Transportation Problem In Supply Chain Management Computer Science Essay Example

role in supply chain structures. More expansively transportation may be an ideal position to integrate and coordinate flows through out supply chain. The supply chain structure is often considered to represent the organizational efforts by three or more firms to manage and integrate material and related information flows in order to get closer to the customer. This supply chain structure attempts to order cross functional activities into holistic business process both within and across firms in the supply chain. As such attention must be given to both the internal and external customer of the firms. To minimize total cost and maximize customer value, transportation integration is essential within supply chain. In general integrative transportation involves getting the right assortments to the right place in perfect condition at the right time throughout the supply chain. Specifically the supply chain structure defines and drive the transportation capabilities of time compression, reliability, standardization, just in time delivery, information system support, flexibility and customization.

Structural integration of the supply chain, such as operational coordination and information sharing can reduce transportation time and thus total supply chain costs. For example, faster transit time minimizes pipeline inventories and may allow customers to lower safety stocks held in reserve. If time compression results in more frequent deliveries, then cycle stocks also can be lower. Furthermore, time saved in delivery frees up time in other areas of the supply chain, which may further reduce total costs. Similarly, if there is a delay in another area of the supply chain, then transportation may be called upon to speed up its performance so that cycle times remain constant. Yet, speed is not necessarily of value to

the customer if the old military shibboleth of “hurry up and wait” is operating. For this reason, just-in-time (JIT) delivery is important, Maximizing inventory velocity and reducing dwell-times are other time compression strategies that involve transportation. Velocity refers to how many times inventory turns per year, or the average number of days of inventory on hand. For example, carrier-run flow-through warehouses or cross-docking operations similar to less-than-truckload (LTL) motor carrier terminals – rather than storage facilities or user distribution centers – should increase inventory velocity and therefore lower total inventory costs. Actions and policies that increase transportation container velocity will also reduce inventory costs.

All of the above time-compression concepts reflect attempts to achieve operational efficiency using transportation’s temporal capabilities. As such, operational planning and reengineering may allow for transportation and information to serve as substitutes for warehousing and inventory costs. In particular, time compression strategies of expedited transportation, increased inventory velocity, and minimum dwell-times can reduce pipeline inventory, safety stocks, and cycle stocks. As a result, total supply chain costs may be minimized.

Reliability

Structural integration, such as technical operational planning and instrumental information sharing, also can foster transportation reliability, which can be defined as reduced variability of shipment times around the mean transit time. It is often more important that delivery times be reliable and consistent rather than solely fast. To achieve integration, supply chain members depend on reliable deliveries for their own production and sales efforts. Inconsistent supply performance can raise production costs (for example, by shutting down a production line) or engender lost sales through stockouts. “What is the value of on-time delivery if being late can shut down an entire JIT production line?

Off course, in the present competitive environment, both speed and reliability are demanded of transportation.

Another dimension of transportation reliability is the absence of shipment loss and damage, which also is important to supply chain performance. Although the direct costs to supply chain members of replacing lost or damaged materials can be high, the indirect costs can be even higher. Among these indirect costs are lost sales, decreased customer loyalty, market share loss, production down-time, and reordering costs. The reliability of transportation is therefore critical for supply chain integration. Unreliable service that delivers partially filled orders and/or damaged articles can significantly increase supply chain costs.

Standardization

Standardization of transportation and logistics processes, practices, and policies is an important integrative capability. Standardization makes supply chain flows and activities more predictable and less susceptible to an exceptions basis. Individual processes, organizational entities, and personnel can act more efficiently in terms of less risk, time, labor costs, equipment, or other supply chain resources.

Just-in-Time Delivery and Information Systems Support Structural integration, such as operational planning for process improvement, allows transportation to be synchronized with other supply chain activities and flows. Information systems support is also critical to facilitate such integrative performance. For example, consider transportation at a Saturn automotive plant where one third-party carrier handles 2,000 dock stops per day at five-minute intervals to exact points of demand on the production line. This eliminates warehousing and double-handling, substitutes “moving warehouses,” and enables Saturn to turn inventory more than 200 times per year. In contrast, unsynchronized transportation can create congestion, confusion, and poor production sequencing at a customer’s receiving docks. The results can be loss and damage, inefficient production and sales force efforts,

and overtime or extra labour to handle the irregularities. For these reasons, early shipments may be even worse than late deliveries. Thus, structural integration through operational planning, coordination, and information sharing can be vital to achieving responsive JIT delivery and information systems support.

