Generic transportation Companies
Management in the transportation companies is important to ensure that it is timely, dependable, and affordable. The transport companies are always expected to stand in the gap between manufacturers and the supplies, the suppliers and the retailers as well as between the retailers and the clients. This goes to show how important effective management can benefit the company. Good management of the transportation company also ensures that the clients using the services are confident enough to enlist those services for their items. The companies have to have systems in place to maintain the security of the items they transport. This may include having the company incorporate highly developed technology systems into their operations. The logistics companies have to calculate their metric performances using technology. The technology includes the tracking devices and chips as well as the customer service recording the flow of the packages for delivery. The company may need to use metrics to evaluate the performance of DHL and the quality of deliveries they make. The trucks and aircraft packages are supposed to be built in ways that no breakages will be encountered unless the impact is explosive. The damage that interferes with the delivery of the goods has to be of indisputable quality. The ability of the company to stay on top of all its operations is important and the key to success in the logistics market. This is the tactic that DHL has used to beat the competition.
The performance metrics that should be applied to a logistics company like DHL are many but the most important ones are being reliable by getting items to their destination in good time. Timely deliveries are important to clients because most people who use cargo transportation companies are business people. This is evident as in the attempt by Target to get into the Canadian market, which was initially successful, but poor logistics management led to its biggest launching failure ever. This also goes to show how crucial logistics companies are to businesses (Campagna, 2009). They are part of growing the economy. The companies have to have strategic warehouses and storage facilities. These facilities include warehouses with round-the-clock cooling facilities, mechanisms to handle delicate cargo, and the ability to preserve highly perishable goods as well. This means that the size of the warehouse is not important if the facilities are not well designed to handle cargo.
The record keeping systems should be well maintained to ensure that the company does not lose track of the order. The tracking systems are necessary at this point. This means that the company should have the capability of accounting for all the cargo that they get to handle. The company must always take this responsibility because the clients pay for these services. There is always room for slight delays, which cannot be avoided completely, but accountability cannot be compromised. Efficiency is another performance metric that a transport company should always observe strictly. There are risks that come with the job, such as damaged cargo and the company expected to acknowledge or even compensate the customer (Cognizant, 2010). The performance metrics can be measured against many more things that will determine the ability of the company to function.
The tracking technology – the made-to-order technology captures data supporting the calculation of metrics and helps monitor the growth of the company. The design of the system is handlsing orders as they come into the warehouse, and calculation depends on the rate at which the warehouse is filled, how the flow of clients is being managed, as well as how well their cargo is being used. It is important for a warehouse to be able to account for each item that goes into the warehouse and track it all the way to the destination. The ship to promise is the ability of the company to deliver the cargo in good time. This is important for a company to know because it helps when giving the clients information. The information is verifiable by the company dealing with deliveries in the different locations, base on the accuracy of estimation of distance. The best tracking technology to use in the calculation of the metrics is the one where the cargo is chipped at the reception point for delivery (Heyn, 2014). This kind of tracking ensures that at no point is the cargo untraceable to the company. This also means that the company can easily keep track of everything they handle.
3. What other technology, if any, should be employed? Explain.
Tracking technology is important in the transportation industry. The other type of technology is the adoption of an inventory system and verification systems. The company can also make use of verification systems that will be concerned with ensuring that the goods transported actually get to their destination. The verification systems will prevent the incidents of cargo getting lost along the way. This means that the transport company will take better responsibility for their clients’ goods. The technology will ensure that only the recipient can sign on their deliveries, which is an additional security measure. This will mean that the company will have to improve the security features further to prevent hacking of the systems when transporting valuable cargo (Kalathil, 2010). The security of the goods in transit has not been exhaustively enhanced because installing the chips that can only be unlocked by the intended recipient is costly. It will demand that the design of the technology and its customization meets the specifications of the company like DHL. There is also the probability that the customization of the technology can help to distinguish the type of cargo transported. The clearance for access to high-value goods may be limited differently from the rest of the cargo.
To conclude, a technology of transportation and logistics companies can be complicated to explain but it is achievable and a necessary process that ensures transport and logistics businesses are secure and generate profits. The logistics companies have a tough time matching competition given that their services are the only things they can promote. The companies can only enhance the customer experiences and the delivery of the cargo. It has been increasingly difficult for the companies to achieve strategic ideas to improve service delivery. The only incentive the companies can ever give is to reduce the costs for the clients in the form of discount prices or offer free service to the client attaining a certain weight of goods transported. The technology will keep track of the cargo that the company moves in a year. This is the best way for the company to monitor growth and determine whether the business year has been progressive or not.
Campagna, A. (2009). Logistics performance metrics (University of Rome). Retrieved from: http://www.ctl.uniroma1.it:81/TELDownload/lezioni/28_09%20logistics%20performance%20metrics.pdf*
Cognizant (2010). Maximizing supply chain performance in the transportation and logistics industry. Retrieved from: http://www.cognizant.ch/InsightsWhitepapers/Maximizing-Supply-Chain-Performance-in-the-Transportation-and-Logistics-Industry.pdf
Heyn, S. (2014). Shipment monitoring technology: Picking up the signals. Retrieved from: http://www.inboundlogistics.com/cms/article/shipment-monitoring-technology-picking-up-the-signals/
Kalathil, A. (2010). Performance management in the transportation and logistics Industry (Cognizant). Retrieved from: http://www.cognizant.com/InsightsWhitepapers/Performance-Management.pdf
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