Quality management - M Coursework Example | Topics and Well Written Essays - 1000 words

Quality management - M - Coursework Example Both the customers are important for the development of the company. Quality is one of the major elements, which helps the customers to make the decision about the product and/or services and it also meet the needs of the customers. Therefore, Tatweer Petroleum focuses on strategies to maintain quality and uses advanced technology to satisfy the demand of internal as well as external customers. In this respect, quality is important for internal customers with the aim of enhancing different aspects that include morale, communication, productivity and operational alignment. Similarly, quality is vital for external employees, as they are able to consume products based on their preferences, which in turn ensure better returns and brand value for the company. Subsequently, the company is able to maintain a healthy relationship between stakeholders and accordingly, an effective workplace environment can be maintained (Tatweer Petroleum, 2015; Lin, 2010). Quality is the degree through which the features of the products meet the present values. In the present day scenario, ‘total quality management’ (TQM) has received worldwide attention and several industries adopted TQM mostly in the developed countries to provide products and/or services in accordance with the needs of the customers. It is important for the progress and improvement in the areas of cost, quality reliability, innovative efficiency and effectiveness of a business. Presently, every organisation follow as well as implement TQM program for the enhancement of the quality of the products, satisfy the demand of the customers and the development of an organisation (Willey, 2015). Quality management is considered as the function, which is used to confirm the products and the operation of a business to meet certain standards or values. The design quality standards and the process quality standards have several major differences. Design quality focuses on the

Givenchy Essay Example | Topics and Well Written Essays - 2000 words

Givenchy - Essay Example Explain 6 pictures, use 4 books and 4 websites as references/sources. I. Introduction (250 words) Hubert de Givenchy was a designer in the mid-20th century who began the famous House of Givenchy. Givenchy was the driving force behind a majority of the wardrobe of Audrey Hepburn, an actress who became a major film star with the blockbuster movie Breakfast at Tiffany’s. â€Å"Hubert†¦[was] a brilliant young designer (twenty-six to Audrey [Hepburn’s] twenty-four)[,] who had worked under de Segonzac at Schiaparelli before leaving in December of 1951†¦Ã¢â‚¬  (Wasson, 2010, pp. 38). He got his start in designing clothes that were elegant and fashionable—yet practical for the modern woman of his day. Some years later, Riccardo Tisci would take over his fashion empire in 2005, bringing to the House of Givenchy a drastically different style and taking the company in a new artistic direction. Known for his bold use of dark colors—especially black— Tisci took his knowledge of Givenchy’s style and put his own unique spin on that staple of the fashion industry. Here three samples from Givenchy’s work himself—as well as Tisci’s work—will be examined. It was attempted to match sample garments that, at least indirectly, resembled each other. These pieces will be analyzed in detail. The first piece is a plain black dress; the second piece is an overcoat; and the third piece is a coat. Each piece will be compared and contrasted and thoroughly analyzed in order to see what drove and drives each of these artists (Hubert and Riccardo) respectively. Finally, conclusions will be made regarding both of the artists. II. How the Socio-Cultural Environment Led to Different Artistic Interpretations (250 words) Courtesy: Rosenwald, 2011, pp. 1. In this first piece we see by Givenchy, this is a scene with Audrey Hepburn in an orange pea coat. It reminds one of the pea coats that were typical in the 1950s and 19 60s, similar to something that Jackie O might have warn. Jackie Kennedy, by the way, was also another popular devotee of Givenchy, having had many—if not a majority—of her wardrobes designed by him. Obviously, the length of this coat, and the bright color, catches one’s eye and draws one into the wearer’s visual field. Notice the high neckline, the fuzziness of the pea coat softening the appearance of Hepburn’s face. With a stunning hat, Givenchy accentuates Hepburn’s sophisticated look. Courtesy: â€Å"Paris, Feb. 28th, 2007,† 2007, pp. 1. Riccardo Tisci, as the 21st-century lead designer at House of Givenchy, came out with the Japanese mariner-style coat, pictured above, for the 2007 fashion line. Obviously not a pea coat, this style takes a page from a different culture’s playbook of an era and co-opts it in order to make a fashion statement. The industrial look is now ‘in.’ Tisci has this model dressed entirely head-to-toe in black. Strikingly sleek and visually interesting, this jacket has a short, clean cut with a lapel. The neckline is not raised at all, and this jacket is rather form-fitting instead of Givenchy’s more bulky pea coat. This highlights the 21st-century necessity for streamlined lines and utilitarianism. Any kind of frivolous use of space in the design is now wasteless, whereas it used to be fun to have features on a garment piece that were not necessarily utility features. Now, everyone is

The Relationship Between Political Stability and Economic Growth Essay

The Relationship Between Political Stability and Economic Growth - Essay Example This paper questions the widely accepted role of political stability in promoting the growth of the economy. Political stability in any country may offer a peaceful environment for investment to take place. In addition to this, the stability may also provide a good ground where impunity is tolerated. Stable governance and politics are by no doubt a means through which economic growth takes place. With a peaceful political environment, the government can formulate its agendas. Good investing policies attract investors in the country and makes citizens willing to work hard and improve the country’s economic growth. It is seen that democracy in developed and developing countries foster the growth in the economy compared to the countries that are non-democratic. It can be argued that stability in politics of any nation can affect the rate at which the country’s economic growth takes place. In addition to this, the level of investment can be altered through increasing the confidence level of investors in that country. The democratic effect on investment is only tentative. In countries where political stability is practiced, a direct economic growth is realized through positive effect on the rates of investments. Investors will only invest their resources in a country where peace exists, and they are assured of their properties. In contrast to this, economists and investors refer to political instability as a malaise that has a serious harm to the economic growth of the nation. Irrespective of the political regimes, if a country is stable and does not worry about the radical changes of regimes and conflicts, the citizens do concentrate on working hard in running their businesses, saving and investing in other economic activities.

