Logistic and Supply Chain Management Chapter 1 Introduction Introduction

Logistic and Supply Chain management Chapter 1 Introduction 1 Background 1 Rationale of study2 Objectives 2 Scope 2 Chapter 2 Literature review 3 Chapter 3 Research Methodology 9 Research design9 Data collection9 Chapter 4 Proposed Analysis 10 Descriptive Analysis 10 Chapter 5 Proposed schedule 11 REFERENCES 13 Chapter 1 Introduction 1 Background Every company requires a systematic and proper logistics and supply management for inflow and outflow of goods and services. An organisation overall production efficiency depends on how effective is there supply chain management. In technological era

Logistic and Supply
Chain management

Table of Contents
Chapter 1 Introduction.....................................................................................................................1
Background..................................................................................................................................1
Rationale of study........................................................................................................................2
Objectives....................................................................................................................................2
Scope............................................................................................................................................2
Chapter 2 Literature review.............................................................................................................3
Chapter 3 Research Methodology...................................................................................................9
Research design...........................................................................................................................9
Data collection.............................................................................................................................9
Chapter 4 Proposed Analysis.........................................................................................................10
Descriptive Analysis..................................................................................................................10
Chapter 5 Proposed schedule.........................................................................................................11
REFERENCES..............................................................................................................................13

Chapter 1 Introduction
Background
Every company requires a systematic and proper logistics and supply management for
inflow and outflow of goods and services. They have a wide network of supply chain spread all
over the world. Logistics are connected via road, water or airways. An organisation overall
production efficiency depends on how effective is there supply chain management. Additionally,
it shows how well a firm is able to serve their customers and in what time. The inflow and
outflow of products determine overall productivity of organisation. Any deviation in it results in
non fulfilment of needs of business and market. It also influences on competitive advantage
gained by enterprise in the market. Today many businesses are focusing on fast delivery of goods
that is within 24 hours to their customers. for this they have implemented advance technological
tools and equipment’s (Maldonado-Siman & et.al., 2015). This is done to satisfy and retain them
for long time. It is very important for enterprise to fulfil market demand in time to generate more
revenue. In present time, the logistic industry is dominated by third parties. They have
collaborated with big firms and created their own supply chain network. Moreover, there has
been huge development in logistic sector which has entirely transformed the performance of
companies. Singapore is a developed country and is highly involved in innovating infrastructure.
The geographical location of country gives organisation an advantage to establish their logistic
headquarters. It has resulted in rapid growth and infrastructure. Singapore is competing with
neighbouring countries like Japan, China, etc. who is having a strong network and chain of
supply chain. It is hub of Asian continent as it strongly connected with neighbouring countries.
This has boosted the growth of third party logistics companies. By integrating with competitors,
it has been easy for them to ensure timely delivery of goods. It has improved supplier
performance. In technological era autonomous driving is a new concept that has emerged in
logistic and supply chain management. This has been beneficial in decreasing shortage of
drivers. There is transformation in driving experience. Consequently, the concept has not
improved condition to such a great extent, but organisations and government are making efforts
to implement it at large scale.
In logistic department the truck drivers play a significant role. They are mainly
responsible for delivery raw materials or finished goods from one place to another in specified
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time period (Williams Jr, Thomas & Liao-Troth, 2017). They ensure that there is no delay in
business operations. But the job of truck driver is very lethargic. It is because there is no or very
little growth in this profession. Besides this, salary and wages given are not enough to fulfil
needs. So, many people work only for a short time period. This has resulted in shortage of truck
drivers in logistics. Companies are facing severe issue in retaining them. It has highly impacted
on market supply. Apart from it, there is decline in growth of logistic sector as well. Despite
decrease in business productivity there is not change in movement of goods. It remains same
regardless of variation in fluctuation in production amount. Even the issue is still being faced by
companies in logistics.
Rationale of study
This study will focus on finding out issues that is resulting in lack of driver in supply
chain management. It will also describe why issue are occurring (Lieb & Lieb, 2016). Through
this, companies engaged in logistics and supply chain will get an insight on measures taken to
solve it. The organisations efficiency has been declined due to ineffective logistic operations.
Moreover, policies imposed by government of Singapore are not been properly followed.
Objectives
Aim- To identify issues behind lack of truck driver in the logistic and supply chain industry and
how companies are trying to solve the issue.
Objective
 To evaluate impact of lack of truck driver on company operations.
