Challenges and Solutions for Standard Mining's Logistic Management

This report provides a detailed analysis of supply chain and logistic management, focusing on the challenges faced by a mining organization, Standard Mining and Co., when importing locomotives and wagons. It explores key logistic issues such as the impact of technology and e-commerce, increasing customer demands, and capacity constraints. The report delves into transport modes, specifically sea and road, alongside Australian customs regulations. It emphasizes the importance of effective warehouse management, including essential functions and the use of Warehouse Management Systems (WMS). Furthermore, it outlines a comprehensive risk management plan, highlighting the stages of risk identification, assessment, and control. The report concludes with recommendations to improve Standard Mining and Co.'s logistic operations, ensuring efficient supply chain management and operational success.

Running head: SUPPLY CHAIN AND LOGISTIC MANAGEMENT
Supply Chain and Logistic Management
Name of the Student
Name of the University
Author Note

1SUPPLY CHAIN AND LOGISTIC MANAGEMENT
Executive Summary:
Logistic management has become one of the crucial parts of modern business model. It works as
a link between the organizations and their clients. It plays vital role in meeting the expectation
level of the consumers. The following report has articulated various issues associated with
logistic management. It has discussed about warehouse management to provide a vivid idea to a
mining organization called Standard Mining and Co. about how to establish a strong business
organization. Therefore the article has discussed about some rules to importing products from
other parts of the world in Australia and risk management process to help the organization to
design their strategy. At the end of the article, some recommendations have been presented for
the betterment of Standard Mining and Co.

2SUPPLY CHAIN AND LOGISTIC MANAGEMENT
Table of Contents
Introduction:....................................................................................................................................2
Background:.................................................................................................................................2
Aims and Purpose:.......................................................................................................................2
Logistic Issues:............................................................................................................................2
Advancement of Technology and E-commerce Orders:.........................................................3
Increasing Customer Demand:................................................................................................3
Rise in the Capacity:................................................................................................................3
Transport Mode:..........................................................................................................................4
Sea:..........................................................................................................................................4
Road:........................................................................................................................................4
Australian Custom Issues:...........................................................................................................5
Warehouse Management:............................................................................................................5
Risk Management:.......................................................................................................................7
Conclusion and Recommendations:..............................................................................................10
Reference:......................................................................................................................................11

3SUPPLY CHAIN AND LOGISTIC MANAGEMENT
Introduction:
Background:
Logistic management is an integral part of modern business organizational structure
(Fernie and Sparks 2014). It has become mandatory for the every business organization to
maintain a stable logistic management in order to provide high quality service to the consumers
on the promised time. In recent era, all the leading business organizations are incorporating
effective strategies to increase competitive advantage of the organization (Christopher 2016). In
this scenario, an organization called Standard Mining and Co. has planned to purchase
locomotives and wagons from the overseas suppliers. Being logistic manager of the organization,
it is important to enlighten the organizational authority about various challenges and issues they
may face while operating their function, the activities they will be needed to perform while
bringing up Wagons and Locomotives from different parts of the world.
Aims and Purpose:
The article aims at providing broader picture about the logistic issues often faced by the
business organization while performing their organizational operations. The report has
articulated highlighted various aspects of logistic management, such as- inland activities, port
activities custom issues and so on. Some recommendations have been presented to help the
Standard Mining and Co so they can achieve their long-term organizational goal in an
appropriate manner.
Logistic Issues:

4SUPPLY CHAIN AND LOGISTIC MANAGEMENT
There are some key challenges that are often faced by the business organizations now a
days while operating their business in the local as well as global context, they are as follows:
Advancement of Technology and E-commerce Orders:
The advancement of technology has transformed the structure of the business world in
recent era. It has opened a new path for e-commerce organizations. People are now a days
preferring e-commerce stores due to their busy schedule. It has challenged the existence of
physical stores. It has led the leaders of the business organizations to perform more efficiently.
Thus, it works as a major challenge for the logistics mangers. Organizational managements are
now a days creating pressure on the logistics management to give best performance to meet the
expectation level of the consumers, which will help the organization to battle against external
challenges. Otherwise, it will be difficult for the business organizations to survive in the
competition with the virtual stores (Omary and Kalinga 2017).
Increasing Customer Demand:
With the advancement of modern technologies, the demand level of the consumers is
increasing day by day. They want all their desired products within a short time. This works as a
threat for the logistic service. They are expected to perform in such a manner, so they can meet
the expectation level of the consumers. Consumers now want complete transparent service from
the business organizations. They want to track all the activities of the logistic service after
placing their orders. Thus, it has become important for the business organizations to enhance
their capacity to provide high quality service to the consumers (Sze et al. 2017).