The Useful Tool Essay Example | Topics and Well Written Essays - 2000 words

The Useful Tool - Essay Example Similarly, competitors should also be taken into notice when setting up prices i.e. a product which has the same quality but higher price than its competitor’s product then it would not be preferred by the market segments. Products of higher quality should be specified higher prices than other products of lower quality. This helps the organization to attract more customers towards it and the benefit that the customers want to buy the best thing increases the revenue of the organization. A lot of products being sold by the organization are sold at a much-reduced price than buying the separate products. This type of pricing is known as ‘bundle pricing’. Moreover, at times the organization place the prices of the products $1 less than the significant figure which also helps them to attract customer towards it. This type of pricing is known as the psychological pricing. Lastly, the organization tends to sell additional products with the original products and specify a n exact price for both of these products. This gives them an edge over other competitors which only offer the desired product without any additional one. This type of pricing is known to be ‘optional pricing’. All these pricing together help the organizations to develop pricing strategies according to the structure of the market. Furthermore, the products being sold at the market are usually attracted by the exact prices they are being sold at. And the organizations should have a particular interest in this approach to the marketing mix.

Research arguementive essay Example | Topics and Well Written Essays - 1500 words - 1

Research arguementive - Essay Example There are several reasons why alcohol should be illegalized: the number of alcohol-related deaths per year, the negative health effects that alcohol has on a person’s body, personality, coherence, general well-being and the emotional stress that alcohol users and their families go through. If making alcohol illegal were to be realized, our society would greatly benefit from it and become a better place to live in. Alcohol has some positive effects on a person when taken in moderation, which is about one drink in a single day. Some of these effects include reducing the chances of developing heart disease, diabetes, strokes and high cholesterol level. The positive effects are beneficial to a person’s health and encourage healthy living. They might, therefore, convince people that alcohol is good for the society but the likelihood of a person drinking it moderately is extremely low. Alcohol is an addictive substance that once a person starts taking, he or she will most obviously drink more every day. This habit completely hinders the chances of experiencing the positive effects of taking alcohol and instead increases the harmful effects. This means that the risk overwhelms the benefits and therefore it is only the negative effects that remain eminent. There are many ways through which drinking alcohol excessively can harm your body. Alcohol damages body organs and systems that are needed for survival. It extremely damages the brain, liver, heart, immune system and pancreas (Palmera 29). To make matters worse, alcohol is a cancer-causing agent. Once alcohol is taken, it is immediately absorbed into the body and its effects are evidenced. To the brain, it causes massive loss of memory and dizziness, effects which are harmful to the health of your body. Excessive alcohol consumption also significantly affects the brain’s neurotransmitters and makes them inefficient in performing their functions. These effects occurring on the neurotransmitters of the brain often

Ethics and Governance Essay Example for Free

Ethics and Governance Essay With reference to the Oxford English Dictionary (2012), ethics is described as the science of morals. It is also the agency of study with regards to the values of moral obligations of what is right or wrong. It also covers human behaviour. A company makes many decisions in a course of one day. It may include, launching new products, doing Public Relations, making sales, rewriting company policies and the recruitment or retrenchment of people, just to name a few. All business aims to do so ethically. To conduct business ethically, a business must first commit to adhering to laws and regulation (Timms, 2009). These are clearly defined, as they are in black and white. However, once the definition of what is ethical becomes contested, ethical dilemmas will arise. An ethical dilemma occurs when there is a situation which all alternate choices and behaviours have been deemed undesirable, and that there may be potential ethical consequences when one is unable to identify the right from the wrong. An example of an ethical dilemma is of follows, where one faces a conflict between his ethical code and his business aims. Cadbury, the chocolate producer, was offered a contract by Queen Victoria to send decorative tins of chocolates to every single one of her soldiers in the Anglo-Boer war in South Africa (Andrews, 1989). However, since he was against the war, which resulted in him deciding to resolve this conflict by completing the order without profit. According to Sir Adrian Cadbury (1987), his grandfather â€Å"made no profit out of what he saw as an unjust war. The additional work benefitted his employees, the royal presents consisting of tins of chocolates were sent to the soldiers, and it was a win-win situation. In a business, there are 3 levels of ethics: the ethics of the governing body, workplace ethics and individual ethics (Trevina Nelson, 2011). A governing body usually is made up of a board of directors, whose aim in the company is to make good corporate practices easier and more available for employees. They too must drive and motivate employees to strive for good performance, conformance and results. Workplace ethics are important, as it ensures a conducive and supportive environment to work in. There must be equal treatment among and within subgroups, open communication between levels, and information must be transparent and readily available. Individual ethics is affected by four complementary elements. Individuals must be able to identify ethical issues; recognise the values and priorities through their grasping of principles, rules, norms and theories; developing their individual sets of reasoning and perception; and improving the strength of one to act upon such decisions (Trevina Nelson, 2011). Before a difficult decision is made, the shareholder or the manager has to think a problem though. One way to do so is using Kidder’s Ethical Checkpoints (2006). He has 9 checkpoints which he feels will lead to an ethical decision being made. First, the manager needs to recognise that there is a moral issue. After determining the actor, he has to