Role of Logistics in Business: Significance, Impacts, and Challenges

This research explores the significance of logistics in business, its impacts on the performance of the retail sector, and the challenges faced by the logistics sector. It discusses the role of logistics in the overall growth of businesses. The research objectives include understanding the effects of Brexit on logistics, identifying barriers and issues faced by upper management in logistics operations, and analyzing the impact of effective logistics on organizations. The research approach is qualitative, and data will be collected from books, journals, and other secondary sources.

Mbr2

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Section 1..........................................................................................................................................3
Literature Review........................................................................................................................3
Significance of Logistic market...................................................................................................3
Impacts of logistic on the performance of retail sector...............................................................4
Challenges faces by Logistic sector.............................................................................................4
Section 2..........................................................................................................................................5
2.1 Identify the Logistic industry sector......................................................................................5
2.2 Background data on the context of Logistic industry............................................................6
2.3 Explain the perspective on the research.................................................................................6
2.4 identify two areas that will take research forward.................................................................6
Section 3..........................................................................................................................................6
3.1 A statement of three research objectives...............................................................................6
 What is the significance of Logistic market?.......................................................................7
 What are the impacts of logistic on the performance of retail sector?.................................7
 What challenges faces by Logistic sector currently?............................................................7
3.2 Explanation on chosen research approach.............................................................................7
3.3B A detailed plan for gathering secondary data......................................................................8
Section 4..........................................................................................................................................9
Ethical Consideration...................................................................................................................9
CONCLUSION..............................................................................................................................10
References......................................................................................................................................11

INTRODUCTION
Logistic refers as a procedure of planning and conducting the efficient transportation and
storing of inputs from the source of origin to last consumption. The main objective of the
logistics is to fulfil all needs of users within timeframe as well as in cost-effective manner.
Logistics plays efficient role within business such as it influences value of the company offers by
increasing merchandise and provides assurance for the availability of resources or products. In
this research will discuss about role of supply chain manger within organization (Barron and
West, 2017). There will be applied some effective approaches like qualitative and quantitative to
collect informative data in this research project.
Section 1
Literature Review
Significance of Logistic market
According to Gandhi, Shaikh and Sheorey, (2017), logistics sector gives hugs
contribution in uplifting UK’s companies. Logistic market also become major source of the
success of other businesses. However, this sector already become quite competitive along with
other small companies but large-scale firms gets great benefits to generate high profit margin on
the products. For example, MNC’s gets raw products at lower cost with good quality which
automatically reduces operational cost. thus, MNC’s enables to sell it’s products at lower cost
and generate revenue on each products. That’s why UK’s government takes various initiatives to
enhance accessibility of logistic all over the world.
However, Hüseyinoğlu, Sorkun and Börühan, (2018) have criticized over the above
stated fact in their published research papers that logistic industry posses’ various risk as well
such as it leads interruption in the product flow. Other risks are economic, social, governmental,
climate factors and threats of terrorism. For example, logistic industry act as intermediator
between business to business and customer to consumer. Supply chain of logistic companies are
responsible for the transporting of input from the point of origin to point of consumption. So, in
such case threats of terrorism situation is quite common. Logistic companies have wide supply
chain to transport raw material to the manufacturing industry then transport from wholesale to

