Supply Chain And Logistics Management Of Brambles Company

Brambles Company Overview

Discuss about the Discrete Event Simulation and System.

The primary objective of the task is to analyze and evaluate the supply chain and logistics management of Brambles Company that is located in Australia. The firm renders crates, pallets and containers to the wide range of customers in the international market. The report explains that how supply chain and logistics management plays significant role in Brambles Company. It has been noted that the firm cannot satisfy the needs of the customers without using effective and unique supply chain and logistics management. Along with this, the paper also explains the issues and challenges related to the supply chain and logistics. The paper outlines that how logistics and supply issues may influence the productivity and profitability of the firm adversely. More detail of the task has been discussed below.

Brambles Limited is a holding Corporation of Brambles Group. The company was incorporated in 1875 having headquartered is located in Sydney Australia. Brambles is a supply chain logistics group who is dealing with load equipment and associated services. Along with this, the firm focuses on the outsourced management of pallets, containers and crates. The organization employs approx 14,000 employees in the organization. It provides pallets, crates and containers through a network of around 850 service centers. Brambles limited is an ASX listed supply chain logistics firm with operations in more than 60 countries. The main purpose of the company is to connect people with life’s essential each and every day. It has been found that the company helps the customers in transporting the goods more sustainability, effectively, efficiently and safely. The firm primarily serves the fast moving consumer goods such as grocery, foods, health and personal care, fresh produce, retail and beverage products. The density and scale of the company’s network permits a quicker and more response strategy to identify and measure the trends and changing requirements of the customers in the global market. It is one of the largest brands across the world (Brambles, 2012).

The mission of the company is to be best leader of innovative business solutions in support services. Along with this, the organization wants to use outsourcing expertise to add exceptional core and effective values in the eyes of the customers. Furthermore, the firm wants to create a superior value through employees and their entering spirit. It has been analyzed that the company believes in diversity, people, safety and teamwork. It also believes in the culture innovation and effectiveness. Brambles is looking to maximize and enhance the quality of logistics services for increasing the level of satisfaction of the customers in the marketplace. The organization is seeking to open and establish business in approx 100 countries to emerge as the leasing logistics service provider in the world. It is noted that the company has already achieved huge popularity in the ample of parts of the market with providing high quality of services to the customers. Thus, it is very much effective and attainable for the firm to expand and flourish the business in more than 100 countries. It has been found that the organization is seeking to develop a long term and effective plans for attaining sustainable growth in the international market. It is noted that Brambles are trying to develop and enhance different operational plans for the various countries to determine and analyze the sustainable growth and success of the market. Along with this, Brambles focuses on the level of satisfaction of the stakeholders and customers as well. In addition, the corporation maintains effective and dynamic core values to gain competitive advantages in the international market. Brambles has also developed and used effective and unique stakeholder’s management strategies for protecting the rights and interest of the stakeholders (Brambles, 2012). It has been noted from the various analysis that the company operates and manages primarily through the IFCO and CHEP brands and handles its business various segments. The company’s operating model pursues the values and standards of the sharing and circular economies that create more effective and unique supply chains by declining the operating costs and demand on natural and attractive resources. The firm renders customers a more effective and sustainable alternative to utilize of disposable products or handling their own proprietary platforms. It is revealed that the firm plays a vital and foremost role in customer’s supply chains, working closely with all participants such as retailers, producers, manufactures ad growers. By reducing the need and requirement for the consumers to purchase and handle their own platforms, the firm reduces the capital needs and density of customer’s operations while concurrently decreasing waste from their supply chains. It is noted that Brambles supply chain solutions provide support to the clients for addressing and handling their key sustainability issues by managing deforestation risks and preventing the carbon emissions in the marketplace. The organization creates values through a virtuous circle to attain superior operational effectiveness and efficiencies.  Moreover, the firm is maintaining favorable working environment and corporate culture at the workplace. It provides ample of facilities to the employees to attract and retain maximum number of candidates towards the organization. It serves the consumer goods, fresh food. retail products and dry grocery products in the global market. Aside this, the firm has specialist business serving the automotive manufacturing, oil, gas and aerospace sectors.

SWOT analysis

SWOT analysis plays a significant role in each and every company to analyze and evaluate the opportunities and risks of the market. It also helps in gaining competitive advantages in the international market. No company can sustain and make an effective and unique image in the marketplace without using SWOT analysis. The SWOT analysis for Brambles Company has been detailed below.

