Analysis of Costing and Pricing of Transport for Celero Company

This report provides an analysis of the costing and pricing strategies employed by Celero, an independent logistics group based in Mauritius. It compares and contrasts different pricing arrangements, focusing on the interplay of transport demand and supply. The discussion covers cost-of-service and value-of-service pricing models, along with various pricing considerations such as Free on Board, factory gate, delivered pricing, and negotiation strategies. The report highlights the importance of negotiation and mutually beneficial agreements between shippers and carriers to reduce base costs. The conclusion emphasizes the relationship between transport demand and pricing arrangements, offering insights into the core concepts of Celero's pricing strategies.

Running head: COSTING AND PRICING OF TRANSPORT
Costing and Pricing Of Transport
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1COSTING AND PRICING OF TRANSPORT
Table of Contents
Introduction................................................................................................................. 2
Discussion...................................................................................................................2
Conclusion.................................................................................................................. 3
References..................................................................................................................4

2COSTING AND PRICING OF TRANSPORT
Introduction
The report is intended to compare and contrast the different pricing
arrangement of Celero, which has been considered as an independent logistics
group based in Mauritius. The different types of the comparisons have been further
seen to recommend for peak in demand for its services and how these can be
implemented along with the control demand.
Discussion
Transport demand is identified as the capacity of the transport infrastructure
and the modes for geographically defined transport system. This has been
determined with fully or partially expressed values in terms of the number of people.
Transport supply is considered as the geographically defined mode of the
transportation services which are based on certain time period. In addition to this, the
supply has been determined with the infrastructures capacity and frequency of the
services. Capacity has been further assessed as per the static and dynamic means
which is able to represent the space amount available for transport (Kolisch, Brunner
and Larsen 2016).
The common goal for fulfilling of the derived transport demand has been seen
to be based on the various types of the consideration which has been seen to be
related to support for mobility. The demand for the services can be further related to
provide transport supply. In addition to this the interdependency factor can be
considered as the main concept for supply and demand. The different types of
pricing arrangements of transport in an operation need to be considered as per the
cost of services and value of service. The cost of service pricing has been seen to be
based on the established transport cost which varies with the cost of service as per
the distance and volume approach. The value of the service pricing has been further
based on the demand of transportation and the competitive situation (Hitt, Xu and
Carnes 2016).
In terms of the shipping cost the different types of the transportation pricing
has been further based on the various type of the pricing consideration has been
discerned with Free on Board pricing, factory gate pricing, delivered pricing zone

3COSTING AND PRICING OF TRANSPORT
pricing, quantity discounts, allowances and pricing and negotiations (Slack,
Chambers and Johnston 2013).
With particular consideration for Celero it has been observed that the shippers
are seen to be focusing more than fewer carriers and greater emphasis on the
different types of the negotiated prices. The main form of the negotiation process has
been seen to be evident with the development of the mutually benefitting
agreements and the same has been recognised with the performance motivation
variances. The most significant form of the negotiation peeress has been further able
to state on the various tryout the factors which been related to the carriers and
shippers working towards a common goal to reduce the base cost of the carriers
(Harvey, Heineke and Lewis 2016).
Conclusion
The main depiction has been able to state that the demand for the
transportation has been related to the consumptive and the productive transport
needs. The pricing arrangement has been further related to the Cost-of-service
pricing and Value-of-Service Pricing.

4COSTING AND PRICING OF TRANSPORT
References
Harvey, J., Heineke, J. and Lewis, M. (2016) ‘Editorial for Journal of Operations
Management special issue on “professional Service Operations Management
(PSOM)”’, Journal of Operations Management, pp. 4–8. doi:
10.1016/j.jom.2016.03.005.
Hitt, M. A., Xu, K. and Carnes, C. M. (2016) ‘Resource based theory in operations
management research’, Journal of Operations Management, 41, pp. 77–94. doi:
10.1016/j.jom.2015.11.002.
Kolisch, R., Brunner, J. O. and Larsen, J. (2016) ‘Airport operations management’,
Computers and Operations Research, p. 163. doi: 10.1016/j.cor.2015.09.001.
Slack, N., Chambers, S. and Johnston, R. (2013) Operations Management,
Operations Management. doi: 9780132342711.