Logistics covers the topic of goods delivery and various factors that may occur along with this process. The major issue is that road accidents are mainly likely to occur during the transportation process. Therefore, logistics and road accidents relate to each other. Logistics mainly looks at process such as planning, controlling and implementing the storage and movement of goods, related information and services from the point of which it is being processed to the point of consumption for satisfying customer requirements (Cozzolino, 2012). While road accidents are unintended events such as collision of vehicles that causes damage or death.
In addition, logistics have an impact on road accidents because through the process of goods transportation to the manufactures and then consumers. A road accident might occur and it may end up affecting people and even the goods. Even if the road accidents occur the goods have to be transported and delivered to people. In this we see great loses that come about because of accidents (Tepic & Gordan, 2011). Such incidents bring loses also to the logistics sector since also it results to the loose on workforce. These are the people involved in the transportation process. Therefore, it is important to check the cost of road accidents on logistics, both at the company level and the human level meaning the individual level.
In terms of accommodation, there is an impact of road accidents on the issue. Accommodation in this case means the adoption of the situations, which affect people. It is hard for people to accommodate the effects that road accidents have. This is because most of them occur unexpectedly. In addition, it is true to say that the effects come because of such accidents in the field of logistics are hard to deal with (Tepic & Gordan, 2011). The first problem that may be a bit difficult to accommodate is the loose of trusted employees. For most logistics to function in the right way people should trust the process coordination, hence it might be difficult for the company to handle such a situation, and to find another employee, who can be trusted enough to replace the person who is in question (Cozzolino, 2012). Another problem that road accidents can bring in place that cannot be accommodated is the loose of goods, which in turn affects consumers, and the received profit is affected. Some serious road accidents may result in damaging of very basic commodities that are undergoing the process of logistics (Tepic & Gordan, 2011).
While these things happen, the economy of a country in turn becomes affected. This is because for a country to prosper there must be efficiency within the country. Meaning whatever is produced is consumed and there must be surpluses in the production (Tepic & Gordan, 2011). However, in case of an accident in the process of transportation, there will be dysfunction of the process that brings about prosperity within the country at large. The ability to accommodate problems that may arise because of road accidents is extremely important in the logistics sector (Tepic & Gordan, 2011).
Procurement and Manufacturing
The procurement and the manufacturing sector may also be affected by road accidents. In most cases, this may be indirectly because the direct impact of the road accidents is not felt among them. One of the impacts that may occur to the manufactures is the loose that is brought about by road accidents (Nail, 2006). Road accidents destroy goods that manufacture produce without them being consumed. Therefore, there will be no gain from the products that the manufactures have. The impact road accidents have on the procurement is the loose of trust in the manufactures. Indeed, this is because inadequate communication may mean that the suppliers are not trustworthy, therefore, it may affect how the procurement officers perceive the suppliers.
Another problem that may occur to those who are to receive the goods is that on their side there might be a problem in the delivery of services to them. This means that if the goods to be delivered were for urgent use, there will be an indefinite delay to the people who are wait to receive the goods (Nail, 2006). Therefore, it means that there will be an effect in both the people who were offered the tender and the people who received the tender will also loss on their side. This means that the effect felt because of road accidents is appreciable (Tepic & Gordan, 2011). This is because the manufacturers receive negative impacts from the road accidents, which affect their income negatively and those who are in the procurement sector are affected due to indefinite delivery of goods and the destruction of the normal running without the goods.
Integrated Operations Planning
The integrated operations planning sector also becomes affected. It is clear that when there is a road accident the normal planning of the firms more specifically the manufactory and the logistic sectors. The operations of the firm will be affected since because of an accident the planners of a firm will have to look for ways to recover from the loss and even receive a compensation from it. Recovering from the loss caused by a road accident during the logistics process may be extremely difficult even though it is possible. Therefore, a firm to run well again after an accident, has to put well strategies to ensure that it quickly recovers from the process. It is also an initiative of a firm to ensure that it has an insurance to cover an unintentional risk such as a road accident (Nail, 2006). Insurance is extremely important because it ensures that the compensation process is fast and no major costs are incurred in the compensation process. With insurance, there must be a clear statement showing how the accident was caused to ensure that they will be compensated first.
Inventory management is also affected by logistics and road accidents. Inventory involves the records, which are kept. The records kept will be interfered because the inventory will not be in line with the goods damaged. For example the inventory will indicate that the goods were produced and not consumed. In addition, the number of damages will also be increased. The inventory will not be in order with the way it has been planned (Asvin, 2009). This, therefore means that the management plan of the inventory will also be interfered. Furthermore, the records will not be in line with what was anticipated. The inventory will also indicate a lot of damage that came up because of the road accident.
The transportation and infrastructure within a firm will also be affected. In terms of transportation, there will be loss of the transport workers. For an accident to occur there must be a driver and the vehicle must be moving, therefore the drivers will be affected because of the accident that will have occurred. In addition, the infrastructure within the company will go at a loss because of the damages that will occur (Lambert & Stock, 1993). In the general, accidents also interfere with the infrastructure round causing damages to the environment around. Some of the implications that may occur is that the transportation sector within the firm will also be interfered with because of the accident because there will be a destruction of the vehicles being used in the transportation of goods.
Warehousing involves keeping of stocks of goods in a warehouse before they are sold out to the manufactures. Warehousing will also be interfered with because there will be extremely large stock which will be in the warehouse before the normal operations resume (Lambert & Stock, 1993). This is to say that if the stock kept in the warehouse is not being consumed then there will be an interference with the normal operations of the firm. According to Lambert and Stock (1993), this therefore shows that there is an interface in the normal running of the warehouse.
Networking and Operations Planning
In logistics, networking and operations planning will also be interfered with in the process of transportation and in the event of a road accident because the way in which the firms operate to meet the standards set will go down (Lambert & Stock, 1993). In case of an accident the operations within a firm also go down because of the need to deal with an emergency before it becomes a crisis as a result, there is interference in the normal processes that are in the firm. Networking will also be interfered with because no company will want to network when there is a crisis (Asvin, 2009). Primary, they have to deal with the problem at hand, then see whether it will be possible to solve the problem. This therefore means that the accidents will interfere with the capability of the firms operations and, hence there will be costs incurred while operating within a firm. According to Lambert & Stock (1993), accidents are extremely evident to interfere with the networking process of a firm and the way in which firms normal operations are done.
In conclusion, it is right to say for companies, which deal with procurements and logistics that it is advisable for them to work in order to ensure they are insured against accidents. This is because accidents affect all the sectors either directly or indirectly. In addition, companies should also ensure that measures are put in place to make sure that the people hired within the company are able to work in the right manner to avoid risk that come up when there is a rod accident. In most cases, before a driver is employed in a company, the institution’s management should ensure that the driver is well trained and is of sound mind to reduce the risks of accidents. Road accidents should be controlled, so that they are not the reasons that will interfere with the normal organization of a firm. When road accidents are reduced then it is a guarantee that the operations that run within a company run smoothly.