Smart containers technology
Innovation in containers technology has continued to keep the shipping industry more secure and relevant to the current market. Smart containers have technology that allows real-time collection of container's data whether it's being shipped at sea or on land. The smart containers have a GPS tracker that allows monitoring of movement and location (Ruckebusch et al., 2018). It also allows remote control and adjustment of the temperature of the refrigerators transporting perishable goods. With the real-time data that is sent to the headquarters, it’s possible to know or trace the clearance status of the container (Manaadiar, 2015). The technology behind smart containers is to improve the shipment process.
Transportation adds no value to supply chain
Transportation is an integral part of supply chain management but at times its seen to be to have reduced value to the supply chain. Shipping is no more than a financial drain to the entire organization. The organization can do everything possible to minimize the production cost of its products, but the saved money ends up being used in the transportation process. Assume an organization whose factories are based in the United States but the products' market in Africa. Imagine how much it will cost the company to ship its products to the market. Goods of high value are exposed to theft especially when they are transit from the manufacturer to the final destination (Rodrigue, 2017). More resources will be needed to hire security officers to ensure goods get to the destination safely. Transportation is unreliable and causes unexpected delays (Kondratjev, 2015). Products have to be transported to the consumer at the right place without any delays. However, sometimes accidents happen due to bad weather, mechanical problems or driver's ignorance and a result the shipment ends up being delayed. This could mean a lot of inconvenience to both producer and consumer as it could mean the loss of business. Sometimes the consumers may fail to pay or cancel the delayed orders. The organization must take responsibility for any damages that may occur when goods are in transit (Rodrigue, 2017). In did transportation sometimes does not add value to the supply chain.
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References
Kondratjev, J. (2015). Logistics. Transportation and warehouse in the supply chain.
Manaadiar, H. (2015). Containers with smart technology. Retrieved from https://shippingandfreightresource.com/containers-with-smart-technology/
Rodrigue, J. (2017). The Geography of Transport Systems. New York: Routledge, Retrieved from https://transportgeography.org/?page_id=2638
Ruckebusch, P., Hoebeke, J., De Poorter, E., & Moerman, I. (2018). Smart container monitoring using custom-made WSN technology: from business case to prototype. EURASIP Journal on Wireless Communications and Networking, 2018(1), 16.
