Dell's Transport Management And Carrier Selection Essay - An Overview.

Introduction to Dell - World's Largest Computer Manufacturing Company

Question:

Topic of Organization: DELL 

Analyse the effectiveness of these three aspects of the transportation management, namely incoterms (international commercial terms) selection consideration, carrier selection criteria, and carrier relationship management.
 

Today Dell has become the largest computer manufacturing company in the world and it delivers their product almost more than 170 countries in the world. Dell believes that to deliver their computers, whether to one person or thousands of laptop and desktop to a number of enterprises, everyone gets their order to its accurate destination ant on the right time. In terms of improving the condition of the transportation sector, Dell always chooses the right transportation mode for the orders, without any additional cost (Kimble & Bourdon, 2013). Hence, being the transport manager, will explain the effectiveness of transport capability of the Dell Company, by analyzing the transport management and its process of carrier selection.

Dell is an American Global Information technology organization in Texas and mainly deals with the computers and the products related to the computers. The main business of the Dell is to sell the different kinds of models of computers and laptops which include many functions, colors, and price (Kimble & Bourdon, 2013). This differentiation helps the customers to buy the computer according to their choice with various options.

The Company believes that marketing is not just delivering products to the customers, but also to satisfy the customer according to their demand.

The company’s main market leadership is to deliver the best possible satisfaction of the customers with direct selling products and services that are based on the standards of the technology. This helps the company to deal with its competitors like Lenovo and Hewlett-Packard and other makers of personal computers (Chen & Miller-Hooks, 2012).

The main purpose of Dell Company is to deliver the best computer service based on technology, and enables its customer to grow and succeed. Dell success totally depends on the customer fulfillment, offering, global expansion and financial performance of the company. 

Being the transport manager of the Dell Company, one has to manage the plans and organize all the matters related to transportation of products in a company by taking Incoterms in mind. The manager has to work and take action in sectors like warehouses, manufacture section, and freight section (Lai, 2004).

International commercial terms are worldwide known as standard trade terms used in sales contracts. They are used for the connivance for buyers and wholesaler identify-

. Who is answerable for the charge of transporting the products?

. From where the products should be picked up from and deliver to

. Who is answerable for the risk during the transportation process?

The incoterm rules are the essential part of trading. As the Dell Company has a different mode of the transportation system, it is important for them to provide rules and guidance to transporters to deliver the goods in the worldwide.

Dell prices FCA (Incoterm) does not include import and export duties, tariffs or other charges related to exporting and importing the products. Dell may be charged for shipping and handling on the invoice where appropriate (Lai, 2004).

Dell's Commitment to Delivering Customer Satisfaction

The products are delivered to the customers in properly specified time for the delivery in terms of the FCA (Incoterm) (Seung, 2015).

Free carrier (FCA Incoterm) is used in the Dell company as their mode of transport is more than one i.e., air, road, and sea. It’s a simple and flexible rule that is suitable for all the conditions in which buyer arrange the main carriage lock-

. Place of delivery

. Freight arrangement

. Arrange export and import clearance

. Loading and offloading costs

. Transfer of risk

To perform the effectiveness of work as a manager I have to solve the problems of an organization and improve the conditions of communication skills (Paulauskas, 2016). To maintain the effectiveness of transport management as a manager of Dell I have to follow certain functions and process

Supervise Transport Function

As a transport manager of DELL Company, I have to organize the transportation program which inculcates the significances, objectives and financial restrictions on the DELL Company. It’s my responsibility to ensure that the other staff follows the plan to help the DELL in providing best possible services to the customers (Seung, 2015). To provide proper training in the transport sector helps to decrease the ratio of accidents, which maintain the image of the DELL company and also helpful in increasing profit ratio. As a transport manager, I have to coordinate and cooperate with staff training to ensure that drivers are aware of all central and local traffic regulations.

Planning Routes

DELL main mode of transportation is by air, rail and by ship. As a manager, I have to plan and organize the daily routes and to oversee the logistics involving to the carriage of the consignment or persons. This effectively leads to the closely with customers and suppliers in planning the fastest and minimum expensive routes.

