#512 Transportation is the movement of material

Transportation is the movement of material - Operations Management

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Transportation is the movement of material from one place to another. In supply chain management, the material usually travels from various place through various organizations and aimed to reach at the right time, to the right place, in the right quantity with the right condition and paperwork, etc.

What are the different purposes and uses of tracking and tracing the goods and services while managing the supply chain? Provide examples to endorse your answer.

(Marks 05)

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Tracking is done with a specific purpose as it enables to locate the movement of the goods and services so that their movement can be tracked and can be utilized for further action. Tracking leads to timely updation of the data and timely delivery. It is one of the essential media in the supply chain management system wherein we get the idea of whether things are within the control and also whether the said target is achieved with the given period of time. Tracking has specific  purposes which can't be ignored as it is really a mandatory process:

• Risk management can be efficient management when proper tracking is done as it really helps in filling up the gaps.
• Quick response time help in the proper mechanism of covering the deficits

There are wide uses and applicability of tracking :

• Locating the goods and help in proper supply if there is any shortfall. For eg: In a plant where there is production going on. The raw materials are required in the regular interval so that the production happens in time and there is no lean phase. Tracking of the same helps in bringing the supply and fulfilling the deficits. In this way, there is a proper allocation of resources in a timely manner and the production happens within the proper allocated time with the proper use of the resources.
• Track the loss which can happen due to any mishappening or theft or accident
• Further delays can be easily noticed and it can help in covering up the delays as delays can really affect the production.
• Timely delivery is possible when the tracking system is perfect and accurate.

Tracing is a more specific term than tracking. Tracing is related to more detail on a specific movement of the specific product or services. This information can be used to provide the ready information which is required to address the queries and also be a part of the information management system.

The purpose of tracing is to troubleshoot and escalate the problem and take necessary action for solving it. Also, it is a very important aspect of tracing is to taking form control of the situation and take necessary action.

The uses of tracing are unique as it helps in the variety of ways mentioned below:

• Efficiency is final delivery as the information racing can help in updation
• Risk reduction Risk reduction is there in terms of lower quality components used
• Savings can be done in an efficient way as the operations become streamlined
• Revenue growth is possible as a penetrative strategy is adopted.