Importance of Transport in a Supply Chain - Essay Example

IMPORTANCE OF TRANSPORTATION IN A SUPPLY CHAIN Name: Name of the Course: Professor: University: City: State: Date of Submission: Importance of Transport in a Supply Chain Most industries globally are adopting practical art of transportation in their daily activities that are associated with supply chain management which is considered a vital aspect in the day-to-day running of an industry’s’ activities. Transportation is identified as the movement of individuals, products or goods. Various forms of transport are utilized in the current world which is air, space, cable, road, pipeline, rail and water. The field is usually divided into operations, vehicles, and infrastructure. Transport is a vital concept as it enhances the development of organizations. It in turns needs to advancements in civilizations. It is essential in the art of globalization, and hence appropriate and efficient transport is necessary to enhance smooth traffic flow and also restrain urban related sprawls. Also, it is necessary for the performance of an organization’s activities especially when it comes to the art of supply chain management (Kadłubek, M., 2017, 90). The supply chain is a system associated with organizations, businesses, Intel, individuals and also resources that are involved in the movement of different product or service from an identified supplier to the important customer. A supply chain is known to be complex and is recognized as electric supply and demand network. Supply chain related activities involve the transformation of the associated natural resources, identified raw materials and a variety of components into the finished end product that is usually taken to the final customer. In cases of a sophisticated supply chain related system, utilized products can re-enter the supply chain at any situation particularly when the art of residual value is recyclable. Supply chains are known to join value chains. In this essay, there will be a clear discussion on the importance of transportation means to the concept of a supply chain. Supply chain management can be grouped according to three main areas which are transport, purchasing, and manufacturing. In this case, transportation is our most important are of concern, and it entails clear and precise explanations on the important aspect of transportation to the supply chain. It requires the movement of both the input materials together with the finished products. Logistics management is associated with identifying how and what time to access the relevant raw materials, the intermediate goods, and also finished products usually from their respective sources to their final destinations (Fink, A.., 2008, 97). In the current world, international trade has become commonplace, and the art of increasing market share in the associated emerging markets is hugely desirable. It is, therefore, essential to say products are barely utilized and consumed in pleases where they are produced. Therefore, transportation related services are the appropriate trait union that exists between all of the elements associated with the art of supply chain. It is essential that an organization utilizes an active and economical transportation related network (Coyle, J., 2011, 76). With this type of a transport system, an organization can be involved in the implementation of significant strategic changes with the aim of reducing costs and increasing customer related service levels with minimal disruption in association with the overall supply chain. An active transportation network commences with an end-to-end system associated visibility. Clarity enhances the business by allowing it to centralize production related operations and hence cost lowered without affecting customer service levels. It is because any associated certainty about the chain can easily be monitored and entirely managed to keep inventory levels in a small state. On the other hand, an economical transportation related network commences with a shift in the art of attitude. Proper and appropriate systems of transportation associated management commences with the art of transportation management system. Such a system automatically tenders loads, analyzes historical performance data and tracks related shipments. The data analyzed is essential to an organization as it is able to see what takes place and hence visibility is gained in the related transportation operations. Transportation in relation t the art of visibility that it enhances helps implement changes that are essential in increasing efficiency and the art of customer satisfaction which is the essence of every organization as without customer satisfaction an organization is likely to fail in the art of making sales which can lead to great losses to the entire organization. It reduces transportation spend. Furthermore it enhances the optimization of packaging and storage of procedures that are fatal and can cause hazardous tragedies when it comes to the overall supply chain associated goals. In addition when the art of transportation is effectively managed, it assists an organization or a company in keeping its supply chain running smoothly and appropriately. In other words it enhances easy inventory flow. Successful transportation execution enhances an organization to keep its inventory in a lean mannerism and hence movement in and out of the warehouse becomes quicker and efficient. It improves efficiency associated with the warehouse and hence leads to a reduction in the overall lead time. In addition, it saves money associated with storage purposes. Supply chain related disruption can sometimes be very costly (Gattorna, J.J., 2008, 75). It can therefore hurt customer satisfaction and also loyalty. Therefore, transportation is very essential in avoiding or