QSO 455 Module Eight Short Paper- Bailey
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Southern New Hampshire University *
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455
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Industrial Engineering
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Jan 9, 2024
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Running Head: QSO 455 MODULE EIGHT SHORT PAPER
1
QSO 455 Module Eight Short Paper
Geoffrey Bailey 26 June 2022
Southern New Hampshire University
QSO 455 Module Eight Short Paper
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Service
One of the most important services offered in the transportation industry is that of a freight broker. “A freight broker is a middleman between shippers and carriers. Instead of taking possession of the freight, the broker facilitates communication between the shipper and the carrier. They’re the ones making sure the handoff goes smoothly between carriers and shippers, and that freight arrives safely, on time. Shippers like working with freight brokers because they have a single point of contact from point A to point B while their freight moves to its destination.
Working with a broker eliminates the messy process of negotiating with a carrier, planning routes, and tracking freight. Carriers also like working with freight brokers to optimize their routes and minimize deadhead miles, boosting their earnings in less time”
(Todd, 2020)
.
Methodology The transportation industry in general, and freight brokerages in particular have started to
embrace six sigma and lean methodologies. “There has been a change in how the marketplace thinks about quality in the supply chain in recent years. Lean Six Sigma is a program that combines the best of Lean, which focuses on the reduction of waste, and best of Six Sigma, which focuses on reducing error. In the supply chain, especially in transportation management, there is a real need for elimination of waste and to instill more efficient processes”
(Abernathy, 2015)
.
Implementation In today’s fast paced and rapidly evolving logistical landscape, managers must strive to reduce wastes and unnecessary costs by eliminating functions that have little to no bearing on the
final product or service being performed. One of the most vigorous of the continuous
QSO 455 Module Eight Short Paper
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improvement methodologies that will achieve this result is Six Sigma. “While Six Sigma has traditionally been associated with manufacturing and product quality, leading manufacturers are using it to improve their extended supply chain and logistics capabilities. At the same time, they are improving reliability, some companies have cut hundreds of millions of dollars of fat out of their supply chains. Applying Six Sigma methods to complex and challenging logistics processes
can decrease variation and optimize the processes”
(Harps, 2003)
.
Perceived Value
Logistics is among the most important businesses that will be driven by the utilization and application of lean/six sigma methodologies. “Logistics is efficiently planning, implementing and controlling materials in the supply chain, services and information flow. In the
future, competition of companies won't be about products which they produce or about countries where these products are consumed, but it will be about the supply chains they use. Competition of companies will be raised by improving logistics processes. To reduce transportation that do not add value to the products and to deliver the products to customers in a short time will lead to reduce logistics' costs and in addition they will raise customers' satisfaction. Therefore, companies should optimize their logistics processes”
(Orbak, 2011)
. By embracing these methodologies, an organization can make itself more competitive and have a greater chance of seeing a more profitable bottom line.
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QSO 455 Module Eight Short Paper
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Works Cited
Abernathy, G. (2015, August 24). Improve Your Transportation Management Program with Lean Six Sigma
. Retrieved from Transplace: https://www.transplace.com/about-transplace/blog/improve-your-transportation-
management-program-with-lean-six-sigma/
Harps, L. H. (2003, January 1). Six Sigma Success
. Retrieved from Inbound Logistics : https://www.inboundlogistics.com/cms/article/six-sigma-success/
Orbak, Y. (2011). Six sigma approach for the reduction of transportation costs of a pipe manufacturing company.
Bursa Turkey: Industrial Engineering Department, Uludag University.
Todd, A. (2020, March 1). What is a freight broker?
Retrieved from Flock Freight: https://www.flockfreight.com/2020/01/03/what-is-a-freight-broker/