Question

Global Transportation can get global headaches. What impact does routing have and what issues are involved that a TM(Transportation Management) must address?

Answer 1

Routing can impact environment, customer’s satisfaction and organisational performance. There are various issues that are involved in Transportation and management must address these following issues –

• Transportation costs – Due to increase in fuel prices, management must have to consider how to control these costs especially for the low priced products.
• Technology – Advancement in technology and innovations must have to adapted time to time to remain efficient and competitive in industry. So, management must keep a check on latest developments and must try to implement it.
• Transit time – Transit time is very important to be considered as customers always want faster delivery of products. Also, transit time should be minimised for inventory controls and to avoid stock out costs. So, management needs to keep a track of transit time and must provide transparency of transit time to customers as well.
• Safety – Safety of the goods in transit are the most critical issue. Management must take proper precautions to move the products safely to avoid any losses.
• Environmental issues – Transportation cause large air pollution that can be hazardous to environment. Transportation management must consider this issue and undertake necessary steps to minimise this effect.