Critical Analysis of Visy Logistics

This report critically analyzes the challenges faced by Visy Logistics, an intermodal company in Australia, and provides solutions to the problems. It also discusses the role of the Australian government in resolving the issues and the sustainability approach of Visy Logistics.

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Critical Analysis of Visy Logistics
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1Critical Analysis of Visy Logistics
Executive Summary
The objective of this project is to critically analyze about an intermodal company situated in
Australia. The report discusses the various challenges and drawbacks associated with the
logistic industry like other intermodal companies. The paper highlights the problems
associated with it and also presents the solution for the mentioned problems .Several
problems related to technology, demography , legislation and others have been discussed and
analyzed .The role of the government has also been discussed in mitigating the problems
related to the intermodal companies . Lastly, the Sustainable approaches followed by the
company Visy Logistics have been discussed elaborately in this report.

2Critical Analysis of Visy Logistics
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Problems associated with current Logistics Network............................................................3
Geographical Challenges...................................................................................................4
Demographical challenges.................................................................................................5
Legislative Challenges.......................................................................................................6
Technological Challenges..................................................................................................7
Other Challenges................................................................................................................8
Solutions to problems associated with current Logistics Network........................................8
Role of Australian Government in Resolution of problems of Logistics Industry..............10
Sustainability approach of Visy Logistics............................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13

3Critical Analysis of Visy Logistics
Introduction
Visy Logistics is a leading privately owned intermodal company, which is
headquartered in Melbourne, a city in the state of Victoria, Australia (Visy - For a better
World. 2018). Visy Logistics has numerous sites crossing over 120 across many countries
like Australia, New Zealand and Thailand .It has established trading offices across Asia,
Europe and USA. Visy Logistics has been engaged in freight management activities from
1999.The business of Visy in both Australia and international markets have been instrumental
in the development of intermodal freight services through road, rail, sea and air. The paper
aims to identify the logistics management strategies for resolving the issues, which are
concerned with operational aspects of the company Visy Logistics. The report discusses the
main problem associated with logistics network for Visy Logistics and other related
companies, which are located in Melbourne, Australia. It also comprehends the remedy of the
problems associated with it. The paper also endeavors to identify the involvement of the
government in resolution of the problems associated with current logistics network. The
paper also provides an in-depth study about the sustainability of resources associated with the
intermodal company, Visy Logistics.
Problems associated with current Logistics Network
Visy Logistics which is a leading Australian intermodal logistics company faces a lot
of challenges related to demography, geography, environment , legislation and technology as
well some other challenges (Fernie and Sparks 2014). Other related companies face these
problems and challenges also which are present in Melbourne, Australia.

4Critical Analysis of Visy Logistics
Geographical Challenges
There are many geographical challenges that can be faced in Australia .There are
different challengers and issues related to logistics, which are encountered in both urban and
regional areas.
Urban Challenges
 Congestion of traffic – There is traffic congestion in the cities of Australia majorly in
Melbourne, almost every day. The roads are heavily congested during peak hours in
the afternoon and morning. The number of cars and motor vehicles running in the
roads is increasing day by day so it is becoming very difficult to control the
congestion in the road (Yang, S., 2013).
 Changes in road – Sometimes the roads are altered and modified as a result the
traffic has to take some unusual routes, where schools may be located as a result
heavy vehicles are prohibited from entering those routes.
Regional Challenges
 Distance – The distance is a major challenge for the logistics company like
Visy Logistics (Holz-Rau, Scheiner and Sicks 2014).The distance between the
cities of Australia is long and there are limited number of petrol stations .So, it
is necessary to carry additional supply of fuels . People who are sending
freights should be well aware of the long distances between cities of Australia
and plan accordingly. There are some sites, which are located in remote areas
so the goods senders should plan accordingly. Fatigue of drivers is another
issue related to long distances between the cities of Australia. The drivers
carrying the freights in intermodal containers can face serious safety issue if

5Critical Analysis of Visy Logistics
they suffer from fatigue (Phillips and Sagberg 2013).It may result in severe
fatal accidents.
 Conditions of Road – Most of the road in Australia are in good condition but
there are some roads mainly in the regional areas where the condition of the
road is pathetic. Due to deteriorated conditions of the road, the duration of the
journey of the intermodal transport increases and it can also leads to damage
of goods and equipments of the vehicle (Guayante, Díaz-Ramírez. and Mejía-
Alvarez 2014).
Demographical challenges
Many people in Australia are forced to work even after the age of 65 years so that
they can earn for a longer period and for their survival in rest part of their life when they will
not be working. In the logistics industry these aged people finds it difficult to keep pace with
the fast-paced advancement in technologies, which are made to use in the logistics industry
(Kulik et al. 2014). Thus, this aged section of population is a problematic issue for the
intermodal logistic company like Visy logistics.
The increase in population in the coastal cities of Australia is also an issue for Visy
Logistics and the related companies. With the increase in population the demands also
increase as a result Visy Logistics and other related companies situated in Melbourne should
make sure that the needs of the people are satisfied .But it is to be ensured that giving extra
attention to the cities does not create negligence towards the regional sites. Therefore, the
logistics company like Visy Logistics needs to adjust and adapt to the demands in the market
in order to thrive.

