Supply Chain Management
Aero Marine Logistics
Course Title and Number
Supply Chain Management
Supply chain is composed of a group of participants ranging from the manufacturers or the company, suppliers and consumers of the products. In the process of supply chain management, then participants could be exposed in a number of risks and costs that ought to be monitored in order to streamline the business operations (Arndt, 2004). Under the consideration of the Aero Marine Logistics, the paper has been structured in such a way that it identifies the key participants as well as the major costs and risks to which AML and fresh food firms have been exposed to.
Aero Marine Logistics Case
Mr. Singh is a key player as he acts as a promoter in various organizational departments including transportation, forwarding, clearance, customs and shipping. The Chairman of Fresh-foods, Mr. R. Maan, is also a participant and a promoter who deals with importation and exportation of food products in different parts of India and Europe. Mr. Veejay, is a carrier representative and also a participant in a transport sector whose major role is in the transportation of Cargo.
The agency involved in logistics and customs consultancy play a role in directing customer in freight saving and space utility optimization. They also guide them on various transportation modes which they could apply for goods movements (Christopher, 2016). Another role that the agency play is to act as a Liaison to authorities such as the port Authority of India, Directorate General of Foreign, The Cotton Textiles Export Promotion Council of India, India Civil Aviation Regulatory, DGFT, Reserve Bank of India among other.
For the agency to become top among the rivals, it ought to be partnered with different and various associates all over the world so as to ensure their customers gets the best services. The use of machines like trucks, pickups and wheelers has made the delivery of containers get faster and more efficient in different areas at work. The agency has also established an online platform which has made the business improve fast and grow by far. This gives the clients a better chance of placing orders and checking out the status of their cargo.
Costs and Risk
Transportation of goods at times can get risky and costly, especially if the goods being transported are perishables. For instance, considering the Aero Marine Logistics Case, in transporting food products such as mushroom in one container which is twenty-foot, different equipment is required so as to keep them from any damaged and make them remain fresh (Lambert & Cooper, 2000). That means more power is required to the refrigeration units in the container which could lead to a higher cost.
To reduce the high cost of food products like the Mushrooms, it would be advisable to use a bigger or a larger container which is forty-foot. That would double the work of carrying more volume of products and use less power rather than transporting it in a twenty-foot container that would carry fewer goods and use the same power and cost. Since transporting the mushrooms is not a dense cargo the handling costs will be more economical in forty-foot cargo than in a twenty-foot cargo. Both of the companies should engage in owning costs and risks depending on the responsibilities and benefits that each of the firm is expected to possess. Therefore, the operations associated with transportation should be allocated towards AML whereas those associated with product preservation should be owned by the Fresh foods.
Arndt, H. (2004). Supply Chain Management. Gabler Verlag Springer Fachmedien Wiesbaden GmbH, Wiesbaden.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Lambert, D. M., & Cooper, M. C. (2000). Issues in supply chain management. Industrial marketing management, 29(1), 65-83.