Paper Example on Global Trade Logistics: Agreements, Containerization, Intermodalism & IT

Introduction

Logistics is the implementation of adequately planned procedures and controlling that involves efficient transportation and storage of products from the manufacturing source to the consumers by considering the customer need for both outbound and inbound movements. Generally, logistics entails the management of products from one destination of another point of production to meet the demands of affiliate customers or companies. Hence it can be argued that logistics is a critical component as an economy wholesomely (Martinelli, Tunisini and Guercini 2017). Global logistics do a more significant role in shipping the needed resources to boost supply management generally. The global logistics have tremendously improved at a rapid rate with the globalization of economies.

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However, the significant elements affecting logistics at a global scale, according to logistics management, majorly presupposed some complexities that require analysis and visualization of the entire process to help reduce the utilization of resources effectively. The vital processes such as warehousing, packaging, and transportation, several reviews are required to help secure the smooth operation of the whole process. Though, for this to occur, the following components should be taken seriously; transportation cost, customer services, inventory management, warehousing, and storage at various organizations or companies (Lemay et al. 2017).

Global trade agreements and trends, containerization, intermodalism, and communications and information technology are all interconnected drivers of the upward trend in globalization. These drivers have encouraged strategic and operational change within logistics systems in various ways. The competition various modes tend to generate transportation systems segmented and un-integrated in their "silos" with each style, specifically the carriers seeking to explore its benefits in terms of reliability, safety, service, and cost (Martinelli et al. 2017). Airlines usually try to gain market share and boost revenues through the maximization of line-haul with under their management. Also, the lack of integration between various modes was initiated by public policy, which has often barred companies from acquiring firms in other modes in the US before deregulation.

Intermodal transportation driver has been the container that allows possible handling between mal systems, whereas intermodalism occurred without container as would be quite inefficient and expensive. However, there should be no confusion between container and containerization. The container is a sizeable metal box packed in cargo for shipment to other countries, while containerization in the increasing and general use of a container as a sound unit for freight transportation (LeMay et al. 2017).

Intermodalism includes the use of at least two various modes in one trip from the primary source to the consumer destination via an intermodal chain that allows the integration of numerous transportation networks. The whole intermodality process improves the economic performance of the transport chain through the use of modes in a more significant productive way. Hence, the economic line-haul of rail might be utilized to in long distances with trucks efficiency offering local deliveries and pick up.

The essential thing is that the entire trip s viewed as a whole instead of a series of legs marked by independent operation with distinct sets of rates and documentation. The system is contained by the conditions below; the quantity and nature of cargo being transported, the order of transportation modes, the destinations, and origins of the products, the cargo's value, and the shipment frequency.

Intermodal transportation is ordinarily suitable for finished and intermediate goods. It is also organized as a sequence of modes, usually referred to as intermodal transportation chain with dominant modes such as trucking, barges, rail, and maritime. Moreover, air transportation only needs trucking for its initial and last miles without combining other modes. However, distances have an essential role because intermodal transit is most likely to be used depending on how long the distance is.

On the other hand, high-value and low shipments usually are less reliable for intermodal transportation as high loads prefer mostly direct options like air cargo. In contrast, low-value shipments are generally from one point to another and rely on modes like maritime and rail. Intermodalism works best when the flows of cargo need to be consistent and in the same quantities.

Consequently, the development of global containerization and transportation are somehow mutually inclusive and self-strengthening and banks on the set of driving factors connected to technology, management, and infrastructures. Among the initial concerns with technology, management, and infrastructures are about the various dimensions and sizes of the containers used in the shipping lines, which was the origin of much confusion in the statistical records. A lift involved multiple volumes because distinct box sizes were included, which later resulted in the term Twenty-foot Equivalent Unit (TEU) as initially used by Gibney Richard in the year 1969, working for the Shipbuilding and Shipping Record. Since then, the Twenty-foot Equivalent Unit remains the most acceptable measure for containerized traffics (Martinelli et al. 2017).

