Supply Chain Management: Global Expansion

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Supply Chain Management: Global Expansion

Transportation Regulations and Policies

Firstly, it is essential to examine the policies associated with the expansion. The goal of the Department of Transportation (DOT, n.d.), which oversees all transportation in the U.S., is to ensure that all the logistical activities nationwide do not harm the environment, the public, and the businesses and are used cost-effectively. The presence of a controlling body is essential since it monitors the quality and safety of transportation.

As per national security, DOT oversees the transportation of various goods, such as laptops, phones, and tablets, with specific attention. Products like these are considered sensitive technology that can be used by foreign nationals to disrupt American safety. International Traffic in Arms Regulations is a law that controls the export of technology. As it concerns public safety, DOT (n.d.) establishes the necessary regulations and policies to control the transportation of potentially dangerous goods and monitor that the logistical process is conducted safely. Given that the product line under review consists of technology, it is essential to guarantee that the transportation of products does not harm or destroy them, potentially leading to the leakage of dangerous chemicals.

DOT also aims to secure the environment by controlling what transportation modes are used, how businesses tackle emissions and banning specific transportation due to their environmental imprint. These measures are taken to secure the ecology and minimize the harm. Lastly, DOTs (n.d.) essential task is to guarantee that no unrestrained competition is possible since it leads to monopoly and other illegal activity. DOT (n.d.) establishes corresponding rules and regulations to ensure that businesses do not become a dominant hegemon in a niche.

Transportation Methodologies

After considering the aforementioned policies and regulations, the paper proposes the multimodal methodology. Seo et al. (2017) research the regional implications of multimodal transportation for Europe and China and found that the air mode is not only the fastest but also the most optimal for technological goods. From the economic viability perspective, the flight mode of transportation is seemingly ineffective due to the high transportation costs. However, if to assess the demand and supply of technology for both international regions, it is essential to recognize that timeliness and efficiency will become the key to market share expansions (Seo et al., 2017). In addition, the air mode of transportation is forecasted to have a minimal effect on the product, as opposed to prolonger sea or road shipment.

Given that product safety is critical for technology, air transport is the most viable methodology. Once the product is safely transported overseas, road transport can escort it to the nearest distribution center. The multimodal method is the best framework given the transport cost, transfer cost, transit time, transport distance, document charge, port congestion surcharge, customs charge, confidence index and so on (Seo et al., 2017, p. 156). As it concerns the practical use of the methodology, the company will have to develop a comprehensive network of transportation nodes to minimize costs and maximize time efficiency.

Applying the intermodal methodology described above has cost-efficient implications for both international and domestic logistics. For instance, in the United States, the thoughtful combination of road and aid transportation will ensure that goods are delivered not only in a timely but also cost-efficient manner. In its turn, China has been developing its airport infrastructures in industrial regions, making air travel more accessible and cheaper (Seo et al., 2017). Lastly, the given methodology has many applications in the European context since its air network with the U.S. is relatively developed, which is also perpetuated by the extreme ease of road transportation within the borderless union.

Warehousing and Distribution

Principles and Design

The main principles of any warehouse are optimizing inventory capabilities, maximizing the time-efficiency of operations, controlling the movement of goods, and linking warehousing processes to the business operations. Since the warehouse has to accommodate the needs of international export and consider the specificity of the given product, the design of inventory by its stage in the supply chain is the best framework. It separates the inventory by raw materials, intermediate inventory, finished goods, and returned items (Yener & Yazgan, 2019). The design is the most time-efficient since the warehouse will maintain the constant flow of production and minimize the time for sorting the items by type.

Storage and Handling

The warehouse should adopt the palletized storage and handling system for better results. The powered pallet truck should be used to move the goods around the warehouse since this option is easy to use and safe for the transported products compared to other options (Yener & Yazgan, 2019). Drive-in and drive-through racking should accompany this type of in-house transportation since it ensures the goods security due to low crushability and allows for easy access to goods in a fast-paced production process.

Information Systems and Information Technology

Bar code technology applications and GPS/GIS technology should be practiced in warehouse management. Bar code technology enables warehouses to quickly register and then find the needed goods (Yener & Yazgan, 2019). GPS aids in in-house transportation by guiding the truck to the required location, which is essential in giant warehouses. Overall, the integration of technology is a viable option to minimize risks and maximize profitability.

Third-Party Logistics Providers (3PL)

While most operations will be done by the business itself, third-party logistics providers (3PL) may be employed to facilitate excess storage and product inspection operations. Firstly, in the case of company-owned warehouse overload, a 3PL warehouse can be rented to store the excess inventory, which is a more cost-effective option than purchasing another building (Yener & Yazgan, 2019). Secondly, the outsourced product inspection will enable the business to dedicate more time to actual product assembly than quality checks.

Inventory Management

Inventory Functions for Intermediate and Final Products

As it concerns inventory management, the separation of dependent and independent inventory will be the most useful operational framework. The intermediate products needed to assemble the finished goods such as laptops or cell phones are labeled as dependent inventory (Aro-Gordon & Gupte, 2016). This category includes technological parts, microchips, and other technology pieces that are required to be included in the finished product (Aro-Gordon & Gupte, 2016). The function of the final good will be categorized as independent demand as it is determined by the need for a good among customers, not by the internal operations.

Packaging Techniques

Packaging is an essential aspect of inventory management since it affects the ease of transportation, security of the product, and customer satisfaction. Given that the products that need to be handled in the warehouse and transported later are sensitive technology, rigid packaging is the most appropriate option (Aro-Gordon & Gupte, 2016). Such packaging enables businesses to maintain the integrity of the sold item.

Future Opportunities

In conclusion, it can be said that the proposed warehouse, storage, and transportation plan will aid the business in its international expansion. The success of the given strategy can be assessed by regular measuring of cost-effectiveness of the logistics operations two months into the development. This constant monitoring and improvement scheme will ensure that the customers receive goods promptly and in good shape, increasing the business profitability. The next steps are the actual implementation and monitoring processes to start the infiltration into the European and Chinese markets.

References

Aro-Gordon, S., & Gupte, J. (2016). Review of modern inventory management techniques. The Global Journal of Business and Management, 1(2), 3-22. Web.

Department of Transportation. (n.d.). Priorities. Transportation. Web.

Seo, Y. G., Chenb, F., & Rohc, S. Y. (2017). Multimodal transportation: The case of laptop from Chongqing in China to Rotterdam in Europe. The Asian Journal of Shipping and Logistics, 33(3), 155-165. Web.

Yener, F, & Yazgan, H. R. (2019). Optimal warehouse design: Literature review and case study application. Computers & Industrial Engineering, 129(1), 1-13. Web.

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