Maintain Records     

To make the transportation management of DELL more effective as a manager I have to maintain the records relating to the department, routine maintenance, and expenditures. I have to updates the records relating to the Dell policies as well as government rules and regulations. I must maintain the proper records of staff, licensing, driving test (Seung, 2015). For maintaining transparency, I have to prepare a budget and examines the shipping documents to ensure that they are well organized and well-prepared.

Safety and Maintenance

Dell always tries to provide the best possible service to their customers with the assurance of proper safety and maintenance of the product. As a manager, I have to maintain the proper inspection on the Dell equipment and vehicles, and ready to take action and replacement or any repair if deemed essential.

Solving Problems

As a transport manager, I have to solve the issues relating to late deliveries and customer complaints. I have to consider the problem carefully and solve it with an ideal solution. Communication with the related authorities to solve the problem relating to any issue like accidents at the workplace or, any miss happening during transportation 

Importance of Incoterms and FCA at Dell

Dell company criteria of selection of carrier are a method of choosing appropriate workers with different strength and skills. The company creates an atmosphere which motivates the carriers to improve their performance as well as the market share of the company (Garver, 2016). The carrier is selected in terms to achieve the transportation goal of the company.

Following are the possible carrier selection criteria according to the transformational goals and the need of the Dell company-

Organizational structure- The transport manager has an authority to make the decisions on behalf of the carriers and the carrier is dedicated towards the manager and the organization.

Professional reputation- The carrier of Dell Company is professional and skilled to achieve the goals of transportation and he is an active person in product delivers on local, national and international trade.

Present customer references- For inspecting, the performance of the carrier, the manager gives the list of current customers and inspect the work of carrier.

Financial Stability- The carrier of the Dell Company provides a financial balance sheet, income statement so that the financial department uses the performance and ability of the carrier to measure not only to stay in the company but also to make necessary capital improvements (Stankov, 2000).

Pricing structure- The carrier is appointed in flexibility based rating and durability of contracts etc.

Carrier costing-In Dell company transportation goals are clear in terms of carrier costing and it is easy to explain and understand. The device is consistent with the services provided by the Dell to the customers.

Intermodal connection- The carrier has an ability to connect with trustworthy intermodal transport workers in all areas where a Dell company does business.

Cargo service- The carrier of a Dell company has an ability to handle all types of cargo that company ship, whether it is moveable or break bulk, full truckloads, or intermodal containers and previews (Stankov, 2000).

Training- As discussed earlier also that training in the transport department of DELL Company is very effective and essential. Training relating to different testing of drivers and other employees related to transport is given under the proper supervision of the manager (Stankov, 2000).

Discipline- Maintaining discipline in each section whether its transport or another department is necessary to achieve the goal of DELL Company. The carrier can take effective action against any employee involved in loss or damage due to the negligence of discipline.

Cargo Inventory- It is the duty of the carrier to check all the shipments, at each transport, including at destination delivery.

Loss notification: The carrier of the Dell company, contact to the related person immediately to the loss of a shipment. The carrier is able to assist in minimizing the extent of loss by taking proper actions.

Insurance coverage- The carrier knows the legal responsibility limits that are appropriate to the value of estimated consignment.

Monitoring and control- Once the carrier is selected in Dell company or contracted to provide service their performance of doing work is monitored in the performance areas. The key factors of measuring performance include customer satisfaction at delivery time, any damage to the product during shipping (Yuh-Horng Wen, 2012). 

The Role of a Transport Manager at Dell

Effective carrier relationship management helpful in providing services to the customers. In the absence of the carrier, the Dell Company wouldn’t provide value to the other employees.  Dell introduces a program NFV (Network Function Virtualization) that provides network equipment to the carriers with maximum flexibility and control (Golicic, 2007).

Carriers become more modernized to meet the customer demands and bring the product to market faster. It helps the carrier to take the advantage of this technology.

Following points is considered in the Dell Company to improve the carrier relationship with management.

Work for success- In the effective transportation system, it is important, driver availability and proper guidelines to collaborate with the carrier and to ensure them that they are adding a gainful business to their system. This will lead a long-term relationship with the carriers (Chou, 2015).

Share opportunities- If there is a chance of raising new opportunities in the company it should be shared with the carriers. It leads a good relationship with the carrier and the carrier benefits by earning more of a business.

Proper communication- Proper and regular communication with the carrier is a must for the relationship.   The regular meetings regarding the performances of the carrier, the matter related to the new policies and the other related matters, strength the relationship.

