Global Challenges and Current Issues in Logistics and Supply Chain Management

Logistics and Supply Chain Management

Executive summary
Logistics management deals movement of goods from one to another location to support
the supply chain where the Supply Chain Management (SCM) is associated with the
management of goods from manufacturers to final consumers. Here, DB Schenker faces the
global issues in the context of the cost and efficiency because the current business environment
is based on the digitalization where suppliers need to think innovatively otherwise the global
business transactions adversely get affected. Furthermore, DB Schenker is dealing with the
global issues in logistics by using lean management because it focuses on organizational
sustainability in the supply chain. Also, company faces the challenges related to skilled staff and
the company was unable to find the IT professionals to operate logistics in Saudi Arabia. The
common phenomena such as QM is one of the contemporary issues in the sustainability of SC
because it requires the management and integration of SC and quality to improve the
performance. Integrating the environmental and social sustainability are the major pillar for the
lean and agile management in SCM because lean management focuses on the quality, waste-free
supplies whereas agile is related to the quick and flexibility as per the demand of the market.
Moreover, the performance measurement is not merely constrained to carbon discharges and
environmental sustainability; however, it is also associated with enhancement of profitability,
sales turnover, customer satisfaction etc. it shows that maintenance of a sustainable supply chain
is a contemporary issue because it requires extra cost and efforts to manage the unused
inventory, least CO2 emissions, the wellbeing of the society etc. For this purpose, recycling and
reverse logistics can be useful to promote the sustainable operation of the business. Owing to
this, the use of advanced technologies is vital in logistics to improve the warehouse capacities,
efficiencies and availability of inventory. In this regard, it has been recommended that the firm
should employ the IT professional personnel just after the implementation of digitalization to
perform the operations carefully. Also, use the green processes by using JIT technology in
logistics without reducing the number of ships because it helps to enhance the loading capacity
in one time to save the time and cost.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Global challenges for DB Schenker............................................................................................1
Current issues in SCM of DB Schenker......................................................................................3
Recommendations........................................................................................................................4
TASK 2............................................................................................................................................5
Contemporary issues in global SC...............................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Logistics management deals movement of goods from one to another location to support
the supply chain where the Supply Chain Management (SCM) is associated with the
management of goods from manufacturers to final consumers (Hugos, 2018; Christopher, 2016;
Carter & Liane Easton, 2011). In this context, the current report is based on the critical
evaluation of global and current challenges in Supply Chain (SC) and the logistics network of
DB Schenker. Furthermore, contemporary issues have been critically evaluated in the context of
Global Logistics and Supply Chain (GLSCM) such as Total Quality Management (TQM), lean
and agile SC, performance measurement, sustainability in Global supply chain etc.
TASK 1
Global challenges for DB Schenker
According to several studies, supplier development is essential for the sustainability of
the business because actions taken by one member of SC influence the effectiveness of entire SC
in context of responsiveness, profitability and efficiency (Govindan, Kannan & Noorul Haq,
2010; Abbasi & Nilsson, 2012; Arzu Akyuz & Erman Erkan, 2010). In this context, DB
Schenker is dealing with the issue of supplier’s development because the suppliers are not the
real technological innovations; therefore, demand for the more significant changes from the
suppliers (Smith, 2016). Here, DB Schenker faces the global issues in the context of the cost and
efficiency because the current business environment is based on the digitalization where
suppliers need to think innovatively otherwise the global business transactions adversely get
affected. In this regard, Awad (2010) asserted that supplier’s development and maintenance of
supplier’s relationships is an essential component which determines the competitiveness of the
company. Here, DB Schenker is required to restructure the procurement procedure with different
units to consolidate the production gap and management of SC otherwise it creates a global
challenge for the company in the context of supplier’s performance.
Green logistics is one of the global challenges for logistics companies; however, it helps
in the conservation of resources and improves environmental sustainability. Nonetheless, the
application of green logistics demands for huge cost to set the entire SCM system to operate the
logistic activities (Toke, Gupta & Dandekar, 2010; Guang Shi, Lenny Koh, Baldwin &
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