Essay on Transportation Management
Number of words: 2246
The transportation of goods to control the movement of various productions across the supply chain management entails the development of various systems in facilitating the transportation of different goods from a given location to another location respectively. The techniques for managing the supply chain system of the organization will entail the movement of goods from the organization; provide production of goods to satisfy to offer transportation of organization services at the point the success of the business, the implementation of the hostel and business to enhance transportation to the public parties.
Samsung International Company is a very popular organization in the world that provides technological services; some of the Company’s products are mobile phones, laptops or computer, and other electronic devices to the public. This organization originated from the Southern part of Korea and was made to specialize mostly in the production of electronic products among other products. This organization for the past decades has been the leading Smartphone vendor widely across several countries. The market structure of the company is growing each and every year, the have at least 23% of the world market share in electronics, followed by Huawei which is the keen market alternative. Samsung is able to sell more than 290 million smartphones across the world, focusing more on the youth population with the latest technology trends. Major competitors of Samsung Company are Apple, Sony, LG Electronics, among other minor competitors like HTC, and Xiaomi. Samsung devotes its resources and technology to creating prestigious products and services that impact the global society positively. Samsung uses defined and set strategies like; Market Penetration Methods, Market Development, Product Growth, and Innovation. Samsung has been operating with marketing strategies to set competitive and promotional strategies with the aim of serving the world with superior and distinguished products along with building the branding image of the company’s products and services (Tindley, 2017).
2. Incoterms Selection Consideration
The identifying of Incoterms and selection of a distinctive regulation is more about the type of production of the organization. The selection is based on the cost, destination, nature of goods, and duration for transportation of various products to various locations. Incoterms can include CIF (meaning Cost, Insurance, and Freight), CFR (meaning Cost and Freight), CPT (is Carriage Paid Time), DAT (is Delivered at Terminal), CIP, DDP, and Ex Works. Each of these has specified impact and influence on the type of transportation system implemented by Samsung Company (Malfliet, 2010).
The main objective of Incoterms is making more general terminal transportation along with place of moving products to various locations. This is very relevant in the transportation of goods to various locations and across many destinations. The rule here is to promote the equal global transactions among businesses and organizations. This reduces the tendency of disputes in the organizations, improving the environment of importing, and exporting goods in a complied and appropriate channel. There are several nations that adapt to the transportation of goods from a given location to many destinations across the world (Cerasis, 2017).
The helpful and efficient monitoring and planning of movement of goods to different locations are implemented to utilize the available transportation system and remove irrelevant Incoterms to provide room for new changes in the organization. Communication is allowed along with the Incoterms selection, this includes online communication, electronic communication, among other communication methods. The selection of good Incoterms should consist of saved product records and process, moving from varieties of Incoterms, and agreed transportation process implementation. The agreed progression ranges from accepted implementation of transportation to the selected incoterms, this encourages the use of varied Incoterms for transportation.
The clearance of security and duties are documented, all necessary costs are settled, and these costs are transferred to the buyer when the goods are bought. The buyer must cooperate along with the organization; this will help obtain experts in supplying products and increasing the degree of satisfaction through the transportation management system. This will help enhance the safety of transportation of goods and services (Chris, 2006).
Transportation of good also includes the provision of charges like the terminal handling charges; the buyer is sometimes widely charged and passes through the movement of products through to the various locations. The carriage of goods is done to the agreed destination, this can include CIP, CFR, DAP Incoterms. Movement of goods can be shipped by truck, plane, train, or ship (Yaakub et al, 2018). Clarifying the desired Incoterms helps in the business production in the organization, the identification of the goods, shipment of goods, and planning in the delivery of products are easily done with the right Incoterms (Malfliet, 2010).
3. Carrier Selection Criteria
Samsung management of transportation system and process of management are regulated across the carrier selection criteria or method and this is used for transporting of products to various customers. The carrier selection is more about the selection of the right carrier in transportation of goods and to the carriage of all other products of the organization. There are so many carriers in the system, providing different system and operations; these include the transfer of goods to several locations across many countries. The carrier selected by the organization can go a long way in enhancing the performance of the business and increasing the productivity of the distribution of products to various locations. The techniques to use in the carriage of goods to various locations are made clear in the organization. This will help the management of transportation to be facilitated by analyzing available carriers and choosing the correct one from them.
