Transportation And Distribution Management

Question: Discuss about the Transportation And Distribution Management. Answer: Introduction Increasing trends of globalization have significantly impacted on the business. Thereby, logistic and supply chain management is increasing day by day. This essay aims to provide the different aspects of the transportation management in terms of HG Metal Manufacturing Ltd like the effectiveness of transpiration capability. Similarly, it identifies the transport mode selection consideration through organization capability. It is also helpful to analyze the carrier selection criteria and carrier relationship management through goals and needs of the organization. The purpose of this essay is to identify the significance of transportation in logistics and supply chain management to success the business. Key Information of the Company HG Metal Manufacturing Ltd is a leading steel manufacturing company in Singapore. The company has large diversified product portfolio, which involves more than 3000 different types of steel products. Simultaneously, company is also offered the various business solutions in respect of diversified industries like transportation, energy, electronics and marine (HG Metal, 2017). However, the company is also listed in Singapore exchange. Along with this, the company is offered various products and services like steel construction i.e. aluminium, beams, cold rolled steels, plates, distribution, and steel services like surface protection services (HG Metal, 2017). Company characteristics are to offer one-stop supply, large warehouse, and just in time production to its customers thereby, company gains the competitive advantage. Further, the company operates their operations across the globe. However, company revenue is $127.9 million in 2015 (Annual Report, 2017). Basically, company has thre e business segments like construction steel, distribution, and industrial steel and services. Company also operates their business in Thailand, Vietnam, New Zealand, Sri Lanka, Myanmar, Australia, and Papua New Guinea. Besides this, company is used multi-pronged strategy in order to provide higher value-added services. However, there are different competitors of the company such as A N Metal Pvt. Ltd. Incoterms Selection Consideration Transportation involves the logistic cost of different goods as well as it is effective to enhance the performance of the organization logistic. Although, transportation process starts from procuring the raw materials and it finishes with the delivery of finished goods to the client or customers. For this, the company gains the benefits through better coordination between the different transportation elements. There are a different source of transports carriers that are used by the steel companies as per customer requirements such as air, water, railway, and motor carriers (Janthongpan, et al., 2016). Consequently, transportation selection mode decisions vary on nature of business. In terms of global business, an organization needs different transportation carriers for import and exports the goods. In concerning to this, different business carriers are significant for the steel manufacturing companies, because it is not possible to keep own transportation carrier due to a huge investment and maintenance (Zheng, et al., 2016). For instance, HG Metal Manufacturing Ltd maintains his own transport carrier to export the goods as well as it uses outsource carrier also for domestic and global market. For this, company is used own transport for moving the goods factory into the warehouse. In consequence, the company is used the motor carrier and railroad for delivering the final goods to the customers in Singapore and the global extent (Liu, et al., 2016). For this, company has large transport capability on the basis of different diversified business solutions thereby, company effectively negotiate with different transport providers. In adverse, it creates the disadvan tage for the company, because it increases the total fixed cost of the company, which carries switching yards, terminal, and costly equipment. As compared to a railroad carrier, the motor carrier is less expensive Recommendations From the above analysis, it can recommend that company should ensure that the resources are fully utilized or not, as a result, it helps to maintain the proper inventory of the company. Further, company should use minimum carbon footprint so that it improves the business sustainability for the long term. Likewise, company should identify the critical changes regarding the import and export of transportation goods such as trade policies, and deregulation (Martin and Giedroc, 2016). In order to enhance the business, company should avoid those countries where high barriers in respect of exporting of goods, because different countries have a different trade policy, which may affect the export business of company. It also recommends that the company should use the latest technology so as to provide visibility of shipments, which may help to increase the capability of the company. Moreover, the company should also know about the currency fluctuations, because currency fluctuation tends to adversely affect the transport operations of the company. Here shows the diagram, which shows the effectiveness of transportation capability. Moreover, company should use water carrier for exporting the goods at the global level, which is effective in cost reduction. Here depicts the diagram of currency fluctuation and transportation selected, which may impact on the return of the company and goods export.