 To determine factors of lack of truck driver in logistic and supply chain
 To evaluate strategies on how issue of lack of truck driver can be solved
Research question
 Why there is lack of truck drivers in logistics and supply chain?
 How strategies can be implemented by companies to resolve this issue?
Scope
This research will be useful for organisation to develop an effective recruitment policy to
hire drivers. Also, they can develop strategies to resolve issues of lack of truck drivers and what
measures can be taken to retain them for longer tenure. Besides this, it will be easy for enterprise
to identify why issue occurs and what other companies have done to resolve them. The result of
study can be used by firms engaged in other sectors like auto mobile, retail, etc.
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Chapter 2 Literature review
Impact of lack of truck driver on company operations
According to Prockl & et.al., (2017), shortage of truck drivers is one of the major issue
which is been faced by logistics companies in Singapore. A business overall operational
efficiency is determined by its logistics and supply chain. Any deviation in it leads to further
production process. there is negative impact on operations due to shortage of truck driver. it is
because when raw materials are not arrived in proper time, production process remains at hault.
Similarly, when finished goods does not reach in the market in proper time then sales and profits
are affected.
Factors of lack of driver in logistic and supply chain
As said by Koirala¹, Kizha & Roth, (2016), without truck goods can not be transported
from one to another. They play a significant role in driving trucks and other vehicles. The drivers
are responsible for reaching destination on time so that business operations are not affected. But
in present time many businesses are facing issue of lack of truck drivers. Their requirement of
proper number of drivers are not been fulfilled.
Bob & Rod (2015), said that it may be not be necessary that lack of truck drivers can
occur only due to above factors. It also can be due to change in needs, lack of motivation, etc.
Moreover, fluctuation in economic condition leads to change in factors. In a report of Reiman &
et.al., 2018), in US the major reason for shortage of truck driver is high average age of existing
workforce. It has been found that average age is 49 in US. Now, firms are relatively focusing on
hiring selective driver as they have made safety and professionalism as priority factors. thus, it
has highly impacted on logistics sector of US. In a report of American Transportation Research
institute (ATRI), 34% of operation cost per mile is same as driver pay. It has been stated that in
2014 there was shortage of 38000 drivers which raised to 48000 in 2015. Moreover, it is
expected that till 2024 there will be around 175000 driver shortage. In addition to it, the issue has
raised because of focus on quantity rather than quality (What is causing shortage of truck driver
and how we can fix it, 2018). There are many logistics firms which hire driver based on their
experience, driving history, etc. Due to this, in 2012 88% of applications were rejected simply
because of not qualified. It is said that in the next 10 years, logistic industry will require 890,000
new drivers. This gives an average of total 89000 per year. There causes of shortage of truck
driver are discussed below :-
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Lifestyle- For many people choosing truck driver as a career does not suite their lifestyle. Also,
when new drivers are appointed, they are given long routes due to which they visit homes only
few times during a month. They have to take rest in truck which causes mental and physical
health issues.
Demographics – As discussed above average age of truck driver in US is 49. But in some
sectors, it is 52 also. This state that business does not consider the population of 21 (Olsson &
et.al., 2016) This is major cause of shortage in truck driver.
More job alternative available – At present there are various types of job opportunities
available in market. So, people are attracted towards other jobs as compared to truck driver. It
also carrier less responsibility and offer more pay.
Regulations- There are many strict regulations which has to be followed. It includes change of
truck driver service hours, etc. They also need license, insurance papers, etc. Moreover, when
productivity of business decreases, it still needs more driver to move same amount of goods from
place to another.
Rise in health issues- The existing drivers engaged in logistics are facing many health issues.
They are not getting a proper diet. Being on road have limited their options to eat and get enough
sleep. So, they have to eat snacks and fast food. Therefore, they are facing health problems like
rise in blood pressure, sugar level, etc. Another problem being faced by them is sleep
deprivation.
Low growth opportunities – In the job profession of truck driver there is no or limited growth
opportunities. A person who becomes a truck driver remains at this position for a long time
period. Also, instead of growth bonus is given to them, but it is not sufficient to improve living
standard. Moreover, even if growth occurs it takes very long time. This makes a person frustrate
to quit job after particular time period.
Regular working- A truck driver has to work regularly. They get very little rest time. Also, in
every type of weather that is rainy, winter, etc. (Reiman & et.al., 2018). they driver truck and
supply goods from one place to another. So, there is very much hard work in this profession and
low pay. This is major issue due to which people resist from becoming a truck driver.
