Strategies for Effective Communication with Overseas Suppliers

The Waratah Coal Company faced significant logistics challenges in the Galilee project, which can be overcome by effective warehouse management and risk assessment. By implementing strategies such as better route planning, signage, and technology adoption, the company can improve supply chain management and reduce risks associated with transportation, infrastructure, and technology. Moreover, equitable funding from the Federal Government for constructing railway tracks can help in transferring thermal coals efficiently. Overall, addressing these challenges will not only benefit the Waratah Company but also contribute to better productivity and economic growth in Australia.

Logistics and Supply Chain Management
[DATE]
[Company name]
[Company address]

Running Head: Report
Executive summary
This study focuses on the logistics and supply chain management of the Waratah Coal
Company. It is an internationally owned company, which aims at exploring and developing
the coal projects in Australia. The company currently has to transport tons of coals to Abbot
point where the huge locomotives and wagons are required to deliver the same. This study
depicts the issues that are being faced by the managers while planning the project as logistics
and supply chain management is must. Companies usually face challenges of logistics when
involved in such course of business activities. The Waratah Coal Company is facing severe
logistic problems in transferring the locomotives to the track in Australia from an overseas
supplier. The study focuses on determining the challenges and their solution to overcome
such big issues. The managers of the organization have the duty of deeply understanding such
insights and their duty is to inform the CEO of the organization. The supply chain
management is the necessary aspect of the organization as the suppliers are the core element
of the business organization. The Waratah Coal organization has to lay a railway track
between Alpha in Central Western Queensland to Abbot Point in Northeast Queensland. The
Waratah Coal Company must aim at resolving the issues of logistics and manage their supply
chain in order to commence their business project with Galilee. Thereby, this study
formulates the concept of logistics and supply chain management along with the issues and
their solution to face such challenges. Also, the study states the purpose of conducting the
study and its scope. This report aims at highlighting the essential and core findings of the
project along with their conclusion in order to justify the complete project.
1

Running Head: Report
Contents
Introduction...........................................................................................................................................3
Purpose of the study..............................................................................................................................4
Scope of the study.................................................................................................................................4
Logistics and Supply Chain Management.............................................................................................5
Logistics Issues......................................................................................................................................6
Recommendations to the logistic challenges.........................................................................................9
Warehouse Management.....................................................................................................................10
Risk Management................................................................................................................................10
Conclusion...........................................................................................................................................12
References...........................................................................................................................................13
2

Running Head: Report
Introduction
The Waratah Coal Company is the wholly owned subsidiary company of the Mineralogy Pvt.
Ltd. This organization was established in 2005 in Brisbane. The Company is listed daily in
the Toronto Stock Exchange and Australia Stock Exchange as it is privatized and
incorporated in the development of the coal mines and projects. This organization was
offered to control the stake in the company by the Mineralogy Pvt. Ltd. In the year 2008, and
since then this organization was allowed to have and control the ownership and stake of the
company. The Waratah Company holds very huge and extensive rights and permits for
exploring the coal miners in the Australia and various other cities and countries. The
company aims at exploring huge coal mines and develops the coal projects. This organization
has brought and energized a new energy in the thermal coals, which aims at uplifting the
organization’s name all over the world. This study underlines the project of Waratah with the
Galilee. The Galilee is the huge project where the large underground railway tracks are to be
laid in order to transfer tons of coal. The railway track is laid from the Alpha to Abbot Point.
This Waratah and Galille Project is the most significant project and this project was started
after the formal grant of the Governor of the Queensland. The Waratah Company proposes to
have $8.4 billion to formulate the Galilee Project. The Company is highly known and is given
respect for growing the economic aspect of the Country in which it operates. The Company
aims at increasing the economic health and wealth of Queensland. The Waratah operates very
keenly in all the areas of Queensland in equally and efficiently uplifting up the strength of the
country. The Galilee project is the huge project where a 500km railway track is to be built
from Alpha to Abbot Point in order to transfer 40 standard gauge locomotives and 600 coal
wagons from the point of origin.
3