Flexibilities

Sorting and assembly to fulfil last-minute customer demands and to ensure such structural aspects as strategic alliances or regular meetings with customers to share information and determine their needs can build in transportation flexibility for supply chain integration and total cost reduction. For example, motor carriers and automobile manufacturers have jointly developed side-loading trailers to provide flexibility in terms of delivery sequence and to specific points on the line. Furthermore, nearby carrier-operated JIT flow-through warehouses make use of kitting operations and postponed flexibility in shipment scheduling. For special nonrecurring, non-standard, or emergency situations, supply chain members may require altered shipment plans or rush shipments. These may be needed to fulfil a commitment to a key client, for special promotions, for stock outs and replacement items, or simply to keep production running. In general, lack of transportation flexibility can raise inventory carrying costs, ordering costs, the cost of lost sales, and production costs. In total, all of these transportation capabilities represent flexibility in terms of time, items, quantity, location, or delivery sequencing.

Customization

A final transportation capability involves customization of transportation offerings. Customizing transportation attributes for specific market segments or different supply chain members can further increase integration of supply chains. For example, store door-delivery systems or carrier-managed inventory reordering, labelling, and displays are innovations developed in response to specific market segments. In turn, direct delivery or cross-docking operations are innovations tailored to other market segments.

Problems

in Transportations

Before we discuss the problems in detail we need to know, the ways of transportation through which the goal of just in time inventory can be achieved from Supplier, to manufacturer, to Whole seller, then to Retailer, and then to final Consumer. In supply chain there are Four ways of transportation.

Explanation of Solutions

We have discussed the problems which different modes of transportation suffer, and we have also listed some of the solutions for this which includes technology and other solutions. Technology solutions basically helps these modes of transportation from being attacked by, theft, terrorism, hijacked, and accidents which can take place any time, not only this some times government its self can cause problems for the transporters like increase in price of petrol or diesel which force the transporters to raise there fares, so then transporters need to find an alternate of these, The road transportation can use C.N.G kits there vehicle which can provide little flexibility in charging the fares. Security guards and insurance of products Airplane and of course train can make life easy they can protect it from terrorism activity which can take in these transportation, and insurance can help us in getting the cost back of the lost material or transportation systems. Cell phones, internet, and tracker facilities should be provided on every mode of transportation so one can locate from satellite its area where the transportation moving. Cell phones and internet helps in communicating and delivering of information from one end to another. These solutions can help in just in time inventory to reach its destination in time and with this facility it can reduce production cost.

Transportation Planning and

Management

The transportation and distribution world is a rapidly changing landscape marked by unprecedented complexity. Increased global trade makes logistics supply chains even longer and more dynamic, and customer expectations continue to rise. Whether shipping from Chicago or Shanghai, companies must be able to collaborate more effectively with their key trading partners-carriers, suppliers, or customers-to drive maximum efficiencies while delivering world-class service. Consequently, organizations must consider these business processes more strategically and look for more refined and adaptable closed-loop solutions.

i2 solutions for transportation and distribution have been designed and proven to empower transportation as a strategic enterprise by enabling industry best practices in the areas of design, procurement, planning, execution, and visibility. These solutions consistently create quantifiable value by synchronizing those critical transportation and distribution processes across multiple modes, enterprises, and borders, while driving optimal operating efficiencies and greater service performance.

Transportation Modeling and Analysis

In order to improve transportation performance and efficiency, it is essential to understand the complexities that businesses face today. A system capable of monitoring, analyzing, and reporting on important transport activities must be available. Unfortunately, few companies have the specialized systems needed to model and evaluate transportation network strategies, modes, carriers, and other transport variables on a periodic basis.

Benefits of i2 Transportation Planning and Management can include i2 Transportation Modeler is part of an end-to-end solution for the planning, execution, and management of the entire transportation life cycle. This solution is designed to enable an organization to better utilize and manage an entire transportation network, as well as reduce costs while improving transport performance.

i2 Transportation Modeler is designed to employ sophisticated optimization and data techniques to define and evaluate alternative transportation strategies.

Managers create

“what-if” scenarios to analyze virtually any aspect of the transportation environment, including: the use of cross-docks, the comparative advantages of various transport modes, merge-in-transit, co-mingling, and multi-drop direct shipment strategies.

Conclusion

I have seen that in supply chain system transportation is very important from supplier to supplier to the customer’s customer and without a proper transportation network no company can increase there profit margin. There are four modes of transportation that includes Air, Road, Sea, Rail and one is the pipeline system which uses for oils.

Government must take steps for improving transportation system for the companies so they can reach to there customers, not only this the expenses which government can control like fuel prices, duties on import and export must controlled properly so the companies can come close to each other for importing and exporting there goods.

Keeping in mind about the Air transportation which is expensive if government reduce tax rate companies will more focus on air transportation system, and if proper roads or highways and tracks for rail transportation being constructed with proper technology and security it will give a good boom to the transportation system in Supply Chain Network.