BUS101: Selection Criteria for Transportation Carrier Management

This assignment addresses the selection criteria for choosing appropriate transportation carriers to manage transportation needs, focusing on five key criteria. The assignment emphasizes the importance of transport cost, total transit time and its reliability, and the security of transported products. It also highlights the significance of carrier capability, including equipment and technology, willingness to negotiate terms, and global reach, and discusses how these factors influence the decision-making process. The assignment also touches upon the broader context of outsourcing in logistics, including the use of different transport modes (sea, air, rail), and the risks involved in product transportation such as damage, theft, and delays. The assignment further explores how port authorities can improve operational facilities, network with multinational organizations, and invest in efficient warehousing and distribution centers. Finally, it examines challenges like fuel costs, competition in boundary-less markets, and labor costs, offering a comprehensive view of transportation management.

Answer No. 1:-
The transport cost would be a factor as the proper transportation with the minimum cost
is to be assessed (Jha, Somani, Tiwari, Chan and Fernandes 2012). Then the total time to
transport such product is to be considered as the proper lead time with short time is
beneficial. The Security of the products which are transported is also necessity because
the finished goods should not be damaged ones. The supplier who is going to transport
either the raw material or the finished good has the flexibility to negotiate in the terms
would also be examined and has the global access or not.
Answer No. 2:-
Outsourcing in the present era is important factor because the resource scarcity is always
in every business. That is why through outsourcing, the resources would be used for a
certain period and does not have to downsize its resources. The company would bear
lower cost in outsourcing as the company can offer tender.
In transport based logistics, the company can either use the transport base i.e. through
sea, air or rail (Baum-Snow, Nathaniel, Loren, Vernon, Matthew, and Qinghua, 2012).
Simultaneously, the forwarder based transport for import and export business is
employed.
Answer No. 3:-
While transporting the product, first risk is the damage of the product, like product is
transporting through sea and flood came into sea. Secondly, the theft of the product could
also be made. Moreover, if there is a grocery product, then there might be possibility of
rotten or contamination (Duranton, Gilles and Matthew, 2012). Likewise, the delay in
lead time is also possible i.e. goods could not be transported at the right time. Similarly,
the unprotected transport facilities or lack of security processes is possible. Finally, the
supplier may face the labor strike.
Answer No. 4:-
The port authorities can firstly increase its operational facility i.e. the cargo handling and
adequate space for the cargo is possible. Secondly, it can use the networking concept with
the multinational organization, so that the company could deliver such product on their
ports. Lastly, the port authorities can invest in the port so that the efficient and capital
intensive warehousing and distributions centers could be made for the ease of the cargo
shipping.

Answer No. 5:-
Firstly, the fuel cost would be the main issue as the whole transportation would be based
on fuel. Then, Boundary less markets i.e. the free trade markets would be issue as the
competition would be tough. Subsequently, the transporters would be facing competition
as global competitors are present. Then people involved in transportation are to be given
huge salaries such as merchant navy. Lastly, the global procurement would be an issue as
the supplier would also transport additional goods with the main trading goods.
Answer No. 6:-
The bill of lading is launched from the respective country’s bank and then the custom
documentation is processed, then the sea transportation is done. Firstly, buyer and seller
contract for the mode of transportation, then the order quantity, then the packing and
documentation like the bill of lading, export license, custom duties and insurance would
influence the decision for transportation (Bina & Kockelman, 2009).
References:-
A. Jha, K. Somani, M. K. Tiwari, F. T. S. Chan, and K. J. Fernandes (2012), “Minimizing
transportation cost of a joint inventory location model using modified adaptive
differential evolution algorithm,” International Journal of Advanced Manufacturing
Technology, vol. 60, no. 1–4, pp. 329–341.
Baum-Snow, Nathaniel, Loren Brandt, J. Vernon Henderson, Matthew A. Turner, and
Qinghua Zhang. (2012). “Roads, railroads and decentralization of Chinese cities.
Processed,” University of Toronto.
Bina, M. & Kockelman, K. (2009) “Location Choice vis-a-vis Transportation: The Case
of Recent Home Buyers”. The Expanding Sphere of Travel Behaviour Research, Emerald
Publishers
Duranton, Gilles and Matthew A. Turner. (2012). “Urban growth and transportation”.
Review of Economic Studies Vol. 79(4), p.p. 407–1440