Transportation can positively affect the supply chain

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Transportation can positively affect the supply chain in the following way: Supply chain can be reduced by minimizing the transportation cost. For example, the supply chain includes the production cost + transportation cost + order processing cost + delivery cost. Transportation can negatively affect the supply chain in the following way: Cost effective distribution might affect the product’s quality and there is a high chance for the products to get damaged during transportation. 2. Describe the major challenges faced by transportation managers in the current environment. Offshore manufacturing often creates transportation challenges to connect with buyers and suppliers across the globe. Tariffs, taxes, export duties, mode of transport, time variation, and exchange rates are all critical to analyze the effective strategy plans. Technology strength is needed to provide faster and defect-free deliveries. It’s a challenge for managers to align the operations with quality carriers and supply the goods on time. Transportation constraints pose another challenge in meeting the demand. It generally occurs when the demands exceeds the expectation. The manager has to analyze the budget and capacity of the carriers before selecting the available options. The variation in the transportation rates is also a concern for the organization. It is often seen that the transportation rates fluctuate based on the supply chain
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demand. Thus, it is necessary that the manager decide the best transportation option, based on the cost and quality of the carrier service. 3. What are the primary capabilities, advantages, and disadvantages of each of the basic modes? Truck o Capabilities: 70% of the goods are yearly transported through this mode of transportation. Truck carriers can ship 15,000 pounds per trailer and provide direct service between the start and end points. o Advantages: Door to door services are provided The cheapest mode of transportation for short hauls Loading and unloading can be done quickly. Flexibility to handle various commodities and wide range of equipment. Frequent service can be provided to the customers. o Disadvantages: This method of transportation is expensive for long hauls. Affected by weather and road conditions. Restrictions on the working hours due to safety reasons. Cost involved in empty running and idle time due to seasonal variations in demand. Rail o Capabilities: 14.8% of goods are yearly transported through this mode of transportation. Rail transport transit around 1.9 billion tons of goods annually. o Advantages: Convenient mode of transportation for covering long distances. It is an appropriate mode of transport for transferring hefty goods in great quantities over long distances. Operations are less affected by adverse weather conditions o Disadvantages: Relatively extensive for carrying goods and passengers over short distances It is not available in remote parts of the country Works as per the fixed schedule and provides less flexibility Causes huge loss to the company in case of an accident.
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