CASE STUDY

MISHAIR World Cargo Case Study



Executive Summary

With the number of mishaps related to the transportation of pharmaceutical goods increasing, legislations are being changed in order to bring in improvements in the method of handling these goods and reduce the risk of any mishap. These changes are meant to improve safety but are causing trouble for air freight companies as they have to constantly adapt to the new legislation and provide the required handling capabilities.

Adapting to the new legislations is a burden to transportation companies as they have to incur a lot of additional cost while transporting such goods. Apart from this, timely delivery is of upmost importance as goods usually need to be delivered in a short span of time (Keefe, n.d.).

Table of Contents

Executive Summaryii

Introduction1

MISHAIR1

Issues Faced by the Company2

Increase in Fuel Prices and Taxes2

Data Required2

Compliance with Legislation2

Data Requirement3

Updating Handling Procedures3

Data Requirement3

Data Recording3

Data Requirement4

Staff Turnover4

Data Requirement4

Technology4

Date Required5

Conclusion5

MISHAIR World Cargo Case Study

Introduction

The transportation of pharmaceutical products requires extensive care since small changes can affect their chemical composition thus affecting the health of patients. When it comes to transportation through airways, the major issue surrounding the transportation is the rough handling of goods as well as the temperature. The temperature inside the cargo hold of an aircraft can reach -15°C, whereas the temperature on the ground can be around 30°C (Singh et al., 2010, pp. 37). This variation in temperature can badly affect pharmaceutical goods.

Transportation of pharmaceutical goods can be dangerous and for this reason, governments of many countries are redefining the rules in order to avoid any mishaps. Cargo companies on the other hand have to undergo a lot of change in the way they handle these changes. The primary task for cargo companies is to handle and transport the good safely and with care from the time of acceptance to the time of delivery.

MISHAIR

MISHAIR is a cargo transportation company that has been transporting good since the past twenty years. They are well equipped to handle various types of cargo. When dealing with pharmaceutical goods, they have to continuously make changes to the way they handle these goods due to constant changes in legislations.

Issues Faced by the Company

Presently, the company is facing several issues specially related to the transportation of pharmaceuticals. In order to conform to national and international legislations, it has hired MR. Logistics to prepare a report on the current short falls. The following issues were addressed:

Increase in Fuel Prices and Taxes

The company is currently facing an increase in fuel prices and taxes which has reduced its profitability. It is assumed that the company is trying to cut costs by not improving their services which is also a major issue.

Data Required

In order to address this issue, the cost of fuel and the taxes paid need to be analysed. Taxes cannot be reduced but the fuel bill can be reduced. The amount paid for fuel should be assessed and ways for reducing it should be determined. This will lead to an improvement in the ...