May 2, 2024, 4:04 PM Unread When it comes to supply chain management and logistics, successful transportation planning is key.

Topic 5 DQ 2

May 2-6, 2024

Transportation is required to move both work in process and finished goods. Discuss the considerations required when planning for transportation. Research two organizations and provide examples on the types of transportation and logistics methods used.

Candace Dickens

May 2, 2024, 4:04 PM

Unread

When it comes to supply chain management and logistics, successful transportation planning is key. A good plan allows the organization to streamline delivery within a timely manner. It also can help keep costs optimal when the transportation system is running smoothly. Nowadays a company’s transportation planning can be the difference between a customer ordering from you or a competitor. If you and a competitor have similar prices but the competitor can get the item there quicker, they get the buyer.

When considering transportation, you must consider several factors, but I will only mention a few below. I will also look at two organizations and how they use transportation.

Factors to consider:

Mode of Transportation

Selecting the right mode of transportation is important. Choosing the mode of transportation depends on factors such as the nature of the goods, distance, cost, and transit time (Jacob & Chase, 2020). This could mean transport by rail, air, sea, and pipeline (Jacob & Chase, 2020).

Budget and Cost

Creating the right budget is key for transport. When you’re transporting goods, you must consider the cost of transport. This includes items such as fuel, maintenance, insurance, labor, and any other cost associated with transport.

Example 1: Amazon

Modes of Transportation

Amazon uses a lot of different forms of transportation such as road, air, and rail. They also have many 3rd party carriers involved in their delivery. This always allows them to be able to deliver from everywhere.

Budget and Cost

Amazon was created with a strong infrastructure, and they initially invested heavily in a well-equipped transportation system and technology. This has allowed them to get items to customers as quickly as possible. Customers shipping costs are paid via the prime membership monthly. This way they can offer shipping at one low rate.

Example 2: UPS

Modes of Transportation: USPS uses a lot of different forms of transportation such as road, hand delivery, and air. This allows them to be able to deliver a variety of items.

Budget and Cost

USPS has been around for decades, which has allowed it to have efficient systems in place to deliver mail to customers. They have hubs in every city. This conveniently allows customers to have access to sending and receiving packages.

Jacobs, F. R., & Chase, R. B. (2020). Operations and supply chain management (16th ed.). New York, NY: McGraw-Hill. ISBN-13: 9781264091676

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