retail industry, in last final customers. To handle wide chain of supply is time consuming
process. In addition, logistic industry needs skilful suppliers who can effectively deal with
business and others. It is another major issue of logistic industry.
Impacts of logistic on the performance of retail sector
As per the view of Özcan, Mondragon and Harindranath, (2018) logistic industry
impacts on all business sectors performance positively. Specially it has boost revenue of the
retail companies. Retail companies needs logistic companies who can transport products from
one location to another across the world. There are various retail companies in UK which enables
to generate high profit margin on each product. the reason behind is that UK’s government has
invested large capital to enhance accessibility of this sector around the world. Logistic sector is
not only enhanced growth of retail companies but brings high employment opportunities. So,
government takes initiatives to bring high availability of logistic companies in the UK country.
This initiative enhances employment ratio that automatically enhance GDP rate of country. Due
to high availability of suppliers in the UK gets profitable opportunities to the retail companies
such as they can recruit large number of suppliers who are willing to work on low wages or
supply products at lower cost with high quality Which automatically improves revenue of these
companies in the UK.
However, Tom Duncan, (2019) have quoted in their published articles that logistic
industry brings negative impact on retail sector performance as well. For example, there has high
shortage of skilful suppliers in the UK market that reduces productivity of working. Due to
limited availability of skilful and talented staff unable to generate high profit margin on the
products by the retail companies in the UK market. To gain high quality products have to pay
high cost to the skilful suppliers which enhance operational costs of products. So, retail
companies have to rise cost of the products that directly impact on selling revenue of the
company. From the above analysis can be analysed that logistic industry impacts on retail sector
performance as well.
Challenges faces by Logistic sector
As illustrated by Shahbazand et.al., (2018) there are numerous challenges that faces by
logistic sectors such as shortage of skilful suppliers in the logistic sector. Logistic companies i.e.
DPD group, Ceva logistics, City Sprint do not offer optimum salary to the suppliers due to this

skilful supplier looks for the new job except this job. So, currently logistic companies i.e. Ceva
logistics face less retention of skilful staff within workplace. Climate change is also another
challenge for the logistic industry because suppliers unable to deliver products on time which
lead satisfaction in customers for the service. Emerging technologies and government regulation
etc. act as challenges for the logistic market because there are lots of employees who does not
have good education background so they unable to operate technology effectively.
Sirkeci and et.al., (2018) have discussed about several strategies associated to overcome
challenges of logistic sector. Digitalization approach is effective approach that has led profitable
change in logistic industry. This approach has given shape to all business sectors across the
world. Currently most of the business industries are operated their businesses on digital platform.
This digital technology influence customer awareness as well about the various online platforms
to take customized purchasing decisions. With this approach logistic industry enables to lead
significant reduction in the procurement process as well as supply chain costs which influence
overall revenue. Thus, overall logistic industry plays effective role in UK.
Section 2
2.1 Identify the Logistic industry sector
Currently logistic market become one of the most emerging market among others. the
reason behind is that it become one of the major sources of economic health. Logistic industry
involves in number of business activities like sourcing of goods, manufacturing, inventory,
handling, transportation and warehousing. This sector has expensed it’s lines such as in IT
sector. With the information technology logistic industry exchange information ad data as well as
security cost with other businesses (Tom Duncan, Brexit effect on logistics, 2019). There are
some other activities of supply chain i.e. customer services, flow of information, packaging,
purchasing and maintenance among others effectively. Logistic industry is intermediated for all
business because it provides resources, products and other services between companies and
customers. Logistic industry selects as research topic because there are number of people or
business man who involve in this sector but faces various issues to maintain supply chain with
companies. Through this research gets more informative information or data to such business
which will improve their understanding to deal with some consequences.

2.2 Background data on the context of Logistic industry
Logistic market has captured large market size around 6 trillion in 2019. According to
FTA report Logistic market has increased 1.5% GDP rate of UK country in 2019 (Stareček and
et.al., 2018). Currently Brexit uncertainty have impacted number of MNC’s and medium sized
businesses in UK negatively but logistic market gets positive impact through Brexit
uncertainties. Three quarters logistic organizations in UK are highly ensured that their businesses
will grow in upcoming next three years (James Baker, Brexit Offers Opportunities for the
Logistics Sector. 2017). From past few years logistic companies faces potential challenges such
as labour shortage and order delays. To support Logistic industry invests huge funds by UK’s
government to improve infrastructure of rails and roads, develops fiscal environment, conducts
skills and development session initiative to overcome shortage of skilled staff and others. Such
contribution of government negotiates whole logistic sector to capture large market size as
compared other companies.
2.3 Explain the perspective on the research
Research on Logistic market is properly based on key logistic companies. To gather
information over logistic market will use research articles, Research papers, books & journals
and newspapers and other authentic reports which are available on internet.
2.4 identify two areas that will take research forward
In this research I will discuss about two areas in the logistic market such as ethical and
sustainable supply chain strategies and e-commerce logistic phenomena. These areas will take
research forwards and leads advanced knowledge for every logistic business. With these two
additional key research areas I will identify risk, opportunity and future outcomes of logistic
industry in this research project.
Section 3
3.1 A statement of three research objectives
Research objectives
 To understand how logistics of different businesses has affected through the decision of
Brexit.

