Supply Chain Management and Knowledge Integration

The provided document outlines an assignment focused on the intersection of supply chain management and knowledge integration. Students are tasked with analyzing various aspects of supply chain management, including logistics innovation, quality management practices, and their impact on value creation through knowledge management. The assignment encourages students to consider literature on these topics, drawing upon sources like 'Demand and Supply Integration', 'Logistics Innovation: A Literature-Based Conceptual Framework', and 'Essentials of Supply Chain Management'. It also explores the role of customer experience in supply chain success, referencing works such as 'Managing Customer Experience and Relationships'.

Running head: Transportation and distribution management
Transportation and distribution management

Transportation and distribution management
Table of Contents
Introduction.................................................................................................................................................3
Incoterms Selection Considerations............................................................................................................3
Appropriate incoterms to be used in the company:....................................................................................4
Recommendation........................................................................................................................................4
Carrier selection criteria..............................................................................................................................4
Recommendation........................................................................................................................................5
Carrier relationship management................................................................................................................6
Recommendation........................................................................................................................................6
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8
2

Transportation and distribution management
Introduction
The report talks about the needs of transportation in the company. This transportation
helps the companies to carry goods and services from one place to another. Hence it becomes
very effective equipment for the company. The appropriate strategies for transportation have
been recommended in the report and other relevant information is been described. The goals and
needs of the company through the availability of transportation are described. The three aspects
that are talked in the report include incoterms selection consideration, carrier selection criteria,
and carrier relationship management. The food company of Singapore namely, NP Foods
Singapore Pte Ltd has been taken in the report. The report depicts how the three aspects of
management impact on transportation advancements. The three aspects of transportation
management are discussed in the report to clear the idea.
NP Singapore Pte Ltd. is a food supplying company which was founded in 1987 is
responsible for manufacturing, supplying and selling food items across the country. The
company provides food in a number of varieties to its customers and it is able to fulfill the
demands of the people since 1987 and now it is still continuing. The use of transportation is the
very important aspect of the company. Since the company is a food manufacturing company it
becomes easier for them to carry food products in large quantity from one place to another. The
transportation facility is helping the company to get the items delivered on time. Therefore, the
report talks about how NP Singapore Pte Ltd. uses these facilities in order to expand their trade
business and also the strategies to take the business further by transportation facility has been
recommended (Chan & Zhang, 2011)).
Incoterms Selection Considerations
The companies determine the payee for every segment of transportation who is
responsible for the goods loading and unloading. He is the one who is also responsible for
bearing the losses at the time of international shipment. Incoterms also shows its influence on the
customize basis (Richards & Grinsted, 2013).
The food companies use the incoterms selection consideration to make sure about the
cost of production reaches into the hands of a number of retailers so as to maximize its profit.
Hence, the effect of transport facility used by NP Foods Singapore is very influential and
effective. It helps to export and import their products from here and there. It becomes easy to
deliver their products timely and to manage the stability of the business procedure. The effect of
transportation seen in the company serves them in an effective manner (Hugos, 2011).
3

Transportation and distribution management
Appropriate incoterms to be used in the company:
1. Free Carrier: Company can choose a place of business in such a manner that it should
become easy to load the goods in that particular mode of transportation. This clears the
phase of transporting goods in the carriers for the buyer. Although the buyer is expected
to pay all the transportation cost. If the place is chosen by the seller, the seller is then
responsible for loading and unloading the goods on his cost (Grawe, 2009).
2. Free alongside ship: The risk is shifted to the buyer when the seller exports the goods
from their place of business. In such case, the buyer is responsible for the delivery of
goods. Buyer has to pay all the cost which comes under the shipping process till the final
destination. This increases the level of risk for the buyers. In such situation, the person
can hire any labor who is boarded in the ship to take care of the goods in an appropriate
manner.
3. Cost, Insurance, Freight: Loading and unloading of goods from one place to another
cause a lot of risks. Hence, getting the products insurance done can help the buyer or
seller to claim for the damage. This enables them to face no loss of the product. Cost,
insurance, and freight charges can only be used as an incoterm if the transportation of
goods takes place at least partially by water. The company is aware of the process of
making business (Hulme, 2009).
Recommendation
The company can focus on expanding its business by adding new transporting factors to
carry more and more quantity foods than earlier and also in different parts of the country. It is
recommended to get the goods and services insured so that in case of any damage the claim
could be provided. Also hiring trustworthy employees can reduce the chance of any damage to
the product and enhances timely product delivery (Kappauf, Lauterbach & Koch, 2012).
4