Plan- With any new policy and program, plan with the carrier to get its system ready to take the new program and this planning will not create any confusion with the carriers and relationship will also be not affected (Golicic, 2007).

Treat drivers well- A long-term and permanent driver knows the company process and system of transportation and they handle the delivery process more effectively. So by treating well behaves with the drivers is the key factor in maintaining a healthy atmosphere in the company.

Use technology- As discussed above with the new technology of Network Function Virtualization on Dell will give an advantage to the carrier to do their work with modernization.

Provide data- To provide proper data to the carrier during delivery process is very essential. This data information helps the carrier to find out its proper location and the time of delivery. The transparency and accuracy of data, information create faith in between the carrier and the transport management.

Monitor interactions- By monitoring the whole system of transport management and by taking good and effective interaction between the carriers/shipper creates a healthy relationship, and resultant o improve service and reduce costs.

Solving the problems- Sometimes there are the conditions in which transport management has to solve the problem of carrier in personal level for the sake of the company. This will increase the performance level of the carrier as he works with sound state of mind and tries to make their best effort in work.

Appreciate the work- to appreciate the work of any, employee, whether a carrier or another sector employee appreciation of his work is the key factor to maintaining a good relationship. It also increases the morale of the carrier and new carrier will also be faithful and try to do the work more efficiently to become a permanent employee of the company (Thakuriah, 2011). 

Conclusion

Thus, after the deep study and analysis in terms of International commercial terms, carrier selection criteria and carrier relationship management, we can say that Dell always tries to provide the best possible service to the customers with the assurance of proper safety of the products. To fulfill this target of the company transport manager must do an effective job. He is well trained in his skills and has proper knowledge of Incoterms, carrier selection and another transport system of the company. According to above discuss points as manager in DELL Company have to make the transportation system more effective and durable for the company growth and development. The whole transportation system must be under the supervision of the manager and implement on the proper schedule (Kusiak, 2013). So that the carriage and persons deliver on time. Dell has used modernized technology for transportation and to satisfy customers with leading airlines, cargo carriers, and freight forwarders. The company uses a proper process of selecting a carrier with different skills and knowledge. Dell also maintains the relationship with the carrier to make the transportation system more effective and able to deliver the products in worldwide. 

References

Chen, L. & Miller-Hooks, E. (2012). Resilience: An Indicator of Recovery Capability in Intermodal Freight Transport. Transportation Science, 46(1), 109-123.

Chou, P. (2015). An analysis of the relationship between service failure, service recovery and loyalty for Low Cost Carrier travelers. Journal Of Air Transport Management, 47, 119-125.

Garver,. (2016). Examining Carrier Selection with Situational Choice Models. Transportation Journal,55(2), 224.

Golicic, S. (2007). A comparison of shipper and carrier relationship strength. International Journal Of Physical Distribution & Logistics Management, 37(9), 719-739.

Kimble, C. & Bourdon, I. (2013). The Link Among Information Technology, Business Models, and Strategic Breakthroughs: Examples from Amazon, Dell, and eBay. Global Business And Organizational Excellence, 33(1), 58-68.

Kusiak, S. (2013). Carrier Portfolios. The Journal Of Portfolio Management, 40(1), 61-70.

Lai, K. (2004). Service capability and performance of logistics service providers. Transportation Research Part E: Logistics And Transportation Review, 40(5), 385-399.

Paulauskas, V. (2016). Ship and Quay Wall Mooring System Capability Evaluation. Transportation Research Procedia, 14, 123-132.

Seung, M. (2015). Factors influencing trust and partnership in shipper-carrier relationship: How do these affect electronic trading transactions in South Korea?. African Journal Of Business Management, 9(21), 741-751.

Stankov, S. (2000). Adequate selection of anticancer agents: a task which can be fulfilled by changing selection criteria. Medical Hypotheses, 54(3), 503-504.

Thakuriah, P. (2011). Analysis of Cost-Effectiveness of Employment Transportation Services.Transportation Research Record: Journal Of The Transportation Research Board, 2217, 55-62.

Yuh-Horng Wen,. (2012). Impact of Collaborative Transportation Management on Logistics Capability and Competitive Advantage for the Carrier. Transportation Journal, 51(4), 452.