Analysis of Logistics Issues: Moorebank Intermodal Company Report

This report analyzes the logistics management challenges faced by Moorebank Intermodal Company in Australia. It begins with an executive summary and an introduction emphasizing the importance of effective supply chain and logistics management in a globalized era. The report provides a company profile of Moorebank Intermodal, detailing its role in freight transportation and its objectives. It then identifies key issues, including the limited availability of freight rails, restrictions on transporting dangerous goods, road congestion, limited access to rail networks, sustainability concerns, and variations in customer segments. The report applies the theory of uncertainty and institutional theory to address these issues, suggesting recommendations such as improving freight rail infrastructure, optimizing transportation routes, and enhancing customer relationship. The report concludes that the effective implementation of the recommended steps will help Moorebank overcome the identified issues and improve its operational efficiency.

Running head: LOGISTIC MANAGEMENT
Logistic management
Name of the Student
Name of the University
Author Notes

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Executive summary
The aim of this report is to discuss about the issues and challenges being faced by Moorebank
intermodal company in their operation in Australia. Various models of distribution and logistics
management are also being discussed in their report in order measure the effectiveness of them.
Various issues are being identified in this report along with discussion of different recommended
steps to overcome the identified issues. This report concludes that effective implementation of
the recommended steps will help to overcome the issues being identified.

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Table of Contents
Introduction..................................................................................................................................3
Company profile..........................................................................................................................3
Identification of the issues...............................................................................................................4
Theory used to deal with the Logistics management issues............................................................6
Recommendations..........................................................................................................................10
Conclusion.....................................................................................................................................11

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Introduction
In the current era of globalization, one of the key sources of gaining competitive
advantages in the market is the effective supply chain and logistics management. This is due to
the reason that, due to the initiation of the concept of the globalization, contemporary business
organizations are having their operations in different countries around the world. Thus, more
effective and cost benefit way will be their logistics; the more will be their global operations
(Seuring 2013). This will help them to maintain the seamless supply of their products in different
locations around the world.
However, logistics involves various complex elements and factors that are to be
considered by the contemporary business organizations. This becomes difficult for them to
maintain separate arrangement for their global distribution process. This is the key reason behind
the growing popularity of the intermodal companies in the recent times (Assadipour, Ke and
Verma 2015). The key responsibilities of these companies are to provide effective intermodal
process of transportation to transport the goods from the consignor to consignee. This helps the
consignor companies to have fewer responsibilities in transporting their goods along with
incurring less cost in the process.
Company profile
Moorebank intermodal company is one of the leading freight transportation companies in
Australia facilitating the development of the intermodal terminal in Sydney. It was being
incorporated in 2012 by the government of Australia (Moorebank Intermodal Company 2018).
The key objectives of them include providing assistance to the consignor companies to provide
effective supply chain and logistics. Moreover, they also helps the consignor companies in

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achieving cost effectiveness from their supply chain and distribution process by the effective and
efficient alignment of different modes of transports. However, Moorebank caters to water, road
and rail transportation. However, in the recent times there are various challenges being faced by
them in their business operation. Some of the challenges are being emerged due to political
instability in the global market, while some are emerging from the lack of proper infrastructure.
Thus, it is important for them to effectively identify the issues being emerged in the recent times
and implement strategies to overcome them.
This report will discuss about the issues that are being faced by Moorebank intermodal
company in their business operation in Australia. In addition, various theories in relation to the
supply chain and logistics management will also be critically analyzed to gauge the effectiveness
of Moorebank. Different recommended steps will be discussed in this report in accordance to the
identified issues.
Identification of the issues
As discussed in the earlier section, there are various challenges being faced by
Moorebank. However, with time, the challenges for them are becoming more varied and diverse
and are being originating from different operational areas. The following issues will discuss
about the various issues being faced by them in the recent time.
 One of the key issues being faced by them in New South Wales is the less availability of
the freight rails in comparison to the passenger rails. According to the reports, the
movement of the goods including the agricultural products between the New South Wales
and Queensland is facing the issue of lower infrastructure of freight corridors (Ghaderi et
al. 2015). Moreover, with the recent expectation of increasing the traffic of passenger

