Sample Business Paper on Correcting Inventory Overages
The current business environment state of increased globalization as well as fluctuation of demand due to increased competition has brought significant complexities in the supply chain to an all-time high. More often than not, the cases are primarily based on inventory overages, which constitute to several primary costs such as damage as well as storage costs (Dyckhoff and Reese, p.56). The first option provided to correct inventory overages is by making changes on the supply chain. In particular, the inbound logistics of the supply chain are the ones to be altered. The manufactures of a commodity or the manufacturing processes are the first to be changed by slowing them down (Boyer and Rohit, p.113). This subsequently reduces goods coming in for storage. Nonetheless, in the instance where the organization has expanded operation there option shifts to increase its dependency on intermodal transport services. According to Muller (p.75), Intermodal transportation is defined as the movement of freight from one transportation mode to another frequently taking place at a terminal developed primarily for such a purpose. Nonetheless, a number of factors have to be taken into consideration such as
The nature as well as the volume of the cargo. Intermodal transportation is customarily bests suits for intermediate as well as finished goods that have or are within a load units 25 tons or less Muller (p.99).
The sequence of freight modes employed. Intermodal transportation is fabricated in a sequence of freight modes called ‘intermodal transport chain’ (Boyer and Rohit, p.125). The sequence to be employed should be in line with the nature of the load.
The origins and destinations of the load. Smalle (p.88) states that distance plays a significant role in altering the supply chain. Consequently, he explains that the longer the freight distance the more likely an intermodal transport chain will contain more than one transport mode in its sequence.
The value of the cargo being transported. According to Sherry (p.67), high value shipments are less suitable for suitable for intermodal transportation. The losses that might incurred due to damages during the change in modes is high for such goods.
Boyer, Kenneth K, and Rohit Verma. Operations & Supply Chain Management for the 21st Century. Mason, Ohio: South-Western/Cengage Learning, 2010. Print.
Dyckhoff, H, Richard Lackes, and J Reese. Supply Chain Management and Reverse Logistics. , 2004. Internet resource.
Muller, Gerhardt. Intermodal Freight Transportation. Lansdowne, Va: Eno Transportation Foundation, 1995. Print.
Sherry, Patrick. The Health and Safety Effects of Accidents on Intermodal Transportation Workers: A Study of Psychological Health Concerns and Depression of Operating Employees Involved in Critical Incidents. Denver: National Center for Intermodal Transportation, 2009. Print.
Smalley, Gary. Intermodal Freight Transportation Combined Rail Truck Service Offers Public Benefits but. Place of publication not identified: Diane Pub Co, 1993. Print.