Logistics Management Strategies For Resolving Operational Challenges Faced By Visy Logistics

Challenges for Visy Logistics

Visy Logistics is a leading privately owned intermodal company, which is headquartered in Melbourne, a city in the state of Victoria, Australia (Visy – For a better World. 2018). Visy Logistics has numerous sites crossing over 120 across many countries like Australia, New Zealand and Thailand .It has established trading offices across Asia, Europe and USA. Visy Logistics has been engaged in freight management activities from 1999.The business of Visy in both Australia and international markets have been instrumental in the development of intermodal freight services through road, rail, sea and air. The paper aims to identify the logistics management strategies for resolving the issues, which are concerned with operational aspects of the company Visy Logistics.  The report discusses the main problem associated with logistics network for Visy Logistics and other related companies, which are located in Melbourne, Australia. It also comprehends the remedy of the problems associated with it. The paper also endeavors to identify the involvement of the government in resolution of the problems associated with current logistics network. The paper also provides an in-depth study about the sustainability of resources associated with the intermodal company, Visy Logistics.  

Visy Logistics which is a leading Australian intermodal logistics company faces a lot of challenges related to demography, geography, environment , legislation and technology as well some other challenges (Fernie and Sparks  2014). Other related companies face these problems and challenges also which are present in Melbourne, Australia.

There are many geographical challenges that can be faced in Australia .There are different challengers and issues related to logistics, which are encountered in both urban and regional areas.  

Urban Challenges

• Congestion of traffic –There is traffic congestion in the cities of Australia majorly in Melbourne, almost every day. The roads are heavily congested during peak hours in the afternoon and morning. The number of cars and motor vehicles running in the roads is increasing day by day so it is becoming very difficult to control the congestion in the road (Yang, S., 2013).
• Changes in road –Sometimes the roads are altered and modified as a result the traffic has to take some unusual routes, where schools may be located as a result heavy vehicles are prohibited from entering those routes.

Regional Challenges

• Distance – The distance is a major challenge for the logistics company like Visy Logistics (Holz-Rau, Scheiner and Sicks 2014).The distance between the cities of Australia is long and there are limited number of petrol stations .So, it is necessary to carry additional supply of fuels . People who are sending freights should be well aware of the long distances between cities of Australia and plan accordingly. There are some sites, which are located in remote areas so the goods senders should plan accordingly. Fatigue of drivers is another issue related to long distances between the cities of Australia. The drivers carrying the freights in intermodal containers can face serious safety issue if they suffer from fatigue (Phillips and Sagberg 2013).It may result in severe fatal accidents.
• Conditions of Road – Most of the road in Australia are in good condition but there are some roads mainly in the regional areas where the condition of the road is pathetic. Due to deteriorated conditions of the road, the duration of the journey of the intermodal transport increases and it can also leads to damage of goods and equipments of the vehicle (Guayante,  Díaz-Ramírez. and Mejía-Alvarez  2014).

Many people in Australia are forced to work even after the age of 65 years so that they can earn for a longer period and for their survival in rest part of their life when they will not be working. In the logistics industry these aged people finds it difficult to keep pace with the fast-paced advancement in technologies, which are made to use in the logistics industry (Kulik et al. 2014). Thus, this aged section of population is a problematic issue for the intermodal logistic company like Visy logistics.

The increase in population in the coastal cities of Australia is also an issue for Visy Logistics and the related companies. With the increase in population the demands also increase as a result Visy Logistics and other related companies situated in Melbourne should make sure that the needs of the people are satisfied .But it is to be ensured that giving extra attention to the cities does not create negligence towards the regional sites. Therefore, the logistics company like Visy Logistics needs to adjust and adapt to the demands in the market in order to thrive.

Demographical Challenges

The Australian legislation possesses a number of different logistics challenges .The challenges vary from operational level of business to strategic level of business. Some of the logistic challenges faced due to the legislation of Australia are:

  Transport Regulation – The regulations that regulate the transport of gods can have an influence on the logistic operations of the Visy Logistics. There may be a condition, which require additional permits or specially designed vehicles in case of special transportation (Forsyth, P., 2017).

