Question

In: Operations Management

why is global transportation such an important issue in supply chain success?

why is global transportation such an important issue in supply chain success?

Solutions

Expert Solution

Global transportation is important for supply chain success due to below reasons:

1. Global transportation is one of the important logistic functions in supply chain management which involves movement of product or service across and outside the national borders.

2. A supply chain to be successful needs fast, responsible and dependable transportation. In case the transit time lengthens or some unpredictable delays takes place the transportation cost would shoot up which would lead to the failure of the supply chain management.

3. One of the important goals of supply chain management is operational productivity which can be achieved only through having freight system like air freight, rail freight, sea cargo, tracking etc.

4. Supply chain management success depends upon providing products without distributions in supply, demand and cost. If transportation is not looked into properly all these three would be a disaster.


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