(Balcilar, et al., 2015) Carrier Selection Criteria Selection criteria are significant in transport carriers, because it secures the product safety. Therefore, there are different transportation variables are required for the selection of carriers such as carriers, rates, mode of transport, ratings, and carriers performance and evaluations. Mode of carrier selection is important for the company for delivering final the goods to the customer, because it enables the company to reduce the cost of the different carrier and select the best one alternative for the business (Jacyna, et al., 2014). For example, if there are a lot of company goods to be delivered, it will require a heavy discount on carriers as well as effective services, which is quite helpful to overcome the transportation cost on goods. Further, the aim of the HG Metal Manufacturing Ltd is to provide the final goods to the customer with proper goods safety at one stop service (Dixit, et al., 2015). Concurrently, the aim of the company is to become the largest steel supplier in the world by delivering the quality products with safety to the customers. As a result, company requires different selection criteria while using the transport services. Although, the company is used five different business criteria for the selection of effective transport carriers such as move the goods fast, effective rates, transportation ratings, safety, low damages, time delivery, product secure, effective services, urgency shipment records, and theft of goods. In addition, customer uniqueness may also affect the transportation carriers selection criteria, because different customer needs towards the transportation may impact on the company transportation such as proper goods handling, effective cost, tracking the shipment, product safety, and timely delivery. (Kumru and Kumru, 2014). While selecting the carrier, environmental factor criteria may also affect the transportation carrier of the company due to different factors such as climate change, environmental degradation, resource depletion, pollution, noise, Acidification, and ozone damage. In the case of HG Metal Manufacturing Ltd, company facilitates the different transportation attributes to their customers like the accessibility of cargo space, right schedule, proper filing of documents, and any other query related to the carrier (Reisi, et al., 2014). Service quality and transpiration cost are also significant carrier selection criteria for an organization in terms of proper deliver y of goods. In consequence, HG Metal Manufacturing focuses on above these selection criteria, which helps to increase the effectiveness of the company in the eyes of the customers. In spite of this, there are some other carrier selection criteria that are necessary for the organization while ensuring the goods delivery such as pricing, warehouse, proper timing, and product safety. As a result, the company can unify all above criteria for better carrier selection. From the above analysis, it can recommend that the company should analyze the time delivery criteria regarding the goods as a result; it helps to raise the feasibility of the company as well as satisfies the customer expectations. Further, it recommends that the company should concern the customer needs for the effective transportation service in terms of the appropriate price of the carrier, goods damaged, and tracking the goods detail. These can be helpful to increase the company feasibility, overcome the operation cost of steel as well as meet out the customer needs (Chen, et al., 2014). Besides this, company should identify the whether the carrier company provides the tracking detail of goods or not consequently it enables the company to get all goods delivery detail on time basis. This can be helpful to increase the customer loyalty. Additionally, company should ensure whether the company delivers the goods without any damages, which may help to improve the productivity efficien cy of the company. Carrier Relationship Management Carrier relationship is necessary between the shipper and carrier for doing the business effectively. Simultaneously, a positive relationship is also helpful to maintain the delivery service time and product quality. In terms of HG Metal Manufacturing Ltd, company effectively maintains the strong relationship with its carriers and it ensures to provide the good quality products within the service time. In this manner, it can help to raise the profitability of the company as well as the carriers. It seems that there is a positive relationship exists among shipper and carrier for their own interest (Shin, 2015). Further, carrier relationship management is important in transportation, because it helps to increase the long-term sustainability of the company and better customer loyalty. As a result, it has positive impacts on the company feasibility and profitability. In order to increase the transportation effectiveness, company may opt the outsource carrier services. In consequence, there are three types of transportation determinants, which show the long-term relationship between company and carriers such as flexibility, effectiveness, and trust. In concern to this, flexibility helps to overcome the delivery anxiety of carriers as well as it reduces the company urgency delivery cost. Likewise, trust builds the open communication between the company and carriers, and creates the business opportunity in future. Concurrently, effectiveness helps the company to overcome the volume of carriers. For example, if increase the prices in oil, it would adverse impacts on the transportation cost, which affects the company operations and carriers. As a result, the company should collaborate with carrier suppliers in order to avoid any misunderstanding (Miller and Saldanha, 2016). Thus, it can be said that the carrier supplier requires continuing the process through effective planning, goods delivery confirmation, and tendering. From the above findings, it can be recommended that HG Metal Manufacturing should use the different transportation technique so as to raise the alliance with different carriers like transaction information and goods tracking information, which is effective to for the firm to deliver the goods on time. Meanwhile, if any carrier