Discuss About The Minimizing Costs In The Modern Warehouse?
Logistic management is an integral part of modern business organizational structure (Fernie and Sparks 2014). It has become mandatory for the every business organization to maintain a stable logistic management in order to provide high quality service to the consumers on the promised time. In recent era, all the leading business organizations are incorporating effective strategies to increase competitive advantage of the organization (Christopher 2016). In this scenario, an organization called Standard Mining and Co. has planned to purchase locomotives and wagons from the overseas suppliers. Being logistic manager of the organization, it is important to enlighten the organizational authority about various challenges and issues they may face while operating their function, the activities they will be needed to perform while bringing up Wagons and Locomotives from different parts of the world.
The article aims at providing broader picture about the logistic issues often faced by the business organization while performing their organizational operations. The report has articulated highlighted various aspects of logistic management, such as- inland activities, port activities custom issues and so on. Some recommendations have been presented to help the Standard Mining and Co so they can achieve their long-term organizational goal in an appropriate manner.
There are some key challenges that are often faced by the business organizations now a days while operating their business in the local as well as global context, they are as follows:
The advancement of technology has transformed the structure of the business world in recent era. It has opened a new path for e-commerce organizations. People are now a days preferring e-commerce stores due to their busy schedule. It has challenged the existence of physical stores. It has led the leaders of the business organizations to perform more efficiently. Thus, it works as a major challenge for the logistics mangers. Organizational managements are now a days creating pressure on the logistics management to give best performance to meet the expectation level of the consumers, which will help the organization to battle against external challenges. Otherwise, it will be difficult for the business organizations to survive in the competition with the virtual stores (Omary and Kalinga 2017).
With the advancement of modern technologies, the demand level of the consumers is increasing day by day. They want all their desired products within a short time. This works as a threat for the logistic service. They are expected to perform in such a manner, so they can meet the expectation level of the consumers. Consumers now want complete transparent service from the business organizations. They want to track all the activities of the logistic service after placing their orders. Thus, it has become important for the business organizations to enhance their capacity to provide high quality service to the consumers (Sze et al. 2017).
The rise in the capacity of the business organization is increasing complexity for the business organization. In recent time, the consumers can easily place their orders to the business organizations from anywhere anytime, which was not possible for the business organizations earlier. Eventually, it has increased the demand and expectation level of the consumers. However, it has challenged the capacity of the business organizations. Business leaders are incorporating modern and scientific techniques within the organizational structure every now and then in order to increase the potentiality of the logistic service, so they can provide high quality service to their target market (García-Pardo and Márquez 2014).
Every business organizations must follow some steps while importing any goods via sea, such as:
According to the Australian government all the goods that will be imported from other countries must be cleared through border. There are no license required for the importing any material. Australian govt. will clear all the goods on borders. Depending on the quality and price of the products, tax and GST will be included in the product (Forsyth et al. 2014).
The Australian Quarantine and inspection Service (AQIS) is responsible to maintain the export and import service of the Australian business organization. Every business organizations require the permission of the AQIS (Watkins 2017). Thus, in this scenario the Standard Mining and Co. will be required its permission for importing Wagon and Locomotive from the overseas dealers. The organizational management must consider the fact while designing their supply chain and logistics management. There are some rules that need to be followed while bringing up any goods into Australia, so the organizational management must design their organizational structure accordingly. There are some guidelines by which the Standard will have to submit the application to the AQIs before importing any material or product to the Australia. By following this method and availing the permission of AQIS can safely import products in Australia, as AQIS will take care of the goods in the border (Mugg, Hawkins and Coyne 2016).
The organizational management of Standard Mining and Co. must observe the importance of Warehouse in order to manage the organizational function. Warehouse plays most effective role in mining and material industry. There are some responsibilities that are played by the warehouse, such as- effective use of space, effective use of equipments and all the available resources and so on (Son et al. 2016). Warehouse managers must be aware of some key responsibilities, they are as follows:
However, the organizational management must observe the fact that there are some tolls that can be used to manage the warehouse and its activities, such as- Warehouse Management System (WMS) (Ding 2013). It helps the responsible managers to maintain all the stock and manage day to day operation of the organization. This Warehouse management system is highly updated and can provide better service than earlier warehouse management. The primary objective of the warehouse management has not changed with time. It remains same. Thus, by introducing modern techniques in the system, the efficiency level of the whole process. By using Warehouse System Management Software, business organizations can easily keep the records of all the stocks and maintain all the materials in an appropriate manner. Hence, in order to provide better security to the inventories, the hierarchy of Standard Mining and Co. can use this method to manage their warehouse activities (Richards 2014).
There are some steps that can be followed to implement warehouse management system properly within the organizational structure, such as-
The organizational management must consider the expectation level of all the stakeholders, warehouse managers and operational managers while designing their warehouse management system. All of the organizational members will keep different type of expectation from the newly implemented warehouse management system, such as- warehouse managers expect the system to be more user friendly than earlier. On the other hand, the operational managers expect that system will be speedy to manage the organizational function in an appropriate manner. The system must be designed according to the desire of all the internal and external stakeholders of (Atieh et al. 2016).
