Cutting Costs While Delighting Customers

Current Event: Cutting Costs While Delighting Customers

Carolina Barvo Vilaro,

Profesor Johnny Bowman

Strategic Transportation Management

TRA3153

Florida State College at Jacksonville

ABSTRACT

This paper has the purpose to analyze article “Cutting Costs While Delighting Customers.” I will developed the ideas presented in the article on how companies are implementing new strategies to reduce costs and improved their transportation management.

INTRODUCTION

Transportation is by excellence one of the important procedures of the logistics strategy of an organization. This component is of priority attention in the strategy and management of the logistics system of a company, since it is usually be the individual item with the most weight in the consolidated of the logistical costs of most companies. The professional responsible for the strategic and tactical decisions with regard to the management of the transport in each company must know clearly all the factors that influence the transport, as well as the existing means, the costs associated and the methodology suitable for your choice. The design of a logistics system in an organization includes the implementation of the processes of planning, procurement, production, distribution and customer service. To integrate all these processes is necessary to work in the strength of the flows, decide on the definition of their distribution networks, the location of their warehouses, the way to manage their inventory and how to join all these parties with players in the supply chain.

The organization that focus on the improvement of optimal transport strategy is highly prone to receive the following benefits:

Perception of markets: optimize the transportation system of an organization, creates a significant decrease in the total costs for a product that is marketed in a different market, hence these can become very competitive in relation to the products being marketed in the similar market. Economies of...