service provider fails to provide the accurate delivery information, which may form the dissatisfaction in the eyes of the company. Further, it recommends that the company should build the trust with different transport carriers, which may effective to create the large business opportunity in future thereby, it positive impacts on the business profitability and it creates the strong relationship between them (Montoya-Torres, et al., 2016). In oppose of this, negotiation can help the company to resolve the transportation issues with the different carriers. In this concern, it helps to identify the requirements of company and carrier supplier at large extent. In addition, company should provide the business flexibility to its carriers so that it helps to reduce the operational cost of the firm regarding the transportation. Similarly, better flexibility helps the carrier in order to deliver the goods on time. Conclusion From the above analysis, it can be analyzed that the transportation carrier is significant for the firm to enhancing the productivity and competitive position. It also identified that the HG Metal manufacturing is used different transport carrier like water, motor carrier, which can be helpful to increase the transportation presence of the company. Further, it identified that the company is used different selection criteria during the transport selection such as unique selling point, customer identification, issues related environmental, market, cost, and transport performance. This report identified that the company should focus to deliver the goods on time in order to meet out the customers expectations. Further, it analyzed that the company should maintain the strong relationship with their carriers for ensuring good service to the customer. In consequence, it can be helpful to raise the profitability of the company. Therefore, company should analyze the transportation policy of d ifferent countries in order to increase the effectiveness of production operations, because fluctuations may adverse impacts on the company efficiency. References Annual Report (2017). [Online]. Retrieved from: https://infopub.sgx.com/FileOpen/HG%20Metal_AR_FYE311215.ashx?App=ProspectusFileID=28853 Balcilar, M., Hammoudeh, S. and Asaba, N. A. F. (2015). A regime-dependent assessment of the information transmission dynamics between oil prices, precious metal prices and exchange rates. International Review of Economics Finance, 40, 72-89. Chen, S., Leng, Y., Mao, B. and Liu, S. (2014). Integrated weight-based multi-criteria evaluation on transfer in large transport terminals: A case study of the Beijing South Railway Station. Transportation Research Part A: Policy and Practice, 66, 13-26. Dixit, R., Malaviya, D., Pandiyan, K., Singh, U. B., Sahu, A., Shukla, R. and Paul, D. (2015). Bioremediation of heavy metals from soil and aquatic environment: an overview of principles and criteria of fundamental processes. Sustainability, 7(2), 2189-2212. HG Metal (2017). [Online]. Retrieved from: https://hgmetal.com/company-profile/ HG Metal (2017). [Online]. Retrieved from: https://hgmetal.com/our-services/ Jacyna, M., Wasiak, M., Lewczuk, K. and K?odawski, M. (2014). Simulation model of transport system of Poland as a tool for developing sustainable transport. Archives of Transport, 31. Janthongpan, S., Rattanawong, W. and Suthikarnnarunai, N. (2016). Intelligent System for Transportation Mode Selection in ASEAN Countries. The Open Civil Engineering Journal, 10(1). Kumru, M. and Kumru, P. Y. (2014). Analytic hierarchy process application in selecting the mode of transport for a logistics company. Journal of Advanced Transportation, 48(8), 974-999. Liu, J., Chen, Y. G., Gan, L., Xiao, T. H. and Li, Z. Y. (2016). Realization of Plasmonic Microcavity with Full Transverse and Longitudinal Mode Selection. Scientific reports, 6. Martin, J. E. and Giedroc, D. P. (2016). Functional determinants of metal ion transport and selectivity in paralogous cation diffusion facilitator transporters CzcD and MntE in Streptococcus pneumoniae. Journal of bacteriology, 198(7), 1066-1076. Miller, J. W. and Saldanha, J. P. (2016). A New Look at the Longitudinal Relationship Between Motor Carrier Financial Performance and Safety. Journal of Business Logistics, 37(3), 284-306. Montoya-Torres, J. R., Muoz-Villamizar, A. and Vega-Meja, C. A. (2016). On the impact of collaborative strategies for goods delivery in city logistics. Production Planning Control, 27(6), 443-455. Reisi, M., Aye, L., Rajabifard, A. and Ngo, T. (2014). Transport sustainability index: Melbourne case study. Ecological Indicators, 43, 288-296. Shin, S. M. (2015). Factors influencing trust and partnership in shipper-carrier relationship: How do these affect electronic trading transactions in South Korea?. African Journal of Business Management, 9(21), 741-751. Zheng, Y., Liao, H. and Yang, X. (2016). Stochastic Pricing and Order Model with Transportation Mode Selection for Low-Carbon Retailers. Sustainability, 8(1), 48. Transportation and Distribution Management Question: Discuss about the Transportation and Distribution Management. Answer: Introduction Transportation and distribution organization is a system that allows organizations to manage their foreign and local transportation, tackling supply chain complication with integration to partner systems and one control layer for monitoring the lifecycle of transportation (Abel-Maksoud Kawam, 2009). It also deals with the management of processes and resources used to deliver a product from a manufacture location to the point of sale. The purpose of this essay is to discuss and evaluate the usefulness of three aspects of the shipping management at Wal-Mart, namely incoterms selection consideration, carrier selection criteria, and carrier relationship management. Wal-Mart started small, with one discount store and the simple concept of selling more for less (Anderson Dekker, 2009). Today, the organization