Standard transport product. One container could be manipulated anywhere across the globe since its dimensions are an International Organization for Standardization (ISO) (Martinelli et al. 2017). In reality, transfer infrastructures permit all vehicles of transport chain to conduct it with comfort. Standardization is such a positive benefit for containerization since it presents a ubiquity to reach the system of distribution as well as minimizing the capital risks investment in terminals and modes.

Flexibility usage; a container could transport various goods ranging from manufactured goods, raw materials, frozen products to cars. But there are specific containers for liquid transportation and perishable items in the refrigerated containers that constitute seventy percent of all the refrigerated cargoes being transported. 2.9 million Twenty-foot Equivalent Units of referrers were used the year 2018, but discarded containers are customarily used as housing, office storage, and retail structures.

Debatably, logistics has tremendously transformed in recent years with the growth and adoption of systems of transport management. Indeed, operations are the bases of any company or organization, whether marketing, non-profit industries, or manufacturing services.

Logistics and operational management include numerous activities detailing disciplines such as product development, logistics, HRM(Human resource management) quality management, and information systems. In many cases, organizational operations are beyond the engineering design to the establishment of the quality chain of feedback that is relevant in the performance delivery and forecast production.

Indeed, technology is the key to the whole organization, supply chain management, and architectural designs in the online business are some of the elements forming up the operations management. The introduction of systems of ICT like GPS, GIS, systems of transport management and warehousing management has impacted the supply chain and operations management (Thakur and Gunnlaugsson 2018). The logistics and operation aspects that have been influenced by these factors include warehousing, transportation, and packaging (Tang and Gattorna 2017). Maybe the introduction of technology systems in his particular process has eased the effective communication and coordination through transport, systems of warehousing and communication itself. Seemingly, technology has boosted the whole process of logistics and operations management.

In an organization, logistics increases the production and distribution process via the employment of ICT systems and techniques of management, which facilitates efficiency and competitiveness. Also, the initiation of online transportation brought many changes in the output of logistics. The system of online transport has been realized through technology and has, therefore, become an excellent development in the logistics and operations management (Tang & Gattorna 2017).

Moreover, technology has contributed to the simplification of manual processes process to reduce the costs of operation and produce positive logistics results (Robinson and Hsieh 2016). The systems of online transportation have made it easy to meet the demands of all the customers by making sure every customer gets the product of the right quantity and quality at the exact destination and time. Technology has also ensured that the products being transported bear specific codes to identify the receivers. Somehow online transport acts as a virtual connection in the path of products' movement. Therefore, the customers shall always be sure of the products being shipped or transported as they can track them on transit through online technology. Contrastingly, the suppliers must supervise the path of the supply chain (Tang & Gattorna 2017).

The integration of logistics and online business is the current trend in the global arena. Customers and firms make this efficient with the use of the internet and e-commerce. Irrespective of the systems of ICT in the transportation area, physical delivery is significant since it completes the process of transportation. The operation management and logistics cost can be high though it remains the most urgent system in the supply chain. The system of ITC has enabled the free flow of transportation from customers to manufacturers and vice versa (Martinelli et al. 2017). The managers and organizations should as well be updated with the new technologies to integrate them into the system swiftly. The ICT has emerged with software systems for transportation which has offered various solutions to logistics-related issues. These features involve booking systems, dispatch, customization of inclusive features, automated systems and fleet management (Martinelli et al. 2017).

Conclusion

In summary, the application of technology for global logistics management in the previous years has been regarded as having the capacity to be the next governing factor of the corporate strategy to establish values for consumers, produce cost savings, further the ITC and production flexibility and to encourage discipline in marketing to assist in the management of logistics. It is usually ignored that the products shall be available for purchase when needed by the customers who are on the hand, impatient to be served to satisfaction since they expect urgent gratification and availability of products. Due to the logistics system or supply chain, which obtains items from the production by the retailing to consumption has experienced change.

The management of materials and physical distribution has exchanged for logistics management as well as subsequent concerns for the whole supply chain. Use of appropriate integration demand and supply majorly through the heavy use of ICT and systems allow retailers opportunities to offer better service to consumers. But with the standard logistics, products can be of best presentational quality and cheap, durable and never ran out of stock. Moreover, the systems of warehouse manageme...