Running Head: Report
Purpose of the study
The purpose of the study is to determine the logistics issues that are faced by the Waratah
Coal Company. The company since has to lay a railway track, huge amount of heavy wagons
and locomotives are required from an overseas supplier, thereby, supply chain management is
highly required. The managers of the organization aim at planning the complete steps in order
to safely and easily transfer the locomotives near Alpha to exhibit the Galilee project. The
Waratah Coal Company wants to transfer thermal coals between the townships of
Queenslands. It is highly important for the organization to build a railway track first to
formulate the concerned project. The study aims at highlighting the logistical issues and
challenges, Australian Customs Issues and the proposed recommendations for duly
formulating the Galilee project. The Study also highlights the essential inland and sea
freights, port activities and inspection services that are being carried in Australia while
transferring the locomotives and wagons from an overseas supplier. It can be stated that the
purpose of the study is quite clear and thus states the various issues faced by the managers
and their actions in accordance with the problems.
Scope of the study
The scope of the study is to deeply examine the challenges of transferring the locomotives
from a supplier. The study has a wide scope as this lays down the various serious ailments
that affect the organization’s project due to the challenges of the logistics. The managers play
a deep role in conducting the study as they are employed for carrying out the logistics and
supply chain activities. The managers have to decide the actions that are to be taken in order
to overcome such hurdles. This report has a broad scope as it highlights the activities and
issues relating to the Australian Inspection Services and Australian Customs Issues (Waratah
4

Running Head: Report
Coal, 2017). The project highlights the importance of logistics and supply chain management
necessary for the organization in order to conduct its business activities. The Study aims at
portraying the logistics issues in front of the CEO to make them understand regarding the
serious issues faced by the organization while conducting the Galilee Project. It can be stated
that the study is highly focused and determined in respect to the issues faced by the Coal
Company for laying the railway track and receiving the wagons and locomotives from the
various suppliers.
Logistics and Supply Chain Management
This study highlights the concept of the logistics and supply chain management. This concept
is highly necessary and important to be understood. Logistics is the process of managing the
flow of the resources from the point of the origin to the final destination. It aims at managing
the resources, people, information and necessary other equipments required to conduct the
business activities at a place in order to provide customer services. It is also known as the art
of managing the materials in the most effective and efficient manner (Marion, 2017). This
involves the integration of the various functions such as inventory management, packaging,
information management, warehousing and etc. Every organization has some special
managers deployed in order to formulate the services of the logistics management. Logistics
involve the management of the flow of the resources and materials through land, rail, air and
sea. This study depicts the transfer of the material like locomotives from overseas to final
destination. Also, it involves the management of the materials at the place of project to build
the railway track. The managers must foresee the requirement of the materials and then
manage the complete process in order to commence the desired project (Karakonam, 2013).
5

Running Head: Report
The supply chain management is the process where the managers exhibit all the necessary
steps and actions in order to provide and maintain a cordial link between the suppliers of the
organization. This is the management of the supply chain between the organization and the
various suppliers. This process involves inbound and outbound business activities required to
commence the business. The delivery of the required resources to the final consumer through
proper and effective management of the resources is the key element of the supply chain
management. This management involves a wide range of functional areas that are carried out
by the organization (Jass, 2012). According to the various researchers, it has been found that
in order to increase the productivity of the organization, the company must aim at
formulating and managing the logistics and supply chain of the organization. The Waratah
Coal Company emphasizes on maintaining their logistics and supply chain in order to
commence their Galilee project. They also aim at increasing the economic value of the
country as well as the organization, thereby, they must take actions regarding the proper
supply of the locomotives and wagons to their final destination from the overseas supplier.
Logistics Issues
The Waratah Coal Company aims at completing its Galilee project, which involves the
construction of the railway tracks in order to transfer the thermal coal within the township of
Queensland. Also to preclude the project, the supply of locomotives and wagons are
necessary from the overseas supplier, but various logistics and supply chain issues with the
company. The managers aim at highlighting such key challenges to take necessary actions to
overcome the problems in order to exhibit the Galillee project effectively and efficiently
(Sarah, 2013). Following are the issues and the challenges that are seen by the managers and
aims at bringing out such problems in front of the CEO of the Waratah Coal Company:
6

