Logistics of the Great Manufacturing Company

The Great Manufacturing Company needs various components to manufacture the necessary home appliances. As the new Vice President of Logistics, there would be many important questions. Where are the electric nodules and other hardware sourced from? What type of transportation from each location is currently being used? What are the current costs? Is a discount being provided for bulk shipping? What is the supply and demand for the products produced? Are there seasonal spikes in demand? These questions can be answered by obtaining current contracts with transportation vendors and manufacturers. Other information can be obtained from the financial records. With the information given, the best solution is for the containerized steel to be transported by fishyback, while the smaller components can be transported intermodal by birdyback.

A company such as C.H. Robinson could provide the water, air, and motor transportation for a discounted volume rate. They will also handle any transport documentation needed for the imported parts. The U.S. Department of Transportation lists the Jacksonville, FL port as one of the top twenty-five containerized ports (2012), so it should be simple to import the steel via water. Water is the most cost-effective for heavy, bulky material. The steel can then be transported via motor to the manufacturing complex for door-to-door convenience. Forklifts will be necessary to unload the material. The smaller components should be transported by air to the Jacksonville airport then transported by motor. Any locally made components can be transported from business to business by motor.

There are some risks to choosing these particular transport methods. Water transport is the slowest form of transportation and can be delayed due to weather. Motor and air can also be delayed due to weather, natural disasters, and accidents.

Through international logistics management, the products will be assembled at the Jacksonville location and then shipped to domestic and international locations via motor, air, and water. Quotes would need to be obtained to determine the volume necessary to receive discounts on transportation pricing for import and export.

Consolidation should be the goal of Great Manufacturing Company to ensure they are receiving the best pricing from their transport and manufacturing partners. The fishyback and birdyback methods of intermodal transport would be the easiest and most cost-effective way to import the goods needed for the manufacturing and export of the finished products.

Reference

Freight Facts and Figures 2012. (2012). Retrieved October 25, 2013, from U.S. Department of Transportation website: http://ops.fhwa.dot.gov