Challenges and Solutions in International Supply Chain Management

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INTERNATIONAL SUPPLY CHAIN MANAGEMENT
Name
Institution Affiliation
Date

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International Supply Chain Management
Executive Summary
The logistics business in New Zealand grows at a rapid rate considering the conducive
environment and a booming economy. However, owing to the vast geographical and
demographic nature and status of the country, logistics companies face a lot of problems. This
report looks into the challenges that these companies face in Australia, and the recommendations
for tackling the problems using the case of Aurizon, one of the largest logistics companies in
Australia. To better understand the background of the problem, the report begins with:
A) the introduction of the Aurizon logistics company and the logistics business in
general. The company introduction paves way for introducing the methods that were used in the
research.
B) The methodology section demonstrates how the company website and other online
sources were useful and resourceful in conducting qualitative research.
C) For a better understanding of the supply chain performance, the report goes ahead to
describe and discuss some of the factors that affect the business operations of the logistics
companies.
D) Before introducing the challenges faced by the logistics company, the report
recognizes the supply chain process and structure of Aurizon Logistics Company, which also
serves as a representation of other logistic companies. This section extensively examines the vast
areas of operations that Aurizon does business. That provides an efficient way of introducing the
challenges faced by the company and other Australian logistics companies.
E) The supply chain challenges are then discussed in the report, varying from
environmental challenges, transportation challenges, and the regulations challenges. The

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Australian logistics companies thrive in all the issues of logistics because of their resilience to
overcome them.
F) Solutions
Companies like Aurizon have made great strides in overcoming the transport challenges
through the reliance of containerization and the reliance on rail as a means of transportation.
Another way that the company has managed to overcome the hurdle of logistical challenges is by
utilizing technology. To finalize on the report, recommendations to overcoming the challenges
are suggested.
Introduction
The logistics business is one of the most booming businesses in Australia. That is mainly
because of the large deposits of minerals across the country, especially coal. Therefore, Australia
has many sites for mining minerals that require transportation. Apart from minerals, other
commodities such as goods purchased from stores and other sources need transportation. It is
with that need that there is a vast number of successful logistics companies in the country that
connects businesses to businesses and customers to businesses. These logistics companies have
not only concentrated on the local Australian market but the international markets as well. This
report aims at discussing some of the supply chain challenges and problems that the logistics
companies in Australia face. For more clarity and precision, one of the leading logistics
companies in Australia, Aurizon has been used as a case. Being one of the oldest and most
successful companies in the logistics sector, it serves as a good example. The report provides
some of the insights into the logistics business by focusing on what Aurizon does and the
common challenges that it faces in its daily operations. In addition, this report looks into the
factors that drive the success of Aurizon Company in Australia. Some of the challenges that

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featured in this report include the transportation challenges, environmental challenges, natural
calamities and the challenges of red tape regulations.
Description of Aurizon
Australia bears a geographical, geographical and political conditions combination that
creates a unique environment for logistics companies with diverse challenges. Aurizon is one of
the leading logistics companies in Australia and plays a critical role by growing regional
Australia through the delivery of bulky commodities globally (Aurizon.com.au 2019). For better
fulfillment of its obligation, Aurizon concentrates on three avenues namely; Coal, Network, and
Bulk. The company is also a leader in the service of rail engineering, design, construction,
maintenance, and management, offering supply chain solutions on a large scale basis, to a
diverse range of clients or customers. Aurizon’s future value and current success are connected
to the resources sector of Australia in the global markets and the resilient in strength, of the
Australian economy (Aurizon.com.au 2019). The company benefits greatly from the long-term
coal and iron ore demand especially from fast-growing economies of Asian countries like Japan,
China, and India.
The Aurizon operation map is shown below