Nowadays, the development of air, rail, and road transport contributed to the development the worldwide delivery of the products. As for the fabrication, it might be conducted nationally and internationally while the whole process involves various matters such as intellectual capital, sophisticated design, and manufacturing. In this case, the maintenance of supply chain is used to ensure the flow of the processes while the businesses use the international supply chains to reduce costs.
The primary goal of this paper is to determine the implications of the development of fabrication on international trade, logistics, and transportation.
The world economy is transcending borders and redefining the ways businesses position themselves among their competitors, customers, and partners, and trade possibilities and economic rivalry now are extended across the boundaries. Globalization is a definer of these opportunities; meanwhile, the advances in information technology have helped businesses embrace the usage the global supply chain (Coyle, Novack, Gibson, & Bardi, 2011). Nonetheless, this innovation leads to the increase in competition due to the rapid spread of technology while being present in some business processes. Consequently, the global competition as a result of the changes in business processes will improve the global trade while enabling the modernization of their managerial approaches.
In turn, transportation system has been affected by globalization since rails, roads, water carriers as well as airlines have contributed to a faster delivery of goods and services (Coyle et al., 2011). Additionally, the quantities of cargos being transported are increasing in diversity, and this change occurs due to the modifications of the production processes such as decentralization, lean manufacturing, Just-in-Time, delivery solutions, custom production, and other innovative approaches in fabrication while portraying a considerable implication on transportation (Coyle et al., 2011). These modifications in transportation traffic’s demands will require the businesses to develop effective transportation strategies to align with the changing principles of the fabrication process.
As for the logistics, Coyle et al. (2011) explain that logistics market is evolving steadily due to the high contribution of the information technology, as it was previously mentioned. Nowadays, customers require real-time solutions, which comply with their current needs and demands (Coyle et al., 2011).
This fact implies that this matter will change the logistics’ emphasis to the delivery of the real-time information while viewing a customer as a center of the relationship. Simultaneously, the innovations in the information technology such as cloud computing will change the logistic industry into an integrated system while increasing the affordability and availability of the services to small and medium scale enterprises.
Lastly, Coyle et al. (2011) anticipate that changes in logistics will have substantial effects on the environment as the transport systems are viewed as a threat to the world. Meanwhile, the issues such as global climate change and emission of greenhouse gasses will influence company’s decisions.
In this case, logistics businesses will be required to include carbon emission statistics to depict their compliance with their social responsibility strategies while, currently, this matter is affecting the fabrication processes. Furthermore, the obedience to country-specific regulations will help transport companies minimize related environmental hazards and grow their businesses ethically.
In conclusion, the rapid growth and expanding opportunities of the global trade and world economy tend to underline the rising essentiality of transport’s and logistics’ services. Meanwhile, the businesses have benefitted from these developments, as they utilize IT instruments to improve the quality of the services while monitoring the supply chain. The rapid access to the markets and innovation in technology associated with supply chain, manufacturing, and management are the critical matters, which affect the global trade, efficiency of logistics, and social responsibility of the firms. Consequently, the future of international trade, transportation, and logistics will entail companies to embrace the best practices to mitigate challenges and leverage the opportunities as a result of the changes in the fabrication processes.
Reference
Coyle, J., Novack, R., Gibson, B., & Bardi, E. (2011). Transportation: A supply chain perspective. Mason, OH: South-Western Cengage Learning.