Strengths of Brambles Limited

• Brambles is one of the significant and effective leaders in the supply chain management and solutions. It provides ample of solutions for different problems that faced by the company while conducting business activities and operations globally.
• It has strong and unique performance in FY 16 with upgrade in FY 17 guidance.
• The company has been able to gain competitive benefits by providing unique and effective network to the customers in the global market. There is no primary competitor except for regional leaders.

Weaknesses of Brambles Limited

• Weak and poor EMEA markets leading to lower overall growth rate.
• Aside this, the firm is depending on the North American markets. It affects the image and success of the firm adversely.

Opportunities of Brambles Limited

• The company has an option or opportunity in IFCO reusable plastic containers business space in North America and Europe. It will help to beat the competitors in the global market.
• The firm can expand and explore the business operations and activities in emerging markets.
• Brambles BXB digital push into big data analytic and internet of things.

Threats

• Impact of currency fluctuations on earnings and revenue. This could lead to great losses in the competitive market.
• There is high and immense competition in the market and furthermore, there is major recession in key various economies. All these things put adverse impact on the outcomes and profitability of the firm.

The 3PL and 4 PL logistics play a vital role in the transportation company to gain competitive benefits in the marketplace. Third party logistics companies handle and manage physical distribution and logistics (Christopher, 2016). The 4PL does not stop at outsourcing logistics services but they outsource the management of said services. It provides procurement, distribution and storage services (Hingley, Lindgreen, Grant and Kane, 2011). A third party logistics in supply chain management and logistics is a company’s use of third party businesses to outsource the factors of the company’s distribution and fulfillment services (Sanders, 2012). A third party logistics is one who that works with shippers in order to manage and handle another company’s logistics operations department (Dekker et al, 2013). On the other hand, 4 PL is another and significant concept that is also used by the companies. 4PL is an integrator service provider that accumulates capabilities, resources and technologies to run the business and resolve the supply chain solutions. The 3PL targets a single function whereas the 4PL manages and handles the entire process. A 4PL might manage and handle the functions of 3PL. The 3PL provides various services such as integrating operations, transportation services, warehousing, packaging, freight forwarding, cross docking and inventory management services. These services are customized and scaled to the customer’s specific requirements, needs and wants based on their market situations and the different demands and delivery services needs for their specific material or products (Gunasekaran and Spalanzani, 2012). There are various types of 3PL such as standard developer, standard, customer adapter and customer developer. In today’s era, 3PL plays a significant and effective role in the transport and logistics industry. It has been noted that Brambles limited is relied on the third party logistics for warehousing, service, transportation, packaging and shipment. Along with this, the firm focuses and monitors on the competencies and capabilities of the firm by using 3PL in the marketplace (Gold and Seuring, 2011).

On the other hand, the functions are provided by a 4PL company includes procurement, distribution, processes and storage. Beside this, 4PL is used and initiated by the logistics networks to reduce the logistics cost and increase the efficiency of the firm. Apart from this, it also helps in declining the transaction cost and furthermore the company has been able to maintain reciprocal and strong relationship with customers in the global market. The 4 PL also provides a high quality of experience to the customers and increase value chain integration in the marketplace. It also helps in providing wider supply chain network to the customers across the world. 4PL is suitable and effective to meet the long term requirements and needs of the clients (Lindholm and Behrends, 2012).

3PL and 4 PL logistics

After the various researchers, it has been found that logistics is an important part of the Brambles Company. The worldwide trend of climate change and globalization has led to Brambles Company outsourcing their logistics functions and operations to third Party Logistics Company. This helps them to watch more on their core capabilities and thus they generate higher profitability. Despite of the massive growth of the 3PL industry, 3PL Company Such As Brambles faces ample of challenges and issues while serving the customers around the world. Finding of new talent is one of significant and effective issues for the 3^rd party logistics. This is ongoing challenge being faced right now by the 3PL industry and requires a high level of attention. Brambles Company is unable to find the right and appropriate candidate for the right and effective vacancies. The lack of effective and unique candidates leads to loss productivity and efficiency and 3PL business traditionally has been a high churn operation. As a result, Brambles Company finds it really complex to find the right and appropriate person for the unique and right job (Gupta, 2016).