5SUPPLY CHAIN AND LOGISTIC MANAGEMENT
Rise in the Capacity:
The rise in the capacity of the business organization is increasing complexity for the
business organization. In recent time, the consumers can easily place their orders to the business
organizations from anywhere anytime, which was not possible for the business organizations
earlier. Eventually, it has increased the demand and expectation level of the consumers.
However, it has challenged the capacity of the business organizations. Business leaders are
incorporating modern and scientific techniques within the organizational structure every now and
then in order to increase the potentiality of the logistic service, so they can provide high quality
service to their target market (García-Pardo and Márquez 2014).
Transport Mode:
Sea:
Every business organizations must follow some steps while importing any goods via sea,
such as:
 The booking is done at the origin.
 The goods and materials will be loaded and cleared and trucked by using vessel.
 Logistic managers need to maintain all the required and original document while
importing any goods via sea.
 Import clearance must be underway. By adopting this process as much as possible, the
organization can easily import any goods from any parts of the world.
 Once the containers of the goods are emptied, it must be returned to the port authority.
 The goods are directly delivered to the site of importers (Forsyth et al. 2014).

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Road:
According to the Australian government all the goods that will be imported from other
countries must be cleared through border. There are no license required for the importing any
material. Australian govt. will clear all the goods on borders. Depending on the quality and price
of the products, tax and GST will be included in the product (Forsyth et al. 2014).
Australian Custom Issues:
The Australian Quarantine and inspection Service (AQIS) is responsible to maintain the
export and import service of the Australian business organization. Every business organizations
require the permission of the AQIS (Watkins 2017). Thus, in this scenario the Standard Mining
and Co. will be required its permission for importing Wagon and Locomotive from the overseas
dealers. The organizational management must consider the fact while designing their supply
chain and logistics management. There are some rules that need to be followed while bringing up
any goods into Australia, so the organizational management must design their organizational
structure accordingly. There are some guidelines by which the Standard will have to submit the
application to the AQIs before importing any material or product to the Australia. By following
this method and availing the permission of AQIS can safely import products in Australia, as
AQIS will take care of the goods in the border (Mugg, Hawkins and Coyne 2016).
Warehouse Management:
The organizational management of Standard Mining and Co. must observe the
importance of Warehouse in order to manage the organizational function. Warehouse plays most
effective role in mining and material industry. There are some responsibilities that are played by
the warehouse, such as- effective use of space, effective use of equipments and all the available

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resources and so on (Son et al. 2016). Warehouse managers must be aware of some key
responsibilities, they are as follows:
 Unloading goods.
 Receive and check inbound goods.
 Internal product movement.
 Storing of the received goods.
 Order-picking
 Stock maintenance.
 Packing of Goods.
 Loading and shipping in the transport.
 Maintain all the documents.
 Prevent all kind of risks and loss.
However, the organizational management must observe the fact that there are some tolls that
can be used to manage the warehouse and its activities, such as- Warehouse Management System
(WMS) (Ding 2013). It helps the responsible managers to maintain all the stock and manage day
to day operation of the organization. This Warehouse management system is highly updated and
can provide better service than earlier warehouse management. The primary objective of the
warehouse management has not changed with time. It remains same. Thus, by introducing
modern techniques in the system, the efficiency level of the whole process. By using Warehouse
System Management Software, business organizations can easily keep the records of all the
stocks and maintain all the materials in an appropriate manner. Hence, in order to provide better
security to the inventories, the hierarchy of Standard Mining and Co. can use this method to
manage their warehouse activities (Richards 2014).

