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Sample Essay on Transportation

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Sample Essay on Transportation
  1. Risk Management

            In order to carry out an effective risk management, it is necessary for the company to apply mixed approach. The company has to be willing to assume risks especially in packaging and quality presentation (Coyle, Novack, Gibson, & Barbi, 2011). This stemmed from the ability of the market to voluntarily reduce the materials. The customer is obliged to sue and probably fine the company if the shipment arrives to its destination late. This fine may have to be transferred to the transporting company to compensate the client. As the goods are of high value and interesting to thieves, the company will have to pay extra cost for the extra cover against the thieves (Coyle, Novack, Gibson, & Barbi, 2011). Since some of the products have leaked into the market, there is need for the company to take critical measures so that more of its products would not be acquired illegally. This calls for the company to take an insurance cover with the transport insurance. The insurance would be against thieves or any form of damage of their products while on transit.

  1. Mitigated Risks

            Once the risks have been avoided, the firm ought to control the price as a means of competing with the stolen products in the market. Since the price is very high, the company needs to reduce this price to attract more customers. Concentration on packaging of the products may also help the company in reducing costs. In as much as there is need to reduce the cost of packaging, the marketing department ought to realize the sensitivity of the product and put preventive measures against damage during the storage and transportation. There is also need to ensure that the transporting company has the required preservation equipment for the products in order maintain product quality on transit.


Coyle, J., Novack, R. A., Gibson, B. J., & Barbi, E. J. (2011).Transportation: A Supply Chain Perspective (7th ed.). Mason, OH: South-Western Cengage Learning.

ISBN: 978-0-324-78919-5


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