Assignment on Transportation and Distributional Management

Running head: TRANSPORTATION AND DISTRIBUTIONAL MANAGEMENT
TRANSPORTATION AND DISTRIBUTIONAL MANAGEMENT
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Overview of the Organization.........................................................................................................2
Incoterms Selection Consideration..................................................................................................3
Carrier Selection Criteria.............................................................................................................5
Organization Structure:................................................................................................................6
Professional reputation:...............................................................................................................6
Financial stability:.......................................................................................................................6
Carrier Costing:...........................................................................................................................6
Communication and Partnership:................................................................................................7
Carrier Relationship management...................................................................................................7
Innovation Services:....................................................................................................................7
Proposed reliability:.....................................................................................................................8
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

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Introduction
Transportation and distribution planning is the vital connective system that manages
small or large scale business region and processes the transportation system in a systematic
manner. In the development of transportation system and good connectivity in between the
structural land, water, and air transportation, planning is very important at that stage as those
transportation planning will provide better circulation of product handling (Coelho, Renaud &
Laporte, 2015). Singapore is one of the biggest logistic hubs in Asia and the nation has more
than 7000 logistics companies to serve the people need. Singapore is linked with 600 ports and
200 shipping lines and 9% of the total GDP growth has come from this section in Singapore
(Coelho, Renaud & Laporte, 2015). The nation is famous for its highly efficient customer
friendly relation and for the effect of this relation most of the trade net sections are operated by
the nation. In this essay, the basic discussion point is related to Singapore Adidas Company and
elaborates their Incoterms business selection criteria and the carrier selecting the option and too
describes the carrier relationship management best for the company. The concern issue of the
company is price high factors for the distribution cause and for this reason distribution has got
affected and the company has not served their products to wide range of customers. As one of the
best sports retailer company in the world they have wide range of market and that is the reason
people have to acquire Adidas product but for the distribution issue the company have faced
several difficulties.
Overview of the Organization
Adidas Company is one of the largest sportswear manufacturer companies in Europe as
they provide quality clothing, shoes, and other amenities. As most, the Adidas products are

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connected with sports equipment so innovativeness in between those products is important as
well as relevant in the aspect of the market structure (shop.adidas.com.sg, 2017). Most of the
times, Adidas become the brand ambassador of different FIFA programs and justify the good
relation between Adidas and Fifa. At the time of revealing their sports items Adidas always make
a concern look over the product quality as different sports teams are using their products so their
need or requirement fulfillment is the basic criteria that the company has followed. Market
revenue of the company is €19.291 billion in 2016 and that reports the necessity of the product
and implemented of those products on big occasions (shop.adidas.com.sg, 2017). The company
also has several products which have high price still these are necessary for players and is the
reason the company sustained their business.
Incoterms Selection Consideration
Incoterms Selection is important for maintaining the rules and regulations of buying or
selling any product. These rules set for the International standard and for that reason the
multinational company like Adidas needed to be followed this. In that process, four aspects of
business, Price, Policy, quality, and product are the main concern thinking in this business. For
the operational description of the product and to investigate their characteristic, Incoterms is
important to determine these situations (Gan et al. 2014). There are some variations in Incoterms
and each of them has certain specific quality that determines their carrier quality also. Ex Works,
FCA, CPT, CIP all these are transport goods from a specific destination and transfer them by the
assistance of first carrier. For more than one transport process Free Carrier mode is used for the
better distribution process. DAT (Delivered at Terminal) is the process applied by the most of the
online e-commerce company where the import of the delivery cost also paid by customers. There
are different discussion modes that established payment options and product-related options, so,

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for this reason, Incoterms is important to handle. Adidas choose FCA or EXW for selecting their
Incoterms and deliver their products to the customers.
1. Seller and their quality arrangement of products is the main issue over there. Basically,
buyers are the only people who are the prime responsibility for the transportation cost of
products and for that reason the main risk oriented work has done by them. If an adequate
amount of chance has taken then the better response from the customers are also
expected.
2. Sellers are selling their product to customers, so they have to maintain some key business
responsibilities for the better development progression in business (Coelho, Renaud &
Laporte, 2015).
3. In the product hub, where the product is ready for sale, there is certain normal
transportation cost is required. Flight cost, insurance of the product, cost of loading and
unloading cost and surface transportation cost is required and all these cost pricing is
automatically get added to the product when it was delivered to sellers. In a similar
manner when sellers are going to sell that product it will cost much higher than
production cost (Henderson, 2016). However for the business betterment and the
expansion of business logistic is an important aspect of this scenario.
4. Some of the products are not high in outlining and reframing due to any reason, if these
products are being sent for outsourcing, then customer loyalty and believe will get a
threat and that is the reason behind the choosing those delivering items in the exanimate
form of way.
As the company is basically associated sports items so major clubs, National teams, and
businessmen are the initial target market for the company (Henderson, 2016). There are three

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subsides that also make their business progression by introducing Reebok, Matrix and Runtastic
involvement in business stretch their business goal and objectives. Most of the sports wears are
made by the company so their designing section has certain quality people who can take this
initiation to doing this kind of works. Adidas proclaimed another new ball for the 2010 World
Cup and the balled named as Jabulani which was designed and established by Lough Borough
University in aggregation with Bayern Munich (shop.adidas.com.sg, 2017). On the other hand,
Adidas finale was introduced in the UEFA champions' league finale. So the contrasting element
in both these sections by making the ball was different. Differences in innovative technologies
are important as balls have sensor nowadays and from this sensor, officials are providing
appropriate decisions for the sake of the game (Kuang & Bhat, 2017). This is the extra beneficial
segment that has drawn from the Incoterms relation in logistics and business.
Carrier Selection Criteria
Carrier selection is a most important operational process that company has chosen for
their sustainable business progression. There are certain professional reputations and present
customer contact is imposed over the situation where financial stability is the most important
issue for the company (Labbé et al. 2013). Logistic and their dimensions have spread all over the
country so that companies can maintain a good business ratio as well. There are certain criteria
and accessibility has imposed over the business operation and the profitability in business will
reflect the situation.
Rank Criteria Accessibility
1 KMS Logistic 92%
2 WINSPEC Group 78%