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There are some steps that can be followed to implement warehouse management system
properly within the organizational structure, such as-
The organizational management must consider the expectation level of all the stakeholders,
warehouse managers and operational managers while designing their warehouse management
system. All of the organizational members will keep different type of expectation from the newly
implemented warehouse management system, such as- warehouse managers expect the system to
be more user friendly than earlier. On the other hand, the operational managers expect that
system will be speedy to manage the organizational function in an appropriate manner. The
system must be designed according to the desire of all the internal and external stakeholders of
(Atieh et al. 2016).
The new warehouse management system must be capable of preventing risks. The risk level
of the system must be lower than previous system.
After implementing the warehouse management system, the organizational managers must
obtain the feedback of organizational members to ensure that the system is performing in an
appropriate manner.
While implementing the new warehouse management system, the organizational
management of Standard Mining and Co. must make a proper schedule. It is often evident that
warehouse management system fails due to the lack of an appropriate schedule.
The system must be customized to match the requirement of the potential consumers.
It is not possible for the employees to get trained with the new techniques and system of the
modern warehouse management system. Being one of the key parts of the whole system they

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must have clear idea about it. Thus, it is organizational manager’s responsibility to provide
sufficient knowledge about the system (Hufschmid and Collett 2016).
Risk Management:
Risk management plan is considered as a key part of the organizational structure of
mining companies. Employees of the mining industry always deal with heavy materials and
heavy instruments. Thus, it is important for the organizational management to provide safety and
healthy working environment to their organizational members. There are some key steps that can
be considered by the organizational higher authority while incorporating risk management plan
within the organizational structure, they are as follows:
Fig: Risk Management Plan
Source: (Chan et al. 2014)

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Identification of Risk: The primary stage of risk management plan is the identification of risks.
The success of the whole plan is highly dependent on this stage (Chan et al., 2015).
Assessment of Risk: By keeping all the previous records and consulting with other members of
the organization, operational managers can identify the risk and its nature. It will help them to
measure the hazards and how it will impact on the organizational function. This will help the
management to determine the method to control the risk (Chan et al. 2016).
Selection and Application of Controlling Method: By assessing the effectiveness, the
organizational management will be able to identify the effectiveness of the risks. This will help
the leaders to identify the most suitable and appropriate method to prevent the risk to manage the
organizational function in an appropriate manner. In order to identify the most effective method
to choose the best method for the organizational risk management, the risk management team
must obtain enough information about the method and organizational structure. It will help them
to select the most suitable method to risk management for the organization (Chan et al., 2015).
The next step is to apply the method within the organizational structure. In order to apply
the method properly, the managers must provide sufficient knowledge to the organizational
members about the method and its use, so they can adopt the techniques easily. It will increase
the effectiveness of the risk management process.
Maintain the Control and Measure: After implementing the risk control method within the
organizational structure, the higher authority must maintain the function properly and measure
the fact that the method fits for the organizational function or not (Chan et al., 2015).

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Monitor: The organizational management must monitor the operation of the risk management
plan every now and then to make sure that it is performing in an appropriate manner. It will help
them to identify any loopholes within the plan and rectify it as early as possible.
By discussing the previously mentioned steps, an organization will be able to provide
sufficient safety to the employees within the organization. At the same time, they will be able to
avoid many external and internal risks.
Conclusion and Recommendations:
As pre the previous discussion, some recommendations can be presented that must be
followed by the hierarchy of Standards Mining and Co., they are as follows:
The organizational management must conduct training and development program for
their employees, logistic managers and other members of logistics management to introduce
them with the new risk management plan, and warehouse management system. It will help them
to adopt modern techniques properly and participate in the organizational function in an active
manner.
The operational managers must maintain all the important records and documents, which
will help them to identify any risk and measure the development of the logistic service as well as
organizational function. By maintaining all the records and important documents the
organization can easily import their products from various corners of the world. It will help them
to clear the borders properly.