Discuss about the Logistics & Supply Chain Management for NSW.
Logistics management is the part of supply chain management (Farahani, Shabnam Rezapour & Kardar, 2011). It refers to the effective and efficient working of the process of the point of origin on the manufacturer’s part and point of consumption on the customer’s part in order to meet out the demands of the customers. This involves all the information, storage, inflow and outflow of goods and services. It is important because it manages the overall functions of the organization and not just parts of it. It adds value to the goodwill of the company. The current report is on the Qube Holdings of Australia which is in Sydney, NSW. It was founded in 2010 and it deals in logistics and infrastructure (Qube, 2017). The report will discuss the problems that are faced by the organization occurring in the current logistics network of NSW, the solution to resolve the problem and the role of NSW government in resolving the problems. Apart from this, it will also discuss the logistics strategies to resolve the problem and recommendations.
When it comes to logistics the first word coming to the mind is transportation but it is more than that because it involves various other important activities also (Zezzatti & Ochoa, 2012). The problems/challenges that are faced by the organization in the current scenario are of various types: Geographical, legislative, environmental, technological, demographical and other challenges (Stewart, 2011). These are needed to be taken care of in order to have a systematic functioning of the whole of the organization.
It can be further divided into two which are regional and urban problems. These are related to the natural or man-made structures of the Earth.
The urban problems that the logistics organization faces are the toll roads, traffic jams and changes in the roads. These problems affect the proper transportation of goods and services and therefore, the working of the organization (Fernie & Sparks, 2014). Traffic congestion is a daily challenge for the company especially during the peak hours which affects the smooth functioning of the organization. Road changes are another big task for the logistics company in order to meet out the day to day functions. There is one-ways on roads which many a times increases the travel time of the drivers. Roads which have hospitals and schools usually prohibit the entry of heavy vehicles. Free and motorways are constructed in order to avoid the problems of traffic jams but these have toll roads which incurs cost to the companies. In relation to this the companies are required to keep aside the toll expenses for the smooth functioning and to keep the process going. This will also enable the companies have a regular and efficient route.
They are related to the conditions and network of roads present across the country. In respect to this company face problems of the poor conditions of the roads which increases the travel time and also the chances of mishappening during the transit. It also deals with the problems of the non-connectivity of the roads with the parts of the city. Less number of the petrol pumps on highways and freeways is also another big problem. Animals are one of a great threat while travelling as they come in between the roads. Hence, they are a threat to not only the goods rather also the people.
They are those which are related to the national regulations which are imposed on transportation of goods and services. The funds provided by the government are withdrawn because of their strict budget. Railways and roads inaccessibility is also a hurdle for the logistics. Inspections on the export and import of the goods will involve time and therefore, will lead to loss of business to the company.
The above challenge has evolved over the period of time in order to encourage companies to go green and protect the environment around them. This involves the problems related to the awareness of the climate conditions. One of the big problems is to operate by reducing the waste of the companies in order to promote the company towards the sustainable working. Natural calamities are also one of the obstacles which can affect the logistics management.
These problems are associated with the risks which are involved with the technological up gradation which results into huge costs. Another problem is the extreme dependence on the technology as most of the information is saved in the systems. Installation of new systems is another problem as employees need time to cope with them. This involves training cost and time required to update the information in the new systems.
Demographic factors like age are a barrier as the older people who work even after their retirement age in order to have money for their future life. They act as a barrier as they have occupied the opportunities of the young people. They are very much rigid to changes and new advancements taking place and it is also very difficult to train them in comparison to the old people. Physically also they are weaker as compared to the young ones.
Some of the other challenges are the threat to market entrants, increase in the prices of fuel, safety of the goods and maintenance. Threat of new entry will reduce the market share of the company. Increase in the fuel prices will increase the overall cost which will therefore, pass the burden of the cost to the ultimate consumers by rise in the prices. Maintenance and safety of inventory and goods in transit involves costs to the company.
For resolving the problems in logistics companies should follow the logistics process which is divided into four steps: acquisition, distribution, sustainment and disposition. The problems discussed above needs to be solved as the company should pay more attention in planning and implementation of the logistics because the whole organization depends on it. Coordination among the factors improves the working of the organization (Christopher, 2016). The managers should organize meetings with the workers and the drivers because they are the key people who will execute the task planned by the mangers. Mangers will have to make them understand the problems which might occur in the execution and the ways through which they can get rid of it. Training should be given to the people involved in the logistics management regarding the material handling, order fulfilment, customer service, warehousing, transportation management and inventory and freight management.
Route planning is very much important as far as the transportation of goods is concerned. Driver training is very important for the fuel efficiency. The company should recruit those who have experience and knowledge of routes and the ability to deal with problems that might occur during transit. The pricing of the transportation must be commodity based and the mode of transportation can also shift to a cheap mode in order to make the organization competitive in the market. Reduction in the costs of freight will therefore, lead to the cheap transportation and finally, decrease in the prices of the product (QUBE, 2013). The company should select the mode of transport with proper analysis so that unwanted expenses incurred while choosing an expensive mode can be reduced. The company should make an on-going effort for improving the production methods in order to reduce the amount of wastes. They should also use advanced green technologies in their warehouses like solar plants to save the electricity and reduce their costs.
