The Impacts of Transportation on the Supply Chain
Transportation is essential in the supply chain process since it transports items from one site to another. The efficacy and efficiency of transportation can considerably impact the supply chain. There are various types of transportation, including air, sea, rail, and road, and each has unique characteristics and potential problems. The cost of commodities transported has a considerable effect on the supply chain. Transportation costs directly affect the price of goods, and any changes in transportation costs can significantly impact the supply chain (Rodrigue, 2022).
For example, imagine you are planning a road trip from one state to another. The fuel cost for your vehicle will affect the overall cost of the journey, just as transportation costs affect the cost of goods in the supply chain. If fuel prices increase significantly, you may have to adjust your budget or reduce travel distance to account for the increased cost.
Additionally, the type of vehicle you choose to travel in can affect the speed of your journey, just as the type of transportation used can affect the speed of delivery in the supply chain. Traveling in a slower vehicle will take longer to reach your destination, just as using slower transportation can lead to delays in the supply chain.
The Role of Transportation in the Economy and Global Markets
Transportation also plays a critical role in the economy and world markets. It enables the movement of goods across borders and allows countries to trade and exchange goods, services, and ideas. The transportation industry also provides job opportunities for millions of people worldwide. However, disruptions in the transportation system can have severe impacts on the supply chain, economy, and world markets.
Consequences of Transportation Disruptions on the Economy and Markets
Natural catastrophes, political instability, and pandemics can all cause significant transportation disruptions, resulting in delays, shortages, and cost increases. For example, the COVID-19 epidemic disrupted the transportation industry (Hendrickson & Rilett, 2020). One analogy that can be used is comparing the supply chain to a relay race. Like in a relay race, each team member must pass the baton to the next runner to ensure a smooth and efficient race. In the same way, the supply chain process involves various stakeholders who need to work together to deliver goods to customers.
References
Hendrickson, C., & Rilett, L. R. (2020). The COVID-19 pandemic and transportation engineering. Journal of Transportation Engineering, Part A: Systems, 146(7). Web.
Rodrigue, J. (2022). The Geography of Transport Systems (5th ed.). Routledge.