Question

Describe the types of transportation challenges that organizations must take into account when considering global sourcing and substantiate your answer with at least two referenced examples

Answer 1

The major challenge for the companies to considering global sourcing can be created by the significant increment in the global trade activities. There were premium charges on the ocean carrier capacity, it is quite difficult to find appropriate containers and there was also an issue of increased prices. Most of the popular and major ports were having the problem associated with the severe congestion as they were not able to deal with the heavy traffic volume moving in the facilities. The global recession has affected the major industries in the business world including retailing, banking, and automobile manufacturing. In order to deal with this situation, the more selective approach was adopted by the air carriers about the route selection and service frequency. Global transportation is still suffering from the major problem of theft. There is an upswing in the Ship hijackings and pirates are attracted more as they are looking to receive a huge sum in the form of ransom. A number of probable negative consequences for the transportation industry and its customers are presented by increased fuel prices, greater government intervention and regulations, global warming and sustainability-related concerns and the meltdown of the financial industry