preventing damage that arises due to disruption by ensuring that there is effective and appropriate inventory flow. Damages might come along with unplanned expenses and therefore when various ways are implemented in an attempt to do way with such inconveniences, they save the organization a great deal when it comes to expenses. Nonetheless, transportation enhances the art of sustainability about the supply chain. Sustainability is imperative in a supply chain. Consumers are considered to be more aware of whatever product or service that they are purchasing and the type of ideas that an organization or a company subscribes. Transportation is identified as an emission-heavy related industry. Customers desire to buy products and services from a company that is involved in taking the appropriate social responsibility in an acute and keen way and are associated with working hard to reduce its related carbon footprint and also participate in the minimization of its energy consumption. Hence efficient transportation reduces the dangerous threats to the environment and hence makes a product appear appealing to a certain consumer hence attracting more customers and increasing sales which in turn leads to more profits. It is therefore very vital for a company to be socially ethical during its processes as this might interfere with the image of the body. Furthermore, it assists an organization or a company to save significantly on overall logistic related costs and also, it can continue providing a great level of service for its consumers. It applies in cases where such companies have optimized processes associated with the art of transportation in a supply chain as they gain access to reliable capacity (Voortman, C.,2007, 80). Also, it creates the image for the company among its consumers, and hence it builds the reputation. This increases its chances of remaining in the market for longer periods of time, and hence it can make more sales. When an organization reduces or experiences little overall logistic cost, it is in a better position of making adequate profits and avoiding losses which can bring the company down. The process that exists between shipping and procurement are known to be at times long and complicated but in all of the identified processes, transportation is the only process that an organization gains direct contact with its customers. The delivery aspect makes a reflection of the whole competency context associated with the entire organization. If a company delays in its transportation services, it creates a negative image among its consumer and might chase way such consumers. Proper transportation management ensures that there are no delays associated with the delivery of the respective goods to the relevant consumers and hence this creates customer satisfaction which is very essential to both the organization and the customer. When a consumer is satisfied, he or she has a likelihood of purchasing the same product from the same organization and hence this increases the sales volume associated with such an organization (Mangan, J., 2016, 65). In addition it improves its reputation. Nonetheless, during the period of gaining contact with its customers, it is able to access more potential customers and convince them on buying their products. Furthermore, the organization is able to comprehend complains of its consumers and hence they are placed in a better position of correcting their flaws b improving for example the quality of their products and services that is if the complains are related with the aspect of quality. Transportation is essential as it ensures that there is continued flow of products among the consumers hence it deals with the challenge of shortage of goods in the market. When goods are in shortage there are higher chances of increase in prices of such products whereby the expenses are transferred to the consumers. It leads to infatuations in the market prices (Monczka, R.M., 2010, 89). Transportation in association with a supply chain assists in doing ways with such a situation and saves the consumers the burden of increased prices. In addition, transportation ensures that the market value of an organization goes up due to the continued flow of products and services to the consumers. References Top of Form MONCZKA, R. M., HANDFIELD, R. B., GUINIPERO, L. C., PATTERSON, J. L., & WATERS, D. (2010). Purchasing & supply chain management. Hampshire, Cengage Learning EMEA. Top of Form MANGAN, J., & LALWANI, C. (2016). Global logistics and supply chain management. Top of Form VOORTMAN, C. (2007). Global logistics management. Cape Town, Juta Academic. Top of Form COYLE, J. J. (2011). Transportation: a supply chain perspective. Australia, South-Western Cengage Learning. Top of Form GATTORNA, J. (2008). Strategic supply chain alignment: best practice in supply chain management. Aldershot [u.a.], Gower. Top of Form KADŁUBEK, M., & WŁODARCZYK, A. (2017). Assessment of Selected Elements of Logistic Customer Service for Management in Transport Enterprises—The Multiple Discriminant Analysis. Top of Form FAHIMNIA, B., BELL, M. G. H., HENSHER, D. A., & SARKIS, J. (2015). Green logistics and transportation: a sustainable supply chain perspective. http://public.eblib.com/choice/publicfullrecord.aspx?p=2095792. Top of Form COYLE, J. J., & COYLE, J. J. (2011). Supply chain management: a logistics perspective. Mason, OH, South-Western Cengage Learning. Top of Form JUNG, H., CHEN, F. F., & JEONG, B. (2007). Trends in Supply Chain Design and Management Technologies and Methodologies. London, Springer-Verlag London Ltd. http://dx.doi.org/10.1007/978-1-84628-607-0. Top of Form FINK, A., & ROTHLAUF, F. (2008). Advances in computational intelligence in transport, logistics, and supply chain management. 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