Seaport logistics holds an integral role in the important supply chain linking dispatcher and recipient of goods. Seaport logistics is also particularly an important pillar of international trade and as such the international economy due to the large volumes of trade goods transiting through the seas. Even though global trade had taken a considerable dip, the recent past has witnessed trade growth and thus need for a burgeoning shipping and logistics sector in tandem. Furthermore disintegrated supply chain functions by existing industry players increase lag time and harm trade. These and other demand variables provide a rationale for the establishment of American Abyss Logistics(AAL) which promises to, therefore, cater to these needs.
While traditional logistics companies only focused on one or two duties of the supply chain such as on land transport and storage, AAL plans to integrate nearly all of the shipping supply chain functions in effect meeting bespoke client needs and cutting down on delivery time. On top of the traditional logistics firms offering of storage and transport solutions, Abyss plans to offer packaging, inventory management, cargo insurance, and freight brokerage all at a go. Such a vast offering will certainly cut down on delays and will ensure the success of Abyss as an entrant logistics company. Abyss will also first launch services on the east coast of the US, a region though receiving fewer volumes in comparison to the west coast is rapidly experiencing an upsurge in shipping volumes. Looking through the potential and considering Abyss’s promised offering its sound to deduce that Abyss logistics will most probably be a profitable logistics firm.
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Proof of demand for Abyss logistics services is important in gauging if it is a viable investment option. Many indicators do point to the need for a company such as Abyss to fill the logistics niche. The foremost demand variable is Abyss’s wide and integrated service delivery. According to Gupta, Singh, and Suri, (2018), the success of modern logistics companies is underlined by their wholesome service package. Such a model provided by Abyss incorporating clearance, insurance, warehousing, and transport and inventory management all together will attract customers creating demand for abyss’s services. The company’s utilization of modern technology and the internet of things applications in logistics management is another crucial demand variable. A study by Wang, Day and Nguyen, (2018) lauded the role of technology in integrating and easing logistic operations. For instance, a demand creation point here would be the real-time tracking that Abyss would allow cargo owners to have in the company’s interactive web platform. Abyss also would seek to secure highly qualified personnel to perform all of its days to day activities, besides this, occasional training of Abyss staff will also maintain a high degree of skillset among employees. High qualified staff is an important factor in retaining customers. Jhawar, Garg and Khera, (2014) indicate that freight companies that occasionally trained their personnel maintained a degree of profitability in the face of dwindling returns by other firms due to return clients who were impressed by good service. It’s therefore judicious to believe that a highly qualified employee body will create demand for American Abyss Logistics Company. In addition to the above points projected growing good volumes provide a ready market for services offered by Abyss. The world trade organization projected a rise of about 5% in world trade volumes ("WTO | 2018 Press Releases - Strong trade growth in 2018 rests on policy choices - Press/820", 2018). Such an increase points towards increased trade volumes as such demand for logistic services.
In conclusion, increasing trade volumes, need for a one-stop supply chain partner among other factors support the creation of Abyss Logistics Company. A freight and logistics company are dealing with all the aspects of the cargo supply chain from insurance, warehousing, transport, and even freight brokerage. Demand variables such as technology and highly trained personnel underlie the viability of this venture.
References
Gupta, A., Singh, R., & Suri, P. (2018). Prioritizing Critical Success Factors for Sustainable Service Quality Management by Logistics Service Providers. Vision: The Journal Of Business Perspective , 22 (3), 295-305. doi: 10.1177/0972262918786102
Jhawar, A., Garg, S., & Khera, S. (2014). Analysis of the skilled work force effect on the logistics performance index—case study from India. Logistics Research , 7 (1). doi: 10.1007/s12159-014-0117-9
Wang, C., Day, J., & Nguyen, T. (2018). Applying EBM Model and Grey Forecasting to Assess Efficiency of Third-Party Logistics Providers. Journal Of Advanced Transportation , 2018 , 1-14. doi: 10.1155/2018/1212873
WTO | 2018 Press Releases - Strong trade growth in 2018 rests on policy choices - Press/820. (2018). Retrieved from https://www.wto.org/english/news_e/pres18_e/pr820_e.htm
