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Inventory Management and Transportation

   

Added on  2021-06-17

11 Pages2892 Words49 Views
Running Head: TRANSPORT & INVENTORY MANAGEMENTTransport & Inventory Management

TOPIC 1A.Evaluation of the warehouse facilitiesIn this topic, we will be discussing and evaluating VAPC warehouse facility. The warehouse facility is located in North West of Singapore. The current function of this warehouse is to handle incoming material from suppliers and customers, processing of parts, as a storage area forreceive parts and stocks, packaging area and finished goods area for delivery to the customer. The warehouse is an important part of the supply chain operations. A warehouse can help to store goods to be used in manufacturing and transform into the finished product to meet customer demand. Moreover, storage in the warehouse is considered as a backup of the company, which can help the company in meeting demand supply ration of the products (Genin, Lamouri & Thomas, 2008).The warehouse is considered as a significant component of the Vallourec because it offers innovative global solutions to its customers to meet the advanced level energy challenges of the contemporary world. The warehouse further comprises a varied range of products such as seamless tubes, acquaintances for drilling operations and line pipes. VAPC use Just-In-Time approach to manage the functionality of its warehouse. The warehouse incorporates a customizedsystem for order processing and receiving. However, material movement and inventory management are carried using manual tracking practices through excel. Furthermore, VAPC also uses web-based ERP system running on NIX, Mac or Windows platform (Genin, Lamouri &Thomas, 2008). Considerations of inventory are highly influenced by the lead time from the customers. Therefore, MOQ for raw materials is controlled using JIT approach. Most of VAPC inventories and stock movement that are used as parts of the finished good components are

managed by excel manual tracking. Conversely, SQL Ledger is only used for managing the purchase and receiving of components or parts. In the simple context, type of system used in VAPC strictly depends on the type of product purchased or received by the warehouse (Vieira, Requena, de OP Junior & de Araújo, 2010).The evolving technology within the company is centrally aligned to offer a variety of tubes for petrochemical installations in refineries, for automotive industries, for construction of stadiums, complexes, buildings and structures and for mechanical engineering applications such as hydraulic cylinders, machining tools, etc. Even more, the company is also functioning to support the growth in the energy markets by availing new production facilities to Brazil, the USA, China and the Middle East. These assisted the organization in providing a close solution tothe customers and advance its competitiveness in the market (Act & Arabia, 2011).B.Identification, explanation, and justification of the intermodal/multimodal choiceThe transportation of Vallourec is quite complex due to the variety of products and services. For instance, tubes of large size will be dispatched accordingly, however; tubes of smaller size can be transported through any mode. The majorly used transport modes are land transport, sea transport, and air freight. Product type, size and weight play a crucial role in determining the mode of transport for the vehicle. Bulky items will have an impact on the cost and lead time to customers, whereas, small and lightweight articles are contented to transport in any part of the world (Brasil, 2013).As the business is expanded to a great level having a huge customer database, Vallourec undertakes various transport choices such as intermodal and multimodal transportation. In Intermodal transportation, the cargo is elated from the origin to destination by using different

means of transportation, which all have different transport carrier responsibilities. The contracts and liability of transportation also vary for every separate transport carrier due to multiple transport bills of lading. However, the Multimodal choice is defined as transportation of cargo from initial to final position by multiple modes of transport having different carrier responsibilities under a common bill of lading. In the simple context, it can be inferred that both modes of transport are imperative for Vallourec. The only factor differentiating the two is the centralization of transport carrier responsibility and bill of lading (Zhong, 2015).Thus, transportation of the Vallourec can be considered as an adaptable practice of improved technology. The company has entertained all sorts of transport modes and choices. Flexibility in the transportation of goods as per their qualities makes it more cost efficient for the company. It exclusively depends on the type of products deliver to the customer. For instance, pipe with 40-43ft length will differ with shorter parts; therefore, its packaging and transportation will also differ (Bernardi de Souza & Pires, 2010).C.Critical evaluation of the link between the warehouse, inventory and the intermodal/ multimodal choiceThe warehouse of the Vallourec is considered as a moral fiber of their business due to its contribution to the overall business practices. The warehouse is potentially used to store raw materials, which will facilitate the requirements of the company in the future engagements. Along with this, it also stores finished products of the company to meet the market and customer requirements in the upcoming future. Overall, the role of a warehouse is highly conscientious in the execution of the overall business practices and inventory management of the company (Grijalva, Perozo, Holzmann, Paz & Oppelt, 2017).

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