is recognized as the largest retailer in the world, having over 250 million customers and over 11,000 stores. Wal-Marts products are generally varied and include health and wellness, groceries, entertainment, stationery, household appliances and auto spares. Its main competitors are Kroger, Safeway and Costco. The company has recently initiated the strategy of anti- unionization and therefore allowing employees to have their unions. Wal-Mart has also initiated a strategy in the change management where they make use of their political capital wholly so as to expand internationally (Bitran, Gurumurthi Shiou, 2007). Discussion In this part, we shall discuss three main aspects of transportation management in relation to Wal-Mart. These aspects are incoterms selection consideration, carrier selection criteria, and carrier relationship management. Incoterms or international commercial terms refer to a set of foreign guidelines for the explanation of the most commonly used trade terms (Bowersox, Closs Cooper, 2009). Wal-Mart acknowledges that the application of these rules to retailing and buying agreements makes worldwide trade easier and assists partners in different nations understand one another. Incoterms usually determine who caters for the cost of each transportation part, who takes up the risk of loss at any given point during a foreign shipment, and who is accountable for receiving and loading of goods. As Wal-Mart transportation management has observed, most often, parties to an agreement are unaware of the distinct trading practices in their respective nations. Such lack of knowledge leads to conflicts and misunderstandings between suppliers and customers (Cai, Chen Hsiao, 2013). Given the fact that Wal-Mart is an international company, whenever it buys and sells goods internationally, it must agree on its respecti ve duties during the transaction with its business partners. It is the desire of the company to do more direct importing rather than the rough agents. There are separate teams which are responsible for handling private label products. As an aspect of transportation and distribution management, incoterms are of different kinds, for instance Cost and Freight (CFR) where the seller fulfills his duty when the products pass the ships rail at the shipping port (Abel-Maksoud Kawam, 2009). The seller bears all the costs of export, freight, customs clearance, and costs required to transport the products to the port of intention. Cost, Insurance and Freight (CIF) is where the seller is expected to obtain minimum insurance coverage only to destination port for the value of the products. On the other hand, the purchaser assumes the risk at the time the products are moved on board the ship despite the fact that they are covered by an insurance policy. Notably, this term is only used for inland waterway or sea transport. Carriage and Insurance Paid (CIP) is another type of incoterm where the seller caters for the costs of freight transportation required to transport the products to the location agreed with the purchaser (Ander son Dekker, 2009). This particular incoterm can be utilized in any mode of transport. At Wal-Mart, Free on Board (FOB) kind of incoterm is used. Here, the seller fulfills its duty to deliver the products once they clear the ships rail at the port of shipment. The seller does not pay for the shipment. However, s/he is required to ensure the products are cleared by customs for export. This term is only used for transportation by inland waterways or sea. Presently, the organizations management believes that this is the most appropriate incoterm to use. A more suitable incoterm that Wal-Mart can consider using is Carriage Paid To (CPT) where the seller pays the costs of freight transport required to transport the goods to the location agreed with the purchaser, including shipping and export permits, but not insurance costs (Bitran, Gurumurthi Shiou, 2007). This type of incoterm can be utilized in any mode of transport. Delivery at Frontier (DAF) can also be used at Wal-Mart where the seller delivers to the agreed location at the border, but liability ends before the deli very is cleared at customs (Bowersox, Closs Cooper, 2009). The products are made available to the purchaser in the means of transport. Carrier selection criteria factors Historically, Wal-Mart has utilized its distribution and procurement skills to overwhelm and overtake its smaller and less efficient competitors. As the organization progressed, it is now the industry leader in supply chain innovations as well as best practices. The authority and absolute size of Wal-Mart and its intense follow-through have allowed the company to continue being an industry leader in supply chain practices (Cai, Chen Hsiao, 2013). Wal-Mart suppliers are now expected to adjust their shipping schedules and order processing so as to meet the companys deadlines. In turn, the shippers will be applying pressure on their carrier partners to speed up freight movements. Re-evaluation of their lead times and monitoring of carrier performance will have to be done to ensure they do not put their Wal-Mart business at risk. Carriers are expected to revisit transit times and route plans so as to ensure they are achievable and realistic on a regular basis. All these fall under the r ecent strategy by Wal-Mart dubbed Must Arrive By Date or MABD (Abel-Maksoud Kawam, 2009). American organizations delivering products to Wal-Mart distribution centres must begin to distribute within a given time frame leading up to a MABD date. This condition at first applies to distributors that deliver prepaid and truckload goods to the companys DCs where the monthly benchmark is set at 90% (Anderson Dekker, 2009). Companies falling short of this particular target will be penalized. This means that any company that delivers shipments prior to or after the 4-day window will have to pay a charge equating to 3% of the cost of goods sold (Bitran, Gurumurthi Shiou, 2007). The newly implemented strategy offers shippers with the chance to better leverage their whole freight volumes and drive more round trips together with constant move planning. It is clear that Wal-Marts latest supply chain undertaking will have significant implications for carriers and shippers in that it will cause various organizations to reevaluate their carrier performance and capabilities. It will also encourage organizations and retailers in other industries to carefully follow up their triumph of Wal-Marts program, taking into consideration the adoption of similar initiatives that can drive more cost savings out of their inbound freight disbursements (Bowersox, Closs Cooper, 2009). Recently, Wal-Mart transportation has awarded twelve trucking and transportation partners as part of the retailers 2015 Carriers of the Year (Cai, Chen Hsiao, 2013). It has awarded the designation to organizations that offer transportation support to the companys stores located throughout the continental United States. Over the past year, each of the chosen carriers has shown a commitment to customer service and creating innovative solutions in an evolving yet enormously significant business. Wal-Mart has established quite a swirl in its retailer community as it progresses forward with plans to conquer inbound transportation management for most retailer shipments to its distribution stores and centers. Nearly all retailer shipments to the company are controlled by the retailer and in some instances Wal-Mart chooses the carrier and pays for the freight. However, the retailer is expected to work with the designated carrier to carry out the shipment. For Wal-Mart retailers who utilize complete delivery pricing, a probable effect will be that they will not enjoy some existing transportation benefits (Abel-Maksoud Kawam, 2009). The company cites that it is actually superior in logistics than its suppliers, something which may be true given its large number of trucks and complete network density, offering chances to minimize empty miles that are not accessible by most organizations. Carrier relationship management Effective carrier relationship management can be compared to the precision dancing of a ballerina (Anderson Dekker, 2009). This means that a companys carrier must uphold equilibrium by promoting on behalf of distributors all while improving the business outcomes for carrier partners. Wal-Mart is well aware of the fact that without their carriers, they would not be in a position to deliver quality service to their customers. From purchasing agents, receivers, and shippers to carriers and third party logistics organizations, everyone tends to have an opinion on how to minimize trucking costs. However, they all agree to the fact that in order to help save money, shippers need to create firm relationships with their less-than-truckload carriers (Bitran, Gurumurthi Shiou, 2007). As Wal-Mart has realized, this can be done by working with the carrier to determine which lanes and freight are most appropriate. Furthermore, if the company intends on holding their carriers to their commitment s, then Wal-Mart should honor its loyalties to them. Additionally, good information is significant to carriers in the course of bidding. Such information assists the carriers to plan appropriately in terms of locations and any specific freight features, and for seasonal transformations in volume. Transportation and distribution management can be quite stressful, particularly if a company regularly finds itself dependent on load boards for finding carriers at the last minute of a shipment. It is in such situations that organizations find themselves desperate in making decisions that they do not want to make, for instance moving shipments at a financial loss or operating with motor carriers the company has no knowledge of (Bowersox, Closs Cooper, 2009). That is why the strongest and victorious freight brokerage operations are those who take time to establish firm, long-lasting relationships with their carriers. Notably, supply and demand oscillations can stress commitments and place much emphasis on the nature of relationships, which are either strengthened or destroyed in the course of dialogues. A sense of trust is considered to be a necessary condition for relationship-oriented discussions. Relationships between individuals or organizations cannot be ignored as they tend to directly affect the level of trust. Carrier sales personnel rarely change careers, but often change companies. Therefore, the nature of the relationship must broaden beyond two individuals or companies. Establishing trust with novel parties, especially executive level personnel is of much interest for all parties involved. With reference to Wal-Mart, there is an appropriate type of carrier relationship to be built with the carriers in addition to the process of establishing the relationship. The organization can implement In-House relationship where it can hire trucks for transportation and distribution of its products. Today, the transportation sector has transformed and for many companies, it is not a wise business decision to own their own trucks. Moreover, the companies have chosen to get rid of the hassle of having their own trucks and letting another company become their In-House carrier (Cai, Chen Hsiao, 2013). As a way of establishing such a relationship, Wal-Mart needs to plan appropriately and ensure that communication lines are open. There should also be risks and/or reward sharing where each of the parties involved are liable. By so doing, the company will ensure that customers get value for their money in terms of quality of goods and services delivered. It will also ensure that nothing i s damaged in the course of transportation and distribution of the goods. Additionally and as already indicated, there should be trust and commitment between Wal-Mart and its In-House carriers. Conclusion