A transport manager in Singapore Post Limited is tasked with the responsibility of planning, organizing, directing, managing, evaluating and overseeing the operations and budget of transportation departments in charge of transportation and movements of goods or companies involved in services of supply chain. Further, to identify the opportunities for improvement of transportation services. Singapore Post Limited is a branch of Singapore Telecommunications s Limited. It deals in production of logistic services both domestically and globally. Other products and services include financial, postal and agency. Based on the product for which logistics is required, the organization applies the cost trade-off method both locally and globally.
The goal of transportation mode selection is to achieve the possible lowest transit cost and most services. There exist four principles in transport selection. The shipment characteristics need to be matched with the most appropriate transport mode. There should be focus on speed and reliability. Secondly, the transportation firm should be able to review their selection processes for carriers continually to cut cost and improve service delivery. Thirdly the section criteria should be developed and finally a rigorous procedure for selection should be formulated (Chang, 2013).
Ranging from simple to complex decisions, the procedure for selecting transportation mode would vary. Every cost need to be accounted for until a solution that is optimum is achieved. Four methods of selection potentially exist (Chang, 2013). These include Judgment, where the manager of transportation identifies the factors that affect the transport problems and mode of transport from a list of other available alternatives. This method however present certain shortcomings which may include: ignoring of factors other than transport matters; transport is being considered as a service instead of a channel of distribution; failing to consider a complete list of possible alternative methods of transportation; the cost not given significance since decisions are pegged on operational ability.
The second method of selection costs trade-off. This method calculates the impacts of transport in relation to the immediate activities as well as the total cost. This ensures optimization of the distribution channel. Third is the distribution model method. This method identifies and explains the relationships between components of the channel of distribution. It does this in various levels of monthly, weekly or daily demand.
The modes are critical in examining the impacts of alternative modes and methods of transport since either the demand or system components change (Sanjay, Malhotra, 2012). The model is thus mathematical and logical, therefore, attempting to simulate conditions and operation practice. Combining the three methods would identify a systematic procedure using the best attribute of each. This will, therefore, eliminate all the shortfalls. The fourth one is Systematic selection. This analysis first identifies the most important factors that affect the selection of transportation made. The trade-offs are then undertaken based on those factors to minimize the cost of distribution. Finally, an operational analysis aimed at experimenting with a planned system is conducted to validate the calculations and ascertain interrelationships of transport and with other areas are correctly calculated.
Selecting an appropriate mode of transportation can also consider several other factors which will conduct the tradeoffs between services delivery and costs for an effective trade. They include: operational factors which constitute laws on liability and security; conditions for payments such as taxes title documents; taxation and infrastructure for logistics; consignment factors such as weight, volumes, delivery speed, and the distances; characteristics of the transportation mode such as its reliability and availability.
Incoterms selection consideration
Incoterms can be referred to international commercial terms or simply rules predefined and published by International Chamber of Commerce (William, 2013). They are widely used in commercial transactions that are international based, as well as procurement processes. These rules are intended to communicate clearly the costs, tasks, and risks that are associated with transportation and delivery of goods. They thus help remove uncertainties that may arise from different interpretations of transportation rules in different countries.
According to Coetzee, 2013 a variety of considerations need to be made when selecting the right intercom, the following are some of the important elements to look for: the character of the goods which could be containerized, manufactured or bulk goods and commodities; the selection on the goods characteristics should well suit the transporters needs or convenience. This is with regards to safety of transportation of the given goods. The transportation means is equally important. Different modes of transport come with different challenges to the transportation company. Further different costs are involved in the transportation of varied goods via the different modes. The payment conditions should be assessed as well. It should be favorable to the transporting company. The company should be keen on the mode of payment that ensures optimum operations depending on their needs. Similarly the requirements for documentary imposed by the conditions should be looked into; the efficiency and ability of the seller to perform their obligations of delivery of the contracted goods: choice of whoever does it cheaply is prudent. These factors do influence the choice of particular terms.
Security management
Security risks in transportation come in many forms. They impact negatively on businesses and thus there is a need for an effective risk plan to enable quick recovery from such incidences. Many small and even the medium-sized transport companies are more often less prepared for the challenges that come with security risks. There are myriad of security challenges that can affect a transport operator. However, organizations that get to anticipate and prepare well for these risks can recover these processes in a quick manner and in a cost effective way. Therefore, a security risk assessment should be used as a tool to identify and prioritize the security risks.
As a transport manager, formulating a security risk assessment would be instrumental in establishing security management for an organization. From the security point of view, there exist primarily three elements that need to be examined to identify the risks relevant in a given transport organization (Hammami, Ramzi, Frein, Hadj-Alouane. 2012). They may include: establishing the critical assets of the organization in order to allow focus on the assets that are critical for an effective operation of the organization. Secondly, identification of appropriate risks sources. Third is the determination of the potential impact areas within the organization. This is important if the risk sources occur against the critical assets of the organization.
Identifying the risk sources which can also be referred to as threats identification within the context of security is an important step. Both the internal and external potential risks sources to an organization should be assessed at this level. It is also important to look at for those with the potential of affecting the organization. Identification of potential impact areas comes after identifying the critical assets and risk sources. Once the three elements of the risks are identified, they should be combined to identify the final risks. The level of risks is thus determined by rating its potential consequences and likelihood of occurrence. The likelihood will be achieved through conducting a review of the of the risk sources.
The risks that are identified should thus be evaluated. This stage will help determine the subsequent steps that may be needed to allocate additional controls. Good governance should then apply in tracking progress, allocating accountability and encouraging perpetual cycle of risk monitoring and review.
Recommendations
Three aspects of transportation management are recommended for effective operations within Singapore Post Limited. Transport management should involve planning, organizing, directing, managing, evaluating and identifying the opportunities for improvement of transportation services; incoterms selected should communicate clearly the costs, tasks, and risks that are associated with transportation and delivery of goods; and security management to avert negative impact on transportation companies. An effective risk plan should be prepared by companies for transportation risks, and thus it will ensure proper recovery.
In conclusion, a transport organization should formulate a security risk assessment which would be instrumental in establishing security management for an organization; Conduct the tradeoffs between services delivery and costs for an effective trade; and examine the impacts of alternative modes and methods of transport since either the demand or system components change.
References
Sharma, Sanjay, and Deepika Malhotra. "An integrated rational decision making and inventory management model for managing supply chain risks in EPC: a power sector case." International Journal of Information and Decision Sciences 4.2 (2012): 268-292.
Chang, Chia-Hsun. "Container shipping risk management: a case study of taiwan container shipping industry." (2013).
Bichou, Khalid, Michael Bell, and Andrew Evans. Risk management in port operations, logistics and supply chain security. CRC Press, 2013.
Johnson, William P. "Analysis of Incoterms as Usage under Article 9 of the CISG." U. Pa. J. Int'l L. 35 (2013): 379.
Coetzee, J. "Incoterms® variants: greater precision or more uncertainty?." De Jure 46.2 (2013): 583-591.
Hammami, Ramzi, YannickFrein, and Atidel B. Hadj-Alouane. "An international supplier selection model with inventory and transportation management decisions." Flexible services and manufacturing journal 24.1 (2012): 4-27.
