Question

In: Operations Management

If a shipping company needed to move expensive (high value) goods that are small in size...

If a shipping company needed to move expensive (high value) goods that are small in size from Boston to Seattle, which shipping method would they likely use:

Solutions

Expert Solution

The criteria for shipping small volume high value item should be as per following :

  1. It should be prevented from transit damage
  2. It should be prevented from theft and pilferage
  3. Should have fastest transit time since delayed shipment only costs high inventory holding cost

Shipping by maritime route will not be possible because of :

  1. Long transit time
  2. Material will be subject to damage due to perils of sea
  3. It will be costly to book the item in a container in the form of a Less- Than- Container – Load ( LCL)

While trucking will reduce transit time over maritime shipping option, the fear of damage and pilferage still remains

The best option therefore would be to use Courier service using air shipment which will ensure prompt delivery of cargo with no transit delay. The chances of damage to goods also will be minimal. Proper insurance can be obtained by declaring value of goods which will protect the goods completely from theft and pilferage.


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