Logistics and Operations Management: Current Issues and Comparative Study

This study focuses on the current issues in logistics and operations management, including supply chain inventory, transportation cost, forecasting accuracy, and more. It also conducts a comparative study between two nations. The study highlights the importance of effective supply chain management and the challenges faced by companies in optimizing their logistics and operations.

OPERATION AND
LOGISTICS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Logistics is referred to as the detailed organization which is considered to be very useful
in appropriate implementation of the complex business operations. Logistics in turn tends to
cover inbound and outbound transportation management which in turn helps in order fulfilment,
fleet management, demand and supply planning, logistics network design, inventory
management, warehousing, material handling, transportation management, etc. This study will
highlight on assessing the various current issues related with the logistics and operations
management within the business. Furthermore, this study will also carry out comparative study
within two nations.
CEVA logistics in turn is considered to be one of the most leading supply chain company
for medium sized and large multinational and national companies. This company was founded in
the year 2007 and the company is headquartered in Baar, Switzerland. It tends to provide best in
class services through its integrated network.
MAIN BODY
Logistics is referred to as the management of flow of goods from point of origin to the
point of consumption which in turn helps in meeting specific requirements of the customers.
Logistics in turn is considered to be as that part of the supply chain management which in turn
results in collaboration with various intermediaries, customers, sup plies and their party service
providers. The key components of the logistics is mainly related with the inbound and outbound
transportation, demand planning, warehousing, material handling, inventory management, etc.
Operations management is referred to as an administration in order to effectively carry out its
business practices. This in turn helps in creating high degree of efficiency by effectively
converting material and labour into appropriate goods and services. This in turn helps in
maximizing the profit for the given set of the organization. Operations management is useful in
making appropriate use of the various resources in order to improve the overall productivity of
the organization.
Supply Chain inventory issues
Supply chain inventory is referred to as the supervision of inventory and stocks which in turn is
very useful in supervising the flow of goods from manufacturers to the customers. Supply chain
management is referred to as the flow of goods and services which in turn focuses on

transforming various raw material in final products. It is considered to be very useful in
streamlining the supply side activities of the business which in turn helps in maximizing the
value of the customers and in turn also helps in gaining competitive advantage within the market
place. It is considered to be very useful in effectively maximizing the value of the customers.
Effective supply chain management in turn is considered to be very essential because it helps in
driving the success of the organization with the help of increased productivity. It is considered to
be very useful in effectively assessing the various risk which in turn results in supply chain risk
related with the manufacturing industry.
Malaysia in turn has been lagging behind other neighbouring countries which mainly includes
Thailand, Vietnam, Singapore, etc. related to the issues associated wit h bureaucratic, logistical
and transportation issues. Logistics development is mainly associated with the production. One
of the key problem associated with the logistics in Malaysia is mainly related with the poor
transportation infrastructure, slow and costly bureaucratic procedures, logistical services, etc.
This in turn eventually results in high logistics cost associated with the Malaysia. One of the key
issue associated with the supply chain management is that the company tends to rely on the past
efficiency in order to effectively anticipate the future sales of the CEVA logistics company. It is
also based on unrealistic assumptions which in turn eventually leads to lower attainment of
results and outcomes. High degree of transportation cost within the supply chain management in
turn eventually is considered to be one of the major issue associated with the business. High cost
related with the procurement cost in turn eventually leads to lower operational growth and
sustainability. This in turn eventually leads to higher operational cost and additional expenses
associated with carrying out the business. Issues associated with the estimation of the number of
inventory required will in turn largely affects the business operations. Inadequate management of
the inventory in turn eventually leads to higher production cost to the business. Poor forecasting
accuracy will in turn eventually leads to lower operational growth and sustainability for the
CEVA logistics company. The cost associated with the labour, energy and raw material will in
turn eventually results in increased economical constraints. In order to resolve this issue the
company must in turn focus on effectively improving their cost control by executing an
appropriate plan with the help of constant monitoring. Continuous change in the external
environmental conditions associated with the global sourcing, consumer demands, political
agendas, etc. will in turn gives rise to the risk management issues in the supply chain

