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Select an organization that you familiar with and assume that you are the transportation manager. Every paragraph have put at least one in text citation include introduction and conclusion. Give 2 or 3 recommendation for incoterms selection consideration. Give the reason and rank the weightage for carrier selectio criteria. For carrier relationship management, analyze which part of the selected organization is outsource to expert, give recommend about type of relationship, explain and justify the recommendation, and how to build the relationship.

Incoterms Selection Consideration

The report talks about the needs of transportation in the company. This transportation helps the companies to carry goods and services from one place to another. Hence it becomes very effective equipment for the company.  The appropriate strategies for transportation have been recommended in the report and other relevant information is been described. The goals and needs of the company through the availability of transportation are described. The three aspects that are talked in the report include incoterms selection consideration, carrier selection criteria, and carrier relationship management. The food company of Singapore namely, NP Foods Singapore Pte Ltd has been taken in the report. The report depicts how the three aspects of management impact on transportation advancements. The three aspects of transportation management are discussed in the report to clear the idea.

NP Singapore Pte Ltd. is a food supplying company which was founded in 1987 is responsible for manufacturing, supplying and selling food items across the country.  The company provides food in a number of varieties to its customers and it is able to fulfill the demands of the people since 1987 and now it is still continuing. The use of transportation is the very important aspect of the company. Since the company is a food manufacturing company it becomes easier for them to carry food products in large quantity from one place to another. The transportation facility is helping the company to get the items delivered on time. Therefore, the report talks about how NP Singapore Pte Ltd. uses these facilities in order to expand their trade business and also the strategies to take the business further by transportation facility has been recommended (Chan & Zhang, 2011)).

The companies determine the payee for every segment of transportation who is responsible for the goods loading and unloading. He is the one who is also responsible for bearing the losses at the time of international shipment. Incoterms also shows its influence on the customize basis (Richards & Grinsted, 2013).

The food companies use the incoterms selection consideration to make sure about the cost of production reaches into the hands of a number of retailers so as to maximize its profit. Hence, the effect of transport facility used by NP Foods Singapore is very influential and effective. It helps to export and import their products from here and there. It becomes easy to deliver their products timely and to manage the stability of the business procedure. The effect of transportation seen in the company serves them in an effective manner (Hugos, 2011).

  1. Free Carrier: Company can choose a place of business in such a manner that it should become easy to load the goods in that particular mode of transportation. This clears the phase of transporting goods in the carriers for the buyer.  Although the buyer is expected to pay all the transportation cost. If the place is chosen by the seller, the seller is then responsible for loading and unloading the goods on his cost (Grawe, 2009).
  2. Free alongside ship: The risk is shifted to the buyer when the seller exports the goods from their place of business.  In such case, the buyer is responsible for the delivery of goods. Buyer has to pay all the cost which comes under the shipping process till the final destination. This increases the level of risk for the buyers. In such situation, the person can hire any labor who is boarded in the ship to take care of the goods in an appropriate manner.
  3. Cost, Insurance, Freight: Loading and unloading of goods from one place to another cause a lot of risks. Hence, getting the products insurance done can help the buyer or seller to claim for the damage. This enables them to face no loss of the product. Cost, insurance, and freight charges can only be used as an incoterm if the transportation of goods takes place at least partially by water. The company is aware of the process of making business (Hulme, 2009).

Carrier Selection Criteria

The company can focus on expanding its business by adding new transporting factors to carry more and more quantity foods than earlier and also in different parts of the country. It is recommended to get the goods and services insured so that in case of any damage the claim could be provided. Also hiring trustworthy employees can reduce the chance of any damage to the product and enhances timely product delivery (Kappauf, Lauterbach & Koch, 2012).

                 

(Source: https://www.numenproductions.com/adslp/transportation_management.html)

Carrier selection criteria involve the type of selection to be made while loading and unloading the goods. The company must take care of the kinds of product that it export should have no chances of damaging. The carrier selection depends on the type of product and other factors relating to transporting material. Selecting the mode of transportation in an appropriate manner helps the company in smooth functioning and gives the effective result. NP foods Singapore generally expect a high-speed delivery of its product (Mula, Peidro, Díaz-Madroñero & Vicens, 2010).

