Global Logistics Management Assignment

Global logistics management

Global Logistics Management 1
Contents
Introduction................................................................................................................................2
How product can be distributed in the United States?...............................................................2
How product would be distributed in the world?.......................................................................3
What ethical and corporate social responsibility challenges (CSR) can eb faced in distributing
this product?...............................................................................................................................3
The logistical challenges to be faced in distributing product.....................................................4
References..................................................................................................................................6

Global Logistics Management 2
Introduction
Abbott Laboratories has invented a medical device to test coronavirus. This device can tell if
a person is infected within five minutes. The medical device is quite small and can be used in
any health care organization. The medical device is capable of doing 50,000 tests in a day.
This device has been accessible from April 1. The molecular tests to be conducted by the
device look for fragments of the coronavirus genome which can be easily detected and
accessible at the high levels. Complete research rules out to infection and takes thirteen
minutes. Abbott has attained emergency use approval from the U.S. Food and Drug
Administration for the use of approved laboratories and patient care systems. The U.S has
already struggled to detect the virus through various tests. The medical device invented by
Abbott Laboratories can offer an incredible prospect for front-line caregivers. The clinics will
be able to conduct a test within a short period.
How product can be distributed in the United States?
U.S. labs are facing problems even after the improvement in the testing. The manufacturing
of new kits has been increased but the channel is overwhelmed by new hurdles. The supplies
are running short and labs do not have enough capacity to do testing. On the initial basis, the
labs had to send tests to the commercial labs which took 12 days to process. In such a
situation, it has become quite important for the U.S to go for medical devices which can
results in the tests within the shortest period. Abbott is seriously going to provide a
tremendous opportunity to the front-line caregivers in the U.S to diagnose infections and
close the gap with the testing. The clinic will be capable of resulting quickly with the help of
the devices (Li & Wang, 2018). The technology will construct on Illinois-based Abbott’s ID
now platform.
There is no restriction on essential services such as medicines and equipment. Although,
there is a restriction on some of the services while lockdown but medical-related products and
services are not one of them. Abbott will distribute medical devices in the U.S. the devices
will be distributed in labs and health care organizations as per the number of cases identified
(Erdogan & Kavas, 2020). A free passage can be provided to people involved in the
manufacturing of medical products and services so that they can reach to clinics and
hospitals. The administration can be urged for the assistance and offer a free passage to
people in the supply chain of essential commodities to reach factories, manufacturing plants
and thereafter to reach hospitals and clinics (Lin & Chang, 2018). The public transport for

Global Logistics Management 3
medical services is functional which ensure the availability of medical facilities in the health
care settings. The company can make use of the roads to distribute medical products in the
United States. Moreover, there can also be emergency flights for delivering products on an
immediate basis.
How product would be distributed in the world?
Coronavirus has led to restrictions on transportation leading to the huge unavailability of
medicines. The local government should ensure the free flow of medical products across
national borders to keep manufacturing and supply running. Abbott is producing tests daily
and continue to ship daily to more customers at more places (Marano, Tashman & Kostova,
2017). Abbott can distribute the product worldwide by arranging emergency flights. Seafarers
are also a vital element of the operations that can be used by Abbott to keep the supply chain
moving in the critical times of pandemic. Due to the prevalence of COVID 19, the flights
have been suspended in the United States for the passengers. But arranging emergency flights
can only work to deliver the medical devices to test coronavirus. These flights will deliver
medical devices in abundance in one go if possible (Hu & Tan, 2020). The air delivery
services are time-sensitive and comprise high-value items. So, it is quite suitable for Abbott
to deliver products within the minimum period.
Abbott will distribute the products worldwide one by one. The company will not be able to
meet the demand of foreign nations once. It will require time to meet overall demand as the
company needs to produce devices in abundance. The medical devices are expedited and
high-valued and are required to deliver within the meantime. Abbott needs to take special
permission to airlift products from the U.S to other parts of the world (Gani, 2017). Abbott
can even deliver products to one nation and thereafter that country can export to the
neighbouring nations. Moreover, Abbott is having existence in several nations other than the
U.S where it can familiarise the product. The local agencies can help out to use the device in
health care settings. The medical device provided by Abbott can have an effective role in
dealing with the pandemic (Ye & Haasis, 2018).

