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Dependence of Suppliers on Multimodal Transport - Essay Example
As the world continues to shrink due to market globalisation, the importance of intermodal transportation partnerships and expansion of multimodal transport infrastructure are critical to optimising supply chain functionality. According to Rondenelli and Berry there are four movements leading the international company's (IC) quest to continued success: "continued economic globalization as the driving force in trade and investment, the growing demand for speed-to-market product delivery, the adoption of agile manufacturing and business practices, and the need to manage supply chains more efficiently " (2000, p…
As the supply chain lengthens and transport distance increases ICs must find more cost effective methods of shipment. In this competitive market, customers expect fast delivery and quality product and services at the lowest price possible. "Trade and transport are inextricably linked: efficient transport services are a prerequisite to successful trading" ("Multimodal "UN 2006, screen 1). To compete, ICs are turning to MTO operators to handle the complexity of logistics required to accomplish timely delivery of the finished product, a marketable product with an economic value to the customer ready to be used without the requirement of further alteration of its form, ("Product" 2005) also the most critical, direct link with the customer.
The complexity of international transportation of finished product, goods and services shipped to the end user, has resulted in a lengthening international supply chain (ISC) comprised of economic, technology, social/legal and environment issues and innovations necessary to improve efficiency and effectiveness. (Trienekens et al. 2003). ...