Strategies to solve issue of lack of truck driver
In view of (Ehie & Gilliland, 2016) it is very important for companies to quickly resolve
this issue. It will help in maintaining smooth flow of logistics operations. Furthermore, they will
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be able to hire more drivers and retain in for long time. It has been identified that due to
complexity in driver shortage there has been a great impact on business efficiency. In Singapore
the government can form different rules and regulations to solve this problem. They are as
follows :-
Increasing driver salary – This is the foremost strategy that can be formulated by government
and companies. The salary of truck drivers should be increased. Besides this, they should be
given other benefits as well such as bonus, insurance, etc. It will be useful in gaining their trust
and increasing satisfaction. With this their needs will be easily fulfilled thus leading to more
socio economic benefit.
Reducing time on road – Another strategy that can be formed is reducing the time on road for
drivers. In this government can formulate a policy where limited time is set for each driver on
road. It will result in improving their lifestyle (Lieb & Lieb, 2016). Furthermore, the drivers will
be able to spent more time at home. In addition to it, distribution centres must be set up where
trucks are more localised.
Lower driving age – The government should lower the driving age limit to 21 years. This is
because a large portion of people among that age are unemployed. So, it will open opportunities
for employment.
Better treatment by supply chain – All companies engaged in supply chai should improve
driver experience at drop off and pick up locations. For instance, restrooms can be provided to
drivers. It will be useful in attracting more people for this profession.
Autonomous trucks – It will enable in using advance technology in driving trucks. This will
reduce burden and stress of driver. Moreover, many youngsters will get attracted towards using
advance technology in logistics.
In opinion Rogers & et.al., (2016), many companies are able to solved this problem but
not completely. They have implemented different strategies. The companies are now targeting
minorities and veterans to fulfil remaining requirement of drivers. This is because these people
are having limited source to earn income. Also, they usually are suitable for this type of job.
Hence, it has been useful for enterprise to recruit them in case of high workload. Besides this,
many businesses are now making efforts to use technology in trucking. They have emphasised
on autonomous trucking. It has benefited in reducing load and stress of driver. In a study of
Prockl & et.al., (2017), said that organisations have also started providing benefits like insurance,
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bonus, etc. to drivers who are working for more than 3-4 years. It has been beneficial for them to
satisfy and retain them.
According to Lukas & Pia (2017), autonomous driving is the best strategy which has
been utilised to solve issue. It is an approach in which technology is used to trucks to improve
driving experience. Besides this, technology is also used in road and safety of driver. There is
improvement in mobility and development in autonomous driving concept. The systems
implemented in this are able to take effective decision that are based on tactical and operations.
There ae variations in level of technology as it depends on skills of driver. It has resulted in
reduction in accidents, monitoring traffic, etc. It has been found that there is positive impact on
environment as well. There is saving of 20-30% energy on consumption of fuel through
autonomous driving.
On contrary as said by Olsson & et.al., (2016), there are still some challenges which
have to be overcome at large scale. The first is transfer of control between driver and vehicle,
laws and regulations, communication reliability, etc. This has to be in context of logistic and
supply chain management. Alongside, it is essential to conduct a depth analysis on how to
control and monitor autonomous driving in logistics. The barrier and opportunities of
autonomous driving are as follows :-
Opportunities Barriers
Increased safety Infrastructure
Decrease in transportation cost Technological barriers
Better driving experience Legislation
Improve truck utilisation Security issues
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Chapter 3 Research Methodology
Research design
It is a plan which includes a step by step procedure to ensure systematic flow of research.
This enables researcher to get accurate results and maintain quality to data which is gathered.
There are different types of research design available. They are descriptive, correlational,
experimental, etc.
Experimental refers to finding out change in dependent and independent variables. It provides
answer to question why, what, how, etc. and include hypothesis.
In survey primary data is gathered by selecting sample from population. It is done by designing
questionnaire.
In case study the topic is explored by taking and analysing real life world examples. It provides
answer of why, what and how questions.
Each one there are different methods and techniques as well (Lourie & Rata, 2017). The
present study will use survey research design technique. In this data obtained will be through
questionnaire.