Running Head: Report
 Geographical Challenges: The geographical conditions in Australia highly affect the
logistics of the Australian Companies. The urban and rural sector contributes to the logistical
challenges. The heavy traffic congestions in the cities of Australia cause logistic challenges
for the organizations. The company using road transport faces serious challenges in
transporting their resources from one place to another, which disrupts the flow of the
resources of the organizations. Waratah Company also uses the road facilities to transfer the
coal from the ports to the final destination, which is the major problem. The toll roads in
Australia affect the transportation logistics of the Waratah organization (Stewart, 2011).
 Regional Challenges: The major second challenge in Australia is the regional problems.
First, the tyranny of the distance. The cities and towns located in Australia are far away from
each other, which cause another problem for the companies working in Australia. The
Waratah company being a mining organization, is situated in remote locations due to coals
and mines, which face the problems of transferring the goods due to the distance of the town
or port to the remote location of the coals and mines. The road conditions in Australia are no
doubt better, but still the maintenance of the roads is quite expensive, which causes problems
for the organizations who are indulged in longer journeys that may affect the resources and
equipments (Rousseau, et al., 2012).
 Demographical Challenges: The Australian Companies face another logistics challenge
relating to the management of the people. The demographics of the country affect the
organizations. The older population and employees are resistant to new technologies and
working conditions of the organization. The Waratah company since has employed the
population of Australia in its organization, various problems and challenges in managing the
people have been faced by the organization (Laux, 2013).
 Legislative Challenges: The Waratah Coal Company faces the legal challenges involved in
Australia. The funding arrangements done by the Federal Government for the important
7

Running Head: Report
issues such as health, education and infrastructure are a serious problem. The Government
has not helped the Waratah Company in funding to build the infrastructure by constructing
railway tracks. The Government does not fully fund the companies who are involved in
building the roads and railways to operate their businesses. Since the Waratah Coal
Company aims at importing locomotives and wagons from foreign suppliers, they have to
obtain various permits from the AQIS to import such goods. Heavy restrictions are imposed
on the materials imported from overseas. AQIS inspects all the incoming materials from the
overseas suppliers of the Waratah Coal company, which is the major logistical challenge
(Slatyer, 2001).
 Technological Challenges: Various new technologies have imposed a serious threat to the
organizations working in Australia. The Waratah Company faces challenges in
communicating with its overseas suppliers due to their dependence on old technology. The
organizations are resistant to the change in the technologies, which causes other serious
problem. Regional issues such as poor infrastructures and poor facilities of internet causes
problems for the Coal Company to have access to the various suppliers and their
management across the globe.
 Other challenges: The rise in fuel prices and security issues at the port are the various other
challenges faced by the companies working in Australia. The Waratah Company also faces
problems in building the railway tracks due to the initial poor construction of weak gauges,
which causes another problem in building the railway tracks with the help of 40 gauges. Also,
security challenges at importing 600 coal wagons and heavy locomotives are faced by the
organization. Maintenance of roads and work also causes problems in the commencement of
the Galilee project (Richards, 2014).
8

Running Head: Report
Recommendations to the logistic challenges
The above stated challenges have to be solved by the managers of the organization in order to
properly manage the logistic ad supply chain management. Following are the
recommendations to some of the key problems:
 Lobbying the government to ensure the Galillee project in order to build the proper
infrastructure of the transport logistics. The lobbying groups will make a difference in
funding disagreements by the government. Better planning and ensuring the effective
regulations of the AQIS of the Waratah Coal Company will help in overcoming the
legislative challenges faced by the organizations. Briefly understanding the quarantine
restrictions by the organization will help in overcoming the customs issues (Council,
2014).
 Consideration of different transport modes and better driver management by the
organization will help the organization in overcoming the regional challenges faced
by the Waratah Coal Company. Being cautious about the road and railway signs will
help in preventing the resources from the poor condition of the roads. Increased safety
measures and development of new roads by the Government will help in facing the
problems (Long & Shah, 2014).
 Road changes to avoid traffic congestion, warehouse relocation, better route planning
will help the organization in overcoming the urban challenges. Better management of
the transport of the resources from the port to the remote warehouse locations will
help in facing the hurdles faced by the Waratah Coal Company.
 Better employee management and upgradation of technology will help the
organization in employing better staff and technological changes will help the
organization in easily communicating with the overseas suppliers. The better training
9

