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Trade Off

The document discusses the trade-off between responsiveness and efficiency in transportation. Faster transportation, like trucks and motorcycles in Ghana, allows for higher responsiveness but at the cost of lower efficiency due to increased expenses. An example of a local company that offers high responsiveness through fast delivery within 48 hours is Jijii Ghana. While responsiveness is important for their success, they must also maintain efficiency to balance costs. The best approach is to find the right balance between using transportation and inventory to improve either responsiveness or efficiency depending on a company's competitive needs.

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25 views

Trade Off

The document discusses the trade-off between responsiveness and efficiency in transportation. Faster transportation, like trucks and motorcycles in Ghana, allows for higher responsiveness but at the cost of lower efficiency due to increased expenses. An example of a local company that offers high responsiveness through fast delivery within 48 hours is Jijii Ghana. While responsiveness is important for their success, they must also maintain efficiency to balance costs. The best approach is to find the right balance between using transportation and inventory to improve either responsiveness or efficiency depending on a company's competitive needs.

Uploaded by

iamcheryl2098
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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FEBRUARY 2023

DESCRIBE THE TRADE-OFF BETWEEN RESPONSIVE AND EFFICIENCY WITH

REGARD TO TRANSPORTATION. USING A LOCAL

COMPANY AS AN EXAMPLE.

Goods are delivered between the supply chain phases by transportation. The transportation

sector has a significant impact on responsiveness and efficiency, much like the other supply

chain drivers. A supply chain can be more responsive with faster transportation, whether it

takes the shape of alternative modes of transportation or different volumes being moved,

however this results in decreased efficiency. The supply chain's inventories, and facility

locations are also impacted by the mode of transportation a business employs. The primary

transportation trade-off is between the price of moving a certain product (efficiency) and the

speed at which that product is moved (responsiveness). The mode of transportation affects

other factors like inventory and facilities. A quick and adaptable means of transportation, like

trucks and motorcycles, can achieve timeliness in Ghana. Several businesses that sell things

online or through catalogues are able to offer high levels of responsiveness because they

frequently deliver their goods in less than 48 hours. An example of a local company that sells

things online or through catalogues and are able to offer high levels of responsiveness is Jijii

Ghana. While Jijii Ghana must be efficient, its success is mostly on its ability to understand

and adapt swiftly to shifting market conditions and shifting consumer preferences.

Consumers seek goods and services that can adapt swiftly to their changing demands and

preferences which can be received in the shortest possible time. Transporting goods in larger

quantities less frequently might underline efficiency. More responsiveness from high-speed

transportation may come at the expense of efficiency due to rising costs. The converse is also
true: low-speed transit may result in increased efficiency at the expense of poor

responsiveness.

Major transportation choices are influenced by a company's competitive strategy.

Transportation is employed as a significant driver to increase supply chain responsiveness if

competitive strategy targets customers that demand and are prepared to pay for a high level of

responsiveness. All forms of transportation can be used very effectively. If transportation

originates from a single central hub facility or distribution hub rather than numerous scattered

branch locations, it can also be made more efficient. The constant innovation of goods and

technologies, as well as the ongoing transformation of how we run businesses and provide for

our consumers, are all driven by responsiveness. As a company considers the needs of its

target client, the function of transportation in the company's competitive strategy plays a

significant part. A company can utilize transportation as one of the drivers for making the

supply chain more responsive if its competitive strategy targets customers who have high

expectations for responsiveness and who are prepared to pay for it. The inverse is also

accurate. A corporation can use transportation to reduce the cost of the product at the expense

of responsiveness if its competitive strategy targets clients whose primary criterion for

purchasing is price. The best choice for the business typically entails striking the correct

balance between the two because a company may employ both inventory and transportation

to boost responsiveness or efficiency

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