Looking at what has been discussed above, transportation and distribution management refers to a system that enables companies to control their international and domestic transportation, addressing supply chain complexities with integration to partner systems and one control layer for watching the lifecycle of transportation. We have also looked at the three main aspects of this particular system which are incoterms selection consideration, carrier selection criteria, and carrier relationship management. Wal-Mart has been chosen as the organization for study where today, it is acknowledged as the largest retailer in the globe, having over 250 million customers and over 11,000 stores. Notably, transportation and distribution management can be quite stressful, particularly if an organization constantly finds itself relying on load boards for finding carriers at the very last minute of a shipment. It is in such situations that companies find themselves desperate to make decisions that a re not suitable. Thus, the strongest and most triumphant freight brokerage operations are those who take time to establish firm, long-lasting relationships with their carriers. It is also clear that Wal-Marts latest supply chain undertaking dubbed Must Arrive By Date (MABD) will have influential implications for carriers and shippers in that it will cause many companies to reassess their carrier performance and capabilities. References Abel-Maksoud, A., Kawam, M. (2009). Relationships amongst value creating variables in an international freight forwarding and logistics firm: Testing for casuality. Journal of Applied Management Accounting Research. Pp. 63 78. Anderson, S.W., Dekker, H.C. (2009). Strategic cost management in supply chains, Part 1: Structural cost management. Accounting Horizons. Pp. 201 220. Bitran, G.R., Gurumurthi, S., Shiou, L.S. (2007). The need for third-party coordination in supply chain governance. MIT Sloan Management Review. Pp. 30 37. Blanchard, D. (2010). Supply Chain Management: Best practices. Hoboken, NJ: John Wiley Sons. Bowersox, D., Closs, D., Cooper, M.B. (2009). Supply chain logistics management. 3rd Edition. New York: Irwin/McGraw-Hill. Bowersox, D.J., Closs, D.J., Cooper, M.B. (2013). Supply chain logistics management. New York: McGraw-Hill Higher Education. Cai, G., Chen, Y., Hsiao, L. (2013). Probabilistic selling, channel structure, and supplier competition. Decision Sciences, 44(2). Pp. 267 296. Chopra, S., Meindl, P. (2009). Supply chain management: Strategy, planning, and operation. Upper Saddle River, NJ: Pearson Prentice-Hall. Gattorna, J. (2009). Dynamic supply chain alignment: A new business model for peak performance in enterprise supply chains across all geographies. Farnham, England: Gower Pub. Heizer, J.H. (2013). Operations management. New York: Pearson. Transportation and Distribution Management Question: Discuss about the Transportation and Distribution Management. Answer: Introduction Ultra Design is an original brand manufacturer that manufactures modern quality designer clothes for its diverse market in the whole world. The company operates as a multidimensional company that has different departments including the transport and distribution department. The company is greatly involved in the overseas trade where it uses shipping companies to transport and market its products in other countries. It provides the customers across the world with the best brand of clothes depending on their requirements and is made possible through shipping services. The company dominates the textile industry across the world. In relation to this, Ultra Design Company mostly faces transportation challenges due to the ever increasing demand for its brand products and as such it requires a strong and professionally run transport and distribution department. This essay deals with the incoterms or the terms used in the international transport arena. It takes into account the carrier relationship especially the procedures for selecting the best means of transport to use in the distribution of the brand products. In addition, the essay is concerned with relationships of the company with the transportation companies. Basically the whole essay will revolve around incoterms, carrier selection and carrier relationship and will integrate the role of a manager on the same. Incoterms selection criteria Incoterms refers to a combination of policies and rules set for the international operation and the interpretation of the often operationalized terms and vocabularies used in operation of the international trade (Del Rosal Fernndez, 2013). More often, as a transport manager I highly use incoterms to eliminate misunderstandings that may develop in daily contracts engaged in the global business. The bargaining and negotiation terms are involve in getting into special terms and mutual agreements between the companys stakeholders (Del Rosal Fernndez, 2013).Basically, the terms used in the trade are mostly professional and with in-depth meanings whereby the shipping partners involved for transportation need to incorporate a third party. The party incorporated help to foster a productive discussion during negotiations on transportation of clothes globally (Ding, 2012). Upon transportation of clothes, multiple terms are considered in explaining the trades details such as consignee, shipping invoice and letter of hypothecation. The incoterms are so effective in their operations since they are strictly administered and regulated by the body called the international chamber of commerce (ICC). The rules are upgraded every ten years to ensure conformity with the international standards. As the transport manager of Ultra Design Company, I optimally utilize the incoterms to facilitated effective transportation of clothes. Mostly, I use terms such as ex-works, free carrier, carriage paid to and delivered duty paid during daily operations and interactions with companys clients (B?lun?, 