A logistics manager, also known as an operations manager has various factors to consider before deciding on the best way to use for moving freight from Asia or Europe into the U.S. The importance of considering a variety of factor is to ensure a smooth running of the transportation systems and uphold the security of the personnel and safe goods involved in the transportation.
Factors for a Logistics Manager to Consider in Selecting to Move Freight Internationally
One of the main factors is the cost of transportation of the freight. Cost is crucial as it will determine the extent to which the overall overhead costs affect the final price of goods in transit. In the case where a suitable and affordable means of transportation is available, then, the overall freight price would be favorable. A as a result, an increase in sales volume is likely to be realized and this yields the producer company large volume of profits. In the case a waterway is chosen then it must be affordable to enable maximization of profit.
Logistic managers consider the level and availability of security provided by the means of transport chosen. The guarantee of security is a vital factor to be considered as the goods should arrive safely and in good condition at the intended destination. When the means of transport chosen is deemed insecure, then it advisable not to opted for it as the goods and personnel in transit would be at higher risk of attack and harm, for instance by pirates in sea transport. Effective logistics manager, therefore, has a responsibility to research the available means of transportation that would be free or less prone to attacks along the way (Meixell, 2008).
Logistics capability is also a crucial factor to consider as it may affect a logistic firm in various ways. The issues may include establishing whether the chosen means of transport would ensure that goods arrive at the market or the intended destination and to evaluate if the mode of transportation reliable. Also, adequate loading and offloading facilities for the transportation available at different destinations is significant. Lastly, weather changes that might be in anticipation might hinder some activities related to the transportation from taking place and hence the need to consider where weather inconveniences would affect delivery of goods (Bardi, 2004).
Main Characteristics of The of Distribution of Non-Food Goods Purchased Online
The distribution of non-food goods that people purchase online is characterized by multiple delivery channels which enable adequate and efficient delivery of the goods to the desired customers. The number of channels are determined by the number of intermediaries involved in the process. The multi-channel design is possible because the goods involved are durable and less prone to damage that would result from frequent handling. This multi-channel phenomenon may also be made possible by a channel mix where various agents are deployed to sell directly to various customers in various locations.
Another characteristic of this distribution is containerization. It involves the use of large metallic containers to store and carry the non-food production in the course of distribution. Containers are perceived to save on space and offer protection to the goods since they are durable. Also, containers are preferred because they allow for multi-channel operations given that they are portable and less fragile. The quality of the product distributed is upheld since very minimal damages occur and hence making it easier to realize profits given the higher quality and appearance of the goods (Xing, 2010).
The distribution of non-food goods purchased online involves the use of specialized transport systems by the distributing company. The company may have a series of pickups that deliver goods to the customers at their doorsteps with minimal charges levied on the customer. The practice makes it easier for the company to keep track of their customers and get their views about the product delivered.
Overcoming Challenges as A Retail Logistics Manager
As a retail logistics manager, it is inevitable to experience various challenges in the course of the transportation of the goods to their destination. These can be overcome by various strategies. In the case of attack by pirates in the sea when a waterway is used logistic managers would deploy a team of security officers on the transportation vessel to help curb the security problems that might be encountered.
The challenge with escalating costs of transportation may be solved by efficient evaluation and planning to determine the best means of transportation regarding cost, security, and reliability. One may even opt to transport their goods with other large firms to enjoy the large economies of scale once the firms agree to such activities as the retail firm is a small-scale business (Fawcett, 2008).
The distribution strategy is another challenge that the retail logistics manager should find a solution to. Since the firm is small, it might not have adequate finances to employ an adequate number of agents that would facilitate the distribution of products. Logistic managers may solve the challenge by advertising the product to create customer awareness about products and taking a personal initiative to educate locals around the business premise and the various benefits of consuming their products.
Meixell, M. J., & Norbis, M. (2008). A review of the transportation mode choice and carrier selection literature. The International Journal of Logistics Management, 19(2), 183-211.
Bardi, E. J., Raghunathan, T. S., & Bagchi, P. K. (2004). Logistics information systems: the strategic role of top management. Journal of Business Logistics, 15(1), 71.
Xing, Y., Grant, D. B., McKinnon, A. C., & Fernie, J. (2010). Physical distribution service quality in online retailing. International Journal of Physical Distribution & Logistics Management, 40(5), 415-432.
Fawcett, S. E., Magnan, G. M., & McCarter, M. W. (2008). Benefits, barriers, and bridges to effective supply chain management. Supply Chain Management: An International Journal, 13(1), 35-48.
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