TRANSIT TIME VARIABILITY IN SUPPLY CHAIN
The activities and interactions among the components in the framework are influenced by the recent trend moving from “Push” strategies (firms first asses the demand based on past data/experiences, then supply those products to the local distributors) to “Pull” strategies (customers’ demands are assessed at the local level, then orders are placed in the factories accordingly).
The final layer of the process is the transportation services that focus on how goods are actually moved from one location to another. Typically, this involves making decisions about transportation modes, routes, and service providers.
The decision on transportation normally has to be broken down into different legs i.e. Bi-modal, multimodal etc.
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LOGISTICS & SUPPLY CHAIN
Today’s logistics practices are moving from inventory-based push supply chains to replenishment-based pull supply chains, leading to lower and less centralized inventory, smaller shipment sizes, and more just-in-time deliveries. As a result, industries are now demanding greater reliability in freight transportation than ever.
Delays and uncertainty in freight transportation translate directly into additional inventory, higher costs of manufacturing, less economic competitiveness for businesses, and higher costs of goods that are being passed on to the consumers.
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