gather the relevant facts. Next, he tests for right-versus-wrong issues as well as paradigms. After applying resolution principles, he has to look for a third way before making the decision. After the decision is made, he has to revisit and reflect on the decision. After much research, I feel that Utilitarian approach is the most useful in guiding company decisions. I will explain why below. A decision is only ethical, according to the utilitarian principle, if it has the greatest net utility as compared to any other alternatives. As a decision maker, he must evaluate and weigh every option present to him. He must determine if there any positive or negative utilities arising from the option, before selecting the option that has the greatest net utility (Fuitzsche, 2005). It is very similar to the cost-benefit analysis used by stakeholders to consider the costs and benefits of a potential business decision. According to someone applying the utilitarian principle, a decision is only ethical if it has the greatest net utility and benefits the most people. An example of the utilitarian approach is when, during office hours, a company monitors their employee’s habits like tobacco consumption, as one man’s actions can affect the entire workplace. A prominent example is in Singapore, where there is the Smoking (Prohibition in Certain Places) Act. This act aims to protect the public from the hazardous effects of second-hand smoke. (Smoking Prohibitions, 2012) By making sure that employees do not smoke around the office, there would potentially be less health problems, so lesser sick employees which mean improved productivity and greater yields. There are two types of utilitarianism, act and rule. Act utilitarianism targets problems in the short run while rule utilitarianism targets problems in the long run. While act utilitarianism looks at the total aftermath of a single act, rule utilitarianism looks at the repercussion over a series of acts (Fuitzsche, 2005). For example, bribing is frowned upon. An example of bribing occurred in NES China in 1998. NES’s government affairs co-ordinator proposed giving gifts to government officials to establish a working relationship to help get its application approved. The other members were horrified, as this was considered bribery and a criminal offence in their country (Joerg Xin, 2009). Under act utilitarianism, if bribing means that the company will get the business contract, thus allowing the employees to keep their jobs, it is ethical. However, under rule utilitarianism, this is not the case. Bribing, thou it will work in the short run by generating business, however, in the long run, potential customers will question if you got the job through bribing or because of your superior products you are selling. Therefore bribing does not provide the greatest utility (Fuitzsche, 2005). However, the utilitarian approach does have several limitations. Therefore other ethical theories have to be used together with the utilitarian approach in making company decisions. Firstly, there will be some people who will be at a disadvantage. A decision, according to the utilitarian principle, is only ethical if it has the greatest net utility. However, increasing net utility sometimes causes serious issues and affects people negatively. One notable historic example was the construction of the Great Wall of China (Construction of the Great Wall of China, 2006). Three hundred thousand prisoners and peasants were reportedly conscripted to help construct the great wall. It is said that ‘for every block laid down, one labourer lost his life.’ In terms of utilitarianism, a significant positive net utility was creates, as the great wall restricted the nomads and protected China. The Chinese citizens were safe for many years to come, at the expense of these three hundred thousand prisoners. Secondly, it is challenging estimating the results or effects of a business decision made. Also, a unit of currency gives more benefits to a poor person than to a rich person (Fuitzsche, 2005). In April 2012, all national servicemen in Singapore Armed Forces, Singapore Civil Defence Force and Singapore Police Force received a $60 p ay raise (Chua, 2012). A Recruit, who once earned $420, now earns $480, while a Lieutenant, who once earned $1120, now earns $1180. This increment would mean more to a recruit, who had a 12% pay increment, as compared to the Lieutenant, who had a 5% pay increment. It shows that it provides more utility to the poorer recruit. Therefore calculating if a decision maximises utility is difficult. Thirdly, not only are the consequences of a decision made hard to foresee, some decisions have consequences which are not easily or unable to be measured. In August, Apple manufacturer Foxconn improved on the working condition of its factory in China, such as introducing more breaks, lowering overtime, doubling wages and having better maintenance of safety equipment. (Rushe, 2012) Louis Woo, special assistant to the chief executive of Foxconn also released a statement, lamenting that reduction of overtime meant that they ‘needed to hire more people and implement more automation, more investment on robotic enginee ring’ (Yip, 2012). These costs to the company are easy to determine. However, the gains in utility from these implementations are difficult to tell. Would productivity increase? Will employees be more loyal? Will turnover rate be significantly lesser? Consequences like these are hard to measure. Lastly, utility gained from these business transactions mean different things to different people (Fuitzsche, 2005). Some managers gain utility from maximising their employee’s happiness. Some managers calculate utility as one which will increase their material wealth. Below I will compare utilitarian ethical theory with egoism and moral rights approach, to show that while utilitarianism has it flaws, it is still the more useful ethical theory. The utilitarian and egoism ethical theories are rather similar. Decisions made using egoism ethical theory will often provide the most favourable outcome to oneself, no matter how others around are affected (Fuitzsche, 2005). The other parties may not be harmed or disadvantages, but to the decision maker, it is of no concern. The decision maker using egoism thinks about how the proposition would involve him (Collins, 2009). If the proposition adds onto his interest, it is right. If it does not, it is wrong. However, the decision maker using utilitarianism thinks about how the preposition involves everyone affected by it. If the preposition done is advantageous to the most number of people, it is right. If it is harmful to the most number, it is wrong. Egoism is very similar to the philosophy of Adam Smith (1790). Egoism according to Smith is an excellent market allocating tool, which benefits society if one cares for their interests in the long