Quarantine Investigation- When the goods are to be imported to Visy Logistics and other logistics company in Australia, it is important to take permission from AQIS (Australia.gov.au. 2018). AQIS make a thorough investigation of all the materials coming to Australia, which includes luggage, shipping containers and others. For the purpose of security, random quarantine investigations are also undertaken. For the export of goods from Australia to other countries permits are required too and all the goods for export are critically monitored .So an additional planning is required for these processes .The companies engaged with Visy Logistics should also be aware of the import and export permits and regulations activities . 

Work Safety – Work safety is a major issue that has grown in Australia. In order to increase and ensure safety of the workers the cost for business has been increasing .It has been made compulsory that all the workers should be wearing safety vests, which should be visible. Wearing of these vests is not only a compulsion for the ware house workers involved in operations but also  it is necessary for the employees off upper level management of Visy Logistics to wear these vests .In some works safety glasses, hardhats and boots capped with steel may be also required .

The latest technologies, which are used in today’s world, have brought about new challenges for Visy Logistics and related companies. Even in future, the latest advancement of technologies may lead to other technological challengers for the logistics company like Visy Logistics. Some of the technological challenges faced by Visy Logistics are:

• Additional Costs –The user of new technologies in the logistic intermodal company like Visy Logistics is extremely costly. It is true that by using the latest technologies, the company will gain a strategic advantage as well as it will have an edge over the competitors, but this would require higher levels of investments. Another issue which is to be kept in mind is that the all the necessary and important data of the company needs to be backed up to second or third source for the situations of technology failure . This would also increase the cost of business.
• Regional issues –There are some regional areas in Australia, where it is difficult to accommodate the latest technologies, as it lacks the proper infrastructure. The inter speed is comparatively much slower in those areas and the signals of cell phones are weaker in those areas than any cities of Australia .These may pose problems for Visy logistics when working in sites present in regional areas of Australia .
• Adjustments to the new systems – Shifting and transferring of old data and information to the new system is quite a laborious and confusing task. The companies like Visy Logistics may require external help, which will result in delays in production and distribution.

There are also some other challenges which are encountered by the logistics company like Visy Logistics which are present in Australia. Some of the other challenges are mentioned below.

• Hike in the fuel prices – Because of the rising prices of the fuel there has been lot of pressure for intermodal companies in Australia like Visy Logistics, which rely heavily on road transport.
• Security Issues – There is always an issue of safety, which persists in intermodal service company like Visy Logistics .The risks, includes theft and damage of property. The intermodal containers which carry the goods includes high value electronic goods such as laptops ,mobile phones ,computer equipments and other expensive items like jewelry. It is necessary to ensure that the security system is upgraded for the prevention of theft.
• Market Competitions from the Rivals – There are also some other intermodal companies which are deemed as the direct rivals of Visy Logistics and possess a threat. The rivals of Visy Logistics who enjoys a considerable amount of market share are Linfox and Toll holdings .Any new company who are entering into the market is also deemed as a threat to the company, Visy Logistics.

There are many challenges which the intermodal company like Visy Logistics and other related companies encounters .There are some challenges, which does not have any solution like work safety legislation but the other challenges have solutions .Some of the solutions to the problems faced by the intermodal company, Visy Logistics are:

Legislative Challenges

 Urban Challenges

• Traffic Congestion – For avoiding the traffic congestion, the transport of Intermodal modal companies may take different routes to avoid the congestion and should plan the route before starting the journey accordingly.
• Road Changes –A proper route planning is necessary in order to avoid routes with trouble spots and companies should make sure that most latest and recent information is used . 

Regional Challenges

• Distance – The intermodal company like Visy Logistics should use bigger loads so it will provide greater capacity and the frequency of travel will be reduced. There should be approach of better driver management and compulsive breaks should be taken for long journeys so that the drivers are not fatigued.
• Conditions of the Roads – The conditions of the roads should be improved so that it does not cause any accidents or delay the journey of the transport of intermodal companies. There should also be warning signs present in the roads in case of deteriorated road conditions.  