6Critical Analysis of Visy Logistics
Legislative Challenges
The Australian legislation possesses a number of different logistics challenges .The
challenges vary from operational level of business to strategic level of business. Some of the
logistic challenges faced due to the legislation of Australia are:
Transport Regulation – The regulations that regulate the transport of gods can have an
influence on the logistic operations of the Visy Logistics. There may be a condition, which
require additional permits or specially designed vehicles in case of special transportation
(Forsyth, P., 2017).
Quarantine Investigation- When the goods are to be imported to Visy Logistics and other
logistics company in Australia, it is important to take permission from AQIS
(Australia.gov.au. 2018). AQIS make a thorough investigation of all the materials coming to
Australia, which includes luggage, shipping containers and others. For the purpose of
security, random quarantine investigations are also undertaken. For the export of goods from
Australia to other countries permits are required too and all the goods for export are critically
monitored .So an additional planning is required for these processes .The companies engaged
with Visy Logistics should also be aware of the import and export permits and regulations
activities .
Work Safety – Work safety is a major issue that has grown in Australia. In order to increase
and ensure safety of the workers the cost for business has been increasing .It has been made
compulsory that all the workers should be wearing safety vests, which should be visible.
Wearing of these vests is not only a compulsion for the ware house workers involved in
operations but also it is necessary for the employees off upper level management of Visy
Logistics to wear these vests .In some works safety glasses, hardhats and boots capped with
steel may be also required .

7Critical Analysis of Visy Logistics
Technological Challenges
The latest technologies, which are used in today’s world, have brought about new
challenges for Visy Logistics and related companies. Even in future, the latest advancement
of technologies may lead to other technological challengers for the logistics company like
Visy Logistics. Some of the technological challenges faced by Visy Logistics are:
 Additional Costs – The user of new technologies in the logistic intermodal company
like Visy Logistics is extremely costly. It is true that by using the latest technologies,
the company will gain a strategic advantage as well as it will have an edge over the
competitors, but this would require higher levels of investments. Another issue which
is to be kept in mind is that the all the necessary and important data of the company
needs to be backed up to second or third source for the situations of technology failure
. This would also increase the cost of business.
 Regional issues – There are some regional areas in Australia, where it is difficult to
accommodate the latest technologies, as it lacks the proper infrastructure. The inter
speed is comparatively much slower in those areas and the signals of cell phones are
weaker in those areas than any cities of Australia .These may pose problems for Visy
logistics when working in sites present in regional areas of Australia .
 Adjustments to the new systems - Shifting and transferring of old data and
information to the new system is quite a laborious and confusing task. The companies
like Visy Logistics may require external help, which will result in delays in
production and distribution.
Other Challenges
There are also some other challenges which are encountered by the logistics company like
Visy Logistics which are present in Australia. Some of the other challenges are mentioned
below.

8Critical Analysis of Visy Logistics
 Hike in the fuel prices – Because of the rising prices of the fuel there has been lot of
pressure for intermodal companies in Australia like Visy Logistics, which rely heavily
on road transport.
 Security Issues - There is always an issue of safety, which persists in intermodal
service company like Visy Logistics .The risks, includes theft and damage of
property. The intermodal containers which carry the goods includes high value
electronic goods such as laptops ,mobile phones ,computer equipments and other
expensive items like jewelry. It is necessary to ensure that the security system is
upgraded for the prevention of theft.
 Market Competitions from the Rivals – There are also some other intermodal
companies which are deemed as the direct rivals of Visy Logistics and possess a
threat. The rivals of Visy Logistics who enjoys a considerable amount of market share
are Linfox and Toll holdings .Any new company who are entering into the market is
also deemed as a threat to the company, Visy Logistics.
Solutions to problems associated with current Logistics Network
There are many challenges which the intermodal company like Visy Logistics and
other related companies encounters .There are some challenges, which does not have any
solution like work safety legislation but the other challenges have solutions .Some of the
solutions to the problems faced by the intermodal company, Visy Logistics are:
Urban Challenges
 Traffic Congestion - For avoiding the traffic congestion, the transport of Intermodal
modal companies may take different routes to avoid the congestion and should plan
the route before starting the journey accordingly.