Type of product: Since NP foods Singapore Pte Ltd. is a foods manufacturing company so it has to take care of the shape and size of the product and its supply. The packaging should be done efficiently that it must not provide any leakage (Esper, Ellinger, Stank, T. Flint & Moon, 2010).

Location: NP Foods Singapore is a very bid food manufacturing firm. The shipment of products takes place not only on a limited scale but also at a large scale. Hence, before considering selection, it should finalize the location from where the transportation should on go. Finalizing the location becomes a very important aspect of the company as the transaction takes place both locally and internationally. The seller exports the goods from the location where he selects and informs the buyer to unload the items accordingly (Theriou, Maditinos & Theriou, 2011).

Speed: Sometimes the food supplements are such that needs a quick view. In such situation, the speedy delivery of the product is expected. Hence company has to check the transporting facility which can carry goods in speed without the products being damaged. The retailers sometimes demand the products as soon as possible, in such case the factor of speed while selecting carrier becomes important. Also, before selecting the carrier company must check the time of delivery of the product. The speedy delivery is all that matters for the food companies (Mooren, Grzebieta, Williamson, Olivier & Friswell, 2014).

Carrier Relationship Management

Tracking services: Tracking services allow the firm to track the record of the product being sent through transportation. Mainly the buyers or the retailers are worried about the product’s shipment procedure. Hence the facility for tracking the product is provided which allows them to keep a check on the product. This allows them to deal with the buyers. It is a good way of monitoring the deliveries and being satisfied with the product. This tracking service reduces the concern of the company (Bamberg, Fujii, Friman & Gärling, 2011).  

Pricing: Before selecting any carrier for delivering the product company should look at the charges it implies. The pricing for the product should be calculative and must not affect the cost of production of the company. There has to be a proper planning about the charges being applied to the delivery of the product. To avoid such discrepancies it becomes important to first know about the policies set for shipping the products (Martínez-Sala, Egea-López, García-Sánchez & García-Haro, 2009).

Policies play a very significant role in developing business. It is recommended to know the policies of shipping process thoroughly in order to avoid any faults. They should be very well aware of the prices so that there are no chances of getting cheated on the money. The company should check whether the shipment comes under the policy of free shipping or the charges are applied. Along with this, the company must focus on the planning process to overcome on the competitors around the world.

The transporting of products from one place to another place is much effective if the company have an effective relationship with the management of transportation. This becomes helpful as the firm can develop trust in the management and can ask for delivering the product on time. For companies like NP Foods Pte Ltd., it becomes necessary to develop contacts with the management who is responsible for transferring goods. It allows them to believe in the carrier partners for delivering the product. This will not only develop and build trust but also the charges to carry the goods could vary in a positive aspect. NP Foods being a very old firm and it has various contacts of such kind, hence the long-term relationships between the suppliers and shippers have build trust on both sides. This helps in smooth functioning of the business (Zhao, Huo, Selen & Yeung, 2011). The aim of the company is to fulfill the demand of the customers by satisfying their needs in order to generate profits effectively and efficiently. Hence, to achieve such goals, company must work on developing its relationship with multiple factors, such as;

NP Foods Singapore Pte Ltd: A Food Manufacturing Company

Collaborate to improve the process: Collaborating with the shippers helps in improving the process of functioning. This helps in forming a successful relationship not only with carriers but also with the customers. They get to know more and more about the company and working system might attract them which help the company to get in touch by forming them the partners. The company must collaborate with not only one transporter but rather multiple transporters. Collaborating with a large number of shippers helps in developing more effective contacts (Kim, Kumar & Kumar, 2012).

Communication: Company should be in touch with their carriers in order to have a proper functioning in the business as and when needed. Communication and collaboration help in providing relevant information about the business and products as well. Effective communication with the carriers helps the company to transport its goods effectively and efficiently. Effective communication leads to effective business functioning. There must be two-way communication on relevant information (Liu, Guo & Lee, 2011).

Leverage Technology: Relationship management also involves managing relationship with not only the representative but also with other persons responsible for transporting goods to the place of destination. Earlier, the relationships take place through personal interaction. The company must be aware of the use of technology for delivering the products. NP Foods uses a platform of online transactions for expanding its food business over millions of its users (Monczka, Handfield, Giunipero& Patterson, 2015).  

