Analysis of Freight Forwarder Operations in an International Distribution Channel

摘要

The Air Force supports weapons systems sold worldwide through the Security Assistance Program. The channel of distribution to deliver the material consists of the Air Force or a contractor in the U.S., a commercial freight forwarder, and the recipient country. When material is lost somewhere in the distribution channel, the mission capability of the U.S. Air Force and the foreign air force may be impaired. In many instances, the U.S. Air Force must pay the replacement costs for items lost in shipment. The freight forwarded, who provides a variety of services, is the international distribution channel link and is contractually bound to the foreign government. This research examines the effectiveness of services the freight forwarders provide their customer, the foreign country. Fifteen variables were tested to determine their relationship with the amount of material lost in the distribution channel. It was found that no single variable could establish such a relationship. Principle component factor analysis was used to form new groups from the fifteen original variables. When the new groups were tested, a relationship between the transportation facilitating variables and the amount of material lost was identified.