run. Egoism usually views things in the short run, which is similar to act utilitarianism, which evaluates what happens in that one incident. However, while utilitarian considerers the total positive net utility, egoism only considers the decision maker’s se lf-interest. Thus decisions made using egoism would be deemed as unethical. The rights a principle gives you assured moral or human rights because you are a human being. The moral rights approach stresses that human beings have essential rights and power of choice that cannot be taken away by an individual’s action. Gerald Cavanagh (1990) explains six rights that he affirms are basic to business work. They include life safety, honesty, privacy, freedom of conscience, freedom of speech and lastly private property. One example is regarding Firestone and their tires. In America, 1978, the National Highway and Transportation Safety Administration (NHTSA) began investigating the relation between Firestone’s Wilderness AT tires on Ford’s explore sport utility vehicle. The problem of Firestone’s tire separation was known internally at Firestone and by the automobile manufacturers; however, instead of recalling the tires, they kept it in the market, resulting in 150 preventable deaths and 500 injuries (Henn, 2009). As facts leaked out that were damaging to both companies, they became more aggressive in its defence. Firestone appeared to have violated several human rights. The firm knew that the tyres would create a hazard to humans. And by refusing to recall its products, it violated the right to truthfulness when the truth was extremely important. Even after the whole incident was resolved, public trust in Ford wavered. According to Henn (2009), a position of trust with the public that took many years and millions of dollars to build was severely damaged. According to the utilitarianism theory, an ethical decision is one that produces the most amounts of advantages to the majority of people (Trevina Nelson, 2011). However, according to the moral rights approach, an ethical decision is one that does not breach on the rights of another. The utilitarian approach is best for countries with high collectivism while moral rights approach is best for countries with high individualism. According to Hofstede (2007), most Asian countries scored below average on Individualism. Singapore is no different, so the utilitarian approach is more applicable in companies here. According to Johnson (2007), there is the five ‘I’ format with regards to making decisions. A problem must first be ‘identified’, before it can be ‘investigated’. Next, one has to be ‘innovative’ in coming out with many solutions. After this, a solution has to be ‘isolated’ and then ‘implemented’. Making an ethical decision is easier when one applies an ethical theory. A decision made using the utilitarian theory is ethical if it provides the greatest net utility, and produces the greatest benefit for the largest amount of people. Rules developed under utilitarianism can become a moral code to be used throughout the company. Thou it has its limitations, as it is difficult to measure utility, or figure out the consequences of a decision, and that it might not benefit everyone, but it is still better as compared to egoism or moral rights approach. Utilitarian is the most useful theory in guiding company decisions, and when used together with moral rights and egoism, it shows what it means to be ethical.

Carrier Selection Determinants

Carrier Selection Determinants The purpose of this chapter is to review past literature that has been made available regarding the subject of carrier selection. The first section of this chapter will begin with global maritime overview. Next, the concept of logistics management and the issues related to transport and customers will be discussed. Finally, the end of the chapter will review the issues related to carrier selection including important determinants in shippers’ making decision process. 2.2 Global Maritime Overview According to UNCTAD (2008), over 80 percent of world merchandise trade by volume carried by sea because it supports international trade and globalization. In 2007, the volume of international seaborne trade reached 8.02 billion tons. The volume increased of 4.8 percent from the previous year. Dry cargoes were the largest share of good loaded. The world merchant fleet expanded by 7.2 percent during 2007 to 1.12 billion deadweight tons (dwt) at the beginning of 2008. Major loading areas were located in developing countries which are 63.2 percent while developed countries accounted as 33.3 percent. Because of high demand for shipping capacity, vessel order increases at highest level which it is 12 times higher that it was in June 2002. The top 35 shipowning countries together controlled 95.35 percent of the world fleet. By May 2008, the world containers fleet reached 13.3 million TEUs. In addition, the containership sector is investing in larger ship to achieve economies of scale to red uce costs. However, in the year 2007, the containership market was effected by higher fuel cost, a weakening US dollar, a strengthening Euro, and an increased supply of newbuilding coming online. Oil price impacted directly to bunker cost level which resulted higher bunker fuel price for 73 percent in Rotterdam, 76 percent in Singapore and 79 percent in Los Angles. Furthermore, maritime transport tends to have further discussions such as security and air pollution and climate changes. The industry is more concerns on environmental issues because heavy oil burned in shipped results in higher level of sulphur oxide and nitrogen oxide emissions. International trade is the main driver of container flow. In the year 2005, North and East Asia is the most significant driver of container trade which was accounted for 50 percent of export trade. In the year 2015, North and East Asia is expected to increase its world market share by approximately 12 percent while North America and Europe are expected to lose market share by 5 and 7 percent respectively. In other world, North and East Asia trade was the key driver of global container flow in the year 2005, and it has potential to grow until the year 2015. The estimated and forecast growth rates for full container trade (Figure 2.1) tend to reach up to 235.7 million TEUs in the year 2015, and the compound growth rate during the period 2005 – 2015 is 7.6 percent per annum. This estimation is full origin-destination containers only. The empty containers are not included.According to Drewry Shipping Consultants ( ) as cited by UNCTAD (2008), container trade is expected to reach 2 87 million TEUs and exceed 371 million TEUs by the year 2020. 