Paper Example on Transportation-Managing the Flow of the Supply Chain

Introduction

Transportation managers in a supply chain are tasked with directing, managing, and overseeing all operations in the departments of movement of goods (Hugos 6). These professionals are in charge of all personnel activities and also monitor she shipment as well as the coordination of routing. Furthermore, the managers track and manage all aspects of vehicle maintenance, supervise the handling of travelers and cargo as well as performing accounting duties (Hugos 6). The primary purpose of this paper this to discuss on the management of the flow of the supply chain, problems facing transportation managers, improving service delivery as well as addressing the role of IT in management in the logistics sector.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Santa Fe and the Burlington Northern Railway (SIC 4011) offer public transportation services, for example, the movement of large amounts of minerals, wood, and other consumer products. In 2013 alone, the company generated income totaling $22.84 billion and presently, the stock price lies at $97.66 per share. The organization aims at growing its market share to 34% in the next half-decade. Secondly, the Covenant Transportation Group (SIC 4213) is an organization that provides services involving truckload carriers with temperature controls and regional deliveries. In the year 2013, the firm generated $173.654 million in profits and had a stock price of $17.73. The enterprise has currently raised the stock price to 28.1%. Thirdly, FedEx Corp (SIC 4513) is a firm that offers courier delivery services internationally. In 2012, the firm generated $42,620 million, but the current stock price is at $153.02. The recent news regarding the enterprise is that there is a 2.76% rise in shares. Lastly, Teekay Shipping Corp (SIC 4412) offers marine services to the most successful oil and gas firms. In 2012, the revenue generated summed to $567.62, and the current stock price lies at $57.52. The company has a steady stock rate rise which is currently at 13.65%.

One of the significant problems facing transportation managers is the issue of increased transportation costs (Hugos 7). The increase in prices is due to the rise in fuel costs and wages for employees. In this case, the managers must cut costs on transportation, and they have to implement a strategic approach. However, to implement these strategies, transportation managers must obtain reliable information on future orders then use software that can assist in simplifying the challenges on cost. For small entities, transportation managers can opt to use third-party transportation agencies as they are cost-effective.

Transportation managers also have to deal with workforce management since a humane approach to the employees must be maintained. The managers have to generate invoices, manage team utilization, and keep everyone updated to maintain a smooth flow of activities (Fredendall & Ed Hill 227). Another challenge faced by transportation managers is the need to comply with rules and other government regulations which vary from city to city. On this note, the managers must obtain an audit software to help in eliminating such problems and ensure that they are on the right side of the law. Fourthly, transportation managers deal with large volumes of information daily, for instance, on data regarding fleet, staff, checking of route maps, and fuel bills among others.

Some of the critical considerations and issues that have to be factored into modal and carrier selection include freight rates, product protection, geographic coverage, availability of equipment, and the average transit time and reliability (Fredendall & Ed Hill 247). The carrier selected must have the capability to deliver goods on time. One of the most significant considerations that affect modal and carrier selection is cost. Given the recent decline in economics and with the presence of a competitive environment, a business must do what it takes to maintain profitability. Due to the reason explained above, many companies opt to look for avenues to reduce transportation costs while still maintain their service delivery.

Another factor which is essential in modal selection is the product whereby goods have to be inspected and determine their actual physical characteristics before shipping (Fredendall & Ed Hill 247). Being aware of the physical attributes of a product before shipping is crucial since some may require special handling due to their unique traits, for instance, temperature requirements. Thirdly, service plays a significant role, especially during modal selection. A mode cannot be considered as an option if it does not meet the given specifications for service quality, for instance, if an issue arises with an essential client, service automatically becomes the critical factor in modal selection since the customer's presence presides the company's profitability. Transportation security is also a significant factor to be considered. Therefore, there must be stricter regulations on the screening of goods. Furthermore, a lot of attention should be given to freight transportation.

One of the ways transportation managers could monitor the quality of service provided by the carriers used is through the maintenance of in-transit visibility (Bozarth & Handfield 51). In transit visibility is crucial in ensuring cargo security and having up-to-date information on all shipments. Transport managers should be equipped with reliable technology that tracks the location of a particular shipment until it reaches the customer. Some of the most reliable technologies that perform such operations and monitor service quality include uplinks and UPS (Bozarth & Handfield 231). Transportation managers should also evaluate information such as the shipment dates, date of the order, the number of goods delivered at a particular time, and the number of damaged goods. The types of metrics that would be used include freight protection and freight bills metrics. Other essential parameters include on-time pickup and delivery, rate adherence, tender acceptance, and fallouts.

One of the most significant roles of Information technology in management, planning, execution, and analysis is routing and scheduling. With the development of advanced information systems and other computer tools, the transportation sector is advantaged. Nowadays, increased traffic leads to traffic congestion especially in the cities which affects the smooth flow of goods. The use of advanced IT would lead to efficiency in the logistics department since logistics operations will be enhanced (Bozarth & Handfield 10). Secondly, IT leads to load planning whereby there are efficient and safe deliveries made through TSM load optimization programs. Load planning in transportation involves the different ways of packaging consignments for instance by using pallets or single units.

Another role of IT is load tendering whereby the most efficient carriers to move the freight have to be identified, and the best is chosen (Bozarth & Handfield 10). The fourth role is status tracking to ensure monitoring of shipments. Here, technologies such as Automatic Identification are critical to ensuring that there is efficient and safe delivery of goods to the customers. The track solutions also provide information such as purchase order and container numbers, dates of delivery, freight charges and other data like customer information. Lastly, IT ensures appointment scheduling whereby real-time visibility is provided to increase efficiencies within the supply chain. Such software allows carriers and suppliers to self-schedule deliveries and pickups from warehouses to improve productivity and compliance.

Works Cited

Bozarth, Cecil C., and Robert B. Handfield. "OPERATIONS AND SUPPLY CHAIN MANAGEMENT." (2019).

Fredendall, Lawrence D., and Ed Hill. Basics of supply chain management. CRC Press, 2016.

Hugos, Michael H. Essentials of supply chain management. John Wiley & Sons, 2018.