 To identify and analysis key barriers and issues which generally has faced by upper
management of different companies while running their logistics operations.
 For understanding the major impact of effective logistics on different organisations and
also to know that, how logistics contributes in the all over growth of various businesses
or companies.
These are three main objectives of this research project. The first objective of this report is, to
understand how logistics of different businesses has affected through the decision of Brexit.
Basically, knowing the actual roe of logistics is very necessary task to people, because logistics
plays vey excellent role in transport goods and services from one place to another. Specially
people who operates different manufacturing ventures are highly required to get know the role of
logistics, because transport one product to other activity comes under daily operations of these
ventures (Edwards and Brannelly, 2017). In this situation, this research will be helped to
different people for knowing that, how logistics of different businesses has affected through the
decision of Brexit. Basically, Brexit decision of the UK’ government has affected logistics of
different companies in both manners, positively and negatively. However, nowadays, that Brexit
decision positively affects logistics of different companies.
On the other side, the second objective of this research project is to identify and analysis
key barriers and issues which generally has faced by upper management of different companies
while running their logistics operations. It is really very necessary task to different business or
companies, because by aware about different barriers, issues and challenges of logistics, any
business can easily find some appropriate solutions for systematically dealing with these all
challenges. At the end, this research report will help to different people or businesses to
completely be aware about the challenges of logistics. Lastly, for understanding the major impact
of effective logistics on different organisations and also to know that, how logistics contributes
in the all over growth of various businesses or companies is the third objective of this research
project. By getting informed by the actual impact of logistics, different organisations enable to
make appropriate strategies towards taking huge advantages through their function of logistics.
Research Question

 What is the significance of Logistic market?
 What are the impacts of logistic on the performance of retail sector?
 What challenges faces by Logistic sector currently?
3.2 Explanation on chosen research approach
The qualitative research approach has been used for collecting data for this research
project. Qualitative research approach is very favourable approach according to different
researcher for collecting data through different resources. This approach of research has enabled
to prepare a logical and meaningful research report (Snelson, 2019). Qualitative research
approach mainly uses for collecting non-numerical data, because there are quantitative research
approach uses for collecting the numerical data. There is qualitative approach of research has
given the opportunity to collect data from different very useful resources, like; books & journals,
business magazines, internet, articles of newspapers etc. On the other side, this approach of
research helps in saving lots of precious resources and time as well. Many of people within the
market has considered this report as a content generator approach also because this approach
enables to achieve lots of useful data or content from through different sources. For example;
After Brexit, nowadays, most businesses or ventures within the UK stocks on supplies for
ensuring that they are not in the stage of low falling on necessary goods and services because of
supply chain problems and delay (Impact of Brexit on Logistics Companies and Suppliers, 2016).
Lots of fear that delays of shipping at the UK-EU border may outcome in money losses to both
parties; importers and exporters.
Qualitative research approach is very favourable to explore the research topics, in which
this is one of main reasons behind choosing this approach of research in existing report. Another
key benefit of this approach is, anyone can easily drive and conduct this qualitative research
approach. This method has enabled for increasing the size of qualitative studies and sample data.
After adopting this method of research, everyone is able to identify the hidden aspects of
research topics. That’s why lots of researchers suggests qualitative method or approach of
research to anyone. However, quantitative approach of research also has provided very
appropriate outcomes when anyone wants to find numerical data.