2012). In my managerial position, I work on mitigating risks by considering international trade terms on interaction with different communities in clothes distribution. For sea transport industry, there are four classes of terms that need to be clearly understood before clothes transportation. The E terms relate to scenarios where the seller has no obligation to deliver goods to the buyer. Secondly, the F term occurs where the seller has an obligation to deliver goods to a carrier hired by the buyer (Choudhary Shankar, 2013). Also, the C terms obligate the seller to enter into a contract with the carrier but does not bear the risk of loss of the goods in case they become damaged during shipment. Finally, the D terms occur in scenarios where the seller agrees to cater for all costs incurred during the transportation of clothes to the buyers. In most scenarios, the most reliable term for the clothes company in relation to shipping company is the C-term. Particularly, most sea transporters use the Cost Insurance and Freight (CIF) since it entails better terms of the shipment method (Ng, 2014). Shippers prefer the term since its most convenient for them and due to lesser risks. In conclusion, the advanced level of technology requires all transporters to use very efficient up to date methods of shipping so as to compete favorably with the global competitors in line of clothes distribution. Diagram showing the payers of carrier charges and terms associated Carrier selection criteria When selecting the appropriate method Ultra Design Company can use to effectively transport the brand clothes to the required destinations, extra care must be considered to effectively select an efficient and most secure means of transporting the products. In addition, aspects such as safety, speed, reliability, costs and incidences of loss must be considered (Panda, Iyer b Ma, 2012). The process of carrier selection is very crucial in any company involved in goods that require transportation over long distances. As the transport manger of Ultra Design Company, my main aim is to select the best means to transport our cargo. All companies aim at achieving optimum services from the companies they contract. An effective contract will require all parties involved to be considered (Panda, Iyer b Ma, 2012). Our company aims at the best service while the transport provider looks forward to the optimum return in terms of money from the services they offer. In this regard, there is a periodic al carrier evaluation after the contract is awarded to ensure close monitoring of the operations of the firm to ensure the security of the clothes. The carrier selection criteria adopted in return affects the seller-buyer relations. A transportation company that has highly efficient services helps to build a strong and cordial relationship with the buyers and sellers of the product the transporter carries (Stadtler, 2015). There are multiple factors to consider when making the choice of what the carrier to use. To begin, the capacity of the carrier is a very crucial consideration and only carriers with the ability to handle a specific task should be allocated to perform it (Stadtler, 2015). The financial ability of the carrier should also be considered so as to avoid delays due to financial shortages. The carriers level of technological advancement should also be taken into consideration since it enhances efficiency of the services. The flexibility of the operations of a carrier should also be considered. A flexible carrier is able to provide better services since it works with the schedule of the clients and offers personalized services (Dekker et al, 2013). Optimal pricing can also be another factor to consider. Finally, optimal prices do not necessarily mean lowest prices. The prices charged should tally with the quality of the service offered. As the transport manager of Eco Transit Company, I ensure that all the above characteristics are met. To survive in a competitive industry of our times, effective characteristics of any industry must be adopted. However, deregulation has greatly impacted on the transport sector (Dekker et al, 2013). The Increased competition due to search for profits, has led to the adoption of client-tailored services (Dekker et al, 2013). The transportation sector has been fragmented into different segments based on customer abilities. Our company always goes for the best transport provider after the consideration of all basis of the company. Following this, cordial relationships between the sellers and the importers must be upheld to ensure that best services are offered to the clients at the most optimal prices that reflect the value they get from the services they receive as explained by the diagram below. Carrier Relationship Management The transportation operation is critical in the facilitation of the logical operation of Ultra Design Company. The improvement of the transportation performance depends on the kind of relationship formed between the company and its carriers (Shang Lu, 2012). There exists the need to attain a closer relationship between the Ultra Design Company and the carriers. This includes heightening the level of service delivery, trust and increasing the number at which the company communicates with their carriers (Fontana et al, 2014). Proper management of carrier relationship in regard to Ultra Design Company intensively results to customer satisfaction (Shang Lu, 2012). Carrier relationship management is also driven by a metric that boosts the companys performance in clothes distribution. In the first place, the metric focuses on timely delivery of cargos. The need to satisfy the customers is thus achieved (Stadtler, 2015). Through this, on time delivery of clothes impacts on facilitation of efficiency and effectiveness of carrier distribution networks which in return results to the good relationship between the carrier and the company (Stadtler, 2015). As a transport