Cost of Transportation Essay

Published: 2021-08-01 05:00:08
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Category: Technology

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Supply chain management is such a daunting task that requires all stakeholders to use their skills and networks in improving operations within the organization. As the Vice President, I can posit that perseverance and patient are vital instances when maximizing the global transportation. It is possible for every venture to receive huge savings while meeting customer needs. It does not matter the size of the organization. The most important aspect is an understanding of the best approaches that will scale operations within the premise. As the Vice President, there exist three recommendations that can make it possible to maximize efficiency and minimize the associated costs within the organization. This instance will always make it possible to achieve growth and limit pilferages that can result in the venture.Ideally, the recommendations outlined below does not depend on the most sophisticated technologies and can apply in almost every organization in the contemporary society. In the first instance, there is need to know the total transportation cost. The approach makes it possible to know the scope of operation and limit any aspect of scope creep that might prove detrimental to the success of the whole venture. The instance should ask a number of questions. For instance, it is imperative to know all the methods used in tracking the transportation cost (Hummels, 2007). Moreover, an understanding of the component passed to the customers and the amount absorbed will indeed make planning possible and improve effectiveness in the entire venture. The solution to these questions should happen on an on-going basis since they play a crucial role in the acquisition process. Our organization found it imperative to use a transportation business intelligence system.Ideally, there exist some operations in that area. It is essential to scale such system to meet the needs of the organization. Ultimately, it is apparent that an establishment of a corporate transportation mandate on matters related to awareness makes it possible to meet the needs of the whole system. That is the surest way to ensure success as well as growth while addressing critical aspects of the organization. Even though the system might prove useful, it is imperative to ensure that users get the necessary training to limit the aspect of resistance, which can as well as thwart key operations within the organization.The best metric that the organization can utilize is the month recurring revenue. This instance makes it possible to evaluate on costs and determine in case the organization is making progress or not. The purpose of the organization was to make the profit. That should however happen and still ensure customer satisfaction (Bowersox, Closs & Cooper, 2002). An evaluation of the net profit margin makes it possible to determine progress as a result of the key processes outlined above. In every organization, it is key to evaluate the roles that every individual plays in fostering growth. Such makes it possible in benchmarking with different firms to find out what works best for them in specific instances. It is likely that specific processes might not harbor well with the demands of the market. The ability to identify these aspects earlier limits the possibility of failure within the organization. While all these needs might happen within the organization, it is necessary to embrace customer satisfaction and make it possible in scaling every sector of the premise. Transportation can be an expensive venture in specific instances. It is imperative to ensure that all the processes implement aim at cutting cost and making it possible to meet the ultimate goals of the organization.ReferencesBowersox, D. J., Closs, D. J., & Cooper, M. B. (2002). Supply chain logistics management (Vol. 2). New York, NY: McGraw-Hill.Hummels, D. (2007). Transportation costs and international trade in the second era of globalization. Journal of Economic Perspectives, 21(3), 131-154.

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