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CHALLENGES IN SUPPLY CHAIN MANAGEMENT

Regulation and deregulation determine how far the government and its policies can intervene in all aspects of the management of industries. When there is regulation, businesses are subject to government control and are required to comply with standards set by the government. Whereas in deregulation, government control is alleviated and industry regulation is often handed to private companies or the business sector. This is applicable to the transport industry. We have seen how regulation and deregulation have affected the growth of intermodal transportation in the European Union and in the United States. Intermodal transportation, in relation to supply chain management, involves the integration of different modes of transportation to meet the needs of the market in relation to the supply and distribution of goods and services. In the case of the United States, it involves the transport of goods and services through roads, railways, sea, and air. Among the European Union member states, it involves mainly the road-rail transport only.

bullet-train-locomotive-platform-28614 | CHALLENGES IN SUPPLY CHAIN MANAGEMENT | Portec Rail

With the development of intermodal transportation in the United States, European Union, and other countries across the world, there is a need for enhanced information and communication technology to manage the supply chain. There is an increased demand for timely and cost-efficient delivery of goods and services. This means there is a need for more intermodal capacity to meet the increase in demand. The challenge now lies in creating better interconnectivity and interoperability across different modes of transportation in different locations for the shipment of goods and services all over the world. Optimization of the entire system is key. The focus is not just on the infrastructure but on the effectiveness of the whole process involved in supply chain management. Upgraded highway and railway services, airport and seaport infrastructure, as well as the integration of information and communication are all needed for efficient and effective intermodal transport service. There should also be international and inter-organizational cooperation and coordination to make the system work smoothly. Governments need to come up with policies that would protect not just the business sector but the consumers as well. In the end, the intermodal transportation industry is expected to provide optimum performance and quality service even while maintaining their business profitability.