Report: Logistics Management Challenges and Solutions in NSW

This report provides an in-depth analysis of the logistics management challenges faced by businesses in New South Wales (NSW), Australia. The report identifies key problems within the current logistics network, including geographic challenges like traffic congestion, demographic challenges related to high operational costs, environmental challenges such as climate impacts, and human resource challenges like workforce shortages and communication barriers. The report then explores potential solutions, such as collaborating with Container Transport Alliance Australia (CTAA), utilizing water transportation, and focusing on international trade. The role of the NSW government in addressing these issues is also examined, highlighting initiatives for economic growth, innovation in freight logistics, and new distribution models. Finally, the report offers recommendations, including enhancing human resources and leveraging technological advancements, to improve the efficiency and effectiveness of logistics management in NSW. The document is contributed by a student to be published on the website Desklib, a platform which provides all the necessary AI based study tools for students.

Running head: LOGISTICS MANAGEMENT
Logistics Management
Name of the Student
Name of the University
Author’s Note

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Table of Contents
1. Introduction:................................................................................................................................2
2. Problem statement in the current logistic network of NSW:.......................................................3
3. How the issue can be resolved:....................................................................................................5
4. The role of NSW government from resolving the issue:.............................................................6
5. Recommendations:......................................................................................................................8
6. Conclusion:................................................................................................................................10
Reference List:...............................................................................................................................11

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1. Introduction:
The overarching term logistics defines the process of planning, implementing, controlling
the entire process of transportation system for delivering the services to a proper destination. As
per the opinion of Waters logistic is the function responsible for flow of materials from suppliers
to the estimated destination. Every business sector while running their entire process of business
aims to deliver superior quality of services as well as products. In is undeniable at the same time
that only product quality is not sufficient enough in rendering the success of business. At the
same time, the business experts have to take the responsibility of delivering the products to the
doorstep of customers at the stipulated deadline. This specific study has focused to make an in-
depth analysis about the significance of logistic network for maintaining the sustainability of
business.
New South Wales is a southeastern Australian state, distinguished by its coastal cities and
national parks under the capital of Sydney. Australia as a country is constituted with large
number of business organizations all over the country. Therefore, the entire logistic networks
would have to be smooth with the help of which customers get the services at proper time. As
per the geographic scenario, Australia is the sixth largest country occupying with 7,692,024
square kilometers. This specific country is endowed with 22,744,608 average growth of
population with the help of which the business organizations do not have to face difficulties in
making their target customers (Angus 2015). Recently it has been observed that New South
Wales is currently facing innumerable difficulties in maintaining their logistic network due to
several reasons. This specific study has provided an in-depth analysis about the primary

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challenges that the organizations belonging to New South Wales is actually facing for
maintaining their entire process of logistic network.
2. Problem statement in the current logistic network of NSW:
The primary challenges that NSW logistic network is facing currently are as follows:
 Geographic challenges:
The entire New South Wales especially Sydney is facing excessive traffic congestion
every weekday due to the level of over population. While maintaining the entire process of
business the supply chain managers of NSW have to be dependent on road transportation system
for delivering the entire process of work within proper deadline. Due to congested transport
system the shipping executives are facing challenges in delivering products within proper time.
The number of customer dissatisfaction rate is increasing day by day. In addition the number of
toll roads in NSW is large in number. Automatically, that particular cost is getting added within
operations. Customers have to pay high price while receiving the product. It ultimately affects
the entire image and reputation of business. Jayant and Kumar (2012) stated that the route of
NSW is complicated for tracking the proper destination. As a result, shipping executives have to
face difficulties in delivering the services within proper time.
 Demographic challenges:
Due to the extreme level of transportation and operation cost the customers have to pay
high rate of price for purchasing a specific product. As a result, high price range is becoming
difficult for large number of customers in receiving services. Assadipour, Ke and Verma (2015)
stated that New South Wales is economically developed country where large number of people

