1) How to reduce risk when outsourcing logistics?
Lack of control over many aspects of the business is a major concern to many companies who are considering outsourcing logistics functions. Most important of these concerns is the lack of control over the general management of the department or function that has been outsourced.
The company will need to ensure it negotiates clear operating principles agreed by both partners as well as an agreed exit strategy on both sides. Without these agreements in place, the risks to the user company are very significant, potentially impacting heavily on the customer experience.
The 3PL will potentially have no experience or understanding of the core business of the company and will be motivated by profit and meeting the terms of the contract at the lowest possible cost. They may not share the same company culture and ethos as the commissioning company and therefore the company may experience what they consider to be a lowering of standards.
Outsourcing to a 3PL could potentially lead to a breach of confidentiality, resulting in the exposure of customer personal data or the sharing of commercially sensitive information. If a company were to consider outsourcing functions such as HR or recruitment, there are clearly obvious risks to the security of personal data which must be considered in the negotiated contract.
2) How robberies affect the company finance?
Crimes committed against business can be separated into two categories: those committed by employees against businesses and those committed by others. Crimes committed by employees which include theft, fraud, and money laundering.
Theft can be classified as stealing material items, submitting time sheets for hours that were not worked, embezzling funds and any other form of employee fraud. The average company loses as much as 5 percent of its annual revenue to fraud, according to the Association of Certified Fraud Examiners website.
Tension can arise between management and staff when stricter rules are put into place to prevent theft, such as surveillance cameras, identity badges and restriction of employee access to company materials such as office equipment and supplies.Tension can arise between management and staff when stricter rules are put into place to prevent theft, such as surveillance cameras, identity badges and restriction of employee access to company materials such as office equipment and supplies.
3) Which are the different types of transportation?
Ocean freight is a less expensive method of shipping goods, but the drawback is a longer transit time. Another benefit for ocean freight is while size and weight may be an issue for air; it is not for ocean freight. Ocean freight is also a preferred mode of transport for the movement of high volume and heavy cargo such as minerals, metals, ores, steel coils, etc. which would be impossible to move by air freight.
Air freight is a critical mode of transport. It serves markets and supply chains that demand speed. One of greatest examples goes back to 1997 when Apple began innovating on the nitty-gritty details of supply-chain management. Almost immediately upon Steve Jobs’ return. At the time, most computer manufacturers transported products by sea, a far cheaper option than air freight.But air freight also has its own disadvantages such as being one of the most expensive due to the requirement of speed and the fuel that is used.
Trains burn less fuel per ton-mile than road vehicles and a train, which can have as many than 100 wagons, only needs one driver. There are, however, some additional costs which are incurred in a rail journey: at each end of the rail transit, a road delivery will be needed, and there will be a lift cost to transfer the container between the train and the road vehicle.Longer journeys tend to be less expensive by rail, and shorter journeys are less costly by road. Where the point of cost neutrality comes is governed by many factors which are route and commodity specific, but in general, the point of cost neutrality can be expected to lie in the range of 130 to 150 miles.
Road freight is one of the most common of all modes of transportation. It is widely used in continents such as Europe, Africa, and North America. The single customs document process provides a seamless movement of goods even across various states and countries. However, truck transport is limited somewhat as to what it can carry by the size of the vehicles used and by size and weight restrictions. Another limitation is that it is affected by weather, road conditions and traffic.
Sources.
https://freighthub.com/en/blog/modes-transportation-explained-best/
https://smallbusiness.chron.com/consequences-employee-theft-11623.html
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