20 Jun WHAT ARE SOME OF THE NORMAL TRANSPORTATION NEEDS TO CONSIDER?
Obviously, H&M has to respond to big changes in global supply chains and how retail works in 2018.You have been asked by H&M to provide some suggestions and insight into their transportation needs. Here are some things to consider.
a) Given cost and service needs what would you propose as the best way to address how to get products to consumers? Justify your answer.
b) What would be some of the transportation risks involved here and what would you probably need to do to manage and mitigate the supply chain risks in this case?
c) What are some of the normal transportation needs to consider?
d) How would you base your decisions on carrier selection? Remember that you will need to get product to market as quickly as possible.
e) What are some of the intermodal questions H&M will need to address?
f) Should you move some product via air? Why or why not?
g) How does “landed cost” fit into your calculations? Remember that you have to get product to market quickly but also incorporate all of your costs to the retail stores and distribution centers.
h) How does the nation’s infrastructure affect your plans? What can you do to mitigate these issues?
i) Given the changing retail landscape what would you suggest to H&M for immediate and long-term consideration?
1. From the above discussion, I’ll bet you would consider using a 3PL. How can 3PL service providers help shippers such as H&M improve performance and reduce costs? Why is information technology an important issue to customers when outsourcing transportation and logistics activities and why do 3PL’s do this very well? What value do third party logistics companies bring to global transportation execution? Some things they do involve international freight forwarders, NVOCCs, and Customs brokers. Briefly define each of these specialties and how best to determine 3PL needs. Explain how 3PL’s become 4PL’s.
2. Speaking of ports, what roles do airports and seaports play in global transportation? How does cargo flow through these facilities? What are a few of the problems that airports and seaports are grappling with at this time?What can be done about this? (Hint: you might want to look up some major ports who are dealing with congestion issues.)
3. Transportation Risk Management has become a major issue. We identified a four-part strategy of Risk Identification, Risk Assessment, Risk Management Strategy Development and Risk Review and Monitoring. Please discuss each of these areas and how they meet the objectives of Risk Management. Use the case study When Tragedy Strikes the Supply Chain (in Blackboard) to inform your answer. I was recently at a session put on by New York Emergency Management on resiliency in the case of natural or man-made disasters. (Hurricane Sandy, 9/11, etc.) What types of company information should be shared?
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