ABSTRACT
The management of transportation services is frequently an overlooked opportunity to contribute to the success of governmental operations that depend on purchasing's ability to evaluate transportation options and carriers, determine the means to reduce transportation and inventory carrying costs, expedite and trace shipments, and process claims. The selection of a transportation system is a specialized form of procurement in which services are purchased to provide a link among manufacturing sites, warehouses, distribution centers, and/or office sites. Components of the transportation service buy include 1) evaluating the prices of various transportation methods, 2) determining the effect of transportation service on operations, and 3) evaluating the effect of transit times, carrier dependability, and safe delivery on inventory levels.[1] Traditionally, the procurement and management of transportation services were relegated to the supplier who provided a "laid-down price"—the cost of transportation rolled into the price of purchased goods.