Transportation and distribution management
(Source: http://www.numenproductions.com/adslp/transportation_management.html)
Carrier selection criteria
Carrier selection criteria involve the type of selection to be made while loading and
unloading the goods. The company must take care of the kinds of product that it export should
have no chances of damaging. The carrier selection depends on the type of product and other
factors relating to transporting material. Selecting the mode of transportation in an appropriate
manner helps the company in smooth functioning and gives the effective result. NP foods
Singapore generally expect a high-speed delivery of its product (Mula, Peidro, Díaz-Madroñero
& Vicens, 2010).
Type of product: Since NP foods Singapore Pte Ltd. is a foods manufacturing company so it
has to take care of the shape and size of the product and its supply. The packaging should be
done efficiently that it must not provide any leakage (Esper, Ellinger, Stank, T. Flint & Moon,
2010).
Location: NP Foods Singapore is a very bid food manufacturing firm. The shipment of products
takes place not only on a limited scale but also at a large scale. Hence, before considering
selection, it should finalize the location from where the transportation should on go. Finalizing
the location becomes a very important aspect of the company as the transaction takes place both
locally and internationally. The seller exports the goods from the location where he selects and
informs the buyer to unload the items accordingly (Theriou, Maditinos & Theriou, 2011).
5

Transportation and distribution management
Speed: Sometimes the food supplements are such that needs a quick view. In such situation, the
speedy delivery of the product is expected. Hence company has to check the transporting facility
which can carry goods in speed without the products being damaged. The retailers sometimes
demand the products as soon as possible, in such case the factor of speed while selecting carrier
becomes important. Also, before selecting the carrier company must check the time of delivery
of the product. The speedy delivery is all that matters for the food companies (Mooren,
Grzebieta, Williamson, Olivier & Friswell, 2014).
Tracking services: Tracking services allow the firm to track the record of the product being sent
through transportation. Mainly the buyers or the retailers are worried about the product’s
shipment procedure. Hence the facility for tracking the product is provided which allows them to
keep a check on the product. This allows them to deal with the buyers. It is a good way of
monitoring the deliveries and being satisfied with the product. This tracking service reduces the
concern of the company (Bamberg, Fujii, Friman & Gärling, 2011).
Pricing: Before selecting any carrier for delivering the product company should look at the
charges it implies. The pricing for the product should be calculative and must not affect the cost
of production of the company. There has to be a proper planning about the charges being applied
to the delivery of the product. To avoid such discrepancies it becomes important to first know
about the policies set for shipping the products (Martínez-Sala, Egea-López, García-Sánchez &
García-Haro, 2009).
Recommendation
Policies play a very significant role in developing business. It is recommended to know
the policies of shipping process thoroughly in order to avoid any faults. They should be very well
aware of the prices so that there are no chances of getting cheated on the money. The company
should check whether the shipment comes under the policy of free shipping or the charges are
applied. Along with this, the company must focus on the planning process to overcome on the
competitors around the world.
Carrier relationship management
The transporting of products from one place to another place is much effective if the
company have an effective relationship with the management of transportation. This becomes
helpful as the firm can develop trust in the management and can ask for delivering the product on
time. For companies like NP Foods Pte Ltd., it becomes necessary to develop contacts with the
management who is responsible for transferring goods. It allows them to believe in the carrier
partners for delivering the product. This will not only develop and build trust but also the charges
to carry the goods could vary in a positive aspect. NP Foods being a very old firm and it has
various contacts of such kind, hence the long-term relationships between the suppliers and
shippers have build trust on both sides. This helps in smooth functioning of the business (Zhao,
6

