Logistics and Supply Chain Management

This report analyzes the logistics and supply chain management of ACFC, the largest privately owned container logistics operator in Australia. It identifies the main problems in the current logistics network in NSW and provides solutions to overcome them. The report also discusses the involvement of the NSW government in resolving the issues faced by the logistics and supply chain management system.

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Logistics and Supply Chain Management
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Logistics and Supply Chain Management
Executive summary
The below-presented research is summarized after analyzing the logistics and supply chain
management of ACFC that is the largest privately owned container logistics operator in
Australia. The below demonstrated report is primarily focused on the process of identification of
logistics management strategies for resolving any of the issues related to the operational aspects
of ACFS in Australia. The analysis is segmented into various sections which consist of the main
problems at the current logistics network in NSW. Furthermore, the report consists of the
solutions to these problems that are required to be adopted by the business entity for better
productivity and increasing performance. And at last the interference of government for
developing resolutions over the issues faced by the logistics and supply chain management
system.

Logistics and Supply Chain Management
Contents
Introduction......................................................................................................................................4
The main issue with the current logistics network in NSW............................................................4
Solutions for the logistic challenges................................................................................................6
Involvement of NSW government...................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Logistics and Supply Chain Management
Introduction
The process which comprise of monitoring, transporting, storing, warehousing, and preserving
the goods from one place to another can be termed as the process of logistics and supply chain
management. Furthermore the completed products are exchanged from the place of creation to
the point of utilization and this procedure is known as inventory network administration
(scm.ncsu 2017). The prime objective of the report is to develop strategies for providing
solutions over the issues faced by ACFS in Australia.
The main issue with the current logistics network in NSW
Logistics include moving of one product from one place to another or from the origin place to
the required destination. The whole process is facilitated by considering the requirements of the
consumers or the customers (Jabbour et al., 2017)). Under these procedures, many different
kinds of items can be transported such as accessories, any kind of food item, liquid and
beverages, groceries, and even animals also. Logistic management requires a proper planning
and then using the planning effectively to execute the whole process. Planning of the logistics
requires controlling the whole procedure and tracking the complete journey (Christopher, 2016).
The main aim of the logistic companies is to deliver the item safely and timely without any
issues. And to do so, they are required to keep the system as well as staff members updated
regarding the transport. Logistic management is full of complexities; therefore, it faces so many
problems because of several factors. Although logistics are one of the major factors that
contribute to the economy of the country due to many challenges logistic are so hard to manage
currently. Some of the major issues faced by the current logistics in Sydney are as follows:
Managing a large amount of data- While transferring the products, the whole procedure
requires a lot of work and transferring the information to all the sources who receive the product
throughout the journey. Managing such a large amount of data can be a huge problem and very
complicated to manage (Fredendall and Hill, 2016). Therefore a large amount of staff is needed
for all the work. A large amount of attention is required while planning the whole route and other
strategies. Therefore it is the toughest stage and requires a lot of experts and therefore it can be
very expensive and time taking.

Logistics and Supply Chain Management
Handling the customers- Handling the customers is also a very tough task for ACFS. Sydney is
one of the most populated parts of NSW. With the increasing population, demands are also
increasing. In the current customers want the full transparency and they want to know the status
of logistics from time to time (Junior and Mendes, 2017). It becomes a huge challenge to manage
such a large amount of customers and then to provide each update each and every one of them
from time to time. Also, the transport companies are required to maintain a proper coordination
with the consumers which are a complicated task.
Environmental changes- Transportation or logistics are heavily affected in the NSW region due
to adverse climatic changes. In Sydney, the weather is very unpredictable and become so worse
sometimes. For instance, during winters the roads get covered with snow which makes the whole
transportation impossible (Mangan and Lalwani, 2016). Many railways airways and roadways
get canceled because of the heavy snowfall. Winter snowfall covers the whole railway tracks and
even on roads there is a huge jam during winters. On the other hand, summers are also a little
complicated in this region. During summers much transportation get canceled because of the fear
of the products getting ruined (Dubey, et al., 2017). For instance, it becomes very hard to
transport food items and beverages during summers because the high temperature can even ruin
those items.
Managing the employees- As discussed earlier that logistics require a large amount of working
staff who can handle the whole process simultaneously. Due to the labor shortage in Sydney,
NSW it becomes slightly harder to find new workers (Monczka, Handfield, Giunipero and
Patterson, 2015). And also the stability in this job sector is very low therefore many employees
change their occupation and leave. Since this job requires many experts and qualified persons for
the job, therefore, it becomes a challenge to find such employees. Also, all the experts charge a
huge amount to do the work which is also a concern for the logistics and transport companies in
NSW. Once the hiring process is completed, then the employees are required to be managed
which is one of the trickiest tasks. Because in order to achieve the ACFS goal, a large number of
employees are required and then the bigger task is to manage each and every one of them and
making sure that everyone is on the same page (Schorsch, Wallenburg and Wieland, 2017).
Employees are required to be evaluated in order to check their working performance.