3.3B A detailed plan for gathering secondary data
3.3.1B Three different sources of data
Books and journals: Books and journals are the most appropriate source in the secondary data
collection method. This source has played an excellent role in collecting data for this existing
research report as well (Heydarpour, Keshavarz and Bakhtiari, 2017). Basically, this research
report is based logistics, so that by analysing different books and journals, there are lots of data
has been collected on the topic logistics for this report. For example; on the basis of Mordor
Intelligence report on logistics, the UK is very effectively growing with the support of different
logistics companies, because these provides different goods and services to people on time.
(United Kingdom Freight and Logistics Market - Segmented by Mode of Transport Type,
Function Type, and End-user Type - Growth, Trends, and Forecast (2020 - 2025), 2020).
Newspapers: This is another key source in the secondary data collection method, so that this
source also has been used here for collecting secondary data on logistics topic to prepare this
research report in very systematic manner. Basically, many experts share their opinions and idea
in newspapers on different topics, so relevant data on logistics was also easily found in this
source.
Internet: In this modern world, this is one of the best sources of secondary data collection, in
which internet also has been used to complete this research report in very productive manner.
Internet generally gives opportunity to read different relevant blogs and articles to collect data
for the research project. Many informative videos also available on the internet today which has
based on logistics. Most logistics businesses within the UK, like; DPD group, Ceva logistics,
City Sprint etc. has focuses on making their services more and more effective to gain very
appropriate outcomes in the market (Impact of Brexit on Logistics Companies and Suppliers,
2016). They try to take advantages through they Brexit, because no they no need to follow EU
legislation, because now these companies now need follow only the UK’s legislations and
regulations.
3.3.2B Explanation on available data in these sources
In these all sources, those all data is easily available which is necessary for completing
this research report on the topic of logistics. In these three mentioned sources, currently internet

is the best source of collecting secondary data. Basically, nowadays authors and writers also has
uploaded their books and journals on the internet in the form of e-book and e-journals. On the
other side, newspapers companies also have uploaded their newspapers on the internet in the
forms of blogs and articles, so that by using internet anyone can easily access books & journals
and newspapers sources as well. Data which has based on the topic of logistics is simply
available in these sources. According to the logistics report of the UK, there are lots of logistics
companies has gained very high success after Brexit in the United Kingdom. For example; DPD
group, Ceva logistics and City Sprint are major logistics companies in this country which are
now able to generate excellent profit in the market place (Logistics Report, 2020). On the other
side, logistics market of this country is growing regularly.
3.3.3B Way to select relevant data
Way to select relevant data is very simple, because while collecting data through these
sources we have ensured that existing data within newspapers, internet and books & journals is
matching and relating with research topic or not (Aguinis and Solarino, 2019). In this situation,
only that data collected from these sources for this research report which is completely relating
the existing topic of the research.
3.3.4B Way to compare different kinds of data
For comparing different kinds of data, there are data filtering method has been used.
According to this method, a researcher should filter the collect data by comparing all data. While
comparing data we need to ensure that which collected data is logical, meaningful and useful, on
the other side, which collected data is unreal, illogical and no relevant to the research topic.
Section 4
Ethical Consideration
There were ethical consideration was precisely applied while gathering data for this
research topic. According to rule of ethical consideration no researcher is allow to use data of
another researchers without receiving their permission. So, I followed all guidance of authors
before taking data over the research topic and I added references links as well which represented

that I gathered information from others articles. I used all authentic sources to gather information
such as government reports, authentic news and others so that this research illustrated actual
condition of logistic sector on which I gathered data. I practiced all ethical consideration in
efficient manner while gathering data so that I do not harm any researcher feelings.
CONCLUSION
It has been summarized about role of logistic and it’s significance in UK as well as it’s
impact on retail sector through authors viewpoints in Literature review. It provided
understanding that Logistic sector is not only essential for the business but also raises
employment opportunities for the people who does not have job or does not get such platform to
perform their working capabilities. Then this report has been discussed over the government
initiatives that have taken to promote logistic sector. To gather adequate information has used
qualitative research in this report. overall, all research objective related to logistic sector have
been achieved in this report.

