Consumers, now more than ever, want their products to be well-made, safe and ethical.
Thankfully, today‘s SCM software gives users the means to adhere to both environmental and
ethical regulations with ease. For instance, some solutions allow users to closely inspect
Transportation or shipment is necessary for an uninterrupted and seamless supply. The
factors that have an impact on shipment are economic uncertainty and instability, varying fuel
prices, customers‘ expectations, globalization, improvised technologies, changing transportation
The major elements that influence transportation should be considered, as it is
completely dependent on these factors for order completion as well as for ensuring that all the
flows work properly. The major factors are −
Long-term Decisions
Transportation managers should acknowledge the supply freight flow and accordingly
design the network layout. Now, when we say long term decision, we mean that the
transportation manager has to select what should be the primary mode of transportation.
The manager has to understand the product flows, volume, frequency, seasonality, physical
features of products and special handlings necessities, if any. In addition to this, the manager
has to make decisions as to the extent of outsourcing to be done for each and every product.
While considering all these factors, he should carefully consider the fact that the networks need
not be constant.
For example, in order to transport stock to regional cross dock facilities for sorting,
packaging and brokering small loads to individual customers, stock destinations can be
assembled through contract transportation providers.
Lane Operation Decisions
These functional decisions stress on daily freight operations. Here, the transportation
managers work on real time information on products‘ requirements at different system nodes
and must collaborate every move of the product that is both inbound and outbound shipping
lanes so as to satisfy their services demands at the minimal possible cost.
Managers who make good decisions easily handle information and utilize the opportunities for
their own profit and assure that the product is moved to them immediately, whenever it is
demanded, that too in the right quantity. At the same time, they are saving cost on transportation
also.
For example, a shipment has landed from a supplier who is based in New Jersey and in
the same week, a product needs to be dispatched to New York as it becomes available for
movement. If the manager is aware of this information in advance, he would prepare everything
as per the demand and the products could be shipped out immediately.
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