 Lack of good reporting system is another issue in 3PL logistics that is encountered by Brambles Company. In a midsized 3PL rendering corporation, it is hectic task for the company to track all the data related to the shipments where are sent out (Carpaneto et al, 2015). The task having to ask the question from the vendors about the shipments to generate a monthly statement is a challenging and painful job (Nikolaou, Evangelinos and Allan, 2013). In addition, the company is only in investing in reporting system which affects the outcomes and revenue in the competitive market. Increased emphasis on regulations, policies and rules is also further challenge for the firm (Huang et al, 2013). In 3PL logistics, the company buys the products and services from the other countries thus various challenges and issues are handled by the company. If the company purchases the products and services from the different countries then they will have to follow shipping rules and regulations of the various countries and regions. Each and every country has its own rules, laws and regulations hence the company need to be learned and updated with all these rules and regulations to trading and conducting business without any obstacles. Transport providers and service providers as well also play a foremost role in supply chain operations and logistics management. Usually, Brambles Company ignores the mundane side of transportation and physical distribution. The lack of collaboration and cooperation between the carriers, shippers and end customers could put the adverse impact on the functioning and operations of the supply chain management. Lack of infrastructure is a biggest challenge for the firm (Soni and Kodali, 2011). Some of the logistics issues may include poor connectivity, bad road conditions, storage, inadequate air and sea port capacities. All these issues can affect the financial image of the firm negatively. Shipping requirement is another issue in 3PL logistics whereas some specific cases the company is unable to meet the particular needs, and demands of the shippers. The shippers are disappointed and dissatisfied with the some of the elements provided to them such as on-time- delivery, packaging and customer service. These are the main issues in 3PL logistics that are entertained by the company while operating its business operations worldwide (Dekker, Bloemhof and Mallidis, 2012).

Delivery is also an important issue in 3PL logistics. The company needs to analyze and evaluate whether how to develop and enhance their technology and information system to prevent the various issues and challenges (Bourlakis and Melewar, 2011). It is time taking process that can affect the outputs of the firm negatively. Air services also have adverse impact on the sustainability of the firm. In addition, the company is unable to deliver the goods and products timely because of the shortage of material and bad weather. Due to lack of effective and efficient management, the firm is unable to make unique and effective decisions within the organization. Besides this, Brambles uses traditional technology and resources thus the firm is unable to meet the long term requirements of the customers. The fuel cost and labor shortage also affect the financial image and goodwill of the firm negatively. It has been revealed that increasing and growing fuel prices maximized the wages and peaking inflation indexes in tandem to enhance the transportation costs regularly. Manpower management is another serious concern for the company that affects efficiency and effectiveness of the workers negatively and along with this, freight rate volatility also has direct impact on the sustainability and productivity of the company (Zacharia, Sanders and Nix, 2011).

Competitors also affect the revenue and outcomes of Brambles negatively. PRENT, Inteplast group and IGPS are the main competitors of the organization. In addition, the organization is unable to maintain sufficient level inventory within the organization. Sustainability and supply chain emissions are also biggest drawbacks for the firm. Emissions from Brambles logistics network such as trucks, aircraft and railways and some of the emissions come from consolidated delivery (Dekker, Bloemhof and Mallidis, 2012). These types of emission are occurred due to lack of actions taken to reduce and prevent such types of occurrences. Carbon offsets also affect the returns and outcomes of the firm. High prices of fuel another reason that could have direct impact on the performance and results of the firm. Management issues also are faced by Brambles that could lead to great losses and damages in the competitive market. Sometimes workers go on strike hence it may influence the financial position of Brambles negatively. The employees go on strike because the organization is failed to provide additional benefits and incentives to the workers (Holguín-Veras et al, 2012). Apart from this, the firm is unable to encourage and motivate the workers for performing roles and responsibilities effectively. All these things put great and adverse impact on the dynamic goodwill of the corporation. Demand planning is also a biggest hurdle for the company because the firm is facing difficulties while dealing with forecasting demands and requirements. Poor visibility issue is also encountered by the company. The system that used by Brambles Company is unable to provide right and adequate information to the customers in the global market (Perego, Perotti and Mangiaracina, 2011).

Integration refers to the making the activities together to complete the task and it should be done on time. The brambles focus on bringi9ng the effectiveness in the process of logistics that each element should do its part on the time. Integration in the logistics also includes the internal integration as well as external integration. In the internal integration, the integration is done between the employees and the information shared to them whereas in external information the factors affecting the distribution will be considered (Fernie and Sparks, 2014).