Global Logistics Management 4
What ethical and corporate social responsibility challenges (CSR) can eb faced in distributing
this product?
Abbott can face a certain kind of ethical and social responsibility (CSR) challenges while
distributing medical devices. The company needs to side-line other operations to produce
medical devices. Abbott needs to stop the production of other medicines to completely focus
on the production of medical devices for checking coronavirus. Therefore, there is going to
be a shortage of other medicines in the market. As a result, patients will suffer in the coming
period (Sternad & Justinek, 2018).
Moreover, Abbott has to limit funds kept for the welfare of society to invest a greater amount
on the medical devices. In the future, the company can have less or no funds at all for social
responsibility. On the other side, Abbott has to provide these devices at concessional prices.
Here the company has to compromise on the profits. Selling products at less or no extra profit
at all can affect the functionality of the company. The company will have quite fewer funds
for carrying out production further (Newman, et al. 2018).
Abbott is having challenges at the workplace as there is less labor due to social distancing.
Problem is faced while producing devices. It is taking more time than required. Having a
limited number of workers also represents a problem to distribute the products. The workers
are also not ready to go for the distribution due to the fear of coming in contact with the
people. Add on, there is a lack of channels to distribute the products due to lockdown. Lack
of channels also creates a problem in the distribution of medical devices. Abbott also needs to
take approval from other nations while distributing the products which require a lot of
formalities and documentation. It slows down the process (Jiang, 2019).
The logistical challenges to be faced in distributing product
Other than the ethical and CSR challenges, logistical challenges can be faced in distributing
products. Abbott is required to take the approval of the government of different nations
before delivering the products. Other the government approval, there can be a problem of
managing manpower. The company needs to deal with drivers to ensure the smooth delivery
of the products. But there is a lack of manpower in the company as some people are
quarantined and some are afraid to come in contact due of contacting with the people having
the corona virus (Veenstra, 2019). There is a lack of coordination along with the smooth
movement of the goods. The company needs to assist drivers in major locations through

Global Logistics Management 5
quality communication and scheduling solutions. Abbott can also face challenges in
inventory control and visibility. It is the primary aspect to have inventory visibility. It will be
critical in the distribution of products. It is challenging for the company to attain visibility
and control in the prevailing situation worldwide. On the other side, Abbott has to ignore its
aspect of business process improvement. The company will have inefficiency in its
operations due to focus on one medical device only (Durdag, et al. 2016). It can be
challenging with the appropriate assistance. Other than this, the unavailability of fuel can also
create a challenge for the company.

Global Logistics Management 6
References
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Between Countries on International Trade and International Logistics: A Qualitative
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Erdogan, M., & Kavas, E. (2020). Incoterms and New Transport Types: The Importance of
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Transportation and Logistics for World Trade (pp. 151-180). IGI Global.
Gani, A. (2017). The logistics performance effect in international trade. The Asian Journal of
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Hu, Y., & Tan, X. (2020, January). Investigation and Analysis of Knowledge, Ability, and
Quality Requirement of Applied International Logistics Skilled Talents. In 5th
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Jiang, Q. (2019, October). Research on the Construction and Practical Teaching Experience
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Marano, V., Tashman, P., & Kostova, T. (2017). Escaping the iron cage: Liabilities of origin
and CSR reporting of emerging market multinational enterprises. Journal of
International Business Studies, 48(3), 386-408.

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Newman, C., Rand, J., Tarp, F., & Trifkovic, N. (2018). The transmission of socially
responsible behaviour through international trade. European Economic Review, 101,
250-267.
Sternad, M., & Justinek, G. (2018). Logistics Subsystems in International Environment with
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Ye, J., & Haasis, H. D. (2018, February). Impacts of the BRI on International Logistics
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