Transportation Is a Critical Link in the Overall Supply Chain. Do You Agree That It Can Be Viewed as the Glue That Helps to Hold the Supply Chain Together?

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Transportation is important but that is not the only factor. Fawcett et al (2007) considers information sharing to be an important aspect of supply chain management. One of the tools, which both scientists and businesses pay attention to as a solution for improving the efficiency of supply chain information sharing (SCIS), is Radio frequency identification (RFID). Delen et al (2007) and Zelbst et al (2010) investigate that through automated tracking of products and materials, large amounts of data will be collected by RFID. Sabbaghi ​​(2008) points out that logistical mistakes, which always cause economic losses, will be minimized due to the automation of picking, shelving and cross-docking, which is a result of using RFID. Suppliers can pinpoint the exact position of the pallets in the supply chain, track its journey, and make the right decisions by using RFID. A number of researchers have provided examples of companies that have adopted radio frequency identification technology in their supply chain operations. According to Wu et al (2006), RFID has been adopted by suppliers of Walmart to reduce labor and inventory costs. By the way of sharing relevant information, Walmart also helps its vendors to avoid stock-out status. In addition, other corporations such as Target Corp, Boeing and Michelin also improve supply chain management efficiency by RFID technology (Mehrjerdi, 2010). A project called RFID / USN u-IT, in Korea, is coordinated by the National IT Industry Promotion Agency (NIPA) in cooperation with the Ministry of Knowledge Economy in a variety of industries such as apparel, electronics industry, steel and pharmaceuticals (NIPA, 2011). This project is expected to help them to increase the supply chain management of businesses as their competitive advantage. Moreover, inventory can be tracked more accurately with real time, as a result, processing time and the number of labors can be minimized. In addition, inaccurate data due to human error will be eliminated with the support of RFID. When companies get timely aggregation information on market demand, they will have the opportunity to create more successful policies on production, marketing and distribution (Sabbaghi, 2008). Kim (2016) points out that supply chain management is the decisive factor for global competitiveness and its performance will be enhanced by RFID. This technology can also be used in a whole or part of the supply chain.

The dramatic impact of other factors on the supply chain is really worth for paying attention, but let's look at what happens to the supply chain when the transportation network is interrupted. The cause of the disruption in transport activity, unlike the interruption in general, can only be attributed to the impact of the drivers which are given by Chopra et al (2016) as labor disagreements, natural disasters, terrorist activities, and infrastructure failures. To further clarify the characteristics of the traffic disruption, it should be compared to other types of interruption, such as the discontinuity associated with the closure of the plant of manufacturer, which may be due to the bankruptcy of the manufacturer, or the disruption resulting from a significant reduction in production activity. The consequence of these disruptions is not just a pause in goods production but also a disruption of the flow of goods. Meanwhile, the disruption of transport activity seems to be just a pause in the flow of goods (Wilson, 2007). The nature of the transport disruption creates its uniqueness. The special feature is that while other supply chain operations remain intact, traffic disruption makes the transit process of goods stop. For that reason, Wilson (2007) argues that the stagnation of raw material flows between levels of the supply chain leads to transportation disruption, while temporarily stopping the transit of goods. The whole supply chain can be completely paralyzed by a potential traffic disruption, which is seen as a major risk (Giunipero et al., 2004). If companies have anticipated potential disruptions in transportation, they also need to have prepared solutions to protect the supply chain against it. Once the disruption in the distribution of goods between the manufacturer and the warehouse appears, to preserve the supply chain, alternative routes; other forms of transportation; other manufacturers that do not share the same shipping route; or new policies on distribution between warehouses need to be found quickly with the greatest effort. Wilson (2007) finds that, in the context of the globalization of the supply chain, manufacturing and assembly plants can be considered placed overseas to create alternative trade routes, while limiting possible effects of traffic disruption if it appears or is anticipated. Supply chain is most affected by traffic disruption (Wilson, 2007). It generates a "ripple effect" that impacts the chain on all steps of the supply chain from downstream to upstream. The level of inventory as well as transit goods increases rapidly along with the congestion of goods orders because of the disruption of traffic.

In the age of globalization, every corporate policies, strategies or activities are also influenced by factors such as the company's environment and politics. First, the company's relationship with their providers as well as the company's credibility and commitment are related to the company environment. It also reflects on the company's competitiveness and the company's expectations on delivery times and quality (Henry, 2012). Wu (2006) finds out that companies are more likely cooperate with foreign suppliers to be effectively responded their needs as well as have the flexibility in response, although this also hides much uncertainty. The results of the study by Ambrose et al. (2010) suggested that the company's operations could be hurt by uncertainty. One solution to overcome this problem is that companies should establish a close relationship with their key suppliers (Chen et al., 2004). Therefore, strategies, which enable corporations to operate effectively in the supply chain, are essential for companies (Wu, 2006). Another factor to note because of its impact on the supply chain is political. Gereffi (2014) states that current supply chains are influenced by policies that extend international trade as well as the establishment of free trade areas, which also originates a lot of new supply chains. Moreover, the formation of new supply chains is also the result of national industrial policies and industrial politics. As nations increasingly focus on developing their domestic industries, it requires corporations like Boeing or Airbus to change their policies by selecting the raw materials suppliers from the nations that make purchasing decision or set up a factory producing some products in that country (Grover, 2007).