2.2.1 Impacts of Credit Crisis on International trade 2.3 Logistics Management Logistics management is the process that relates to plan, implement and control the efficient, effective flow and storage of goods, services, and information in both the manufacturing and service sector from the point of origin to the point of consumption in order to meet customers’ requirement. Logistics management is to control raw materials, in process inventory and finished goods(Stock and Lambert, 2001). Gecowets (1979) explains about logistics concept that â€Å"The five rights of a logistics system are supplying the right product at the right place at the right time in the right condition for the right cost to those customers consuming the products.† According to Quayle and Jones (2001), logistics is defined as the process that needs management and co-ordination of all activities from sourcing and acquisition, through production and through distribute channel to customers. The authors also explain that the goal of logistics is to create competitive advantage through the simultaneous achievement of high customer service levels, optimum investment and value for money. In addition, the authors explain about the business functions within the scope of logistics management or know as â€Å"logistics mix† which include planning and marketing strategy, purchasing, production planning, storage and material handling, inventory management, warehouse and stores, transport, customer service, and technical support. Relevant toBowersox et al. (2007), logistics relates to the management of order processing, inventory, transport, and the combination of warehousing, materials handling, and packaging (Figure 2.2). However, Croom, Romano, and Giannakis (2000) do research on critical literature review of supply chain, and they conclude that supply chain has lack of universal definition because the way of supply chain has been developed, so it leads to different point of view. Business functions in logistics management: Facility Network Warehousing, Material Handling, and Packaging Integrated Logistics Management Order Processing Transport Inventory Logistics requirement have increased to serve consumers who want and demand quicker response times and more convenient offerings. Moreover, it is also pressured by consumers related to the prices, so the company needs to control its supply chain as efficiently as possible (Coyle, Bardi, and Langley, 2003). 2.3.1 Importance of Logistics Ballou (1999) explains that logistics is about creating value in terms of time and place, so good logistics management means the activities that contribute to the process of adding value. Logistics management is related directly to minimising the cost which can derive benefits to the consumers and to the firm’s shareholders. Logistics management can result of the profit squeeze and potential profit leverage because it is the area to significantly save cost which has greater impact in the firm’s profitability that increasing sales volume would have(Stock and Lambert, 2001). 2.3.2 Challenges in Logistics Management Meixell and Norbis (2008) claims there are many forces that bring about new challenges in logistics management. Some of them originate in the shipper community, carrier community and consumers themselves such as the growing concern for the environmental impact of the products they purchase. In the research, the authors also explain five logistics challenges that influence transport choice which are transport capacity shortages, international growth, economies of scale, security concern, and environmental and energy use concerns. Transport Capacity Shortage The issue is relevant to all transport modes. In motor carriers, capacity is limited due to tighter hours-of-service regulation, driver shortage, and higher toll that strain truck capacity (Meixell and Norbis, 2008). Maloni and Jackson (2005) report that international marine container volumes have increased over recent years, but North America ports and their supporting container distribution have not increased capacity accordingly. LaLonde (2004) reports that fuel cost impact the large carriers which can lead to a wave of bankruptcy and a consequence of reduction of industry capacity. The author also mentions about driver shortage which has resulted in some truck parked against the fence for the lack of drivers. Railroads are operating at or near capacity and they have been reluctant to make a huge investment, so it put more pressure on motor carrier industry and more truck on road. International Growth Meixell and Norbis (2008) claim that international growth is a challenge for logistics management because it involves activities related to international trade such as providing adequate transport and storage, getting items through custom, delivering to foreign location in timely fashion at an acceptable cost. According to Hines (2004), customers have become more demanding in terms of requiring special features or adaptations to a standard product. Therefore, the challenge is that suppliers have to fulfill the individual customer demand profitably by integrating the supply chain process to satisfy the demand. Economies of Scale The issue relate to shipment size because full truckloads can minimize the cost associated with the capital expenditure for equipment. Economies of scale also involves in handling of inventory. It is cheaper to ship cases than ship individual units and also cheaper to ship in pallets than to ship individual cases (Meixell and Norbis, 2008). The concept is similarly to Stock and Lambert (2001). The authors explain that inventory is required if a firm is to realize economies of scale in purchasing, transport, and manufacturing. Moreover, when the firm purchases material in larger volume, it reduces transport cost per unit because full truckload and rail car shipments receive lower transport rate than smaller shipments of less than truckload (LTL) or less than carload (LCL) quantities. Security concerns Security issue and supply chain must relate together because terrorist attack can impact the business operation (Meixell and Norbis, 2008). Sheu, Lee, and Nihoff (2006) also do research about logistics security programmes, and they claim that the efficient operation of international logistics affected by the September 11 tragedy. In Unites States, new security measure added cost approximately $151 billion annually. However, the need of security and efficiency should stay balance because if the need is overwhelming, it can cause delay of logistics process. Environmental and Energy Concerns A growing concern over the environment and energy challenges to logistics managers (Meixell and Norbis, 2008). According to Wu and Dunn (1994), logistics is a part of firm that should become environmental friendly, and the role of logistics managers have been increasing because their decision have a major impact on environment. They should deliver the green products to consumers to maintain the good image of the firm. However, the challenges of logistics managers is that how to incorporate