Why Transportation and Warehousing Are the Important Issues in Supply Chain Management?)

675 Words3 Pages
Transportation and warehousing are two important components in SCM. Transportation refers to the movement of product from one place to another (Chopra, 2014). Warehousing is like a storeroom to store products and raw materials. There are various types of warehouses which are private warehouses, public warehouses, government warehouses, bonded warehouses, cooperative warehouses and so on (National Institute of Open Schooling, 2014). Supply chain’s success is closely linked to a good management of transportation. When a firm sells products or raw materials to another firm, transportation provides the delivery of products and materials. In addition, transportation actually impacts the abilities of downstream members such as distributors and retailers to serve their customers (Goldsby, et al., 2014). Warehousing provides two main functions which are movement and storage. Movement function involves receiving, in-storage handling and shipping whereas the storage function consists of planned storage and extended storage as shown in the following picture (Ailawadi & Singh, 2012). The movement function involves receiving products from manufacturing plant. On the receipt of the product, it is important to have in-storage handling where all the products are transferred within the warehouse. The products are then placed at designated place and regrouped. Shipping involves the transfer of products on transport vehicles. In this step, checking operations are required to carry out when the products change ownership as the result of shipment (Ailawadi & Singh, 2012). Company that can best be used to describe the importance of transportation and warehousing in SCM is Dell Incorporations (Inc.), the well-known Information Technology (IT) Company in the world. Dell has successfully implemented the concept of Just-In-Time (JIT) manufacturing and direct marketing.in its

More about Why Transportation and Warehousing Are the Important Issues in Supply Chain Management?)

Open Document