Transit time is one of the most critical factors in logistics as goods must be delivered at their intended destination at the right time. The total time taken from pick up to delivery of goods thus has significant impact on the business. Transit is important for buyers who need to use the product being delivered to satisfy various needs at the right. Transit time affects the transportation costs that the buyers incur. It can thus be noted that longer times used in transporting the goods are always associated with high logistic expenses. Customers should thus be aware of the aspects of the particular shipment so as to accurately calculate expected transit time. Shipment delays affect business through delayed production as the raw materials required for the processes do not arrive in time. Delayed production implies that the business cannot meet the demands of the consumers who may then seek the products from alternative sources. Reduced demand and loss of clients leads to declined sales and high operations as the plant struggle to meet the deadline having a negative impact on the profitability of the firm. Some products are also seen to lose value due to prolonged times on transit. Perishable goods for instance deteriorate very fast and thus lose value if care is not taken to speed up the delivery process and prevent delays.
Shipment delays are caused by various factors.
Shipment delays are caused by various factors. Some of the reasons include vessel delays, logistic constraints and lack of proper coordination of the freights (Culley et al., 1991 p.362). Vessel delays occur due to factors such as port congestion, bad weather, changes in service schedules and shortage of equipment and space in the vessel. Lack of storage equipment such as containers lead to delayed delivery times as it is critical that service providers wait until appropriate space is attained. Changes in service can be noted in the deviation from the routine routes and if the vessel has to make additional stops. Port congestion leads to delays due to slow movement and handling of the containers. In other cases a delay may arise when the client’s container cannot be located or when the shipment is lost or stolen. Lack of space can result in the event that the vessels are overbooked the client may thus be forced to roll the transportation to the next shipment in which case the client must wait for longer periods.
Owing to the necessity of timely delivery of goods various efforts should be implemented to reduce longer times (Ducruet, 2013a p.145). Such solutions can include proper planning in advance to take into account the expected delivery time while calculating the most probable transit time. Planning ahead may also mean emergency stocks to enable continuous production in cases of raw material delays. It is also essential to check and consider the expected weather conditions, holidays in various parts of the world and make a plan based on the evaluated factors. Necessary documentation is key to solving any problem caused by delay as the destinations and routes are taken into consideration.
In conclusion, it can be noted that shipment delays pose some of the most serious constraints to business operations. Proper planning and experience are seen to be crucial in the management of shipment delays however it is advisable to add at least one week to the expected transit time as a provision to the unexpected delays.
Culley, L.L., Clark, J.J., Eisenberg, M.S. and Larsen, M.P., 1991. Dispatcher-assisted telephone CPR: common delays and time standards for delivery. Annals of emergency medicine, 20(4), pp.362-366.
Ducruet, C., Lugo I (2013a) Cities and transport networks in shipping and logistics research. Asian Journal of Shipping and Logistics, 29(2), pp.145-166.
Notteboom, T., 2011. Current issues in shipping, ports and logistics. Asp/Vubpress/Upa.