Discuss the following proposition with reference to an automobile garage handlin

Question

Discuss the following proposition with reference to an automobile garage handling maintenance and repair: "Modal choice decisions could improve the responsiveness of the supply chain performance" Discuss the following proposition with reference to an automobile garage handling maintenance and repair: "Modal choice decisions could improve the responsiveness of the supply chain performance" Discuss the following proposition with reference to an automobile garage handling maintenance and repair: "Modal choice decisions could improve the responsiveness of the supply chain performance"

Explanation / Answer

Transportation strategy

Transportation management is an important part of supply chain management strategy. Mode choices and mode tradeoff assessment contribute to a customer-service focused responsive supply chain. Transportation can be focused on minimizing transportation cost or minimizing lead-time, first is for efficiency and second is for responsiveness.

Fisher, Chopra & Meindl model responsiveness-efficiency graph determines responsiveness as the choice for Best strategic position for an innovative product.

For example, Dell has a highly responsive supply chain. Dell can give a custom-made PC to its customers in 2-3 days. Characteristics of a mode are matched with ideal modal attributes. Modal choice or modal split decides on trips assigned to alternative transportation modes. Consumer behaviour and attitude impact modal choice. In case of branded food products, this does have an effect. More than 30% of supply chain's cost is transportation cost. Six modes of transport are Ship, Pipelines, Rail, Trucks, Electronic Transport, and, Airplanes. Responsiveness comes from airplanes and electronic transport. Ships, Pipelines, and, railways are efficient modes of transport. Modal choice hinges on the value of a product - responsiveness for a high-value product and efficiency for a low-value product. Managers design networks and routes using facilities' location and modal choices.

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