Logistics and Supply Chain Management
Increasing taxes and fuel prices- Due to the increasing population in Sydney, the government
has made some changes regarding the fuel prices and taxes. Increase in tax prices and fuel prices
transportation a logistic company are going through a very difficult phase in the business (Ross,
2013). Logistics include long journey and process; therefore, fuel requirement is very high
during the whole project. Therefore it is a major challenge for the logistics companies to spend a
huge amount on the fuel and also pay a large amount of taxes altogether. Apart from them, the
logistics service providers also have to pay extra charges while traveling through different states
or even countries which cost them a very large sum of money. In every way, logistics providers
have to pay a large amount of money which affect their business in many different ways . to
overcome these expenses some of the logistic companies increase their service charges which
affect the customers and due to increased prices many customers change their service provider.
One way or another the logistic companies are getting affected in the terms of business and
customer ratio (Schönsleben, 2016). Government is also not serious towards this concern which
raises a huge misunderstanding between the logistic companies and the government of Australia.
Delays and cancellations- Many factors such as adverse weather, changing government rules,
international law change etcetera affect the logistic services very badly. Logistic companies have
to follow each kind of rules and regulation in order to facilitate the whole project without any
kind of issues (Demirel, 2017). No matter how hard these rules can be but they are to be
followed by the logistic companies. All these factors can be very challenging for logistics in
Sydney, NSW. Government is also not serious regarding the current situations of the logistics
and transport companies, therefore, it is a huge concern.
Solutions for the logistic challenges
The major issue of the logistic is handling and planning the whole procedures and also
transferring large amounts of data and statistics to different sources. To overcome these issues,
the logistics companies can use the latest technologies to transfer the whole data to all the
sources at the same time without any delays (Bak and Ozlem, 2018). It might be costly but can
be very profitable in the long run. Another issue is managing and laying out the strategy which
requires different experts to do the work therefore to overcome these issues, the ACFS should
hire a single expert at a time to solve the issue. This way the huge salaries spent on the experts

Logistics and Supply Chain Management
can be saved and also that expert will help the ACFS to eradicate the issue perfectly and manage
the planning or another strategy for the logistic process during the transport (Castillo,
Mollenkopf, Bell and Bozdogan, 2018).
Another issue is regarding the adverse environmental conditions of the Sydney. This situation
can be resolved by upgrading the roads to facilitate the transport fluently. Better route planning
can also be very beneficial with the help of an expert. Weather predictions can also be very
helpful for planning the routes. The ACFS should use the latest satellite technology in order to
design the most efficient and better route for the transport facilitation. While laying out the
traveling routes few factors should be considered such as, calculating the distance, finding the
shortest distance possible, finding the most efficient routes for fluent facilitation, employing the
suitable person etcetera (Weele, 2009). All these factors can help the logistic companies to
overcome the route problem that occurs while adverse weather condition. Also to facilitate the
transport during such adverse condition, logistic companies can use other transportation
methods. For instance, if railways are blocked then airways can be used.
Government’s unsuitable rules and policy really put a damper on transport services and to
overcome such issues there are no alternatives because in order to facilitate the business one has
to follow all the rules (Waters and Rinsler, 2014). The most perfect way to run the business
smoothly under such laws is to follow the rules and work according to the government. To avoid
larger taxes or tolls, while planning the routes such roads should be chosen which do not have
toll booths.
Fuel prices are another major concern in the logistics industry. Increase in fuel prices has put the
logistic companies into very difficult phase but there are some ways in which this issue can be
solved up to an extent. Driver training can be really helpful; if the driver is well trained then fuel
economy will be improved (Fernie and Sparks, 2014). Another way to solve the problem is
collaborating with the fuel companies such as BHP Billiton and sponsoring them will help to
reduce the fuel prices. Using railways and waterways can be a great alternative and a huge
amount can be saved this way. Getting the vehicle serviced from time to
Time and maintaining it can also make the vehicle efficient.

Logistics and Supply Chain Management
Logistic companies should put their opinion in front of the government regarding all the issues
they are facing (Hugos, 2018). The issues can be such as, increased tax, increased fuel prices,
strict policies regarding the transportation etcetera are some of the issues that can only be solved
by the government. If the logistic companies put their concerns in an organized and efficient
manner then the government might take
Some action regarding the concerns of the logistic companies
The problem of employee management can be overlooked by the HR department. But the HR
department should comprise of a team of experts who are really experienced. With the help of an
experienced team, the employees will feel motivated and work efficiently to increase their
performance level (Wisner, Tan and Leong, 2014). If the employees are well managed then the
customers will be handled appropriately by the employees. It will create a positive environment.
Evaluations should be done from time to time to check the performance of the employees and on
the basis of that employees should be rewarded for their best performance. This way the
employees will try their best to do the work and manage the customers. It will also help the
logistic companies to strengthen their customer bases.
Involvement of NSW government
A government of NSW has become quite serious regarding the logistic issues because of the
increasing issues and complaints from the logistic companies. The government has launched
several operations and policies in order to solve the issues. The government has been renewing
some of the old policies in order to prevent any kind of complications. Government is also
working towards designing final freight for the NSW and port strategy in the state. Earlier the
state government released a draft strategy for the logistics industry and after a good result, the
government is planning on a final strategy in order to increase the certainty of the logistic and
transport ACFS. NSW government is also planning to launch a trial for the high productivity trial
(Hashim and Shariff, 2016). Many new airports and water ports are about to be obtained because
of the increasing demand from the huge population of Sydney. Government is also planning on
opening a second airport in Sydney to meet the huge demands of the people. Infrastructure and
assets will also be renewed by the NSW government in order to make the logistics and transport
ways more efficient. Those who suffer a huge loss because of adverse climatic conditions are

Logistics and Supply Chain Management
also provided with some compensation money and other help in order to compensate for the loss.
A government of NSW has become a bit serious because many organizations have been formed
in Australia to protect the rights of Australian logistics ACFS. Organizations such as ALC
(Australian logistics council) are taking the initiative to help the logistic companies and influence
the Australian government.
Conclusion
After summing up the above-presented report it has been concluded that ACFS is one of the
largest privately owned container logistics operator in Australia and the business entity is facing
issues. The analysis concluded that a report is developed for recommending some strategies as
the solution for solving the mentioned issues.

Logistics and Supply Chain Management
References
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Logistics and Supply Chain Management
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