Employee satisfaction is also very important factor for the management of inventory as the more they will be satisfied with their job the more they will be productive. This can be done by reducing their pressure by allowing them to take breaks in their work to relax and release stress. Proper cooling stations should be present in warehouses in order to get rid of the heat. Company should also go for job rotation for the employees who are older so that younger people can come forward and perform. The older ones should be given training and support for their new roles. Quotas should be framed in the company policy for the people working above the age of retirement. The company execute the logistics strategies into steps to ensure smooth functioning and enable corrective options to be taken then and there. Restrictions related to the import and exports should be strictly followed so that the company do not enter into any violation of the rules. Moreover, if they follow proper guidelines they will make plans for future.
In any economy, the role of the government is very much important in order to control the market functioning. The government formulate rules and regulations for the export and import policies of the country (Decker, 2014). They formulate and implement tariff and non-tariff barriers on the movement of goods and services in order to control the in and out activities of companies dealing in logistics of goods and services. The current company works under the NSW government, Australia. Therefore, the government also plays a vital role in solving the problems of logistics and supply chain management of company across the country. The role of NSW in the resolution of problems can be that the government will have to work on the improvement in the road conditions because it is a continuous process. With respect to this it the responsibility of the government to manage and take care of the infrastructure and development of the country. Government should also take initiatives as far as the green technologies are concerned because with their help only the wind and solar plants can be evolved. Better roads will ensure better travel i.e. roads with warning signs, directions and proper road lights will help less of mishappening and smooth functioning. Regular monitoring and improvement of the early roads should be done by the government. All the freeways, motorways and toll roads should have feedback and grievance cell so that travellers can communicate their problems and suggestions to the development department. This will ensure the growth of country as well as the companies. In relation to this revenues of the companies will increase the per capita and national income of the country. Government should improve the public transport facilities so that transporting of heavy loads can be done through them. Like, railways can be better option for heavy loads and it is also cheap in comparison to other means of transport. Government can also provide land space to the owners of the warehouses away from the city area in order to ensure smooth functioning entire day. Specific timings can be set for the heavy vehicles especially timings other than the office timings. In addition to this, it will benefit them as this will reduce the travel time because of less rush on roads. Modification of roads is also a big need in order to provide good experience to the drivers as this will give them satisfaction and motivate them to take trips for any of the areas and not be specific for routes. Hence, the government is one of the important factors in dealing with the logistics and supply chain management across the country in respect to the study of problems and their resolution.
Conclusion
The current report concludes that the company working in the logistics and supply chain management has to take care of various problems and challenges that come in between their processes. Analysis of such problems and their corrective solutions are required from their part. This step will ensure the process as completed when they will deliver the right goods and services at the right place and on the right time. The role of the NSW government is very important as they will help in the effective running of the companies because government intervention is essential with respect to the setting of policies which will encourage the businesses to earn and therefore, the better income of the country.
On the basis of the above report this can be recommended that the company should introduce new ERP systems so that this will help in multiple tasks like providing real time data, tool for the employees, each department will be connected, increase the transparency and decrease in their miscommunication. Internal training should be given to the employees of the whole process and understanding of the supply chain management process. Apart from this, there must be backup plans ready for any failure or risks which might occur anytime. An efficient logistics coordinator should be appointed who must have real time experience in the same field and the ability to coordinate among different people and centres like manufacturing plant, suppliers, distribution centres, assembly plant, dock, carrier, freight forwarder and customer. The right candidate should also have a team of people to manage all the above responsibilities. Management of costs is also a great concern for the company as the high logistics and supply costs will increase the price of goods and services and the consumer’s expectations are low with respect to the price of the product. Therefore, costs are needed to be managed. Strong supply chain network is also advisable to the company in order to avoid the unnecessary delays in dispatch and deliveries. The network will deal with all the activities of demand, supply, manufacturing, transportation (international and domestic), inventory and distribution (scdigest, 2012).
References
Christopher, M., 2016, Logistics & supply chain management, Pearson, UK.
Decker, M., 2014, Last Mile Logistics for Disaster Relief Supply Chain Management: Challenges and Opportunities for Humanitarian Aid and Emergency Relief, Anchor Academic Publishing, Deutschland.
Farahani, R, Rezapour, S & Kardar, L., 2011, Logistics Operations and Management: Concepts and Models, Elsevier, Walthman, USA.
Fernie, J. & Sparks, L., 2014, Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan Page Publishers.
QUBE, 2013, Submission to the review of NSW rail access regime, viewed 20 January 2017, from https://www.transport.nsw.gov.au/sites/default/files/b2b/freight/rail-access-review-qube-logistics.pdf.
Qube, 2017, viewed 20 January 2017, from https://www.qube.com.au/about/history.
Scdigest, 2012, Recommendations for supply chain visibility success, viewed 21 January 2017, from https://www.scdigest.com/ASSETS/ON_TARGET/12-05-01-1.php.
Stewart, N, 2011, Australian logistics challenges and solutions to overcome them, viewed 20 January 2017, from https://www.theseus.fi/bitstream/handle/10024/35105/Stewart_Neil.pdf?sequence=1
Zezzatti, O & Ochoa, C, A., 2012, Logistics Management and Optimization through Hybrid Artificial Intelligence Systems, IGI Global, USA.
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