Consider the logistics involved in transporting product for your selected organization. Include the following in your initial post:
- Identify the types of transportation methods would you use, given your particular product lines.
- What international transportation constraints must be accounted for, and why?
- Which governance issues must be adhered to when transporting the product?
In your response posts, provide feedback to two of your peers. Briefly compare and contrast their findings with your own. Offer any additional considerations that may be helpful to them.
This is my post:
Identify the types of transportation methods you would use, given your particular product lines.
Wal-Mart is one of the largest online retailers in the world that deals with thousands of commodities from groceries to electronics to sports items. The organization that has over 2,000 employees operates a chain of hypermarkets, discount stores and grocery stores across 28 countries. In this case, the firm uses different types of transport systems to ensure that products get to clients on time. However, the transportation method varies according to the line of products. Currently, the Wal-Martâ€™s grocery section supplies more than 40% of American households, and the supply is expected to rise by the end of this year (Wal-Mart Inc., 2018). The grocery section is one of the most sensitive regarding transport given that these products are highly perishable. Therefore, Wal-Mart uses 4,976 refrigerated trailers for the perishable products and 52,269 dry van trailers for the dry groceries to enhance efficiency. The firm employs 7,800 drivers who operate a fleet of 6,100 tractors together with 61,000 trailers that transport other company products.
Given that the firm has a presence in about 28 countries; internal shipping could use methods like air transport for commodities that are not bulky. Rail and water transport would play a more significant role in transporting most of the companyâ€™s products from one shipment location to another especially across borders.
What international transportation constraints must be accounted for, and why?
The organization must account for borders between countries, and they must have the requirements to cross to the other side. The weight of the containers must meet the needs to enhance safety. Similarly, the company must meet the pricing requirements of the destination country (Hummels, 2007). It is necessary to determine whether the destination country has restrictions such as quotas, tariffs, documentation requirements and other material requirements.
Which governance issues must be adhered to when transporting the product?
Transportation systems across international borders require that the firm has met the entire legal requirements specific to each country. For instance, the transportation method must enhance environmental sustainability to reduce pollution (Carr & Sundaram, 2016). Another thing is that the drivers must have the necessary documentation to ensure that goods are safe and that the firm is legally allowed to transact business with them. With the rise in terrorist attacks, every vehicle must go through security checks to enhance safety.
Carr, I., & Sundaram, J. (2016). International Trade Law Statutes and Conventions 2016-2018.
Hummels, D. (2007). Transportation costs and international trade in the second era of
globalization. Journal of Economic Perspectives, 21(3), 131-154.
Wal-Mart Inc. (2018). â€œWal-Mart US: Our business.â€ https://corporate.walmart.com/our-story/our-busine…