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3 NTT Data Singapore 64%
4 CEVA Logistic 58%
Table 1: Grading of Carrier options
(Source: Lee & Kam, 2014)
From the analysis, KMS logistic is the best carrier option for Adidas Company. The
company is best to deliver the sports products as well as they have different logistic options and
for their immense Adidas has to expand their business in all over the world especially in
Singapore.
Organization Structure:
For the justified and specific organized structure carrier selection option needs to be
relevant. There are lots of financial estimations related to the carrier selection option and
organization has to choose that specifically (Olhager, Pashaei & Sternberg, 2015). Stakeholders'
inquiry and development of the organization is depended on the carrier selection option.
Professional reputation:
There are certain transitional phases of professional business allocation and those
emphases over the local, national and regional section of management progression. This is
basically for the sustainable business consideration and all these objectives are linking with the
business procedure (Thai & Yeo, 2015). Customers are having more innovative products if the
product distribution is the fair and Logistics Company is getting their involvement with it.

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Financial stability:
The capital of the company is also an important factor for the sustainable financial
development and that highlighted in the Annual report of the company. If the logistic company
has settled an economic deal with the logistic company at a very low rate then it can be feasible
for the company to progress their business in an ethical way.
Carrier Costing:
The most important part of the carrier costing companies is their monthly or yearly value
and the importance of their work which create some change in between the company. If this will
go in a strong manner then Adidas will make sure to stretch their business with the accumulative
business relation created by the proposed logistic company (Varakantham, Low & Zhang, 2017).
Most of the carrier costing has reasonable rate so Adidas has to choose the best option for them
so that the company can deliver the best business.
Communication and Partnership:
Formal interaction and acknowledgment is the best way to enhancing the business
development. There are different scopes that can be evolved only by the communication process
and that are the major issues for the development of communication (Adnan et al. 2017). Short
term carrier companies have not set their goal likewise but most of the logistics companies have
done that and that also showcase their development by maintaining their food relation with the
company (Wensveen, 2016). There are some technological innovations that also create some
important aspect of the distribution policy and maintain a healthy partnership with the concerned
logistic company.

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Carrier Relationship management
The basic objective of Adidas is to present the better administration in stipulations of
addressing the objectives and provides the best client overhaul for the enhanced nature of the
organization. It is very crucial for Adidas to maintain a strong carrier development management
and that is the reason business aspect was maintained on behalf of the company (Xi & Poh,
2013). Relationship management and imposed this strategic implementation for the enhancement
of the company is relevant in this scenario to maintain a proposed reliability over the company.
Innovation Services:
There are certain systematic welfares that can be maintained by applying innovative
services and for that reason, better innovative technologies have come out in an efficient manner.
Adidas needs to create some of these innovative thoughts so that their marketing strategies will
flow in an effective manner. The accelerate motive of the company and their inventive measure
will strengthen the policies of the company and that reflects in the service of the company
Proposed reliability:
The provided service of Adidas is quite reliable for the customers as the customer
satisfactory ratio is the most important aspect of the company and that provided a good quality of
sports equipment, bags, and accessories (Xi & Poh, 2013). For the enhanced charge of
possessions, the management has to look after the excellence delivering to the clients. Applying
this viewpoint the company has prolonged their business policies in a moral way and measures
their cost for the improved outsourcing of service and clientele (Zhang et al. 2017). There are
some good qualities innovations that portray company's extended revenue and also stated the
ethical control over the business establishment.

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In case of Adidas, the development of the marketing and their business module has
enhanced by the effective change in the procedure of marketing and business attire
(shop.adidas.com.sg, 2017). The logistic department and the distribution process must be
enrolled in a proper way so that Adidas can put strength on their business part and also make
sure to promote the business campaigns for the development of their marketing position.
Conclusion
Most of the organization has taken their logistics and transportation management but
most of the cases business expansion has happened due to the involvement in logistics with
business. In Adidas Company, their prime motive is to make a good relationship with their
stakeholders and especially with the distribution team who had handled the operation on behalf
of the company. The company has faced distribution price related problem but if channel
distributiveness is implemented then this purpose can be mitigated and company can serve their
products for easier way. Distribution will take more money than expected and cost is barred by
the company, so channelize and professional load and truck sections will be used for the monthly
basis to deliver those goods and that will save more revenue from the aspect of Adidas.
From the detailed analysis section, it can be concluded that transportation and Incoterms
facility for the company has imposed a huge development in terms of revenue generation. Adidas
is the best sports equipment dealing marketing company and they have to produce their products
in lots of big occasions, so the organizing company has this faith and trust to Adidas that has
reflected over there market revenue and promotion. In an aspect of marketplace requirement,
promotion is not needed every time and this the major company in sports equipment aspect and
for that reason, they have to maintain logistic in terms of management. In this decisive way, it is

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noteworthy to encompass innovative possessions of transportation out the Incoterms faction that
would help out the organization to supplement its marketplace share and grow its relationship
with the clientele.

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