ABSTRACT

This chapter illustrates the carrier management cycle. Commodity strategy is used to determine what issues and risks currently there are and how these can be solved in the next purchasing cycle. The commodity strategy development helps to understand service requirements, search the market for potential carriers who can provide the required services, and set up a strategy how and when to approach the market to maximize the sourcing results. It also helps to build a continuous improvement process to maintain the quality, cost, and service levels once the strategy is implemented. In the process of typical project management activities, such as creating a project charter, team, stakeholder analysis, communication plan, scoping document, and project plan, are worked out. Transportation management processes can be captured in a Quality Management System (QMS), which documents the policies, processes, procedures, work instructions, records, and responsibilities needed for the planning and execution of transportation activities to meet customer requirements.