management. Supplier must in turn focus on creating a harmonious relationship with the
suppliers and the partners. This in turn will eventually provide customers with the products in
order to maintain high standards on a timely and appropriate manner. This in turn will eventually
create an opportunity for improvements in order to gain better performance. In order to resolve
this issue supply chain management in turn must focus on effectively building a strong working
relationships with the supplier. This in turn helps company to effectively come up with the better
output results within a short or stipulated period of the time. Shortage of labour in turn is
considered to be one of the major challenge and one of the most important issue which in turn
eventually results in lower productivity of the work and delay in carrying operational activities
within the CEVA logistics company. Poor forecasting accuracy will in turn eventually leads to
lower operational growth and sustainability. This in turn will eventually result in over stocking
and under stocking of an inventory.
Another major issue associated with the supply chain management is to effectively ensure
risk associated with the investment in too much of the working capital. Adapting to the newer
supply chain in turn is considered to be one of the major challenge associated with the supply
chain inventory. Effective customer services is considered to be of the major issues and strain on
the supply chain management. It is mainly associated with providing right quantity of right
product, to the right person at the right place and time. The impact of supply chain management
will in turn eventually results in higher risk and disruption over the recent times. Increased
disruption and challenges within the supply chain management in turn has led companies to put
high degree of emphasis on the supply chain risk management. This in turn eventually helps in
dealing with the key issues in order to reduce disruption risk. The key issue is associated with the
machine downtime which in turn eventually gives rise to the issues and it also results in demand
forecasting. Supply chain management tends to encompass management and effective planning
of various other activities which in turn eventually leads to higher operational growth and
productivity of the CEVA logistics company. Increase in the globalization and less reliable leads
time from the global suppliers in turn is considered to be one of the major challenge in order to
overcome the complexity related with the supply chain.
Malaysia in turn is considered to be one of the developing countries in the world. Cost
associated with the supply chain which tends to focus on meeting the demands of the customers
in turn is considered to be one of the major issue which in turn largely affects the cost to carry

out the operations of the business. The cost associated with serving customers will in turn lowers
the productivity of the business. In order to resolve the issue associated with the supply chain
management the company must in turn focus on cost reduction of the business and must also
inflate various product cost. This help inn saving great deal of cost by effectively optimizing,
improving and streamlining the supply chain of the CEVA logistics company. The company
must also focus on minimizing the uncertainty associated with the supply chain. This in turn
tends to get in the way to reach higher operational growth and productivity of the business.
Technology is increasing at a very faster pace which in turn eventually leads to lower operational
growth and efficiency. Supply chain inventory issues associated with the poor execution of the
supply chain results n lower operational growth and productivity. This in turn also results in poor
decision making. Complex international logistics in turn eventually leads to high degree of
charges for transfer, storage and effective management of the products. Another major issue
related with the increased difficulty in tracking the system. This in turn results in high degree of
issue associated with the optimization of the stock across various multiple warehouses.
Expansion of the portfolio of the product will in turn eventually often put a lot of pressure on the
warehouse space. This in turn eventually aids to one of the major issue associated with the
supply chain inventory. This in turn affects the operations and logistic management of the CEVA
company.
Statistics of the issue
As per the statistics, one of the biggest challenge faced by the company due to supply chain
management is associated with the fluctuation in the demand of the customers which tends to
comprise up to 19.7%. Coordinating the operations across various multiple channels in turn is
considered to be one of the major challenge which in turn eventually results in facing higher
supply chain. 13.2% of the biggest issue associated with the supply chain management is
inventory management. This in turn results in high degree of risk in order to carry out its day to
day operations.

