Logistics and Supply Chain Management in LINFOX Logistics
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This report discusses the logistics and supply chain management in LINFOX Logistics, the biggest privately owned company of supply chain solutions in the Asia Pacific. It analyzes the present supply chain, problems faced by the logistics network, and provides strategies for solving them.
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1 LOGISTICS Table of Contents Introduction....................................................................................................................2 Discussion......................................................................................................................2 Logistics management................................................................................................2 Relevance of the supply chain to the operations of the company..............................3 Analysis of the present supply chain of the LINFOX logistics.................................4 Problems of the logistics network..............................................................................5 Strategies for solving the problems............................................................................7 Conclusion......................................................................................................................8 References....................................................................................................................10
2 LOGISTICS Introduction This report aims to discuss the topic of logistics in Intermodal company in Australia. The report focusses on the significance of the supply chain management, particularly the intention of this study is in gaining knowledge about logistics of the company and understand the issues in logistics and provide with appropriate solutions. This study can be used for gaining insight regarding the business needs and the effective logistics management in the companies and how to deal with them. The aspect of supply chain management and logistics are both combined in the SCM. SCM is considered as the combination of the the inventory location, production, and logistics in the supply chain (Priest, 2014). The strategic and the systematic collaboration of the purposes accomplishes the most suitable coordination of the response and efficiency in fulfilling the demands of the customers. Discussion Logistics management Logistics is the sector of supply chain, which controls, conducts the planning and then deploys the movement of inventory, which is the goods and services, from them origin point of the production to the ultimate customer. In any corporate markets, the scope of the logistics involves the shipping, transportation, import and the warehousing and the export operations. Additionally, the logistics also monitors the inventory management, planning of the production, and the customer services (Constant and Han, 2013). The significance of the performance in supply chain is significant. Any effective performance system of the supply chain could offer the base for understanding the supply chain system of the company. This influences the behaviour of the supply chain and importantly, this displays the information related to the consequences of the supply chain to the stakeholders and the company.
3 LOGISTICS Commonly, the role of the performance of supply chain is immense in the development of the any strategy for any company. It can be observed that the well-planned performance system of the supply chain leads to the improvements in overall performance of any company (Hartley, 2014). The performance of the supply chain and logistics are measured in the basis of cost reduction. The lack in the appropriate measurement system of performance is a key complication in forming of any efficient supply chain. The supply chain in any company is considered to be time-driven and cost-efficient. The company that is selected for the analysis is the LINFOX logistics. The company is a supply chain company that is established in Australia. The company presently is considered to thebe the biggest privately owned company of supply chain solutions in the Asia pacific. The operation of the Linfox logistics is almost 3.2 million square metres of the vehiclesandthewarehousingacrossalmost10countriesandthecompanyprovides employment to almost 23,000 people in the country New Zealand, Asia and Australia (Pratama and Simatupang, 2013). The speciality of the company is in the complex design of the supply chain, system integration of the IT, operations of distribution, linehaul, warehouse management and the freight forwarding. Relevance of the supply chain to the operations ofLinfox Supply chain of the company is huge and this leads to that it provides for any market in the local areas and they also export to the countries. In the market of Australian, the company gains a huge share of the revenue from the transport facilities and the services that are offered by the company. It has been stated by the researchers that the procuring and maintaining the information of the supply chain is considered to be important task for any organisation. In the transport organisations, flow of the process is involved from the obtaining of the orders of transport to the delivery of the items to the final destination, planning, the control, and monitoring are the major responsibilities and the supply chain of