manager in Ultra Design Company, I works towards maintaining a proper relationship on shipping company in order to improve profitability. A recommendable relationship between the company and the carrier exists through which carrier deeply understands the prioritized need of the company and vice versa. Based on this, a good relationship is enhanced. The diagrammatic representation in figure 1 below shows how a good relationship exists in the shipping business environment. There exists both the companies and carrier needs that must be taken into account in order boost their relationship. The companys common needs involve the pricing terms on the goods transit. The Ultra Design Company take into consideration on amount of money to be charge shipment of clothes. The existing relationship aim at instilling a positive customer service that would create a platform where a carrier may provide the company with dedicated customer care services (Panda, Iyer Ma, 2012). As a result of these activities, a good relationship is built between the company and the carriers. In addition, carriers should consider certain needs which should be known by the company in order to work under that perimeter. These needs may include the improvement on the accessibility of clothes delivery points. Finally, as a transport manager for Ultra Design Company, I consider paying shipping company on time so as to motive them to work at their level best. Driving my point on this, I can highly recommend on appropriate ways of improving the relationship between the company and the carrier. The company managerial personnel should be deeply committed to the carrier. This will as a results lead to carrier higher commitment to the organizations activities. Secondly, I would highly recommend the incorporation of technology in boosting a company and carrier relationship. It will be as result of the provision of real-time data that will be represented in technological ways. Conclusion The incoterm possesses some terms that eliminate misunderstanding that develops in the day to day buying construct engaged in global business. Incoterms are effective in the operation since they are strictly administered and regulated by the international chamber of commerce. Incoterms are used to mitigate against possible risks in international trade. With advancement in technology, the application of incoterm has been enhanced. In addition, the carrier selection criteria exists as methods that shippers can use effectively in delivery of goods. In relation to this, it clearly explains the methods to follow in selecting a carrier. The features of an effective carrier are considered in order to come up with the most effective way of goods transfer. Finally, there exists consideration of carrier relationship management concept that seeks to explain on how the company can create the good relationship with the carriers. With good term between the company and carrier, consumer satisfactio n is enhanced which in return results in companys profitability. Adding to this, there exist a companys and carriers needs through which each of them has to understand each other needs. As a result, a strong relationship will be boosted and this transportation industry will tend to work efficiently References Christopher, M. (2016). Lo Del Rosal Fernndez, I. (2013). Las condiciones de entrega en el comercio exterior espaol/Terms of Delivery in the Spanish International Trade. Estudios de Economa Aplicada, 31. Del Rosal Fernndez, I. (2013). Las condiciones de entrega en el comercio exterior espaol/Terms of Delivery in the Spanish International Trade. Estudios de Economa Aplicada, 31. B?lun?, r. n. (2012). international rules for merchandize delivery--delivery conditions incoterms and raftd the title. Annals of Eftimie Murgu University Resita, Fascicle II, Economic Studies. Eldovi?, E., Vukainovi?, M., Tei?, M., Bijeli?, S. (2015). International commercial terms- Incoterms 2010. In 2nd Logistics International Conference, Belgrade, Serbia. Choudhary, D., Shankar, R. (2013). Joint decision of procurement lot-size, supplier selection, and carrier selection. Journal of Purchasing and Supply Management, 19(1), 16-26. Panda, B., Iyer, J., Ma, W. (2012). U.S. Patent No. 8,175,574. Washington, DC: U.S. Patent and Trademark Office. Stadtler, H. (2015). Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer Berlin Heidelberg. Dekker, R., Fleischmann, M., Inderfurth, K., van Wassenhove, L. N. (Eds.). (2013). Reverse logistics: quantitative mo Shang, K. C., Lu, C. S. (2012). Customer relationship management and firm performance: an empirical study of freight forwarder services. Journal of Marine Science and Technology, 20(1), 64-72. dels for closed-loop supply chains. Springer Science Business Media. Chu, Z., Wang, Q. (2012). Drivers of relationship quality in logistics outsourcing in China. Journal of Supply Chain Management, 48(3), 78-96. Li, Y. X., Ta, W. R., Gao, Y. W., Zhou, Y. H. (2013). Transport current distribution on Nb 3 Sn strand for TARSIS. Physica C: Superconductivity, 489, 25-31. Koegler, A., Moghaddam, H., Haas, C., Wocher, B., Hartig, S., Rajamohan, D., ... Ronnewinkel, C. (2013). U.S. Patent No. 8,396,749. Washington, DC: U.S. Patent and Trademark Office. Ding, J. (2012). Assessment of customer relationship management for global shipping carrier- based logistics service providers in Taiwan: an empirical study. WSEAS Transactions on Systems, 6(11), 198-208. Ng, M. (2014). Distribution-free vessel deployment for liner shipping. European Journal of Operational Research, 238(3), 858-862. Fontana, C. F., Papa, F., Marte, C. L., Yoshioka, L. R., Sakurai, C. A. (2014). Intelligent Transportation System as a part of Seaport Terminal Management System. International journal of systems applications, engineering development, 8, 41-46. Zhang, L., Wang, N., Chen, S. (2012). Arrival distribution of container vessels. Journal of Dalian Maritime University, 38(1).