Running Head: Report
and additional support will also help in changing the current situation of the logistic
challenges.
Warehouse Management
The Waratah Coal Company must aim at warehouse management, which is also a part of the
logistics management. Effective management of the functions performed in the warehouse of
the coal companies will help in better supply chain management. Better management of the
inbound and outbound functions, operations like packaging, storing, stocking and
maintaining the balance between the inventory levels will help in achieving the goals of
overcoming the challenges of logistics management (WMS, 2014).
Risk Management
Risks are uncertainties that prevail in the business environment. The Waratah Coal Company
must aim at assessing the risks involved in carrying out the Galilee project. The assessment of
risks will help the organization in developing various methods and strategies that will help in
overcoming the challenges that are faced by the organizations that may cause risks of any
nature. Various tools and standards must be understood by the managers in order to manage
such risks, which will help in proper and effective logistic and supply chain management.
The management of logistics and supply chain management can only be obtained by
assessing the persistent risks involved in transferring the heavy locomotives and wagons from
the port to the final destination (Dittmann, 2014). Transportation risks, infrastructural risks,
technological risks and various other risks must be carefully ascertained and managed .
10

Running Head: Report
11

Running Head: Report
Conclusion
It can be clearly concluded from the above stated study that the Waratah Coal Company
faced logistic and supply chain management challenges while commencing Galillee Project.
By effectively following the Australian Custom Issue and Quarantine measures, the Waratah
company can easily manage the supply of heavy locomotives and wagons from overseas
suppliers. The transfer of the heavy equipments from the port to the final destination by better
route planning and increased signage will help the organization in preventing the resources
from damage. Equitable funding from the Federal Government to the Waratah organization in
constructing the infrastructure of the railway tracks will help in transferring the thermal coals
from Alpha to Abbot Point. The upgradation and adoption of the new technologies by the
Waratah Company will help them in reducing the challenges faced by them while
maintaining relations with suppliers across the globe. Thereby, it can be stated that Waratah
Company faced an immense number of logistic challenges, which can be faced by the
company by taking above stated actions and from the help of the Government of Australia,
the situation of the infrastructure, demographics and regional patterns can be changed. Also
by maintaining the logistics and supply chain of the Waratah Company, the economic
condition of the organization as well the country can be improved, which will result in better
productivity.
12

Running Head: Report
References
Council, A. L., 2014. The Economic Significance of the Australian Logistics Industry, s.l.:
s.n.
Dittmann, P., 2014. Managing Risk in the Global Supply Chain, Available at:
http://globalsupplychaininstitute.utk.edu/publications/documents/Risk.pdf
Jass, 2012. Logistics. Theory and Practice, Available at:
http://wwwmayr.in.tum.de/konferenzen/Jass08/courses/2/berseneva/paper_berseneva.pdf
Karakonam, G., 2013. Logistics and Supply Chain Management, Available at:
http://www.thehindu.com/todays-paper/tp-features/tp-educationplus/logistics-and-supply-
chain-management/article4709825.ece
Laux, L., 2013. Four Reverse Logistics Problems: Solved, Available at:
http://www.industryweek.com/logistics/four-reverse-logistics-problems-solved
Long, M. & Shah, C., 2014. Productivity and productivity growth in the australian transport
and logistics industries, Available at: http://tlisc.org.au/wp-content/uploads/2014/04/TL_103-
Report_PRODUCTIVITY_D8.pdf
Marion, G., 2017. Introduction to Supply Chain Management, Available at:
https://www.thebalance.com/logistics-4073998
Richards, B., 2014. Transport And Logistics Insights: The road ahead, Available at:
https://www.ferrierhodgson.com/au/-/media/ferrier/files/documents/publications/transport-
and-logistics/transport-and-logistics-insights--january-2014.pdf
Rousseau, F., Montaville , F. & Videlaine, F., 2012. Challenges and winning models in
logistics, Available at: http://www.bain.com/publications/articles/challenges-and-winning-
13

Running Head: Report
models-in-logistics.aspx
Sarah, 2013. Global Logistics: Challenges for expansion into emerging markets, Available at:
http://www.logisticsmgmt.com/article/global_logistics_challenges_for_expansion_into_emer
ging_markets
Slatyer, T., 2001. Logistics In Australia:A Preliminary Analysis: Bureau of Transport
Economics, Available at: https://bitre.gov.au/publications/2001/files/wp_049.pdf
Stewart, N., 2011. Australian Logistics Challenges And Solutions To Overcome Them,
Available at: https://www.theseus.fi/bitstream/handle/10024/35105/Stewart_Neil.pdf?
sequence=1
Waratah Coal, 2017. Waratahcoal: Company profile. [Online]
Available at: http://waratahcoal.com/corporate-profile/
WMS, 2014. Warehouse management system, Available at: http://www.warehouse-
logistics.com/download/Flyer/GB_Flyer_Produkt_Solvo_001.pdf
14