Another major issue associated with the supply chain management is to effectively ensure
ethical supply chain. This mainly comprise of the 5.3% of the data statistics which eventually
leads to lower operational growth and sustainability of the CEVA logistics company. Meeting
talent management requirements and shortage of number of talented labour available in turn is
considered to be one of the major issue associated with the business. Low availability of the
labour will in turn have one of the major issue which in turn eventually leads to lower
operational growth. The key performance indicators which in turn has been used for the
monitoring of the supply chain is mainly associated with the daily performance, production time,
cost reduction, lead time, inventory turn, etc. The key tech priorities of the supply chain
professionals are mainly linked with the internet of things, data analysis and cloud computing.
The issues which is identified is CEVA logistic company is that in respect of visibility
which is incurred in business regarding attaining the task in better way. It is stated that 21.1% is
examined through carrying the research regarding the availability and usages of the products in

market. As company vision and objectives is to retain in market for longer way and also provide
quality products to the customer. Thus, it is necessary that visibility regarding the usage of the
products or the quality which they are using in products is high rated. The major risk which
changed due to changes in time is relating to the technology, as it is stated that 6.6% logistics
data is resulting to keeping up to date information through using advanced technology in
business. Through this manner, the information of the competitors can be tracked easily and also
innovative strategies to be adapted to attract the customer interest towards the business for longer
way.
Comparative study between the two nations
In respect of comparing the supply chain inventors in Malaysia and Japan, it is stated
that, In case of Malaysia, they are not mainly taking care of quality of the products which they
are purchasing from suppliers and delivering is to be consumer or wholesale market. As in
context of supply chain inventories, it results in managing the demand of the products which
arises in market regarding increasing the higher usage of the products. As Malaysia is the
developing country, thus in respect of imposing strict norms of government regarding importing
and exporting the goods, it results in affecting their cost and also the dis management occurs in
form of managing logistic.
Sometimes, the issues also arise regarding facing fluctuation in rates of transportation
cots or not availing such products at the place within the set time period. This results in facing
issue in retaining the customer towards the products or also providing the expected services
within the set time period. It is also stated that Malaysia government takes the initiative in
respect of transforming the country norms in context of providing accurate space to the
companies in respect of storing their raw materials or finished goods with high security.
As comparing the matters of supply chain inventories of Japan, it is suggested that Japan
is one of the developed country which carries the high norms of government regarding providing
flexibility in all the major aspects stated under the supply chain. The major aspects which they
deal is suing the anti dumping procedure in which they restrict the company to offer the price
lower than their own home country. Through these aspects, they are not securing their own
country goods and helping other to import their business into their own country. The major
advantages which they carry is relating to supporting the sick industrial companies in respect of

taking initiative to purchases the goods or making investment in the companies to sell the goods
in market.
Thus, in such aspects, it is stated that supply chain inventory issues are high in every
country but the major impact is faced by developing country regarding controlling the inventory
process. In these aspects, Japan not faces major issues regarding managing the quality and cost
of inventories.
CONCLUSION
From the above conducted study it has been summarized that, logistics is an appropriate
activity which in turn is mainly associated with the accommodation, implementation and
movement of goods and services. One of the key goal linked up with meeting the cost
requirements in timely and cost efficient manner. The key issues associated with the supply
chain management is mainly linked with visibility, data management, fluctuation in the demand
of the customers, assurance of the ethical supply chain, reliance on the past data in order to
anticipate future sales, high degree of transportation cost, higher operational cost and additional
expenses, poor forecasting accuracy, inadequate management of the inventory, high cost
associated with the labour, energy and raw material, continuous change in the external
environmental conditions, ineffective relationship with the suppliers, shortage of labour,
technology changing at faster pace, etc., in turn are considered to be one of the key issues in
logistics and operation management within the business.

REFERENCES
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Online
8 Reasons Why Your Business’ Success Depends Upon Your Supply Chain. 2020. [Online].
Available through:<https://www.logisticsbureau.com/8-reasons-why-the-supply-chain-
matters-to-business-success/>