3.1 Accidents and Breakdown of Vehicles
Nowadays it can’t be denied that courier services use the Global Positioning System …show more content…
Since Skynet is a large delivery company that deal with higher volume of packages. Thus the process that takes place it through a large facility, it is common for misplacement, or passed to wrong route occur. Not only that, occasionally the parcel get switched upon collection or get damaged during transit. This phase is when the parcel will be considered as lost, and it’s impossible to identify it without any label. Apart from that, Skynet also faces problems in terms of packages being damaged. This takes place when the parcels are placed on large trucks by stacking on top of each other and resulting it higher chance of falling or being crushed by other unsecured …show more content…
This is because partnership with courier services in another country will need the standard mean which is US Dollar or Sterling pound to be the exchange medium. Since US Dollar and Sterling is not stable it will somehow effect the payments to courier partners. This currency risk takes place regardless of either investors had invested domestically or internationally.
3.5 Increasing Overhead Cost
In courier industry, every single cent counts. Skynet often faces challenges in increasing overhead cost due to fuel price volatility. This had caused mostly all the couriers to raise the prices using fuel surcharges. Thus, when this occurs shippers would rather switch to other inexpensive alternatives to ship their items. This will somehow effect the company in a prolonged time frame and impact in long – term sustainability. Moreover, the delay in delivery, unable to locate the destination, traffic and all sort of timely delay also leads to hike in overhead cost as it includes the fuel charges as well.
3.6 Improved Customer