9Critical Analysis of Visy Logistics
 Road Changes – A proper route planning is necessary in order to avoid routes with
trouble spots and companies should make sure that most latest and recent information
is used .
Regional Challenges
 Distance - The intermodal company like Visy Logistics should use bigger loads
so it will provide greater capacity and the frequency of travel will be reduced.
There should be approach of better driver management and compulsive breaks
should be taken for long journeys so that the drivers are not fatigued.
 Conditions of the Roads – The conditions of the roads should be improved so
that it does not cause any accidents or delay the journey of the transport of
intermodal companies. There should also be warning signs present in the roads in
case of deteriorated road conditions.
Demographical Challenges
 Ageing Population - Additional training should be provided to the employees of
Visy Logistics so that they are well aware of the latest technologies that are in use in
the logistics industry .The method of job rotation should be followed where the aged
employees are moved to the areas where the pressure of work is low .
Legislative Challenges
 Quarantine – The Company should be well aware of the regulations. The restrictions
and prohibitions associated with quarantine can be avoided and overcome by being
aware of the restrictions and being aware of the regulations while export and import
of goods .
Technological Challenges

10Critical Analysis of Visy Logistics
 Additional Costs - By having a good knowledge of the different technological
options the costs can be estimated .A proper planning is necessary in order to apply
the latest technologies at the same time maintaining the cost of business of the
company (Savelsbergh and Van Woensel 2016). The company may also opt for joint
purchases so that the cost burden is shared for the applications of new technological
advancement.
 Adjusting to new Technologies – An additional training is necessary so that the
employees of the companies do not face any problem in adjusting and adapting with
the technological advancements .A overall planning is necessary so that no issues are
faced in adapting to new technologies.
Role of Australian Government in Resolution of problems of Logistics Industry
The Logistics industry accounts to almost about 9 percent of the GDP (Gross
Domestic Product) of Australia. Therefore, it is the responsibility of Australian government
to look into the problems of logistics industry and the intermodal companies. The freight
market is a difficult and competitive market, still the Australian government plays an
important role by opening new trade lanes providing an orientation between the source and
destination (Johnson and Garnett 2017). The Australian government also improved the
infrastructure that facilitates the growth of intermodal companies .But there are some other
factors which should be considered by the Australian government like reduction of import
and export costs (Seyoum, B., 2013) . There are some areas in Australia specially the regional
areas where the road conditions and other infrastructures like internet connection and cell
phone signals are below par, these condition should be looked into and improved. The
government of Australia should negotiate trade agreements so that the trade barriers are
minimized so that it is easier for companies to make exports and provide services.

11Critical Analysis of Visy Logistics
It is necessary for the Australian government accept the role of intermodalism in all
the transport in Australia .The government should focus more on development of
infrastructure by identifying various ways to attract capital like following public-private
partnership models. The Victorian Transport ,Distribution and Logistics Industry Action
Plan , has undertaken several initiatives that aims to improve practices of supply chain for all
the Victorian Industry ,this would help Visy Logistics being located in Victoria(Aljohani, K.,
2016). After the incident of 9/11 the Australian government has improved and tightened the
security in Australian aviation and maritime centers, this is a good approach by the Australian
government (Hanes, and Machin 2014).
Sustainability approach of Visy Logistics
Sustainability is a part of Visy Logistics and they have realized that by following
sustainable approach, Visy Logistics have improved market opportunity and reduced
unnecessary costs and also increased the profits (Boons and Lüdeke-Freund, 2013) .Visy
Logistics aims to achieve the following sustainable objectives:
 Economic Sustainability - Visy Logistics always endeavors top maintain a
sustainable relationships with the suppliers and with the customers .Visy Logistics
realized that long–term sustainable relationships are roots of successes for the
company .
 Environmental Sustainability - The goal of Visy Logistics is to make optimized use
of the environmental impacts (McKinnon et al. 2015) .Visy Logistics endeavors to
use the energy efficiently, it encourage recycling , curtail excessive use of water and
also makes sure to minimize waste to the landfills .
 Social Sustainability - Visy Logistics is a leading intermodal company in Australia.
They have over 5500 employees working for them. The goal of Visy Logistics is that

12Critical Analysis of Visy Logistics
the impact of the company is positive. They strives to provide a sustainable society by
choosing environmental friendly suppliers, provides a safe work place for the workers
and they also makes contributions to the community.
Conclusion
After critically analyzing the operational aspects related to the intermodal company,
Visy Logistics, it can be concluded that there several challenges associated with the
company, Visy Logistics and other intermodal companies encounters. Several management
strategies related to logistics has been identified and discussed in the report .However, these
strategies need to be properly implemented so that the challenges faced by the company can
be curtailed .The government of Australia showed also play an instrumental role in mitigating
the problems and challenges faced by the intermodal companies situated in Australia like
Visy Logistics.

13Critical Analysis of Visy Logistics
References
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Alleviate Impacts of Urban Freight Transport. In Australasian Transport Research Forum
(ATRF), 38th, 2016, Melbourne, Victoria, Australia.
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14Critical Analysis of Visy Logistics
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