Infrastructure Challenges in Logistics and Supply Chain Management

Introduction

The success and effectiveness of Brinkmann Grills is partly dependent on its logistics and supply chain management. However, like other enterprises, the company faces various challenges in the area of logistics and supply chain. While the specific nature of these challenges varies depending on a firm's business or operations, some are universal. One of the major logistics challenges for Brinkmann Grills is the nation's deteriorating infrastructure. This is a significant concern because the company depends on infrastructure within the United States and its cities for logistics and logistical support. Therefore, the business needs to find ways of addressing this supply chain issue in order to reduce its impact on business operations and productivity.

The ongoing deterioration of America's infrastructure is among the most significant logistical challenges facing business enterprises, as they depend on the nation's infrastructure for logistics and logistical support. Based on the findings of recent studies, the continuing deterioration of America's infrastructure ranks as the fourth major logistical challenge for business enterprises (Lynch, 2010). While the country has made some progress in stimulus spending, very little effort has been undertaken to address the worsening of infrastructure across cities. Consequently, the United States is far from where it needs to be with regard to accommodating growing volumes of highway and rail traffic. As a result, America's infrastructure will continue to weaken in the future, particularly if the economy expands significantly.

The Deteriorating U.S. Infrastructure

Currently, America is approaching what analysts describe as a logistics storm because of severe capacity constraints across nearly all transportation modes (Buddress & Smith, 2007). The problem has worsened over decades due to chronic underfunding of logistical infrastructure. Businesses have experienced ever-increasing logistical costs alongside deteriorating reliability of the country's infrastructure. Supply managers are constantly struggling to ensure timely delivery of materials in an environment that demands lean operations. Successive governments in the United States have not adequately addressed the increasing weakening of the nation's basic infrastructure. Key indicators of this logistical challenge include delays, congestion, and increasingly unreliable lead times. Moreover, there is a persistent shortage of long-haul truck drivers and train engineers, a growing shortage of diesel mechanics, and skyrocketing fuel prices.

Transportation modes throughout the country and its cities face difficulties managing capacities, as many business enterprises have shifted from carrier strategies aimed at reducing costs to strategies focused on securing necessary capacity. Recent efforts to address America's basic infrastructure have yielded minimal results because of the continual decline in available resources. The nation continues to face the need to transport more goods over long distances and across national borders in order to meet the needs of growing populations (Buddress & Smith, 2010).

The extent of the weakening of the nation's infrastructure underscores the need for increased focus on the management of logistical functions. This implies that supply chain professionals must develop greater expertise in logistics management in order to address this problem. One possible solution involves preparing contracts based on the existing realities of the logistics market. Supply chain professionals may also need to forward-position inventories to ensure availability in light of increased risks in global supply chain and logistics.

Impact on Business and Transportation

Secondly, more attention should be given to the sustainable development of infrastructure, which ensures that the needs of the present generation are met without compromising the ability of future generations to meet their own needs (Little, 2004). This process involves considering every perspective when establishing goals and responsibilities for the public. In addition, sustainable infrastructure development requires determining what levels of reliability should be provided and which entities are responsible for bearing the associated costs. This means that the government must identify a means of providing adequate funding to improve infrastructure. Additional funds can be obtained through general tax revenue or direct user charges.

Other measures for addressing this issue include engaging lawmakers and the public in improvement initiatives, empowering state and local governments, and increasing rural access (Nichols & Holeywell, 2011). Transportation experts should involve lawmakers and the public to encourage greater investment in multimodal solutions. Since state and local governments account for two-thirds of surface transportation spending, they should be empowered to promote flexibility through bipartisan approaches. Expanding rural access will help connect Western ports and facilitate the easier transportation of goods.

Conclusion

Lynch, C.F. (2010, December 13). Top 10 Logistics Challenges for 2011 (and beyond). Retrieved July 18, 2014, from

Nichols, R. & Holeywell, R. (2011, June). Six Ideas for Fixing the Nation's Infrastructure Problems. Retrieved July 18, 2014, from http://www.governing.com/topics/transportation-infrastructure/six-ideas-for-fixing-the-nations-infrastructure-problems.html