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A firm that manufactures medical research supplies delivers them to hospitals an

ID: 444029 • Letter: A

Question

A firm that manufactures medical research supplies delivers them to hospitals and medical centers around the country. The deliveries can be made using Less-than-Truck-load trucks, air express, private truck fleet, and UPS. What factors should be considered in selecting among these alternatives?

Note that the trucking industry consists of two major segments - truckload (TL) and less than truckload (LTL). The TL segment is characterized by shipments of 10,000 pounds or more. LTL operations are priced to encourage shipments in small lots, usually less than half a TL. LTL shipments usually take advantage of freight consolidation and take longer than TL shipments.

Please write in your own words with at leat 7 to 8 sentences.

Explanation / Answer

Selection of shipping alternative depends on the nature of the product and the destination to ship. Medical research supplies are often delicate and contageous (if contain cultures of bacteria or any harmful chemical). Hence, they require extra care in order to be protected as well as to be safely transported. A highly specialized shipping mode customized to carry only these kind of goods are ideal, and that can be possible with private truck fleet. But that is only possible for short distance, if the shipment is for long distance, the airfreight is the best option. TL option will not be feasible as the product in question is research supplies, it will make only sense if the supply is of heavy research equipment. LTL option is not feasible for most medical research supplies as consolidation may damage the delicate research equipment and can contaminate the other products in the lot if the supply contains culture of bacteria, virus etc.

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