Logistics in Transport Field - Essay Example

Logistics in the transport field Introduction Generally, transportation can be defined as the movement of people or goods from one locality to another. Transportation is facilitated via different modes which may include; road, air, water, pipeline, space or even cable. Transport is essential to the well being of humanity. For instance, the trade industry greatly owes the milestones it has achieved inthe transport industry. The modes of transport require the construction of infrastructure for them to function accordingly. For instance, roads, railways and airports have to be constructed to ensure that the transport mode is sufficiently implemented. There are certain logistics that dearly come into play when choosing between the different modes of transport. This is due to the fact, the different transport modes accords different types of features to the customers in question. The first aspect usually under consideration is price. This implies the cost that the client will incur in the selected mode of travel will be different. For instance, if one chooses to travel by air, the cost incurred will not be the same to the road or railway expenses (Macconville,1997). However, it is a lot worth noting that no aspect can viewed at in isolation. This is due to the fact that, cost alone cannot be used as the sole criteria in selecting the best mode of transport. Convenience, reliability, time and price are the most considered aspects. This is due to the fact, different clients have different wants and preferences. This thus sums up the need to come up with a strategy before indulging in any transportation mode. In addition, distance and durability of the commodity being transported is an issue that should be clearly evaluated. This clearly depicts that transport is a crucial aspect moreso in the trade sector. This is due to the fact that, the impact that emanates from the transport sector permeates to all avenues of the economic divide. This paper as such seeks to critically evaluate the appropriate model of transport in consideration of utility and the prevailing time considerations (Ben-akiva, Meersman&Voorde 2008). The transport destinations will involve the Philippines and Australia. Philippines, the manufacturing site Philippines is a country located located in the South East of the Pacific that is considered very prone to earthquakes and typhoons. However, the country is also considered to be one of the very richest as long as biodiversity is concerned as the country is duly endowed with natural resources. The Philippinesranks 7th in the whole of Asia as long as population isconcerned and hence depicts that the country is quite large. In the Philippines it is evident that since the trade interactions with the Chinese being so immense, there is a cultural mix between the two nations. In addition, the country’s national economy ranks 43rd in the world with major trading partners being identified as the United States of America, Japan, China, Thailand, Taiwan, German, Netherlands and Singapore. It is also evident that all individual countries specialize in specific commodities with regards to the availability of the raw materials and the know how endowed to the citizens of the particular country (Button 2010). According to the Philippines, the major items for trade include, electric products, transport equipment, copper petroleum, fruits and, garments. The initial factor before indulging in any transport endeavor would be to decide on the transport cost. This is due to the basic fact that, once you in committing to one mode of transport, the cost incurred will have to replicate to the customers. This implies that the higher the transport cost incurred, the higher the value of the commodity and thus it may turn out to be very expensive if caution is not taken. The transport scenario from the Philippines to Curtis Island is no different. There are two viable modes of transport that can be applied which includes; water or air. This is explained due to the need to transverse the Pacific ocean. In most case scenarios, when transporting commodities for a long distance, it would be advisable to contract shipping services. This is due to the fact that, this saves an organization's resources in the aspect of both time and money. It is hence prudent for the client in Curtis Island to acquire the services of a shipping company and engage in a legally binding contract that will spearhead the delivery of the commodities as required (Mees 2010). Protection of Sub assemblies Before engaging in any transport endeavor, the merchandise in question need to be evaluated. For instance, it would not be prudent to ferry consumables in the open as the adverse weather condition might end up destroying the shipment. In this instance, the materials or commodities being transported need to be packaged in a safe and secure mode that will ensure that adverse weather conditions will not harm the products in question. In addition, in the packaging stage, it is also important to evaluate whether theft is an issue of concern. This implies that, when transporting machinery for instance, it would be a bit difficult for the machinery to be lost through theft with regards to its size and in comparison to smaller products. However, regardless of the size of the product, care needs to be taken to ensure that, the threat of lose through theft or adverse weather conditions are mitigated. In many instances, containers are utilized as they negate loses from either theft as they are difficult to unlock. Containers also ensure that the adverse weather conditions will not affect the commodity in question. Storage and completion In many instances, due to bureaucracy in different nations, once packaging is completed, transportation does not commence forthwith. It is hence prudent that the appropriate storage facility be sought out well in advance as this will ensure that the merchandise will not be vandalized among other problems. In addition, certain commodities will require much more care while storing. For instance with perishables. It will be inevitable to acquire a special warehouse that can accord refrigeration services. While in storage, the transport documentation is supposed to be finalized as soon as possible to avoid the accumulation of the warehousing charges. It is also notable that all the expenses being incurred will be transferred to the end user thus making the commodity in question to be expensive. Mode of transport. The mode of transport is the most crucial aspect in the transportation industry. However, before deciding on the mode of transport to be adopted, it is essential thatall aspects be put into consideration. For instance, from the warehouse to the habour or airport it might be inevitable to avoid the services of a haulier. This is due to the fact that, road or railway might be considered depending on the convenience. It is also notable that there is no huge disparity between the two modes of travel mostly in the developing nations. However, in the developed world, it might be prudent to rely on the train services since they have a well built infrastructure that would facilitate easy transportation. In the Philippines, just like in any other place, the modalities involved will have to be evaluated before a decision is implemented on how the merchandise will leave the warehouse for the airport of the harbor. The other crucial aspect would be in evaluating on the viability between water and air as the other modes