Challenges Faced by Logistic Industry After Brexit

Global Business
Management

BUSINESS MANAGEMENT 1
Introduction
Operations Management is the administration of business practices to develop the highest
level of efficiency possible within an organisation. It is the process in which the material and
labour converts into goods and services to earn the high revenue. UK leaves the EU and
cancels their agreement which is called Brexit (Bromiley, and Rau, 2016). The industries
facing the challenges at the time of UK exit from EU. Logistic industry is one of those
industries which face the challenges. The report will talk about the different challenges faced
by the logistic industry after the Brexit. In this report, DX Group has been taken into
consideration to analyse the challenges faced by the company of logistic industry while
existing UK market from EU market.
DX Group is a British mail, courier and logistic company with the operations throughout the
United Kingdom. It was established in 1975 while the Royal Mail Postal strikes. It provides
the services of Parcel Freight, secure, courier and logistics. The company mainly operates
throughout the United Kingdom and Ireland. It main head offices are at Ditton Park, Bristol,
Warrington, Willenhall, and Dubin (DX Group, 2018).
Problem Statement
Brexit means that the Britain exits from EU. As per the report, it was founded that the
majority of the votes state that the UK has to leave the European Union. The agreement
between EU and UK is breakdown which is built to expand the business in the World but it
separated from the country. The DX group also comes under the logistic industry and face the
challenges which are faced by industry (Karlsson, Melin, and Cullinane, 2018). The company
face a looming crisis just because of shortage of licences for their drivers which operate on
the continents. There are limited seats to enter the EU to operate in the EU market. There are
only 103 ad 1224 trips are allowed to exports the material and operates in the EU market

BUSINESS MANAGEMENT 2
(Cumming, and Zahra, 2016). It is a big challenge for the company to export the material in
the limited trips and the shortage of material also an issue (Baker, and Knight 2017). The
other biggest issue which is face by the company is potential damage which is incurred due to
lack of progress in agreeing the new systems. As per the new rules, time is a major factor to
operates the business in the market because in a small delay of two or more minutes per truck
could result in tailbacks of 29 miles at the borders during the peak hours. The short time
causes the issue of potential damage because the supply trucks have to come back from 29
miles. The material contains by the truck will also has a risk of damage (Cumming, and
Zahra, 2016).
Formulation of Operations strategy
Operational strategy is a method which is used by the companies in order to meet their
objective. It is designed to maximise the effectiveness production and support elements to
minimising the cost (Mahadevan, 2015). The company can easily evaluate the effective and
efficient system for using the resources. The five core operational strategies are corporate
strategy, customer-driven strategy, developing core competencies, competitive priorities and
product and development services. There are four theories of operation management which
helps to operate the business smooth (Helo, Gunasekaran, and Rymaszewska, 2017). The
operations management has the theories such as strategic decisions and the others. Strategic
decisions refer to those decisions which are widespread and effective for the company. This
strategy is developing so that the company can meet their needs of long term goals. The role
of operations strategy is to provide a plan for the operations functions so that the sources need
to produce the company’s goods and services. Corporate strategy, customer driven strategy
and the many other strategies helps to reduce the challenges of the company (Christopher,
2016).

BUSINESS MANAGEMENT 3
It is necessary to maintain the effectiveness of the operation strategy so that the business will
operate smooth. There are four elements which help to operate effectively and these are Top-
down, bottom-up perspective, operations resource perspective, and market requirement
perspective.
(Source: Koganpage, 2018)
DX Group uses the logistic strategy to manage the business more effectively. The company
create the two divisions such as DX freight and DX express so that the company can easily
maintain the expenses. The company contributed in the EBITDA of £7.5m in the six months.
The main aim of the company is to separate the exchange business from secure and courier
(Reuters, 2018). The top down factor of the operation strategy theory is explained the
business which the company has to do. The DX Group has to be focuses on the exchange the
business from secure and courier. The company move to centralise the trunking network,
optimise routing and introduce a level of mechanisation (The Guardian, 2018). The market
position of the company is good as compare to the others. It redeems its convertible loan
notes by raising the £4m to support its growth initiatives. The new capital has been arising
due to which the company can enhance the IT capabilities and developing the networks. It is
clear that there is a great foundation to build upon the market leading products, a strong
service and the culture supported by a royal and invested team (Kim, Sting, and Loch, 2014).