Supply Chain Cost and Shipping Mode

Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies.?

Supply Chain Management is a most beneficial business model in organizations as it help to achieve the business objectives. Supply chain focus on the core activities within our organization required to convert raw materials or component parts through to finished products or services. The goal of supply chain management is to look holistically at the entire supply chain from supplier through to the consumer, and review three core areas of people, process and systems in order to maximize value from all activities.?

Mode of the shipment is one of the most important factor to be considered while we make the decision for moving our goods from supplier to destination. Choosing the right mode will reduce the logistics cost, delay, customer complaint and overall organization can optimize logistics. Regional knowledge and routing of vessels, airlines and trucking will help to take right decision on selecting the mode. Different types of goods require different types of modes of transpiration. General cargo, special cargo such as temperature controlled and chemicals need special mode of transportation to avoid damage and safety issues. The selection of the right transportation mode is very critical to the business and the logistic management.?

Choosing the right mode of freight can save money, save time, decrease damages, reduce errors, and increase efficiency. Major modes of shipment are as follows.

Air Freight

Air freight, or air cargo allows the transport of goods quickly by air. Shipping cargo by air has always been a high cost-to-weight form of shipment, countered by the fact that it’s the fastest way to transport goods internationally.

Ocean Freight

Ocean freight, also called sea freight, is the movement of goods internationally by sea. Ocean freight is far and away the most popular option for shipping goods internationally. Roughly 90% of goods1 are transported around the world by sea.

Road Freight

Road transport is a versatile mode of freight carriage that offers speed, cost-efficiency and flexibility for door-to-door distribution services.

Other modes include Rail Freight, Inland waterways and Pipeline.

Learn more ....www.digitalsupplychaintoday.com