environmental management principles into their daily decision making process. The author also mentions about mode selection impacting on the environment. Rail and barge use less energy than road haulage and air cargo. Marphy, Poist, and Braunschweig (1994) claim that logistics managers have the greatest ability to influence environmental issue involving pollution and natural resources preservation. According to Benson, Bugg, and Whitehead (1994), International Maritime Organisation (IMO) and similar regulatory bodies provide a wide range of study to increase environmental awareness and consequent tougher regulatory on the environment. Marine pollution is a matter of oil pollution after accidents at sea or the deliberate discharge of pollutants in the process of washing tanks. The pollution also comes from the loss overboard of containers or deck cargoes of chemicals, fertilizers and similar products. Air pollution results from emissions, and noise pollution also come from busy roads or near major airports. In the result, companies need an environmental audit to review their operation regularly with the preparation and adoption of training programmes to create awareness of environmental issues. 2.4 Role of Transport in Logistics Management Transport is a major component of the logistics management because it relates to the movement or flow of goods from point-of-origin to point-of-consumption. Transport is a factor in creation of time utility because it can determine how fast and how consistently products move from one point to another (Stock and Lambert, 2001). The decisions about logistics management related to transport includes operating one’s own transport versus hiring transport, mode, carrier, and service selection, method of freight consolidation, vehicle routing and crew and trip scheduling, and equipment selection, replacement, and acquisition (purchase, lease, or rent)(Vogt, Pienaar, and Dewit, 2002). According to Coyle, Bardi, and Langley (2003), transport cost represents approximately 40 to 50 percent of total logistic cost and 4 to 10 percent of the product selling price, so the authors conclude that transport decisions directly affects the total logistics costs. In logistics perspectives, three fa ctors that are fundamental to transport performance include cost, speed, and consistency. The cost of transport is the payment for moving between two places and the expenses related to maintaining in-transit inventory. Logistical system should utilize transport that minimizes total system cost, so it means that the least expensive method of transport may not result in the lowest cost of logistics. Speed of transport is the time required to complete a specific movement. Faster transport service may charge higher, so selecting method of transport should stay balance between speed and cost of service. Finally, consistency reflects the dependability of transport which always shows as the most important attribute of quality transport (Bowersox et al., 2007). Quayle and Jones (2001) also mention similarly that firm should concern with the factors relating to reliability, time, and price. 2.4.1 Mode of Transport and Characteristics Railroads According to Ballou (1999), the railroad is a long hauler which moves the raw materials and low valued manufactured products. The author also explains that there are two legal forms which are common carriers and private carriers. A common carrier sells its transport service to all shippers, but private carriers are owned by shippers with the usual intent of serving only the owner. The advantage of railroad is to transport large tonnage over long distance, but disadvantage of railroad is having high fixed cost due to expensive equipment, right-of-way and tracks, switching yards, and terminal. However, railroad has low variable operating cost (Bowersox et al., 2007). Motor Carriers Motor carrier is a part of any firm’s logistics supply chain because almost every logistics operation needs the motor truck from the smallest pickup truck to the largest tractor-semitrailer combination. Similarly to railroads, motor carriers have two types which are for-hire and private carriers. Motor carriers commonly transport manufactured commodities over relatively short distance. The commodities include textile and leather products, rubber and plastics etc. The major advantage is ability to provide service to any location. However, weather condition and highway traffic can disrupt motor service and effect transit time reliability. Contrary to railroads, motor carriers have high variable cost, but low fixed cost(Coyle, Bardi, and Langley, 2003). Air Carriers Air carriers offer a very fast and fairly expensive mode of transport. Airlines have a high fixed cost in infrastructure and equipment. The commodities are the high-valued items or time-sensitive emergency shipments that have to travel a long distance. The shipments that are less than 500 pounds including high-value but light weight and high-tech products are suited for air carriers (Chopra and Meindi, 2007). According to Benson, Bugg, and Whitehead (1944), the advantage of air carriers are direct flight possible to all ports of the world and speed much higher than any other mode of transport. However, disadvantages are high freight rate, possible delay due to bad weather, more restrictions on size and weight. Water Carriers Cuneo (2003) claims that more than 90 percent of world trade travels in containers aboard ocean – going ships, and about 20 million containers move through 220 ports around the world every year. Shipper can use water carriers in combination with other mode of transport. Water service on the average is slower than rail and availability and dependability can be effected by bad weather. Loss and damages cost from water carriers are considered low relatives to other modes. However, packaging is more concerned to protect goods during handling when loading and unloading operation(Ballou, 1999). 