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The fundamental reasons for the success of the company

Discuss about the Freight Fluidity Performance Measures.

Lately, people are into importing and exporting cargo. This is stimulated using airplanes which is one the most effective ways to transport large and heavy goods in the shortest time possible. Despite that, people have forgone the fact that the charges are too high and still use it as their major means of transport. This is subject to other means of transport available which include the trains. Compared these two means, the airplane still stands to be the best way one can reach individuals easily. One, the train is slow and not connected to the entire world as compared to planes which have different destinations of the world. On the other hand, it would be convenient for one to choose the train over the plane as they are able to carry bulky goods at large as compared to what the plane does (Amaruchkul, Cooper & Gupta 2010, pp.155).

Over the years, the United Kingdom air cargo has played a very crucial role in the modern-day chain supply. This has also contributed to the improvement of its economy. For cargo airplanes, they can be either combined with passengers or others could be strictly cargo planes. On many occasions, cargo is usually carried on the belly of the plane, which is underneath the passengers’ cabin but for other crafts, it is carried on the deck sharing space with the passengers while other planes are exclusively for carrying cargo (Aditjandra et al. 2016). This means that the entire plane is meant for cargo. Also, while some of the cargo services would prefer door-to-door services, others are cargo equivalent to the passengers. This explains the difference in having planes that carry only cargo while those that carry both passengers and cargo. In addition, there are specialist cargo airlines which accommodate aircraft which can carry oversize cargo. They have huge volumes of cargo holds, and an example is the giant (Navarro, Cronemy & Huge-Brodin 2014).

Air surface mode are linked together by airports. In Asia, there are many hubs with different cargo tonnage that have increased trade around the region in the recent years. For instance, Memphis and Louisville have really benefited from the United States partnership for the FedEx and UPS respectively. For the United Kingdom airport network, in 2014, around 2.5 million tons were handled in terms of mail and freights. However, this was significantly a small amount as compared to the volume which passed through the United Kingdom’s ports which amounted to up to 490 million tons (Amaruchkul, Cooper & Gupta 2010, pp.156). Despite that, the freight was high-value goods with much density thus that accounted for around 40 percent of the exports and imports. Jewelry, aerospace, pharmaceuticals and other medical equipment are among the major export flows. This led to an increased number of people getting into the job industry. For instance, 39000 jobs were created directly while 135300 were indirectly created with their induced impacts also considered.

United Kingdom airfreight is evenly distributed with an inbound of around 52% and 48 percent outbound movements. This is in comparison to the maritime traders which has a very deadly imbalance in imports. For long-distance movements, air transport is the most suitable means of transport (Babi?, Kuljanin & Kali? 2015, pp.3). Eighty percent of freight originates from the European Union while the same has the same percentage of freights being its destination. This contrasts the main volume, around 50 percent which is used for domestic markets. For this, it is well illustrated how air transport has a range of uses while also its challenges cannot be forgotten thus showing how competitive the industry is (Navarro, Cronemy & Huge-Brodin 2017).

How can a company maintain its comparative advantage?

The United Kingdom has had its way in the freight industry as very can only be compared to its major airlines that is FedEx and UPS This is evident as all its companies are among the top rated in terms of profits gained, service providence and the number of freight they have transported. This shows how individuals are eager to work with such companies as he pays is also suitable, and no complains have been heard about them. Freight air transport has been solely determined by how well they perform (Crozet 2014, pp.65). For instance, a large extent is determined by how the downstream demand level for haulage of valuable goods. Despite being the safest and the fastest, they are the most expensive to use as stated earlier. In the international trade, airfreight has played a vital role (Edward-Jones et al. 2009, pp.480). This is particularly in the international division of labor and international economic and cultural connections which have greatly increased. It is becoming even more substantial with the role it is playing in the global economy. According to research, a rough estimate of up to one-third of all the worlds products that are being produced will be incorporated in the trade cycle (Amaruchkul, Cooper & Gupta 2010, pp.157).

The United Kingdom economy has really developed since the start of this service. However, it also responsible for increased pollution levels that is noise and air. The availability of this services has enabled the British state to function internationally as a business center and being able to manufacture high-value goods. First, we can clearly see how the number of jobless people has decreased. Thanks to the fight industry which has been able to provide job opportunities both directly and indirectly (Divall 2016, pp.15). Secondly, most of the business areas such as pharmaceuticals, financials, and even technology require speedy services. For that reason, air is the most reliable means they can use. This will ensure customers are well responded to and in the required time. Failure of having such services will lead to business relocating to other countries or places where they can be available. Lastly, through air transport, companies can improve the competitiveness of a company in all sectors. This includes the logistics, inventory, management, production and supporting the customers (Turnbull 2014). To many firms, accessing air services is a great deal as it is a determinant of their location of operations in the United Kingdom.