Transportation and distribution management
Huo, Selen & Yeung, 2011). The aim of the company is to fulfill the demand of the customers by
satisfying their needs in order to generate profits effectively and efficiently. Hence, to achieve
such goals, company must work on developing its relationship with multiple factors, such as;
Collaborate to improve the process: Collaborating with the shippers helps in improving the
process of functioning. This helps in forming a successful relationship not only with carriers but
also with the customers. They get to know more and more about the company and working
system might attract them which help the company to get in touch by forming them the partners.
The company must collaborate with not only one transporter but rather multiple transporters.
Collaborating with a large number of shippers helps in developing more effective contacts (Kim,
Kumar & Kumar, 2012).
Communication: Company should be in touch with their carriers in order to have a proper
functioning in the business as and when needed. Communication and collaboration help in
providing relevant information about the business and products as well. Effective communication
with the carriers helps the company to transport its goods effectively and efficiently. Effective
communication leads to effective business functioning. There must be two-way communication
on relevant information (Liu, Guo & Lee, 2011).
Leverage Technology: Relationship management also involves managing relationship with not
only the representative but also with other persons responsible for transporting goods to the place
of destination. Earlier, the relationships take place through personal interaction. The company
must be aware of the use of technology for delivering the products. NP Foods uses a platform of
online transactions for expanding its food business over millions of its users (Monczka,
Handfield, Giunipero& Patterson, 2015).
Recommendation
The company can collaborate with other companies for improving its process of working.
Collaborating with large firms allows the company to know about the variously advanced
shippers who can be beneficial for them. They also get to know about other methods of
transporting materials. The company must focus on the innovative technologies to gain long-
term benefits in the world. The communication between the shippers and the sellers can also help
in serving the basis of doing business. The acceptance of new technologies enables the company
to get the work done in a professional manner without involving and human touch or wasting of
time (Peppers & Rogers, 2016).
Conclusion
On the above discussion, it has been concluded that transportation and distribution
management play a vital role in each and every organization. The report shows the impact that
transportation on the business. Transportation is the key element for any business and its
importance depends on delivering the products here and there in an effective manner. The report
shows how transportation controls the working of the business and becomes an important
concern for the company like NP Foods Pte Ltd. The incoterms selection consideration talked in
7

Transportation and distribution management
the report focuses on the type of strategies and the company should follow some rules and
policies in order to meet effective transportation facility. In carrier selection, it is recommended
to get into the insight of carrier relationship in order to collaborate with many other shippers to
improve the process of business. It is shown how the carrier relationship management becomes
an important factor for the company to expand its trade business. The example of NP Foods
Singapore Pte ltd. carries the idea of transportation in a way to clear the aspect of the report.
8

Transportation and distribution management
References
Bamberg, S., Fujii, S., Friman, M., & Gärling, T. (2011). Behaviour theory and soft transport
policy measures. Transport policy, 18(1), 228-235.
Chan, F. T., & Zhang, T. (2011). The impact of Collaborative Transportation Management on
supply chain performance: A simulation approach. Expert Systems with
Applications, 38(3), 2319-2329.
Esper, T. L., Ellinger, A. E., Stank, T. P., Flint, D. J., & Moon, M. (2010). Demand and supply
integration: a conceptual framework of value creation through knowledge
management. Journal of the Academy of marketing Science, 38(1), 5-18.
Grawe, S. J. (2009). Logistics innovation: a literature-based conceptual framework. The
International Journal of Logistics Management, 20(3), 360-377.
Hugos, M. H. (2011). Essentials of supply chain management(Vol. 62). John Wiley & Sons.
Hulme, P. E. (2009). Trade, transport and trouble: managing invasive species pathways in an era
of globalization. Journal of applied ecology, 46(1), 10-18.
Kappauf, J., Lauterbach, B., & Koch, M. (2012). Logistic Core Operations with SAP: Inventory
Management, Warehousing, Transportation, and Compliance. Springer Science &
Business Media.
Kim, D. Y., Kumar, V., & Kumar, U. (2012). Relationship between quality management
practices and innovation. Journal of operations management, 30(4), 295-315.
Liu, C. T., Guo, Y. M., & Lee, C. H. (2011). The effects of relationship quality and switching
barriers on customer loyalty. International Journal of Information Management, 31(1),
71-79.
9

Transportation and distribution management
Martínez-Sala, A. S., Egea-López, E., García-Sánchez, F., & García-Haro, J. (2009). Tracking of
returnable packaging and transport units with active RFID in the grocery supply
chain. Computers in Industry, 60(3), 161-171.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and
supply chain management. Cengage Learning.
Mooren, L., Grzebieta, R., Williamson, A., Olivier, J., & Friswell, R. (2014). Safety management
for heavy vehicle transport: A review of the literature. Safety science, 62, 79-89.
Mula, J., Peidro, D., Díaz-Madroñero, M., & Vicens, E. (2010). Mathematical programming
models for supply chain production and transport planning. European Journal of
Operational Research, 204(3), 377-390.
Peppers, D., & Rogers, M. (2016). Managing Customer Experience and Relationships: A
Strategic Framework. John Wiley & Sons.
Richards, G., & Grinsted, S. (2013). The logistics and supply chain toolkit: over 90 tools for
transport, warehousing and inventory management. Kogan Page Publishers.
Theriou, N., Maditinos, D., & Theriou, G. (2011). Knowledge Management Enabler Factors and
Firm Performance: An empirical research of the Greek medium and large
firms. European Research Studies, 14(2), 97.
Zhao, X., Huo, B., Selen, W., & Yeung, J. H. Y. (2011). The impact of internal integration and
relationship commitment on external integration. Journal of operations
management, 29(1), 17-32.
10