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belongs to premium cost of customers. At the same time, it is also undeniable that business
organizations need to draw the attention of low cost customers as well for enhancing the number
of target group. Due to the high level of operation cost the business experts fail to reduce the cost
of product. On the other hand, low cost customers tend to show their reluctant attitude in
purchasing the products and services due to the high range of products (Yang et al. 2016). At the
same time, the population of NSW is high in terms of the number of business organizations. As a
result, the shipping executives are facing challenges in maintaining an effective balance between
customer service and demand. Automatically, the entire process of business is getting affected.
 Environmental challenges:
Environmental climate is one of the most significant hindrances for Australia in
maintaining their entire logistic network throughout the year effectively. Minimizing the
operation cost by implementing advanced technology can be a major initiative for a particular
business organization in overcoming the challenges on logistic sector. Environment is however is
not within the control of human (Fahimnia, Farahani and Sarkis 2013). Therefore, heavy snow
fall in winter is one of the most effective challenges due to which the entire supply chain process
of a business organization gets affected. On the other hand, the hot weather in Australia is
prevalent from late September to late April. This specific time duration the entire road
transportation gets highly affected. As a result, people belonging to different geographical
markets fail to get the services within proper time.
 Challenges on human resource
In comparison to the entire population in New South Wales the workforce strength in the
logistic sector is limited in range. Especially, the business experts have to face challenges in

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recruiting employees in the supply chain sector due to uncertain work hour. As the number of
population in NSW is high the employees have to face difficulties in maintaining a balance
between customers supply and demand. In this kind of situation, target group is getting highly
affected in receiving the services within stipulated time. Ultimately, the entire business flow is
getting highly affected. On the other hand, it is also undeniable that supply chain business
managers are facing difficulties in maintaining an effective communication with the
organizational workforces due to religious barriers, cultural barriers, linguistic barriers and
psychological barriers (Imrie 2014). The shipping executives fail to provide continuous updates
on the service process to the concerned managers due to the lack of proper communication. As a
result, customers are not getting a proper feedback from the managers about their status of
receiving services.
3. How the issue can be resolved:
As the economic growth of a particular business industry is highly dependent on the
overall logistic network the business organizations of NSW have taken some of the major
initiatives for overcoming the issues in logistic sector. The issues are as follows:
 The business organizations personally have made an effective rapport with Container
Transport Alliance Australia (CTAA). Container Transport Alliance Australia (CTAA) has
been established in 2014 of December for providing an effective business support as well as
advocacy services to the logistic industry all over Australia. The primary role of CTTA is to
provide support by transporting containers (Eric 2014). It has been observed that an
individual logistic department of a particular organization has to face innumerable difficulties
in maintaining their entire transportation system properly. Therefore, the business managers

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can make a deal with Container Transport Alliance Australia. As a result, the products can
be delivered to the proper destination safely as well as secured way.
 On the other hand, the business managers of NSW organizations can use water transportation
system for avoiding the traffic congestion. It is undeniable that water transportation is low in
cost as well as safe. The shippers do not have to face innumerable difficulties in reaching the
product towards proper destination through water transportation. As a result, the
complications related to road track can be avoided simply (Varsei and Polyakovskiy 2017).
In addition, in order to maintain an effective import and export system the business managers
have to be dependent entirely on water transportation system. As a result, both the service
providers as well as service users gets benefited equally.
 The business organizations of New South Wales can enhance the rate of international trade
instead of being dependent on mere regional business process (Bakar, Taheri and Zomaya
2014). While dealing with the import and export system the business executives would have
to be dependent on water transaction. As a result, the entire process of business would be
enhanced in different geographical markets.
4. The role of NSW government from resolving the issue:
NSW government can play major role for resolving the issues of logistic network in
NSW. The primary roles that NSW government has followed for enhancing the business process
are provided below:
 The NSW Government has identified the freight logistics industry as a priority for
economic growth through innovation:

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Freight logistics industry implies maintaining transportation system with the help of
truck, rail or aircraft. The business organizations have to follow proper tax policies as well as
regulations in order to maintain Freight logistics. Automatically, NSW Government is helping in
the overall economic growth of Australia. In order to run the entire business process the
organizations have to follow those taxation policies properly (West and Bhattacharya 2016).
Otherwise the entire process of business gets affected in maintaining image and reputation.
 NSW government has implemented innovation strategies and actions for the freight
logistics sector
NSW government has implemented numerous strategies as well as actions for rendering
an improvement within freight logistics sector. Government has recruited large number of
employees in the shipping sector for reducing the labor and skill shortages. By implementing
some of the major acts as well as regulations such as health and safety act, anti-discrimination
act, the business managers have drawn the attention of large number of employees who showed
their reluctance for being a part of shipping sector (Fahimnia et al. 2013). NSW government has
implemented new distribution model.
This particular model ensures that emergence of e-trading would be helpful for enhancing
the entire logistic network all over the world. With the help of e-trading logistic network the
business organizations of NSW would be able to expand their products in different geographical
boundaries (Odewale 2017). Automatically, the number of international customers would be
raised. With the emergence of advanced technology the organizational experts are flexible
enough for being responsive towards the international customers by sitting at the own place

