Freight Modalities (2): Rail

Rail is another form of land-based transportation. The United Kingdom and most European Union countries have extensive rail networks. In the United Kingdom, private rail freight providers offer highly competitive rates for companies moving large and heavy bulk materials, such as shipping containers, aggregates, liquids, and other high-volume, high weight loads. Material by the train-load […]

Rail Freight Procurement Categories

Track – labour (skilled, technical, engineering, and unskilled), signalling equipment, electrification management and support (possible but unlikely, since most of these functions will be provided in-house). Facilities – construction and maintenance of yards and permanent way. Fleet – locomotive and wagon manufacturers (including supplier liaison), maintenance of wagons and locomotives, and stabling of locomotives and […]

Rail Freight Supply and Procurement: Management and Logistical Implications

DB Schenker Rail provides locomotives and single wagon or block train carriage of freight. The division performs marshalling/train composition operations. Yard activities represent numerous cost factors, few of which will be, from the customer’s perspective, value adding. In terms of customer value, flexibility – the capability to acquire wagons and cars in response to demand […]

Characteristics of Quality in Rail Logistics Provision (2)

Variance In terms of pure logistical activities: restricting variance creates efficiencies that add value. Use of standard wagons, for example, allows automated unloading. In non-automated scenarios, operations involving standard wagons are safer and quicker due to compatibility and familiarity. Restricted variance in handling practice and rolling stock contributes to value/service quality. Flexibility in scheduling and […]

Characteristics of Quality in Rail Logistics Provision (1)

Companies are keen to show their CSR credentials to customers and the public at large. To do so authentically, they must demonstrate visibility, economies, and dynamic control and responsiveness throughout their supply chains. Rail freight companies provide their customers with “external logistics”. Choice of logistics provider impacts directly on a company’s supply chain performance and […]

Value and Quality in Rail Freight Logistics (2)

Value-Driving in Logistics For customers purchasing logistics services, value is created by the following capabilities: Accommodation of changes to freight form. If variance in lot sizes and unitized loads can be supported by the transporter’s equipment with acceptable time/cost incurred, value is created. There exist positive opportunities for suppliers who are able to change the […]

Value and Quality in Rail Freight Logistics (1)

  Value Chains as Value Systems According to Porter (1984), value depends on how the customer uses the product; value and cost incurred are dissimilar; costs include raw materials for example. Only when the product meets the customer/end consumer can the value of the logistical provision be understood. Key to understanding value drivers in the […]

The Rail Freight Value-Driving Supply Chain

Supplier and supply chain management are means by which cost-reducing efficiencies can be obtained and profits thereby increased. DB customers want to minimize logistical costs in order to maximize returns from the sale of freight. For the manufacturing customer, movement of goods to consumer or retailer/distribution centre constitutes “outbound logistics”, usually the final physical distribution […]

Disaggregating Customer Value in Rail Freight Logistics

The following figure illustrates the four constitutive elements of value obtained by customers engaging with DB. Quality “Quality” is a variously interpretable, somewhat overused and overextended term. In manufacturing and operations management generally, and service industries specifically, quality is defined by the customer. Performance quality expectations are usually formally encoded in key performance indicators (KPIs) […]