Transport and Distribution Management Essay 2022
Added on 2022-10-19
14 Pages3103 Words8 Views
Running head: TRANSPORT AND DISTRIBUTION MANAGEMENT
TRANSPORT AND DISTRIBUTION MANAGEMENT
Name of student
Name of university
Author’s note:
TRANSPORT AND DISTRIBUTION MANAGEMENT
Name of student
Name of university
Author’s note:
1
TRANSPORT AND DISTRIBUTION MANAGEMENT
Introduction
This essay intends to provide concise investigation of three major prospects
of the transportation and distribution management namely, the carrier selection
criteria, the incoterms selection consideration and the carrier relationship
management of transportation management in Honda Company. All the three
prospects of transportation management has been briefly described in this essay in
respect to the considered company. Lastly this report concludes with an appropriate
conclusion for this essay.
The considered case company, Honda is the Japanese public international
corporation mainly popular as the producer of the automobiles, power tools as well
as motorcycles. Honda is presently considered as the largest motorcycle
manufacturer and the largest producer of the interior combustion engines in the
world that is measured with the help of volume, generating almost 14 million interior
combustion engines per year. This company grew to be the largest automobiles
manufacturer based in Japan ("Honda Global | Company Overview", 2019). This
company was first Japanese manufacturer of automobile who provided the dedicated
luxury brand, Acura. Apart from the central automobile as well as the motorcycle
businesses, this company manufactures several garden equipment, the personal
watercraft as well as the power generators. This company is presently included
within the development of artificial intelligence and robotics research and it released
the first robot ASIMO.
Incoterms selection consideration
The incoterms that could be utilised by the Honda organisation could be
categorised as FOB, CIF and EXW. These incoterms helps the organisation in
TRANSPORT AND DISTRIBUTION MANAGEMENT
Introduction
This essay intends to provide concise investigation of three major prospects
of the transportation and distribution management namely, the carrier selection
criteria, the incoterms selection consideration and the carrier relationship
management of transportation management in Honda Company. All the three
prospects of transportation management has been briefly described in this essay in
respect to the considered company. Lastly this report concludes with an appropriate
conclusion for this essay.
The considered case company, Honda is the Japanese public international
corporation mainly popular as the producer of the automobiles, power tools as well
as motorcycles. Honda is presently considered as the largest motorcycle
manufacturer and the largest producer of the interior combustion engines in the
world that is measured with the help of volume, generating almost 14 million interior
combustion engines per year. This company grew to be the largest automobiles
manufacturer based in Japan ("Honda Global | Company Overview", 2019). This
company was first Japanese manufacturer of automobile who provided the dedicated
luxury brand, Acura. Apart from the central automobile as well as the motorcycle
businesses, this company manufactures several garden equipment, the personal
watercraft as well as the power generators. This company is presently included
within the development of artificial intelligence and robotics research and it released
the first robot ASIMO.
Incoterms selection consideration
The incoterms that could be utilised by the Honda organisation could be
categorised as FOB, CIF and EXW. These incoterms helps the organisation in
2
TRANSPORT AND DISTRIBUTION MANAGEMENT
managing the suppliers and the vendors of the organisation and ensure that the
most optimised products are provided to the customers.
FOB: The FOB or Free on board is known as the description that is primarily
utilised for indicating when liability and the possession of the goods is shifted from
any vendor to any consumer (Rushton, Croucher & Baker, 2014). When it is utilised
with any recognised physical location, the designation mainly defines the party that
has the accountability for the payment of the freight charges and at which point the
title for the shipment passes from particular seller to any buyer. Within the aspects of
the international shipping, the FOB denotes that seller is mainly accountable for the
transport of all the products to the port of shipment as well as charge of the stacking.
Buyer mainly pays charges of the ocean cargo, the coverage, the unloading as well
as the transportation from arrival port to the final destination (Anaya-Arenas, Renaud
& Ruiz, 2014). Seller then permits the complete risk to the buyer when goods have
been loaded at the originating port. The FOB is utilised four distinct methods when
included in the freight shipping that includes the Freight collect and the freight
prepaid at the origin point, the freight collect and the freight prepaid at the destination
point (Tseng & Hung, 2014).
Figure: FOB
TRANSPORT AND DISTRIBUTION MANAGEMENT
managing the suppliers and the vendors of the organisation and ensure that the
most optimised products are provided to the customers.
FOB: The FOB or Free on board is known as the description that is primarily
utilised for indicating when liability and the possession of the goods is shifted from
any vendor to any consumer (Rushton, Croucher & Baker, 2014). When it is utilised
with any recognised physical location, the designation mainly defines the party that
has the accountability for the payment of the freight charges and at which point the
title for the shipment passes from particular seller to any buyer. Within the aspects of
the international shipping, the FOB denotes that seller is mainly accountable for the
transport of all the products to the port of shipment as well as charge of the stacking.
Buyer mainly pays charges of the ocean cargo, the coverage, the unloading as well
as the transportation from arrival port to the final destination (Anaya-Arenas, Renaud
& Ruiz, 2014). Seller then permits the complete risk to the buyer when goods have
been loaded at the originating port. The FOB is utilised four distinct methods when
included in the freight shipping that includes the Freight collect and the freight
prepaid at the origin point, the freight collect and the freight prepaid at the destination
point (Tseng & Hung, 2014).
Figure: FOB
3
TRANSPORT AND DISTRIBUTION MANAGEMENT
Source: (Tseng & Hung, 2014)
CIF: Cost, Insurance and Freight or CIF is the terminology of contract of the
sale of the goods that are being transported where the payment of cost of insurance
is done by seller and then transportation of the goods to the destination is done, the
legal supply mainly happens when all the goods crosses rail of the ship in the port of
the shipment. The purchases mainly intakes the genuine delivery of the goods at
place that has been named within contract as place of the end point (Bernon, Cullen
& Gorst, 2016). The responsibility of the seller completely finishes when all goods
are securely positioned on the target ship as from the point on, risk during the ocean
transit is completely enclosed by the mandatory insurance. CIF has been considered
as the term that is majorly used in the maritime transport with distinct characteristics
of the insurance being at the expense of seller (Ross, 2015). Within this method, the
CIF has been distinguished from the CFR that denotes to the Costs and Freight
solely.
Figure: CIF
TRANSPORT AND DISTRIBUTION MANAGEMENT
Source: (Tseng & Hung, 2014)
CIF: Cost, Insurance and Freight or CIF is the terminology of contract of the
sale of the goods that are being transported where the payment of cost of insurance
is done by seller and then transportation of the goods to the destination is done, the
legal supply mainly happens when all the goods crosses rail of the ship in the port of
the shipment. The purchases mainly intakes the genuine delivery of the goods at
place that has been named within contract as place of the end point (Bernon, Cullen
& Gorst, 2016). The responsibility of the seller completely finishes when all goods
are securely positioned on the target ship as from the point on, risk during the ocean
transit is completely enclosed by the mandatory insurance. CIF has been considered
as the term that is majorly used in the maritime transport with distinct characteristics
of the insurance being at the expense of seller (Ross, 2015). Within this method, the
CIF has been distinguished from the CFR that denotes to the Costs and Freight
solely.
Figure: CIF
End of preview
Want to access all the pages? Upload your documents or become a member.