References
Books & Journals
Aguinis, H. and Solarino, A. M., 2019. Transparency and replicability in qualitative research:
The case of interviews with elite informants. Strategic Management Journal. 40(8).
pp.1291-1315.
Barron, D.N. and West, E., 2017. The quasi-market for adult residential care in the UK: Do for-
profit, not-for-profit or public sector residential care and nursing homes provide better
quality care?. Social Science & Medicine, 179, pp.137-146.
Edwards, R. and Brannelly, T., 2017. Approaches to democratising qualitative research methods.
Gandhi, A.V., Shaikh, A. and Sheorey, P.A., 2017. Impact of supply chain management practices
on firm performance. International Journal of Retail & Distribution Management.
Heydarpour, S., Keshavarz, Z. and Bakhtiari, M., 2017. Factors affecting adaptation to the role
of motherhood in mothers of preterm infants admitted to the neonatal intensive care
unit: a qualitative study. Journal of advanced nursing. 73(1). pp.138-148.
Hüseyinoğlu, I.Ö.Y., Sorkun, M.F. and Börühan, G., 2018. Revealing the impact of operational
logistics service quality on omni-channel capability. Asia Pacific Journal of Marketing
and Logistics.
Özcan, G.B., Mondragon, A.E.C. and Harindranath, G., 2018. Strategic entry and operational
integration of emerging market firms: The case of Cemex, Beko and Tata Steel in the
UK. Journal of Business Research, 93, pp.242-254.
Ramanathan, R and et.al., 2017. Adoption of business analytics and impact on performance: a
qualitative study in retail. Production Planning & Control, 28(11-12), pp.985-998.
Shahbaz, M.S and et.al., 2018. The impact of supply chain collaboration on operational
performance: Empirical evidence from manufacturing of Malaysia. International
Journal of Advanced and Applied Sciences, 5(8), pp.64-71.
Sirkeci, I and et.al., 2018. Barriers for highly qualified A8 immigrants in the UK labour
market. Work, employment and society, 32(5), pp.906-924.
Snelson, C., 2019. Teaching qualitative research methods online: A scoping review of the
literature. The Qualitative Report. 24(11). pp.2799-2814.
Stareček, A and et.al., 2018. Trends in automatic logistic systems and logistic market in
Slovakia. Acta Logistica. 5(1). pp.7-14.
Online

Impact of Brexit on Logistics Companies and Suppliers. 2016. [Online]. Available Through: <
https://ifa-forwarding.net/blog/news/impact-of-brexit-on-logistics-companies-and-
suppliers/ >.
United Kingdom Freight and Logistics Market - Segmented by Mode of Transport Type,
Function Type, and End-user Type - Growth, Trends, and Forecast (2020 - 2025). 2020.
[Online]. Available Through:
<https://www.mordorintelligence.com/industry-reports/united-kingdom-freight-
logistics-market-study>.
Logistics Report. 2020. [Online]. Available Through: <https://logistics.org.uk/logisticsreport>.
Impact of Brexit on the transport sector. 2018. [Online]. Available Through:
https://www.nortonrosefulbright.com/en/knowledge/publications/16d0fc9c/impact-of-
brexit-on-the-transport-sector
James Baker, Brexit Offers Opportunities for the Logistics Sector. 2017. [Online]. Available
Through:-
<https://www.supplychain247.com/article/brexit_offers_opportunities_for_the_logistics_sector
Tom Duncan, Brexit effect on logistics. 2019. [Online]. Available Through:-
<https://www.propertyweek.com/insight/brexit-effect-on-logistics/5105162.article>