2.4.2 Critical Changes in Transport According to Coyle, Bardi, and Langley (2003), there are five major areas of change which are deregulation of the U.S. ocean liner industry, intermodalism, shipment control, trade policies, and currency fluctuation. The Shipping Act of 1984 and the Ocean Reform Act of 1998 is the greater reliance on the market place to control rate. Therefore, the elimination results in more rate negotiation, the right of conference carriers to take independent action on rates and service agreement which response to the laws of supply and demand. According to Stock and Lambert (2001), the deregulation has resulted in increased inter-intrafirm competition, greater pricing freedom, flexibility in routing and scheduling. It has increased the need of marketing oriented, and shippers have more carriers to choose. Secondly, intermodalism means the use of two or more transport mode which can provide a service to the shipper-customer that appears to be seamless (Coyle, Bardi, and Langley, 2003). Intermodal t ransport is a combination to take advantage of the inherent economies of each and thru provide an integrated service at lower total cost (Bowersox et al., 2007). Next, shipment control means high tech communication system that can deliver effective communication and control system. Customer can track the progress of the shipments. In addition, trade policies can impact the way of transport. Some countries set up protective barrier to restrict import goods, so delay of custom procedure can happen which also result in delay shipments. Finally, fluctuation in world currency can significantly affect logistics decision such as choice of transport mode and carrier. Definitely, value of currency also affects freight rates and importing and exporting volume which also affect traffic of transport (Coyle, Bardi, and Langley, 2003). 2.5 Logistics Strategies Related to Customers Logistics and Marketing Zinn (2000) mentions that logistic and marketing should come together because logistics management is developed to deliver value to customers and fulfill customers’ need. Therefore, the need of marketing and logistics integration has been more increasing. Customer service is often the key link between logistics and marketing.Coyle, Bardi, and Langley (2003) claim that if the logistics system has problems, and customers will not receive a delivery as promised, the company could lose future sales. The logistics process is to deliver and produce the good products at the right cost, but if there are some mistakes with the process, the customers will be satisfied. Therefore, it has a link between marketing and logistics management. Innis and LaLonde (1994) found that both of logistics and marketing contribute to customer satisfaction because marketing is responsible for creating and managing demand while logistics is responsible for fulfilling demand. The Role of Logistics in Establish Customer Service Levels Logistics operation serves a particular important advisory function because the goal of marketing department is to increase sales, but sometimes they ignore the cost to achieve them. The logistics department can outline the alternative means of delivering products to customers and help to calculate the cost for different level of service. They can help to determine the level of customer service and pricing policies (Marphy and Wood, 2004). According to Coyle, Bardi, and Langley (2003), there are four dimensions of customer service from a logistics perspectives. They contain time, dependability, convenience, and communication. Time is related to order cycle time, lead time, and replenishment time. Order cycle should be consistent with reasonable length. Dependability is more important than lead time for some customers. It affects directly to inventory level and stockouts cost. Moreover, dependability also means safe delivery and correct order. Communication involve with accurate infor mation and electronic flow of information. Finally, convenience is understood as flexibility. Logistics service should be adaptable for different customers. 2.5.1 Partnering Relationship between Carriers and Shippers Ellram and Hendrick (1995) explain partnership as a relationship between two firms that committed for a period of time share mutual information, risks, and rewards of the relationship. Relevant to Mohr and Spekman (1994), partnership is defined as independent firms who share goals, strive for mutual benefit, and acknowledge a high level of mutual interdependent. Cooke (2000) claims that supply chain management and collaborative transport management propel transport buyers and their service providers toward stronger mutually beneficial relationships. Dwyer et al. (1987) explain that buyer-seller relationship should have a basic list of critical success factors for strategic alliance. It includes detailed planning foe future exchange, increased measurement and qualification, sharing benefits and burden, reduced uncertainty, shared efficiency and high switching costs. Ellram (1991) also identify that trust between firm, transfer of necessary information, mutual dependence, and sharing o f new technology are the key attributes of successful relationship in buyer-seller partnership. Traditionally, relationship between shipper and carriers was arm length transaction. Each of them tries to maximize its own interests with little interest in their both relationship. However, both of them have begun to recognize the mutual benefits by developing alliance (Lambert and Stock, 2001). According to Gibson, Rutner and Keller (2002), the research found that trust, effectiveness, and flexibility are the most important determinants to develop and manage long term cooperative partnership between carriers and key shippers. Byme (2004) explains that when fuel price are rising dramatically, carriers have no choices, but have to increase price. It can affect relationship between carriers and shippers. The solution of the problem is to increase collaboration between shippers and carriers. Carriers should have end-to-end processes such as load planning, tendering and delivery confirmation. Technologies such as sharing tracking and transaction information are also important to collab orate. Lu (2003) claims that effective services result in successful partnering relationships. 2.6 Carrier Selection Decision The decision making process is the stage that includes mode choice and carrier selection which can identify relevant transport performance variables, select mode of transport and carrier, negotiate rates and service levels, and evaluate carrier performance (Monczka et al., 2005). Stock and Lambert (2001) claims that mode and carrier selection is important because shipper can reduce the number of carriers with whom they do business. When shippers have high volume, they get bigger discount and higher level of service that result in lower transport costs. Meanwhile, carriers prefer to deal with fewer shippers with large consistent volume over long period of time. Burdg and Daley (1985) claimed that the process of selection is involved with behavioural approach which includes environmental and organizational factors. The performance of the transport carrier may influence the effectiveness of the entire logistics function of a company and the process of carrier selecting is an important t o the company’s success. However, the research explored that regulatory and market changes are drivers for change in transport choice attributes (Norbis and Meiwell, 2008). In addition, Gattorna and Walters (1996) claim that there are five factors that are influent the choice of transport containing company characteristics and philosophy, market structure, product characteristics, customer characteristics, and environmental issues. Firstly, the company should concern its marketing, financial, and operation strategies. Marketing can determines customer service offer and customised to meet different customers’ needs. Financial is also involved with the profit objectives. Secondly, market structure is essential consideration. In competitive market, delivery may be the key factor influencing customers’ selection. Thirdly, product characteristics are involved with weight, size, and shape. Next, customer characteristics can impact on profitability. The company should check customer profile, order cycle, and customer after-sales service requirements. Finally, environmental issues can influence transport decisions because in some countries, govern ment is influent in transport policy. 