gained a good reputation through her perfect organizing system making an integrated supply chain that is able to meet with customers demands in a specific standards at the right time in the right place. References [1] Chevrolet plants, Where is Chevrolet manufacturing plant located?, website: [2] national motors company, Google website: [3] Montana cars, Google website: [4] Montreal, Google website: [5] Bahrain credit, Google website: [6]Kuwait finance house, Goggle website: [7] Distance needed to deliver cars from General Motors plant to New York Port, Google map website: httpmaps..bh/maps?hl=en&q=general+motors+manufacturies&bav=on.2,or.r_qf.&bvm=bv.43287494,d.d2k&biw=1093&bih=519&wrapid=tlif136325663993210&um=1&ie=UTF-8&sa=N&tab=wl [8] Car transport by train vs. truck haulers, a comparison guide, Autos website: [9] what are Ro-Ro ships?, by Raunek, October 1, 2010, marine in sight website: [10]-[11] student notes, transportation(section2). [pic1] Main road route from manufacture to New York port, Google map website: [pic2]carrier selection criteria, report published by Allianz risk consulting, Sept2010, Isope website: [pic3] USA rail routes, maps of world website: [pic4] Ro-Ro vessel, website: [pic5] New York shipment route to Bahrain and transit time, shipment link website: [pic6] Cars transporting vehicle (Auto truck), Google website: ................
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