Movement of information in the handling the logistics and distribution of goods and services is important. If the proper information is not transmitted then the wrong delivery of goods or services can be done by the distributor. All the delivery and information should be done accurately as it is the bases for the decision making process. In this the handling of the customer queries and other problems are discussed and handles by the company (Farahani, Rezapour and Kardar, 2011).

The movement of the product is also one of the logistic issues faced by the brambles. The logistic department of the brambles aims to provide the material on low cost at their convenience to their customers. The focus of the company is to reduce the inventory level in the business so that blockage of funds should be reduces and that funds can be used in other places. The movement can be more in geographical region so the proper channel of distribution should be formed by the company. This may require a multi-mode or multi-carrier to keep the global supply chain smoothly (Mangan, Lalwani and Lalwani, 2016).

If the organization does not follow effective and unique business process management then ample of logistics issues would be faced by Brambles Company (Min and Kim, 2012). Taking the advantages of the new and innovative opportunities, the firm needs to focus on the technology and process in the marketplace. In addition, the firm is unable to provide long term profitability to the employees within the organization. Storage issues also are handled and managed by the company while running the business operations globally (Stadtler, 2015).

There are various methods to reduce and prevent the 3PL and 4PL logistics issues within the organization that have been discussed below.

• One of the significant and effective factors that must be concentrated is logistics management which covers all the activities such as transport, procurement, transshipment and storage of goods. Along with this, the company should focus on the true cost of the sourcing overseas that helps to calculate the duty, freight, and brokerage costs.
• In addition, Brambles needs to focus on eliminating and preventing the variability from transit times. It will also helps in reducing the logistics and supply chain issues within the organization (Wang, Lai and Shi, 2011).
• The firm should consolidate their products and services into one shipment to deal with multiple suppliers in the international market. Apart from this, the firm should make effective and unique decisions after considering the needs, requirements and wants of the customers. In addition, the company should also focus on the effective and unique supply chain management to attract more and more clients in the global market. Effective and unique leadership team must be appointed by the organization to fulfill the requirements of the supply and logistics of the firm (Tako and Robinson, 2012).
• The organization should also decrease freight costs through the better truck utilization in both full (FTL) and less than (LTL) truck load shipments. The company should also reduce the damage to case picked pallets by reducing and preventing movement in transit. Better and unique utilization of resources must be done by the firm to handle the logistics and supply chain issues. Besides this, Brambles should encourage and promote the organized operations which are directly connected to the labor force (Govindan et al, 2012).
• It has been analyzed that the company must consolidate loads with like shippers to reduce and prevent the high logistics costs in the workplace. In addition, the firm should integrate data from the fulfillment and sales system. It will help to reduce and prevent the supply chain issues within the organization. Furthermore, the company should reduce the logistics costs with a virtual logistics capability and resources.
• The firm should provide attractive incentives, bonus and other benefits to the employees to satisfy and fulfill their needs and requirements in the workplace.
• A favorable working environment and culture shall be created by the organization to make happy the employees and customers as well. Along with this, Brambles should be aware of the non tariff barriers and issues to beat the competitors in the international market (Huang and Gramopadhye, 2016).
• Sufficient inventory level shall be maintained by the corporation and on the other hand, the firm should conduct a audit to determine and analyze the availability of stock in the workplace. All these actions will help the organization to handle and reduce the issues related to the supply chain and logistics issues.
• Effective and unique system shall be maintained by Brambles company to find out the right and appropriate information and data. Along with this, the firm should maintain sustainability at the workplace to carry out the business successfully and effectively (Seuring and Gold, 2012).

Conclusion

On the above mentioned analysis it has been concluded that Brambles is providing pallets, crates and containers to the customers in a hassle free manner. The firm operates its business functions in around 60 countries in the world. It is one of the biggest and unique supply chain logistics companies in the world. The firm sells its products under the brand name such as IFCO and CHEP. Here is the discussion about the supply chain and logistics management. The paper discusses that how the company is facing logistics issues within the organization while initiating the business activities and functions worldwide. Third party logistics and fourth party logistics issues have been explained in the task widely.  At the end, some recommendations have been suggested to handle and overcome the logistics and supply chain issues in the Australian market.

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