If you are moving international cargo to the United States, what security issues

Question

If you are moving international cargo to the United States, what security issues and regulations would impact your operations? How will you comply with these requirements?

Why would companies choose to transport goods via international air freight considering the high cost of this transportation mode?

Discuss how technology is an important issue to a company when outsourcing transportation and logistics activities.

When considering using a 3PL service provider, what are some of the capabilities and core competencies you would seek? After implementing a 3PL relationship, why is it important for a transportation manager to promote continuous improvement of performance and achieve supply chain value?

Explanation / Answer

Q1) Below are the security issues that might result in movement of international cargo to the United States -

1. Issue - Leakage or spillage issues for fluid products

2. Tampering issues for all types of products leading to contamination, exposure to extreme temperatures etc.

3. Damage to the physical and functional characteristics of the products.

4. Possible harm to the people handling the products and to the environment around due to hazardous products.

5. Possibility of theft of the products

The regulations that need to be in place to handle the security issues include -

1. Packaging and handling standards of products while moving and handling

2. Effective packaging(tamper-sealed) and labelling of the products.

3. Montoring of movement of products through close circuit cameras

4. Mitigation plan in place to effectively handle issues resulting from hazardous products.

The firms exporting to US should strictly handle these regulations through effective packaging and handling measures while ensuring effective monitoring using GPS and CC cameras etc.

Q2) Though air transport is the highest cost mode, it is the most effective and least time consuming modes of freight transport. Certain items which have low shelf life can only be transported through air transport. It is easier to transport via air compared to other modes as the services are handled completely by the cargo movers. It also involved a lot of automation thus ensuring higher efficiencies and saving time.

Q3) Below is why technology is an important issue to a company when outsourcing transportation and logistics activities -

1. Tracking of the goods transported through third party logistics can be effectively done through GPS systems etc. In case of any issues in the transportation and the goods get stuck somehwhere, the firm can raise an alarm and get the goods moving to reach the destination.

2. Automation through technology usage reduces lead time of delivery of the goods.

3. The firm can record and report the transactions based on the activities in the 3PL.

Q4) The capbilities and core competencies that are required for a 3PL service provider include -

1. Freight capacity to handle the quantity of goods to be shipped

2. Tracking technology to let the customer track the goods effectively.

3. Effective storage, weighing, handling and packing capabilities.

It is important for a transportation manager to promote continuous improvement of performance and achieve supply chain value after implementing a 3PL relationship due to the below reasons -

1. To drive down the logistics costs

2. To reduce the lead time of delivery

3. To avoid any leakage issues, tampering issues etc.

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