Demographical Challenges

• Ageing Population – Additional training should be provided to the employees of Visy Logistics so that they are well aware of the latest technologies that are in use in the logistics industry .The method of job rotation should be followed where the aged employees are moved to the areas where the pressure of work is low .

Legislative Challenges

• Quarantine – The Company should be well aware of the regulations. The restrictions and prohibitions associated with  quarantine can be avoided and overcome by being aware of the restrictions and being aware of the regulations while export and import of goods .

Technological Challenges

• Additional Costs – By having a good knowledge of the different technological options the costs can be estimated .A proper planning is necessary in order to apply the latest technologies at the same time maintaining the cost of business of the company (Savelsbergh and Van Woensel  2016). The company may also opt for joint purchases so that the cost burden is shared for the applications of new technological advancement.
• Adjusting to new Technologies – An additional training is necessary so that the employees of the companies do not face any problem in adjusting and adapting with the technological advancements .A overall planning is necessary so that no issues are faced in adapting to new technologies.

The Logistics industry accounts to almost about 9 percent of the GDP (Gross Domestic Product) of Australia. Therefore, it is the responsibility of Australian government to look into the problems of logistics industry and the intermodal companies. The freight market is a difficult and competitive market, still the Australian government plays an important role by opening new trade lanes providing an orientation between the source and destination (Johnson and Garnett  2017). The Australian government also improved the infrastructure that facilitates the growth of intermodal companies .But there are some other factors which should be considered by the Australian government like reduction of import and export costs (Seyoum, B., 2013) . There are some areas in Australia specially the regional areas where the road conditions and other infrastructures like internet connection and cell phone signals are below par, these condition should be looked into and improved. The government of Australia should negotiate trade agreements so that the trade barriers are minimized so that it is easier for companies to make exports and provide services.

It is necessary for the Australian government accept the role of intermodalism in all the transport in Australia .The government should focus more on development of infrastructure by identifying various ways to attract capital like following public-private partnership models. The Victorian  Transport ,Distribution and Logistics Industry Action Plan , has undertaken several initiatives that aims to improve practices of supply chain for all the Victorian Industry ,this would help Visy Logistics being located in Victoria(Aljohani, K., 2016). After the incident of 9/11 the Australian government has improved and tightened the security in Australian aviation and maritime centers, this is a good approach by the Australian government (Hanes, and Machin 2014).

Sustainability is a part of Visy Logistics and they have realized that by following sustainable approach, Visy Logistics have improved market opportunity and reduced unnecessary costs and also increased the profits (Boons and Lüdeke-Freund, 2013) .Visy Logistics aims to achieve the following sustainable objectives:

• Economic Sustainability-  Visy Logistics always endeavors top maintain a sustainable relationships with the suppliers and with the customers .Visy Logistics realized that long–term sustainable relationships are roots of successes for the company .
• Environmental Sustainability – The goal of Visy Logistics is to make optimized use of the environmental impacts (McKinnon et al. 2015) .Visy Logistics endeavors to use the energy efficiently, it encourage recycling , curtail excessive use of water and also makes sure to minimize waste  to the landfills .
• Social Sustainability – Visy Logistics is a leading intermodal company in Australia. They have over 5500 employees working for them. The goal of Visy Logistics is that the impact of the company is positive. They strives to provide a sustainable society by choosing environmental friendly suppliers, provides a safe work place for the workers and they also makes contributions to the community.

Conclusion  

After critically analyzing the operational aspects related to the intermodal company, Visy Logistics, it can be concluded that there several challenges associated with the company, Visy Logistics and other intermodal companies encounters. Several management strategies related to logistics has been identified and discussed in the report .However, these strategies need to be properly implemented so that the challenges faced by the company can be curtailed .The government of Australia showed also play an instrumental role in mitigating the problems and challenges faced by the intermodal companies situated in Australia like Visy Logistics.

References 

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