Competition is a major concern in the carriage of goods and services, the capacity of the carrier is very important to the selection of carrier to transport the organization’s goods. The carriage is more competitive among the various carriers and the effective and efficient carriers are indentified and selected to operate in the transportation of goods to various locations. There is a need to be sure that the carriers to select must be able to move to the specified destinations. Some carriers are not able to move to very long destinations, while others are able to move to all destinations, the carrier to select as the transportation manager should be one that can move to all destinations in order to avoid higher costs (Brooks, 1990).
The financial stability of the organization should be evaluated along with the reliability of the selected carrier of the organization. The selection of carriers is ensured by evaluating the available carriers and improving g the organization performance. The carrier must be viable and reliable, training of these carriers are encouraged very highly. This will help improve the performance of the organization in general (Oracle. 2014).
More so, the organization is able to have several carriers in producing new goods and services for the organization. The carrier selected must be able to meet the expectation of the company, the time for the transportation of goods are enhanced to improve the performance of goods and services and to satisfy the customers of the organization respectively. The movement of goods is very important to the organization and the customers, this will ensure that the successful shipment of goods (Kent & Parker, 1999).
4. Carrier Relationship Management
Samsung Company must ensure the people providing carrier’s services to the organization among all agents gain the chance for providing opinion to decrease trucking costs among other costs. This will help safe monies and improve the business performance of the organization and carriage of goods to various locations. The work for success among the carriers guides in identifying the type of carrier services that work best. The higher growth of the transportation system, carrier availability, and transportation management system will require the selection and relation with carriers to facilitate development, and this will help relate with a given carrier system that will be able to serve the organization multiple times (Mendenhall, 2014).
Clark, (2018) states the commitment of keeping and relating with carriers is very important in the service offered, and the business between the two parties. The company must be committed to selected carrier, prices should be fairly paid, and data must flow directly to carrier, based to identify the prices of the movement of goods of the organization. Providing wrong data and obliging with the appropriate transportation system will cause a breakdown in negotiations and replacement of carrier in a short run.
The great concern here is to improve the production of goods and the movement of goods from one location to the other. The process of transportation is described and the organization must be able to oblige with the system and communication process, there is a need for trust, honor, respect, and understanding environment between both parties. Communication is very important aspect which should be highly projected during business operations.
The parties must accept the importance of operations between both sides; the organization should value the carrier relationship highly as the customer relationship is upheld. Parties must operate alongside to increase the outstanding performance and work, the payment must be served, and increasing the satisfaction of customers should be improved (Tindley, 2017).
There are various ways the relationship between Samsung and its carriers can be highly encouraged and improved; Samsung organization has to be able to pay carriers on accurate timely and correct schedule, provide solution to any arising claims together immediately, utilize various transportation ideas, and acquire plans and promises of product delivery. Carriers must fairly negotiate and oblige with deals and plans, they should be able to charge the company safely and timely, with a very good service delivery to the organization. Also, technology can be used to capture all information related to transactions, which will be used for accountability purposes on behalf of both parties (Clark, 2018).
An appropriate type of relationship to have is Communication, this is very important for the organization and carriers. Honesty with carriers is very important for good relation-development, the information transferred must be featured with respect, honesty, and truth, and also, this can make the carrier gain how the business analyses various services always (Mendenhall, 2014).
The work here is to understand the various roles of the transportation management of Samsung organization, the benefit of the management of transportation of the Samsung Organization considering the various Incoterm selection process, Carrier selection process, and the relationship that exist between the organization and selected carrier. Management of transportation in the organization is more related to transporting goods both in the organization, outside the organization, and between the organization and the outside environment. Identifying a very good system of transport, carrier, and Incoterms will help the management to regulate the transportation of goods, the most successful system should to identify after analyzing and evaluating available systems to meet the organization’s demand.
The destination of clients and location is taken into account in accordance with the carriage, selection, and management of goods, the carrier to select good carrier management inventions, working within the business like Samsung, transportation management should include solid inventions, integration of supply chain, and interacting with other external bodies. Operating as the manager of transportation for Samsung Company can include the encouragement of operation to build technological tracking systems, goods and services, safe and developed systems, products. The business will link with services of carrier to satisfy clients in world, and the huge task as a transportation manager in the organization to hire the good systems for transportation in Samsung. Training of carriers is also ensured in providing resources that can enhance transportation of goods to different places.
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