The paper "Cyclical Transportation" describes a type of transportation that is sensitive to business cycles. An example of an international economy effect is the recently experienced one that created the capacity shortage for to the transport industry…
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Example, when a shortage is foreseen, the carrier can get some additional capacity from other carriers to ship together when deficit comes. Demand forecasting is another important step a career should take. Demand forecasting shows whether there will be an excess or a shortage. After forecasting a weak customer demand that simply interprets to the capacity shortage, in the future so one can start preparing how to manage the shortage like in step number one above. Step number three is leveraging the available assets. That is possible by making sure all available assets are utilized. The capacity available should be loaded on the right asset hence making sure that space is well utilized. The carrier can also employ combining orders strategy where they consolidate orders from one place and ship with a transporting unit whose space will be well used. Creation of interpersonal relationships with the suppliers is another step. Customer goods from the suppliers have to pass through the carriers for them to reach the customers. With developing the close relationship with the supplier, the suppliers get to share order information, delivery information and their day-to-day performance. Such information is necessary for the carrier is planning to offer low freight charges but provide the best quality. Learning from mistakes is another step carriers take in minimizing capacity shortages and their effects. They achieve this through the closed-loop process where they plan, access results and adjust the plan to saving costs.
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