2.6.1 Selecting and Making Decision Process Figure 2.3 Four decision stages Search Choice Post-choice Evaluation Problem Recognition According to Stock and Lambert (2001), there are four decision stages (Figure 2.3) occur in the mode/carrier selection decision which are problem recognition, search, choice, and post-choice evaluation. Firstly, the problem recognition is the stage that is affected by a variety of factors such as customer orders, dissatisfaction with existing mode/carrier, and changes in the distribution patterns of firm. Next, customers will come to search process which they scan a variety of information sources. The possible source can be their past experiences, carrier sales calls, existing company shipping record, printed materials such as advertising brochures, and customers. This process can take a considerable of time. Then, the important stage is choosing. There are many critical attributes concerned in this stage, and executives will choose the mode/carriers that satisfy their requirements. Finally, transport executives evaluate the choice performance. Many firms use many techniques such as cost studies, audits, on-time pickup and delivery performance, and damage/claims reviews while some of them use statistical analysis. 2.6.2 Behavioural Approaches Related to Transport Study Gray (1982) presented three assumptions associated with carrier choice. First, Economic Positivism is explained that economic value related to the firm which determines the use of transport. This approach related to price and profit. The firm attempts to maximize short term revenue and minimize short term cost in a trading. The second approach is called technological positivism which is associated between the physical aspects of commodity such as weight and volume and the transport system such as speed and frequency. The last approach is perceptual approach which related to user interpretation of the situation rather than on physical attributes. 2.6.3 Important Attributes in Selecting Carriers Shipper Perspectives To make a decision, customers need to realize value in order to make a selection, so this part will review the important attributes for shipper to make the selection carrier criteria. Lu (2003) surveyed Taiwan Shippers and found that the five most important carrier service attributes are availability of cargo space, low damage and loss record, accurate documentation, reliability of advertised sailing schedule, and courtesy of inquiry. The research also found that there is a significant correlation between timing related, pricing and warehouse service, so it can imply that to satisfy customers, carrier service should combine these things together. Mater and Gray (1993) explored that shippers in Irish Sea market concerned the most five factors to select carriers which are a fast response to problems, on time collection and delivery, value for money price, and good relationship with carriers. According to Kent and Parker (1999), the mail survey was sent to 125 companies which divided in to 50 import shippers, 50 export shippers, and 25 international containership carriers. Shippers identified the top factors for selecting carrier which are reliability, equipment availability, service frequency, rate changes, loss and damage, and financial stability. The research also found that the factors of selecting carriers between import and export shipper are different in the factor of door to door transportation rates. The research also concluded that service factor is important factor for export customers. Gibson et al. (1993) reported that the key criteria for carrier selection includes a willingness to meet service expectation, an established track record of outstanding performance, a willingness to focus on continuous improvement, the ability to handle special needs and emergencies and a willingness to meet cost goals. Tengku Jamaluddin (1995) investigated the service attributes that are important in carrier selection process, and the result indicated the top five service factors which are knowledgeability, freight rate, cargo care and handling, punctuality and transit time, and service frequency. Chiu (1996) assessed the performance of liner shipping in shippers’ perspectives. The result indicated that the six most important service attributes contains a prompt responses from a carrier to any problems, transit time, reliability, documentation services, a notice of delay, and assistance with loss and damage claims.Lu (2007) reviewed from past research and questionnaire survey of 230 shipping executives to find out the important key of capabilities for liner shipping services. The review concluded that transit time and frequency of service are ranks as important criteria in the context of liner shipping services. Saleh and Das (1974) found that reliability of transit time, consistency in serv ice, company image and special handling abilities are important carrier attributes. Coulter et al. (1989) reviewed the past research and used the relevant criteria to develop questionnaire. The resulted showed that reliability of performance is considered first and follow by Insurance of service provision, quality of service, personalizing factors and handling service. McGinnis (1990) found that there are six factors influent transportation choice which are freight rate, reliability, transit time, loss/damage/claims processing/tracing, shipper market consideration and carrier considerations. Carrier Perspectives Carriers do not really understand which selection criteria tend to influence a shipper’s choice of carriers. Carriers can lose competitive advantage if they still understand differently with shippers which definitely results in a decrease in market share. Moreover, the research found many carriers’ perceptions that are significantly different from what shippers want. Carriers rated personal relations with the carriers as highly important while shippers rated the factor only moderately important. Regular calls by carrier sales representatives, gift and gratuities offered are overrated by carriers, but shippers rated as slightly important or not important. In addition, the research conclude