The supply chain problem experienced by this relatively new business is limited transportation. The company owns only one vehicle which it depends on to reach all its customers. Customers far from the organization’s warehouse are most affected by this limitation in transportation. The company is greatly limited in its ability to deliver their orders on time due to limited transportation options and other external factors such as traffic snurl-ups and harsh weather conditions. Maiyar et al. (2020) identifies that transportation disruptions in an organization’s supply chain expose the company to immense consequences such as missed delivery deadlines, lost sales and customer goodwill. Paul et al. (2019) further explains that such disruptions do not only affect effectiveness in delivery but the entire supply chain process.
The problem occurs in the transportation department as goods are often dispatched smoothly to this level but fail to reach customers on time when being transported. The problem primarily occurs when the company’s vehicle leaves the storage facility and is expected to reach the customer at a given time. The problem is present because the company only relies on a single vehicle to meet its transportation needs when its customers are spread across the state.
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References
Maiyar, L. M., & Thakkar, J. J. (2020). Robust optimisation of sustainable food grain transportation with uncertain supply and intentional disruptions. International Journal of Production Research , 58 (18), 5651-5675.
Paul, S. K., Asian, S., Goh, M., & Torabi, S. A. (2019). Managing sudden transportation disruptions in supply chains under delivery delay and quantity loss. Annals of Operations Research , 273 (1-2), 783-814.
