Globalization of Logistics and Supply Chain (Research Paper Sample)

Globalization of Logistics and Supply Chain
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Introduction
Globalization is the production and distribution of products and services of homogeneous type and quality on a worldwide basis. The process involved is a trend that moves more to the greater cultural, political, economic and technological independence in the institutions and economies. Logistics on the other hand is the art and science of determining requirements, ways of acquiring them, distribution and maintaining them as a final operation in ready condition for their eternal life CITATION Pek09 \l 1033 (Pekin, 2009). The management of all activities that facilitates movement and co-ordination of the supply and demand are involved for the creation of time and place utility. The globalization of Logistics and supply chain is therefore the process where the management of all the activities involved is carried out outside the confines of one’s country. Transport is major factor involved in logistics and thus it can be concluded that the global supply chains are typically operated by a range of transport modes when goods and services are moved within countries. This is an approach in transportation referred to as ‘multi-modal’ or ‘intermodal-choice.
Multi-modal is the movement of goods from one mode of transport to the other and they normally take place at the terminal specifically designed for that particular purpose CITATION Cur11 \p 55 \l 1033 (Currie, 2011, p. 55). The objective of the paper therefore is to evaluate the impacts of this type of multi-modal form of transport on an organization with sustainable supply chain strategies and their choice in the selection of suppliers either local or global suppliers with attention to the trade-offs that are involved in their type of logistical or transportation. Trade-off is simply a situation that involves losing of one aspect or quality of something for the return of gaining another aspect or quality. Thus before decisions are made on the trade-off, they have to be properly analyzed on their advantages and disadvantages involved. In the analysis therefore, the paper discusses broadly on the nature of intermodal transport with concepts involved. Transportation is covered widely with focus on factors such as containerization and other factors that tend to be timely and reliable in the supply and provision of the required goods. The advantages and challenges facing the intermodal transport are also discussed. The other major issues facing transport such as costs involved in the intermodal forms of transport are also widely covered.
The case study of a company in this context as an organization with sustainable supply chain strategies is the coca-cola company who have maintained and developed new global operations over the years. This is a factor that has created an impact on the importance of different supply chain options and logistics. The company is involved in moving their products to greater distance by concentrating on focus factories with single global manufacturing unit in the globe CITATION Daw10 \l 1033 (Dawat, 2010). The involvement in the long distance transport modes has become important in the development of efficient logistics and distribution by the company. The company has then involved various freight transport modes in the overall sustainable development to capture and maintain their reputation to their customers. The company identified Germany from their analysis of consumption as being one of their main consumers and thus they started building a distribution network within the country for packaging and selling coca-cola products locally in Europe. The company has from then undertaken steps such as replacements of inefficient bottling networks and financing their marketing well thus making Germany to be the most profitable market in Europe.
The nature of inter-modal transport
The industries have continually grown their products and markets over the years and this has made them to revert to various modes of transportation to meet their market needs. The mode being settled by the company has targeted on taking advantage in terms of the cost involved, service, safety and reliability in the means of transport. The previous efforts on the modes of transportation have continually been influenced by factors such as public policy that have been preventing business from being carried out and some transportation means which have continually incurred additional costs and delays on the terminals CITATION Tan09 \l 1033 (Tan, 2009). Intermodalism has thus existed and businesses are reverting to it because it is seen as a cheaper and easier option. It involves the transportation means that takes place in several stages such as setting the maritime networks then connecting to the inland networks. This is intrmodalism since two components are involved. It commonly takes place in a terminal specifically designed for specific purposes of the transported goods involved. The link in the transport means can be a network of two or more transport modes involved mainly with a single rate.
The case study of coca-cola company has always adopted intermodalism in the transportation of their products. The company has in the past had a single manufacturing unit and with the worldwide market, they had to involve several means of transport in their products to reach these markets CITATION McK13 \l 1033 (McKay, 2013). The company has in the past taken a number of steps to increase the European market, this involved the trade-off where the company made the replacement of local franchisers whom they had seen as reluctant into more active and market driven sellers. This involved a series of operations that had massive marketing campaign, and in the process the prices of the products were lowered with sharp increase in advertisement. These are moves that increased the sales rapidly for the products. The establishment of the local distribution network also contributed to the increase in sales since the supply chain had been shortened CITATION Sic13 \l 1033 (Sichel, 2013). In the projection of the company position in the future, the company has adopted several strategies which are designed to make the company availability more on the local market. This involves the company increasing the powers of making decision to the local managers. The company is also focusing on pure marketing of the company brands in the regional basis and also the company is working to reach out to the local communities by being involved in civic and charitable activities CITATION Jen10 \l 1033 (Jenkinson, 2010). It can thus be concluded that the coca-cola company has always succeeded across nationals by understanding the appeal required globally but at the moment it is trying to maintain this market share through better understanding and appeal to the local communities.
Concepts involved in the intermodal transport chain
The intermodal transport chain has several concepts involved; these are discussed below in reference to the coca-cola being the company in the case study with the involved concepts;
* The nature and quantity of the transported cargo is considered when intermodal transport is involved. The coca-cola company has always had alternatives in the transportation of their products and this has involved the use of different means to reach their destinations. The company has adopted measures such as establishments of mixing and packaging units in places that are far off from the primary manufacturing plant and thus with these establishments, the company has been able to transport only materials that are smaller in volume and that can be converted into ready products after they reach the destinations CITATION Kon09 \l 1033 (Konings, 2009). An example is where the company can transport only the formulae powder which upon reaching the destination can be mixed with water by the set up machines, bottled and distributed to consumers.
* The origins and destinations are also considered. Longer distances are the ones that usually adopt the intermodal transport system and thus the coke company being a multinational has had to involve intermodal transport system. This is a means that has made it easier for the company to transport their products.
* The modes of transportation involved are important entities. The means might vary from trucking, rails, road, road and maritime. The choice of the means involves is usually predetermined by the urgency required for delivery of the products CITATION Zla02 \l 1033 (Zlatkovich, 2002). The cost involved will also determine the choice of means used. The case of the company requires that the means is cost effective and with some consideration on the time used since the products of the company will always take some lengthy time before they expire.
* The transportation time and cost are important entities since intermodalism will always use these entities to weigh the means to be used for the company. Several factors are always considered and the management is always responsible in coming up with a cost effective and sustainable one over a longer period of time.
* The frequency of involvement in the intermodal means is also considered. The flow of the company cargo has to be always continuous and consistent so as to provide reliability in the flow of products from the company CITATION Bus08 \l 1033 (Helen, 2008). Reliability is important and it is one of the reasons that the company has been steady over the years since it has earned the loyalty to many of their consumers. Therefore it is proper logistics which have been put in place that is helping to establish this loyalty.
* The value of the cargo is also an important entity. The high and low value shipments are usually less suitable for intermod...