Logistics: Economics and Supply Chain
Transportation: Critical Link In The Supply Chain
Study Questions
1. What are the major forces or external factors that have impacted our economy during the latter part of the 20th centuries? How have each of these factors influenced companies as well as their respective supply chains? Which of these factors do you feel is the most important for a computer company? Why?
In the 21st century, transportation systems will face significant challenges and problems because of global environment and the changing economic base in the United States. With combination of economic, technological, sociocultural, political, and biological factors. Many organizations developed demand-driven supply chains which could rapidly respond to change. Businesses and other organizations are striving to be more efficient (reducing their cost of doing business) and more effective (improving customer service) to survive in the new environment. The external forces driving the change include globalization, technology, supply chain integration and consolidation, consumer empowerment, and government regulation and policy
Globalization: global recession of 2009 -2011 and loss of manufacturing and service jobs. Also lower prices, wider availability of goods, and new employment opportunities. Globalization increases the importance of transportation because of the longer shipping distances and transit times, as well as increasing risk.
Technology: Enhance the efficiency and effectiveness of an organization’s operations. Also be viewed as an external driver of change in most organizations since the rapid development of technology (hardware and software) and its application by individuals forces companies to change and adapt.
Consolidation and Integration: Large retailers, wholesalers, and other members of channels of distribution have sufficient economic power and leverage to influence business practices among suppliers and their customers. Transportation companies have
Study Questions
1. What are the major forces or external factors that have impacted our economy during the latter part of the 20th centuries? How have each of these factors influenced companies as well as their respective supply chains? Which of these factors do you feel is the most important for a computer company? Why?
In the 21st century, transportation systems will face significant challenges and problems because of global environment and the changing economic base in the United States. With combination of economic, technological, sociocultural, political, and biological factors. Many organizations developed demand-driven supply chains which could rapidly respond to change. Businesses and other organizations are striving to be more efficient (reducing their cost of doing business) and more effective (improving customer service) to survive in the new environment. The external forces driving the change include globalization, technology, supply chain integration and consolidation, consumer empowerment, and government regulation and policy
Globalization: global recession of 2009 -2011 and loss of manufacturing and service jobs. Also lower prices, wider availability of goods, and new employment opportunities. Globalization increases the importance of transportation because of the longer shipping distances and transit times, as well as increasing risk.
Technology: Enhance the efficiency and effectiveness of an organization’s operations. Also be viewed as an external driver of change in most organizations since the rapid development of technology (hardware and software) and its application by individuals forces companies to change and adapt.
Consolidation and Integration: Large retailers, wholesalers, and other members of channels of distribution have sufficient economic power and leverage to influence business practices among suppliers and their customers. Transportation companies have