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CASE QUESTIONS
1. Based on what you know, what are some causes of SSI’s transportation problems?
SSI’s transport problems seem to be coming from the existing structures which give little attention to transportation. This is evidence from the fact that the company had been concentrating too much on expansion hence forgetting the need to also invest in the transport department. There is also lack of coordination between teams and little concern over what is happening in other departments from that of the subject. It looks like teamwork is less practiced here. Taking the example of Juan’s response when told about the problem at hand, It looks like nobody really cares about company problems that are not directly under one’s department. The main reason however is failure by the company to invest in its distribution systems so as to reach its goals through affordable, timely and reliable delivery.
2. Given their product lines, do you think SSI using the right mixture of global transportation services? Explain your answer.
No. this is because, taking into consideration that SSI are not manufacturing any perishables, the use of air transport remains unnecessary. The most convenience thing to do would be to incorporate land and rail transport with sea transport to try and cut down on costs. This can be achieved by ensuring that clients’ orders packaged as soon as possible, the dispatched early so as to reach the client on time. In this way the company delivers to them their goods at a minimal cost.
3. How can SSI use Juan’s idea about external assistance with transportation?
By appointing a logistics partner to handle their transportation needs, the management will rest assured that their cargo moves seamlessly to the various destinations, arrives on time, and at a reasonable cost. Transport is a very tedious department especially when a company does not have a fleet of its own. Therefore, it is important to note that SSI could benefit highly from outside transportation. The selected company would be picking up the goods at the company’s warehouse the transports them to their destination while the company officials concentrate with preparing the next shipment.
4. What about Ernesto’s ideas? How could routing, contracting, or chartering impact ocean service?
This idea could only be feasible if the company decides to ship very bulky consignments. Routing, contracting and chartering services requires a standard charge as per the contract and this could mean loss to the company might it require to ship goods that are less in volume or value. However, if well managed, this could prove to be an awesome idea as long as there’s coordination between the production and transport departments so as to ensure sufficient volumes of goods are ready for every dispatch. Goods over sea will move securely and the company would enjoy the convenience of knowing that all their shipments are at the same place at any given time. This makes tracking easy and preparations at the destination can be made early enough to receive the goods.
5. Is Ernesto’s complaint about product packing legitimate? What, if anything, should be done?
Ernesto’s claim seems legitimate because transport majors on the volume of the package as well as its weight. Therefore, huge packaging that two do have equally huge contents will end up taking up too much space. This means that the company will have to pay more for the transporting small orders if and when the goods are charged as per their volume. It would be recommendable to package the goods in cartons that fit just perfectly so that space is saved for more products.
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