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4 LOGISTICS operation must involve the information coordination all through resource synchronisation, the chain, planning and the calculations of the performance (Wiesner, 2013). The company has extended its services to several cities all through the country, delivering products from one part of the country to another using strict supply chain management and transportation rules. The company is required to hire a competent manager of supply chain for monitoring the fluent flow of materials from the source point to the point of delivery, which are the customers. LINFOX logistics would initiate the supply chain by acceptance of the orders of transportation from the companies, which contains the products that are to be transported. Then the finalising of other aspects would be done. The supply chain of company is very long anditstretchesfromtheprocurementoftheordersfromthecustomersaboutthe transportation of the goods, to the transportation of the goods to the customers (Smith, 2015). Therefore, it is important for the supply chain of the LINFOX logistics manager to manage any kind of disruption or shortage in the process of transformation or the logistics, which would stall the process and it would lead to the unnecessary loss. Analysis of the present supply chain of the LINFOX logistics For conducting an analysis of the performance of supply chain of any company, the measures has been separated into two sections that are quantitative and qualitative. The measures of qualitative are commonly dependent on the certificates and the quality that is obtained by the company. The quantitative measures are commonly based on numerical data, financial systems and the management. One of the quantitative technique that is utilised for measuringtheperformanceofsupplychainofthecompanyisWMS(Warehouse Management System). The WMS is utilised for the recording of all the movements in the warehouse. The entry of the data in the database is done using a computer (Sullivan, 2013). The database of WMS is accessible to every employee of the company. The data like the stock taking, arrival of the customer, and the departure times and the check-in of the
5 LOGISTICS employee and the times of the check-out are entered in the database. The information flow within the database of the company make it easily available. One more method for measuring the performance of supply chain is the maintenance of turnover rate of the inventory. The turnover ratio of inventory calculates the unit number distributed in the relation to the average unit inventory. The greater the turnover ratio combined along with the preferred accessibility of the inventory, it presents the efficient exploitation of the resources for distributing the products all through supply chain. In the terms of the qualitative performance of the measures the company boasts that almost nine of the major subsidiaries of manufacturing are certified by the MS ISO 9001:2000 (Sohal and Rahman, 2013). The MS ISO 9001:2000 identifies the necessities for management system of the quality whereas the company is proving to have the capability of introducing the innovative products regularly and it constantly fulfils the demands of the customers along with the appropriate regulations. Along with the fulfilling all requirements of the regulations and the customers, the company intends to improve the satisfaction of the customer by the efficient application of the system that involves the processes to ensure the continuous enhancement of the system and guarantee the conformism to the customer along with the requirements that are applicable of regulations. With these certifications, the company is supposed to meet all the necessities that are connected to the fulfilment of the customer and the guidelines in the industry. Especially, the company attempts to follow the regulations and the requirements of the customers that are connected to the behaviour of the business and also they constantly effort on the improvement of the specific system that has earned the certification initially. Problems of the logistics network The Linfox logistics has achieved several successes in the recent times but the industry where the operations of the company is conducted is considered to be extensively competitive and unpredictable. The industry of logistics are getting affected due to several
6 LOGISTICS factors in and outside any organisation that risks the appropriate functioning of system (Gilmour, Driva and Hunt, 2015). The present NSW logistics network are also facing some difficult issues like the national strategies and policies, the issues due to the regulations, development policies and the strategies of the state transport, planning of the regional transport, and regional planning the investment on the infrastructure. Asset prioritisation and recycling The Port Botany is considered as the second major port of container in Australia. The NSW ports consortium holds the lease of this port. This is an initiative of the asset recycling that is undertaken by the government of Australia. Inland conflict of depot There is a 60-hectare area that is unused left in the industrial are that is connected by the rail line to the Port Botany. The development of this area was being planned when this created a conflict among the local government (Merkert and Hensher, 2014). The limited storage of container and the limited terminal space. The terminals are the intermodal limit in the logistics network. Strategy of logistics management The major intention of the management of logistics is the creation of any plan for coordinating the required steps for gaining the best service at the minimal cost (Smith and Lawrence, 2014). Logistics includes the overall process transportation that starts from the picking of the product from the point of origin until the drop at destination point. Due to the constant evolvement and the modification in the supply chains in the present world, it creates the requirement of the designing of the strategies of the logistics management on the basis of the various customers, various locations and several lines of product (Joyce, 2015). As the