Data collection
It is a process of gathering data and information to get answers of research question. The
data is most important part of study. This is because overall outcomes are based on it. Data must
be collected in appropriate way so that desired results are produced. There are different sources
available through which data can be gathered. Basically, there are two common methods used
which are primary and secondary. In primary fresh data is gathered through sources such as
questionnaire, by taking interview, survey, etc. Each tool is different from one another and then
data is collected. Whereas in secondary data is collected from previous articles, books, etc. This
makes it easy in getting overview topic and interpreting in properly. Basically, secondary data is
based on themes formed by researcher related to subject.
In present research, primary data will be collected. For this a questionnaire will be designed and
distributed to gather data from companies.
Table and figure
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All the table and figures inserted in research report will contain a caption and figure. The
caption of figure will be at bottom and centred. the example is shown below :-
Figure 1 Figure caption
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Chapter 4 Proposed Analysis
Descriptive Analysis
It is very necessary to interpret data into useful information so that aims and objectives
are attained. Data analysis refers to technique through which data is analysed and evaluated. The
researcher should properly select proper technique so that precise and accurate information is
obtained. It also depends on data collected that what type of technique will be feasible. There are
many other data analysis techniques as well such as fish bone diagram.
Fish bone diagram – this is a method which helps in analysing the cause and effect of an event.
It helps in finding out root causes of the problem. Here, method used by researcher will be fish
bone diagram.
In present study researcher will use descriptive statistics technique to interpret data. In
this mean, mode and median will be calculated along with range and standard deviation.
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Chapter 5 Proposed schedule
Ghantt chart
Task Name Duration Start Finish
Selection of topic 3 days Mon 1/28/19 Wed 1/30/19
Conducting literature
review 5 days Thu 1/31/19 Wed 2/6/19
Designing
questionnaire 4 days Thu 2/7/19 Tue 2/12/19
Data collection 10 days Wed 2/13/19 Tue 2/26/19
Data analyzing 7 days Wed 2/27/19 Thu 3/7/19
Discussion and
recommendation 5 days Fri 3/8/19 Thu 3/14/19
Submission of report 2 days Fri 3/15/19 Mon 3/18/19
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REFERENCES
Books and journals
Bob C. & Rod S. (2015). Truck driver shortage analysis. American trucking Association
Dubey, R. & Gunasekaran, A., (2015). The role of truck driver on sustainable transportation and
logistics. Industrial and Commercial Training. 47(3). pp.127-134.
Ehie, I. C. & Gilliland, D. L. (2016). Use of quality management tools to analyse delivery
exceptions in the motor carrier industry: a case study. International Journal of
Productivity and Quality Management. 19(1). 1-20.
Koirala¹, A., Kizha, A.R. & Roth, B., (2016). Forest trucking industry in Maine: A review on
challenges and resolutions.
Lieb, R.C. & Lieb, K.J., (2016). 3PL CEO perspectives on the current status and future prospects
of the third-party logistics Industry in North America: The 2014 Survey. Transportation
Journal. 55(1). pp.78-92.
Lourie, M., & Rata, E. (2017). Using a realist research methodology in policy
analysis. Educational Philosophy and Theory. 49(1). 17-30.
Lukas N. & Pia V. (2017) Autonomous driving in the logistic industry: International logistics
and supply chain management. Pp. 1-96.
Maldonado-Siman, E. & et.al., (2015). Cold chain management during transport operations of
perishable food in Mexico. Food Chain. 5(3). pp.203-216.
Olsson, O. & et.al., (2016). Keep that fire burning: Fuel supply risk management strategies of
Swedish district heating plants and implications for energy security. Biomass and
Bioenergy. 90. pp.70-77.
Prockl, G. & et.al., (2017). Antecedents of Truck Drivers’ Job Satisfaction and Retention
Proneness. Journal of Business Logistics. 38(3). pp.184-196.
Reiman, A. & et.al.,. (2018). Risk factors contributing to truck drivers’ non-driving occupational
accidents. International Journal of Physical Distribution & Logistics Management. 48(2).
183-199.
Rogers, H. & et.al., (2016). Supply chain risk management in India–practical
insights. International Journal of Logistics Research and Applications. 19(4). 278-299.
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Williams Jr, D.F., Thomas, S.P. & Liao-Troth, S., (2017). The truck driver experience:
identifying psychological stressors from the voice of the driver. Transportation
journal. 56(1). pp.54-76.
Online
What is causing shortage of truck driver and how we can fix it. 2018. [online] Available
through : http://ltxsolutions.com/truck-driver-shortage-causes-problems-solutions/
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