Posting 10

PROBLEM IN TRANSPORTATION

There are many factor of problem in transportation that make company lost their profit.Want to control and manage transportation is not easy as we expected The problems in transportation is the longer lead times with global suppliers, volatile fuel prices and risks such as unavoidable delays, make estimating the cost and time associated with transportation difficult. As a result, companies incur high expedite and inventory costs. While a global supply chain enables companies to leverage lower cost manufacturing, there are significant challenges imposed on transportation managers in ensuring products delivered over long distances arrive on time and are distributed to the right locations. 

Transportation costs are typically 5-6% of a company’s revenue and a major contributor to overall product costs. So want to reduce transportation overheads and ensure that the right product reaches the right location on time, transportation managers require a centralized view into all of their transportation activities as well as the ability to understand transportation’s impact on product inventory. Other is Traffic Manager must manage the transportation with the best possible with analyse their problem in transportation. To cut cost is using freight consolidation, there are two techniques can be grouped as reactive and proactive. Reactive is about consolidation from the freight to the larger shipment because this method is want to cut cost of delivery. 

Proactive is about the impact of time based responsible logistical system is creating a large number of small shipments. Increased desired for shipper, carriers and consignee to participate in consolidation savings. A willingness to share benefits can provide incentive for all members of the supply chain to achieve freight consolidation.  Other is using best transportation for the product. Example transportation.

·         Road transportation is to link the ocean port or rail yard with the local origin or destination.

·         Rail transportation is are best large loads going long distance.

·         Air transportation is fast and low risk.

·         Water transportation is far less traffic.