Comparing the FedEx and the Mumbai freight company, we see how much successful the United Kingdom has become. Lately, there has been an issue in other freight airline companies and this includes the Boeing. This gives United Kingdom freight companies a reason to consider themselves successful (Babi?, Kuljanin & Kali? 2015, pp.5). For example, we have Indian air cargo found in India. In the previous year, some of its employees were forced to leave the job as they were not getting paid well. In addition to that, shipment rates became too high for their customers that they had to relocate to other cargo services. With famous people like the Boeing and Airbus, the company still failed their clients (Edward-Jones et al.  2009, pp.480). Most of their aircraft were undergoing maintenance while their crew became limited. This leads to delayed flights and half offloading of goods. Such companies should emulate and seek advice from well-maintained companies such as those in the United Kingdom. Hence, proper management would lead to success in the airlines. Also, tending the clients and employees well would also increase the reputation and working of a company (Smilowitz 2017, pp. 440)

As survival is a common feature in the forest, in business, competition is a common phenomenon in business. For a business to be successful, it needs to maintain a competitive advantage in the industry (Doganis 2013). This involves countless efforts which are involved in planning, then developing and finally leasing their services or products to their clients. If a company finds a way to this, they become a model in the industry with minor errors experienced. The reason behind is that other companies will catch up soon by adopting best practices which help them to keep up the pace of the competition (Smilowitz 2017, pp.441). However, once clients adapt to such companies, they will find it difficult for them to distinguish between the two companies as both have same practices. Thus, there is need to show customers how far a company can go over the other in that competition so that they can gain confidence in working with it.

A successful business has been able to make this distinction obvious to their customers, and therefore a freight company like FedEx tops the list in their service providence. For new businesses, it is obvious that it will first need a strategy of making their market aware of what sort of service they need to render and the specific individuals or groups that intend to be served (Turnbull 2014).

First, to maintain the comparative advantage, the freight company need to choose on their priorities (Chao & Li 2017, pp.27). For instance, it should choose whether their service is performed to numerous customers with few services or whether it will have fewer customers with a variety of services to provide. Look at FedEx. It specialized in proving little services, specifically cargo freighting, too many people. Centering this has helped them grow and has also helped the growth of the European Union (Taniguchi et al. 2014, pp.34)

 Secondly, ensuring that the activities and services practiced are related is also an aim. This helps the company to make a stand for its services to the product or services that they produce. For instance, in the freight industry, companies should stick to ferrying cargoes to different countries (Bergqvist & Monios 2017, pp.7). Rather, if they have other activities, they should be related to what freighting is involved with. This will build an identity helping their clients to be keen on that product. It will maintain the comparative edge over others who would combine let us say freighting with manufacturing of products (Taniguchi et al. 2014, pp.53)

However, just seeing these strategies in the paper would not ensure the growth of the company. Rather, active actions should be taken to ensure that both business executives and employees show commitment and understand the comparative advantage concept (Liimatainen 2014, pp.380). Well formulated strategies would eventually lead to good implementation which is one sure way of ensuring the comparative advantage is maintained.

Comparative knowledge is important to any company doing business. For instance, by knowing the status of one’s company, it will be easier to know how competitive one is in the market (Suresh et al. 2017, pp.100). However, being ahead of other competitors is a plus. It will help in looking for ways of attracting more customers to ensure that the business runs smoothly. However, there are other companies which cannot specialize in one thing but still are very much successful. Take an example of the major car producing companies. They work on everything from scratch in assembling the car parts and then go on selling them themselves. Depending on how a company takes the comparative advantage theory, they can well utilize it and earn maximum profits and surpass their competitors (Navarro, Cronemy & Huge-Brodin 2014)

The ability to endure and maintain a process or a situation over a period is known as sustainability. In economics, it is the when a state, company or individual can uphold the production level of economy indefinitely (Hellerman, Huchzermeier & Spinler 2013, pp.312). Thus, when progress meets its needs without negotiating with the future generations, this is known as sustainable growth. This concept contains two key concepts. First, limitations imposed by the state of the social organization and the technology department in a state to meet future standards. Secondly, the concept of needs to which the essential needs the world’s poor, overrides the priority that it deserves. Sustainability involves six major steps (Smilowitz 2017, pp.440). First, mapping of the supply chain is required. Then the sustainability plan should concentrate on the communications expectations. Thirdly, baseline supplier performance should be keenly checked while developing a good training and capacity building program (Ozceylan et al. 2016, pp. 43) Eventually, a drive performance improvement by the audit team is implemented, and lastly, the industry joins collaboration in making things work.

In the freight sector, stakeholder pressure coming from either investors, customers or shareholders has greatly influenced the increase in this company’s profits (Jaller, Sánchez-Díaz. and Holguín-Veras 2015, pp.49). By being able to improve and manage the social, economic and environmental performance, supply chains have been able to conserve their resources and optimize the processes. Also, product innovation has really been evident with an attempt of saving cost and increasing productivity to ensure corporate values have been upheld. This is evident in the United Kingdom freight markets. Its profits and even rankings have greatly improved showing how sustainability has been able to take the course (Taniguchi et al. 2014, pp.56).