The new warehouse management system must be capable of preventing risks. The risk level of the system must be lower than previous system.
After implementing the warehouse management system, the organizational managers must obtain the feedback of organizational members to ensure that the system is performing in an appropriate manner.
While implementing the new warehouse management system, the organizational management of Standard Mining and Co. must make a proper schedule. It is often evident that warehouse management system fails due to the lack of an appropriate schedule.
The system must be customized to match the requirement of the potential consumers.
It is not possible for the employees to get trained with the new techniques and system of the modern warehouse management system. Being one of the key parts of the whole system they must have clear idea about it. Thus, it is organizational manager’s responsibility to provide sufficient knowledge about the system (Hufschmid and Collett 2016).
Risk management plan is considered as a key part of the organizational structure of mining companies. Employees of the mining industry always deal with heavy materials and heavy instruments. Thus, it is important for the organizational management to provide safety and healthy working environment to their organizational members. There are some key steps that can be considered by the organizational higher authority while incorporating risk management plan within the organizational structure, they are as follows:
Fig: Risk Management Plan
Source: (Chan et al. 2014)
Identification of Risk: The primary stage of risk management plan is the identification of risks. The success of the whole plan is highly dependent on this stage (Chan et al., 2015).
Assessment of Risk: By keeping all the previous records and consulting with other members of the organization, operational managers can identify the risk and its nature. It will help them to measure the hazards and how it will impact on the organizational function. This will help the management to determine the method to control the risk (Chan et al. 2016).
Selection and Application of Controlling Method: By assessing the effectiveness, the organizational management will be able to identify the effectiveness of the risks. This will help the leaders to identify the most suitable and appropriate method to prevent the risk to manage the organizational function in an appropriate manner. In order to identify the most effective method to choose the best method for the organizational risk management, the risk management team must obtain enough information about the method and organizational structure. It will help them to select the most suitable method to risk management for the organization (Chan et al., 2015).
The next step is to apply the method within the organizational structure. In order to apply the method properly, the managers must provide sufficient knowledge to the organizational members about the method and its use, so they can adopt the techniques easily. It will increase the effectiveness of the risk management process.
Maintain the Control and Measure: After implementing the risk control method within the organizational structure, the higher authority must maintain the function properly and measure the fact that the method fits for the organizational function or not (Chan et al., 2015).
Monitor: The organizational management must monitor the operation of the risk management plan every now and then to make sure that it is performing in an appropriate manner. It will help them to identify any loopholes within the plan and rectify it as early as possible.
By discussing the previously mentioned steps, an organization will be able to provide sufficient safety to the employees within the organization. At the same time, they will be able to avoid many external and internal risks.
Conclusion
As pre the previous discussion, some recommendations can be presented that must be followed by the hierarchy of Standards Mining and Co., they are as follows:
The organizational management must conduct training and development program for their employees, logistic managers and other members of logistics management to introduce them with the new risk management plan, and warehouse management system. It will help them to adopt modern techniques properly and participate in the organizational function in an active manner.
The operational managers must maintain all the important records and documents, which will help them to identify any risk and measure the development of the logistic service as well as organizational function. By maintaining all the records and important documents the organization can easily import their products from various corners of the world. It will help them to clear the borders properly
Reference:
Atieh, A.M., Kaylani, H., Al-abdallat, Y., Qaderi, A., Ghoul, L., Jaradat, L. and Hdairis, I., 2016. Performance improvement of inventory management system processes by an automated warehouse management system. Procedia CIRP, 41, pp.568-572.
Chan, M.J., Hsu, C.N., Wen, Y.H. and Wang, Y.C.L., 2014. Does a Risk Management Plan Increase Safety Monitoring for the Use of Tumor Necrosis Factor-alpha Inhibitors?. Pharmacoepidemiology and Drug Safety, 23, pp.4-5.
Chan, M.J., Huang, Y.B., Wen, Y.H., Chuang, H.Y., Tain, Y.L., Wang, Y.C.L. and Hsu, C.N., 2016. Compliance with risk management plan recommendations on laboratory monitoring of antitumor necrosis factor-α therapy in clinical practice. Journal of the Formosan Medical Association, 115(2), pp.83-93.
Chan, M.J., Huang, Y.B., Wen, Y.H., Chuang, H.Y., Tain, Y.L., Wang, Y.C.L. and Hsu, C.N., 2015. Compliance with risk management plan recommendations on laboratory monitoring of antitumor necrosis factor-a therapy in clinical practice. Journal of the Formosan Medical Association, 20, p.1e11.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
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Forsyth, P., Dwyer, L., Spurr, R. and Pham, T., 2014. The impacts of Australia’s departure tax: Tourism versus the economy?. Tourism Management, 40, pp.126-136.
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