The company can collaborate with other companies for improving its process of working. Collaborating with large firms allows the company to know about the variously advanced shippers who can be beneficial for them. They also get to know about other methods of transporting materials. The company must focus on the innovative technologies to gain long-term benefits in the world. The communication between the shippers and the sellers can also help in serving the basis of doing business. The acceptance of new technologies enables the company to get the work done in a professional manner without involving and human touch or wasting of time (Peppers & Rogers, 2016).

Conclusion:

On the above discussion, it has been concluded that transportation and distribution management play a vital role in each and every organization. The report shows the impact that transportation on the business. Transportation is the key element for any business and its importance depends on delivering the products here and there in an effective manner. The report shows how transportation controls the working of the business and becomes an important concern for the company like NP Foods Pte Ltd. The incoterms selection consideration talked in the report focuses on the type of strategies and the company should follow some rules and policies in order to meet effective transportation facility. In carrier selection, it is recommended to get into the insight of carrier relationship in order to collaborate with many other shippers to improve the process of business. It is shown how the carrier relationship management becomes an important factor for the company to expand its trade business. The example of NP Foods Singapore Pte ltd. carries the idea of transportation in a way to clear the aspect of the report.

References: 

Bamberg, S., Fujii, S., Friman, M., & Gärling, T. (2011). Behaviour theory and soft transport policy measures. Transport policy, 18(1), 228-235.

Chan, F. T., & Zhang, T. (2011). The impact of Collaborative Transportation Management on supply chain performance: A simulation approach. Expert Systems with Applications, 38(3), 2319-2329.

Esper, T. L., Ellinger, A. E., Stank, T. P., Flint, D. J., & Moon, M. (2010). Demand and supply integration: a conceptual framework of value creation through knowledge management. Journal of the Academy of marketing Science, 38(1), 5-18.

Grawe, S. J. (2009). Logistics innovation: a literature-based conceptual framework. The International Journal of Logistics Management, 20(3), 360-377.

Hugos, M. H. (2011). Essentials of supply chain management(Vol. 62). John Wiley & Sons.

Hulme, P. E. (2009). Trade, transport and trouble: managing invasive species pathways in an era of globalization. Journal of applied ecology, 46(1), 10-18.

Kappauf, J., Lauterbach, B., & Koch, M. (2012). Logistic Core Operations with SAP: Inventory Management, Warehousing, Transportation, and Compliance. Springer Science & Business Media.

Kim, D. Y., Kumar, V., & Kumar, U. (2012). Relationship between quality management practices and innovation. Journal of operations management, 30(4), 295-315.

Liu, C. T., Guo, Y. M., & Lee, C. H. (2011). The effects of relationship quality and switching barriers on customer loyalty. International Journal of Information Management, 31(1), 71-79.

Martínez-Sala, A. S., Egea-López, E., García-Sánchez, F., & García-Haro, J. (2009). Tracking of returnable packaging and transport units with active RFID in the grocery supply chain. Computers in Industry, 60(3), 161-171.

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management. Cengage Learning.

Mooren, L., Grzebieta, R., Williamson, A., Olivier, J., & Friswell, R. (2014). Safety management for heavy vehicle transport: A review of the literature. Safety science, 62, 79-89.

Mula, J., Peidro, D., Díaz-Madroñero, M., & Vicens, E. (2010). Mathematical programming models for supply chain production and transport planning. European Journal of Operational Research, 204(3), 377-390.

Peppers, D., & Rogers, M. (2016). Managing Customer Experience and Relationships: A Strategic Framework. John Wiley & Sons.

Richards, G., & Grinsted, S. (2013). The logistics and supply chain toolkit: over 90 tools for transport, warehousing and inventory management. Kogan Page Publishers.

Theriou, N., Maditinos, D., & Theriou, G. (2011). Knowledge Management Enabler Factors and Firm Performance: An empirical research of the Greek medium and large firms. European Research Studies, 14(2), 97.

Zhao, X., Huo, B., Selen, W., & Yeung, J. H. Y. (2011). The impact of internal integration and relationship commitment on external integration. Journal of operations management, 29(1), 17-32.

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