There are many factors which could affect the development of freight. this varies depending on the country that one is located in. for instance, some countries have very strict policies which might restrain the improvement of the freight industry. The United States is one of them. take an example of the Memphis international airport in Tennessee. It has very strict rules regarding pollution and aims at conserving their environment. For this, you will find few freight industries that are striving well as compared to those found in the United Kingdom. Also, America is an independent state which has very limited inquiries regarding goods. Instead, you will find them exporting materials which are not in use. For this, they do not consider freight market as a necessity to their government (Navarro, Cronemy & Huge-Brodin 2014).

With good management, a company would be expected to enormously grow. Such is the case when it comes to the major cargo hubs (Doganis 2013, pp.45). First, they have been able to maintain their clients and employees by ensuring that the service delivery is superb. Also, providing incentives to their workers has enabled them to be fast forward in ensuring that they provide quality services to their customers. Lastly, they have been able to uphold a good sustainable economic environment. For this, they are aware of their competitors and have worked hard so that they are always ahead of them (Tangichu et al. 2014, pp.62).

Challenges that affect the development include first, the location of a firm as physical location is important to key freight markets. Secondly, the quality of the airport would really matter a lot. With congestion, delays can be caused which might, in turn, increase airport charges or delayed flight loading. Also, there are other factors which include environment, that is bad weather, governmental restrictions, for instance, reduce operating hours that make other countries have slugged cargo industry development (Smilowitz 2017, pp.440)

Aditjandra, P.T., Galatioto, F., Bell, M.C. and Zunder, T.H., 2016. Evaluating the impacts of urban freight traffic: application of micro-simulation at a large establishment. European Journal of Transport and Infrastructure Research, 16(1), pp.4-22.

Amaruchkul, K., Cooper, W.L., and Gupta, D., 2011. A note on air?cargo capacity contracts. Production and Operations Management, 20(1), pp.152-162.

Babi?, D., Kuljanin, J. and Kali?, M., 2015. Air Cargo Flow Analysis in the European Union. In Proceedings from the 2nd Logistic International Conference, Belgrad (Serbia).

Bergqvist, R. and Monios, J., 2017. Introduction. In Intermodal Freight Transport and Logistics (pp. 3-15).

Chao, C.C., and Li, R.G., 2017. Effects of cargo types and load efficiency on airline cargo revenues. Journal of Air Transport Management, 61, pp.26-33.

Crozet, Y., 2014. Development of rail freight in Europe: What regulation can and cannot do. Center on Regulation in Europe (CERRE), pp 55-67.

Divall, C., 2016. The Sea Container Revolution and Road-Rail Competition in Britain: a Preliminary Assessment of Freightliner. In from Rail to Road and Back Again? (pp. 155-174).

Doganis, R., 2013. Flying off course: The economics of international airlines. Routledge.

Edwards-Jones, G., Plassmann, K., York, E.H., Hounsome, B., Jones, D.L. and I Canals, L.M., 2009. The vulnerability of exporting nations to the development of a carbon label in the United Kingdom. environmental science & policy, 12(4), pp76-107.

Hellermann, R., Huchzermeier, A., and Spinler, S., 2013. Options contracts with overbooking in the air cargo industry. Decision Sciences, 44(2), pp.297-327.

Jaller, M., Sánchez-Díaz, I. and Holguín-Veras, J., 2015. Identifying Freight Intermediaries: Implications for Modeling of Freight Trip Generation. Transportation Research Record: Journal of the Transportation Research Board, (2478), pp.48-56.

Liimatainen, H., Nykänen, L., Arvidsson, N., Hovi, I.B., Jensen, T.C. and Østli, V., (2014). Energy efficiency of road freight haulers—A Nordic comparison. Energy Policy, 67, pp.378-387.

Lindholm, M. and Ballantyne, E.E., 2016. Introducing elements of due diligence in sustainable urban freight transport planning. Transportation Research Procedia, 12, pp.66-78.

Navarro, P., Cronemyr, P. and Huge-Brodin, M., 2017. What is the potential of process management to enhance sustainability in the freight transport sector? In EurOMA Conference 2017 in Edinburgh.

Özceylan, E., Erba?, M., Tolon, M., Kabak, M. and Dur?ut, T., 2016. Evaluation of freight villages: A GIS-based multi-criteria decision analysis. Computers in Industry, 76, pp.38-52.

Smilowitz, K., 2017. Comments on: Continuous approximation models in freight distribution management. TOP, 25(3), pp.440-442.

Suresh, S., Renukappa, S., Alghanmi, I., Mushatat, S. and Olayinka, R., 2017. Examining the Satisfaction Level of Construction Workers Regarding Safety Management in the Kingdom of Saudi Arabia. Journal of Construction in Developing Countries, 22(1), pp.97-113.

Taniguchi, E., Imanishi, Y., Barber, R., James, J. and Debauche, W., 2014. Public sector governance to implement freight vehicle transport management. Procedia-Social and Behavioral Sciences, 125, pp.345-357.

Turnbull, K.F., 2014. Developing Freight Fluidity Performance Measures: Supply Chain Perspective on Freight System Performance. Summary of a Workshop, May 21-22, 2014, Washington, DC. Transportation Research E-Circular, (E-C187).

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