of transport. This is due to the fact that the Philippines and Curtis Island are segregated by a water mass known as the pacific ocean. This will thus mitigate the adoption of the other modes of transport. The key factors that will play a crucial role in the decision making will include; time, risk appetite, price, convenience, size of the commodity in question and durability. Time will imply urgency and as such in the instance that the commodities are required in an urgent time frame, then air transport will be opted. This is respect to the fact that water transport takes quite a considerate amount of time before delivery is facilitated. The price difference between water and air transport at times might be quite substantial and such this will also facilitate the decision making process. In addition, the material being transported will also necessitate the price variance. This is due to the fact that, with the shipment, the charges are reflected as according to the size of the shipment. The bigger the shipment the higher the charges. In some instances, the size of the commodity may only be transported through water given that air transport has strict regulations that check on the weight of the commodities in question. Investors on the other hand have varying risk appetites that will also come into play when deciding on the viable mode of transport to be implemented. Both are quite risky but the end decision will be made when all factors are inculcated together. Supply management system In many organizations around the world, a supply chain management or a logistics management system is inculcated into the operations of an organization. This is due to the fact that, the acquisition of goods from abroad is a technical aspect that can lead to the organization's failure or success. The responsibility bestowed on the supply chain management is to ensure that the correct products get to the organization in a timely manner as requested and in the right condition. Curtis Island, final destination Once in the Curtis Island which is considered to be Australia, the merchandise will be received in the harbor or airport based on the mode of transport that was adopted.Clearing and forwarding agents will be contracted to finalize on the documentation procedures that have to be in line with the requirements of the country. Storage on delivery During the clearance procedures, the consignment will be stored in a conducive environment that will ensure safety and general well being. This implies that in instances where perishables are concerned, the storage facility chosen will have to be well refrigerated. However, the storage is only meant to be for a short while with the exception of any unwarranted eventuality. This implies that, once the clearance measures are finalized, the consignment will be released and transported to the respective organization. Delivery accommodation This might necessitate the services of a haulier company or a railway with regards to the place in question. As earlier noted, the price difference between railway transport and air is a bit negligible. However, the size of the commodity in question will greatly determine the transport mode adopted. This will imply that, the choice will have to be made between road or railway whichever is appropriate. This is with the assumption that, the organization is not located adjacent to the harbor or the airport thus calling for the adoption of the other mode of transportation. Factors that should be keenly evaluated Shipping time Among the essential factors that are put into consideration in the supply process, time is of the essence. This is due to the fact that, the products in the shipment are meant for resale or for utilization in the manufacturing process. All factors in consideration, time should be observed as it is important to ensure that late deliveries are avoided as much as can be (Pallis 2007). Shipping time should be well forecasted and a negligible time span accorded once indulging in the ordering process. This is due to the fact that, late deliveries will directly impact the organization'sprofitability as well as depicting a negative image in terms of efficiency. Once indulging in the choice of transportation moreso while traversing the pacific ocean, time will have to be well calculated. In the instance a fasterdelivery is required, air transport will be selected. Risk Risk is also a crucial aspect that should be clearly evaluated before deciding on the mode of transportation that will be adopted (Gubbins 2003). This is due to the fact that, different investors or organizations have varying risk appetites. This is to imply that, an organization will only select the transport mode that is equivalent to the organization's risk specifications The size of the merchandise being shipped It is evident that the size of the commodity in question being shipped from the Philippines to the Curtis Island will greatly influence the transportation mode adopted. This is due to the fact that, for instance, there are strict regulations on the size of the load that can be transported via air (Hensher& Button 2000). In other countries, there are restriction on the axle numbers the haulier trucks can accommodate. This will also be a critical factor in deciding the combination in the different modes of travel. Seasonal considerations Weather and holiday considerations will have to be put in place before commencing on a decision (Tiffin&Kissling 2007). This is due to the fact that, the eventuality that there will be adverse weather conditions would greatly hamper the transportation process. In the instance of storms for example, it will be difficult to adopt either water or air modes of transportation. It is also necessary to consider holidays as the transport expenses might hike during such times. Australian Customs, Quarantine and Inspection clearance Once arranging for the transportation of commodities , it is essential that the parties involved be well versed with the requirements of the Australian state. This will negate the instances of contravening with the stipulated laws. This is due to the fact that, all commodities will be inspected and in the instances of indulging in an illegal venture, the consequences will be lethal. Conclusion It is apparent that the transport industry is a great determinant of success in the trade industry. It is hence essential for the supply chain management to identify a cost friendly combination of transport modes that will not be expensive for the organization in question. This will imply that it is essential that the organization comes up with an affordable combination that inculcates all factors into consideration. Reference list Ben-akiva, M, Meersman, H, &Voorde, E, 2008,Recent developments in transport modelling: lessons for the freight sector, Elsevier, Bingley, UK. Button, K, 2010,Transport economics, ElgarAldershot, Hants, England. DE Palma, A, 2011,A handbook of transport economics, Edward ElgarCheltenham, Glos, U.K. Gubbins, E, 2003,Managing transport operations, Kogan Page, London. Hensher, D, & Button, K, 2000,Handbook of transport modelling, Pergamon, Amsterdam. Macconville, J, 1997,Transport regulation matters. London [u.a.], Pinter. Mees, P, 2010,Transport for suburbia: beyond the automobile age,Earthscan, London. Pallis, A, 2007,Maritime transport: the Greek paradigm, Elsevier, JAIAmsterdam. Tiffin, J, &Kissling, C, 2007,Transport communications: understanding global networks enabling transport services,Kogan Page, London. Read More