As what we know, in transportation medium there is a lot of challenge that the carrier and shipper need to face. Here we will discuss about the challenge in carrier strategies. The first one is operating network. In operating network there have five points.
(i) Assets and equipment must be deployed to the shippers location. which requires continuous monitoring of equipment location and customer demand. That's mean, the assets and equipment must be move to shipper location. If the operation is higher, the challenge that the shippers and the carrier have to face also higher. For example Maersk, their asset moving for worldwide. So, they can expand their operation network.
(ii) High proportion of operating task is perform beyond the scope of supervisor. This point is not same as manufacturing activities. In transportation service, the employee need to go around the world to expand their network. So this is beyond the scope of their manager.
(iii) The vast geographic operating network is interrelated and interdependent. That mean, the origin terminal, pickup vehicles, consolidation terminals and the others have must work together to accomplish the delivery of the shippers freight. They also have to connect together to ensure the business run smoothly.
(iv) The carriers operations and equipment are continually exposed to weather condition and other hazards beyond the control of management. That's mean the manager of each logistics company cannot control the weather. For example Malaysia also have many freight and want to import the shipment to another country. So that, during the journey happen we cannot expect what the weather at that time.
(v) Hazard beyond management control include traffic congestion and calamities. As we know, if the network is higher, it will give big impact especially for the logistics global. That will cause the highway traffic and resultant is increase. Because of increase driving time and cost for motor carriers each of countries. For example in the worldwide carrier operating network as usual there must be a traffic congestion because of the increases of the carrier.
Second challenge is Operation. In transportation operation, each of the service provider must be overcome the operation issue. They also have to direct contact with public to exposed with accidents. For example, the person have to make inspection or maintenance for each transportation that they need to use to run the shipment. This is important because without the inspection we have to face the possibility if something happen to the transport during the journey. That also to ensure the safety of the pilot or driver to prevent the accident from happen.
Third is Labour. In this point, each of the company in the world have to hire the labour to run their business operation smoothly. In term labour, especially in transportation global they have unionization also known as association. This association will help the labour if they want to claim what ever the matters that related with their work such as salary or bonus from their company. If one association make a problem that will be effect the whole association. The union also have the responsibility based on task or job specification that they need to do. For example in Malaysia, Fedex pilot union want to claim their salary because of the best service that they provide for their customer. If the labour strike occurs in a transportation company the operation is stop and no service will provided.
Forth challenge is Performance Measure. It can be divide into two which is service performance and financial performance. In term of service performance that refer to the time, consistency and damage. For the time is refer to the transit time from pickup to delivery and the time also important to the shipper because we have to ensure all the business that we run have to finish also delivery time must on time. When the service performance that we serve is good, the damage of cargo that we deliver also can be reduce. Next is financial performance, for the sure every company want to reduce the cost of their operation. So that, they have to use the resources such as capital and human to ensure the financial condition very efficient in their business.
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