Logistics Management: Challenges, Transloading Advantages and Disadvantages, Cargo Rotation Technique

LOGISTICS MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
The Major challenges..................................................................................................................1
Transloading Advantages and Disadvantages with respect to Melbourne..................................2
Cargo rotation technique.............................................................................................................4
Transloading strategy..................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Logistics management is considered as component of supply chain that is implied for
purpose of attaining customer demands via planning, controlling and implementing sound
storage and movement for goods, information through origin to destination. In the present
scenario, there is presence of logistics everywhere whether it is delivery of case or production.
This is not limited to storage or transportation but this had encompassed each aspect related to
process. The other task of logistics included, but not limited for gaining, buying, recycling and
stock control. The problems due to logistics are faced by every organization each day whereas its
business is oriented to logistics or not.
The present report is about port logistics with respect to Melbourne in Australia. It
highlight the key challenges that been witnessed in Melbourne port as a logistics city. In the
similar aspect, the report highlights key benefits and limitation to implement a transloading or
cross docking tactics with respect to Melbourne. Furthermore, there will be articulation of
diagram of cargo rotation technique to decrease the movement of empty container withib
multimodal port logistic city. Thus, it provides reason of adopting transloading tactics to review
whether it will operate in other port logistic cities or not.
The Major challenges
The Melbourne is facing different challenges as port logistics cities which are stated below:
 Reconfiguration of Melbourne’s metropolitan freight system
 Heavy reliance on trucks
 Infrastructure issue
 The reengineering of metropolitan freight systems of Melbourne occurred along with
population distribution is not appropriate cause different empty movements of container
and increases the cost of transportation. It leads to inefficient movement of freight into
and port’s outside and great concentration of population within south east and east of
Melbourne has necessity of moving freight through port to logistics (Fernie and Sparks,
2018).
 With context to road transportation, presence of major corridor connects the western and
eastern suburbs. The huge reliance on trucks operating with reference to point to point
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schedule at Melbourne and apart from this, it raises delivery lead time. It creates
transportation bottlenecks and decreases the vehicles utilisation.
 The Australian infrastructure had estimated costs for traffic gridlock in year 2011 as
$13.7 billion and it has been forecasted, this will raise about $53.3 billion till 2031. Only
in Melbourne, projected cost of congestion’s in year 2011 was $3.6 billion as direct
transfer of shipments at destination through single transport mode in big city like
Melbourne is very hard and costly as well.
Transloading Advantages and Disadvantages with respect to Melbourne
Transloading strategy is replicated as procedure to transfer inventory shipments through
transportation mode to other before this reaches to final scheduled destination. Different
transportation modes which are implied in transloading consist of FTL and LTL trucks, ocean
cargo, rail along with air cargo. The transloading services transfer through single transportation
form to other. It initiates numerous steps due to international cargo would still be required to be
moved through port to the facility of transload (Schönsleben, 2018). Generally, facilities which
offer services that transload are situated from sea to rail to truck just similar to cross docking and
transloading. It has presence of both advantages and disadvantages which are stated below:
On basis of importers, there is decrement in unit transportation cost where is 3 maritime
40 footer containers within 2 domestic 53 footers. Similarly, it leads to added value task such as
sorting, labelling, packaging etc. and decreases flexibility via postponement. However,
disadvantage is cost of transloading as of loss at least one day of inland time of transit. There is
possibility of lack of domestic containers and even not every cargo is appropriate and suitable.
Apart from this, reconciliation of various container loads and additional delays as well. Further,
merit related to maritime shipping is limited the repositioning of the empty containers along with
fast optimisation of asset (Smith, Wimalasuriya and Voak, 2019). On the contrary, it has
disadvantage as well risk of damage container and availability of less equipment for exports.
The procedure of cross docking is obtaining goods through an inbound vehicle,
transferring through distribution dock and loading within an outbound vehicle. Usually, this
procedure decreases or eliminates time of storage. The cross docking warehouse has assigned
zone for storage on temporary basis. On basis of loads, it is required for altering routes, it could
help to save shippers money and time on fees related to storage (Dixon, 2019). It is the method
which is implied for consolidating loads through numerous trucks to one. Different times in cross
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