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7 LOGISTICS company is facing these issues presently, there are several strategies that are implemented by the management for overcoming issues and several other recommendations are also provided. Multimodal transport access The transfer of port activities has been done from the Port Jackson to the Port Botany that has led to the alteration of the split of modal of the containers, which are transported from the port (Trinh, 2018). The designing of the Port Botany was appropriate for conducting the transportation using the trucks. The companies of the export/import had clash on this subject that the container trucks must not disrupt the environmental rules and not problems in the environment must rise due to this transportation. Strategies for solving the problems Reverse logistics This is the mechanism for dealing with the products that might not be usable or where there is not requirement. The operation of this procedure is done for the reuse of the material or the movement of the products from destination point to the capture value. The four sections of the reverse logistics are the substitution, recycle, reduction and the reuse. Collaboration with the logistics While the decision of the operational strategies for conducting, companies of the similar and the connected industry must be collaborated and significant decision must be undertaken.Ifanycompanymakesthedecisionforthecentraldecision,thismight unfavourably affect the functioning of any other company. For this reason, the logistics alliance must be formed for tackling this issue Intermodal transportation
8 LOGISTICS The transportation that is using several modes in the beneficial and common process that the Linfox Logistics is already exploiting. The method offers the quick delivery of the freight with significantly lower chances of the damage or any kind of loss (Lawrence, 2013). Moreover, it can be utilised in the remote or the regional area for making the transportation fruitful and convenient. Restricted capacity In the situations when there are not enough machines, the drivers, trucks or the warehouse space, the phenomenon of the restricted capacity must be used. Using this strategy the backhauls must allow the empty vehicles to be used (Sermcheep and Chirathivat,2015). Conclusion Therefore, it can be concluded that the company Linfox logistics could apply the measures for solving the problems by using the theories of logistics management even though several of these theories are already implemented in the organisation. The aspect of supply chain management and logistics are both combined in the SCM. SCM is considered as the combination of the the inventory location, production, and logistics in the supply chain. Logistics is the sector of supply chain, which controls, conducts the planning and then deploys the movement of inventory, which is the goods and services, from them origin point of the production to the ultimate customer. The company that is selected for the analysis is the LINFOX logistics. The company is a supply chain company that is established in Australia.The company presently is considered to thebe the biggest privately owned company of supply chain solutions in the Asia pacific. The supply chain of the company is huge and this leads to that supplies for any market that is situated locally and it also conducts exporting to the countries. The company makes a huge share of the revenue in the Australian market from the transport facilities and the services that are offered by the company.
9 LOGISTICS
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10 LOGISTICS References Constant, N. and Han, M., 2013. When the workplace and social media collide.Australasian Law Management Journal, (May 2013), p.26. Gilmour,P.,Driva,H.andHunt,R.A.,2015.Futuredirectionsforlogisticsin Australia.International Journal of Physical Distribution & Logistics Management,25(3), pp.24-32. Hartley, S., 2014. Trucking around: A little look at Linfox Logistics.Busidate,22(1), p.2. Joyce, K., 2015. Logistic support for unmanned systems. InAIAC16: 16th Australian International Aerospace Congress(p. 268). Engineers Australia. Lawrence,G.,2013.SubmissiontotheSenateCommitteeonRecentTrendsinthe Preparedness for Extreme Weather Events. Merkert, R. and Hensher, D.A., 2014. Open access for railways and transaction cost economics–ManagementperspectivesofAustralia'srailcompanies.Researchin Transportation Economics,48, pp.227-236. Pen,J.,2016.‘NeverTweet?’SocialMediaandUnfairDismissal.AlternativeLaw Journal,41(4), pp.271-274. Pratama, R.G. and Simatupang, T.M., 2013. Warehouse Performance Improvement at Linfox Logistics Indonesia.Indonesian Journal of Business Administration,2(7). Priest, M., 2014. Do workers have the right to bad mouth their employers?.Governance Directions,66(7), p.435.
11 LOGISTICS Sermcheep, S. and Chirathivat, S., 2015. Moving the AEC beyond 2015: managing domestic economic interestsin Thailand.Journal of Southeast Asian Economies(JSEAE),32(2), pp.260-274. Smith, K. and Lawrence, G., 2014. Flooding and food security: A case study of community resilience in Rockhampton.Rural Society,23(3), pp.216-228. Smith, N.N., 2015. Thai and Australian foreign business law and the impact of the Thailand Australia FTA.J. Int't Com. L. & Tech.,10, p.22. Sohal, A.S. and Rahman, S., 2013. Use of third party logistics services: an Asia-Pacific perspective. InHandbook of global logistics(pp. 45-67). Springer, New York, NY. Sullivan, R., 2013. A great experience.CIO, (May/Jun 2013), p.49. Trinh, D., 2018. Improving Supply Chain Management at Unilever Vietnam. Wiesner, R., 2013. Minimising Motor Vehicle Incidents (MVI’s) through teams and rewards (PeerSafe).