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(Borsboom and Cramer 2013). At the same time, customers are flexible in providing necessary
feedback to the service providers without going anywhere.
In addition, the entire NSW government and its political setup are under control. The
government of Australia does not create chaotic situation for running their business process
effectively. As a result, the business managers do not have to face difficulties in maintaining
their entire service process of transaction effectively. In addition, Cahoon et al. (2013) stated that
entire NSW is possessed with large number of toll roads where business experts have to pay
huge amount of money. Without maintaining toll tax the NSW government would not be able to
enhance the strength of economy. Therefore, in making the entire logistic network effective and
systematic the role of NSW government is undeniable.
5. Recommendations:
 Enhancing the number of human resources in supply chain sector:
The human resource managers can concentrate in enhancing the workforce strength of
supply chain division for effectively. As a result, the business experts would be able to make a
balance between customers demand and supply. On the other hand, the entire division of supply
chain is wide and vast. As a result, without having proper workforce strength the entire process
of business would be affected (Ghaderi, Cahoon and Nguyen 2016). Therefore, with the
implementation of some of the most effective regulations and acts the business organizations are
recommended to enhance their employee strength.
 Using the technological advancement in logistic network:

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Business organizations of NSW can enhance surveillance technology within the logistic
sector with the help of which people belonging to different geographical boundaries can keep a
constant track with the service providers. The impact of using GPS within the transport system is
having major significance (Janssen et al. 2013). The business managers can keep a constant
record on the overall logistic network of system. Based on the transport and their way of
communication the supply chain managers prefer to give an effective feedback to the customers
regarding the delivery of products as well as services.
 Reducing the operation cost for drawing more customers’ attention:
It has been observed that the organizations have to pay extreme level of toll tax on the
road of NSW while maintaining the transportation system effectively (Aurdahl 2016). In this
kind of situation, the entire operation cost is getting raised. Customers have to pay more prices in
purchasing a product due to the high rate of operation cost. However, this specific study has
made an in-depth overview on the overall impact of business organizations have to face
challenges due to excessive level of operation cost. In order to overcome this kind of situation, it
can be recommended that advanced use of technology can reduce the operation cost of business
(Fanam, Nguyen and Cahoon 2015). In addition, the business managers can increase the rate of
using water transaction more effectively for avoiding toll congestion. Water transportation
system is not very much expensive. Automatically, the business organization can reduce their
rate of operation cost.
 Providing an effective training and development session in communication skill:
It has been observed that employees associated within the shipping sectors are from
different geographical boundaries are cultures and attitudes. Automatically, the business

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managers have to face innumerable barriers in communicating with every individual employee.
In order to overcome this specific situation, the human resource managers can provide an
effective training and development session to the employees for developing their communication
skill as well as technological skill (Ferguson 2012). Communication skill is very much effective
for exchanging thoughts, views and ideas. As a result, business managers would not have to face
difficulties in gathering a constant update from the employees about their delivery process.
6. Conclusion:
The entire study has provided an in-depth overview about the necessary challenges that
NSW logistic network has to face for maintaining their overall business process. While dealing
with the customers the service providers have to focus on two major factors that include
maintaining product quality as well as services. In last five years, it has been observed that
logistic sectors of NSW is unable to deliver the organizational product within properly time that
increases the dissatisfaction level of customers. The challenging geographic, demographic and
environmental factors are the primary challenges of New South Wales for delivering services
within proper time. As a result, the entire process of business is getting affected day by day. In
addition, it has also been observed that the internal workforce strength in the logistic sector is not
very much effective in terms of the population of New South Wales. As a result, the customers
fail to get proper services within time. However, this specific study has provided a detailed
overview about the role of NSW government for resolving the issues happening within logistic
sectors. I addition, some of the major recommendations have also been provided for rendering an
improvement within the logistic sector. The business organizations NSW can enhance the
number of workforce strength in supply chain department for making a balance customers

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demand and supply. At the same time, the business organizations can increase the use of water
transaction as well in order to reduce overall operation cost.