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rails, it is being feared that this issue will get further amplified. This is due to the reason
that, with the increase in the traffic for the passenger trains, the traffic for freight trains
will get reduced in the existing rail corridor.
 Another issue being faced by them is with the transportation of the dangerous items such
as fuel. This is due to the reason that, according to the reports, more than 11.2 Mt per
annum of fuel is being transported in New South Wales as of 2016. However, on the
other hand, there are various restrictions initiated by the government in transporting
inflammable fuels through the tunnels. Thus, it proves challenge for Moorebank to
transport the fuel due to the reason that, there are various tunnels through which the rails
and roads are being passed (Mirzabeiki 2013).
 For the intermodal companies such as Moorebank, one of the key competitive advantages
is the transportation of the goods in minimal time. However, congestion in the roads of
New South Wales is ever increasing, which is hindering the smooth movement of the
goods (Nguyen, Currie and Young 2015). It is being reported that, the movement of the
goods is efficient inside the port. However, the congestion in the connecting roads is
causing issues in the movement of the road carriers. This is leading to the incurring of
more time in the process of the transportation.
 In Australia, transport through the rail network is cheaper by 35 percent compared to road
transport (Stanton et al. 2013). Thus, the preferences for the rail transport are more.
Moreover, intermodal companies such as Moorebank will be more effective when they
can align the two modes effectively. However, New South Wales is having limited access
to the rail network, which is causing pilling of the goods in the part. It is also reducing the
speed of transportation for Moorebank.

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 Moorebank is also facing issues in terms of sustainability. This is due to the reason that,
in the recent times, degradation of environment is one of the key challenges being faced
by the contemporary business organizations (Amiril et al. 2014). Thus, more companies
prefer sustainable way of transportation. It is important for Moorebank also to promote
more sustainable mode of transportation in order to maintain their existing customer base.
However, it is difficult for them to promote sustainable business operation by having the
road, water and rail mode of transport. Moreover with the lack of the rail corridor in New
South Wales, they are more depended on the road corridor, which further reduce the
sustainability.
 Another issue being faced by them is the huge variation in the customer segments. This is
due to the reason that, logistic management involves transporting goods from different
country of origin with having different regulations (Mezzadra and Neilson 2013). Thus, it
becomes difficult for Moorebank to comply with the safety requirements and regulations
effectively by managing different consignment from different countries. Moreover with
the different requirement of the customers, it is proving challenges for them to cater by
having limited resources.
Theory used to deal with the Logistics management issues
Intermodal freight transport is effectively used in the modern day supply chain
management as it use for goods movement. As mentioned by Borgatti and Li (2009), higher level
of security and minimum risk of damage are considered to be the major advantage of this mode
of transportation. The efficiency of supply and Logistic management performance is dependent
upon the performance level of the operational department. Transportation is considered to be one
of the key element for smooth functioning of logistics and supply chain in intermodal freight.

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Nilsson (2006), has mentioned about the importance of considering the on certain factors that
are associated with the entire operations of supply chain management. The Complexity within
the network of transportation in intermodal freight increased due to less availability of the freight
rails. This mainly due to the increasing demand of the customers in the areas of New South
Wales. It is therefore essential to use the theory of uncertainty within the logistic operation.
There are four main factors under the uncertainty theory Customer demand and expectations: With new types of consumable product being
introduced in the market, the demand of the same are increasing at a rapid rate in the
market. It is also important to consider the fact that the customers are becoming more
aware about the delivery time of product. In order to meet up with this increasing new
demand it is essential for the supply chain department to get more involvement of the
customers by gathering their opinion. It is therefore possible to improve the level of
customer relationship and thereby help to gain the level of customer Trust. Proper
procurement strategy can also be implemented in the given context, which is essential to
deal with crisis situation. Internal processes: Effective level of internal business communication is believed to be
one of the key element for maintaining efficiency within the operations of supply chain
management. Lowson (2007), has mentioned about the importance of effective
communication between the sales or marketing agent with that of the logistics partner,
which can help to deal with the uncertainty issue within the intermodal freight transport.
The improvement of the IT infrastructure is also considered to be one of the essential part
of internal processes.

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 Human factors: It is also essential to consider the human factor that is believed to be one
of the major source of all errors within the operation of supply chain. It is important to
involve more people in the matter of decision making as an important strategy of the
logistics management. This help to minimise the chance of errors that are caused due to
human factors. General Trends: The operational department within the supply chain management need
to consider all type of general trends and development in the technology that can be
implemented in intermodal freight transport. For example with the introduction of radio
frequency identification (RFID), it is easily possible to track the movement of the freight
and determine the exact location. This strategy will therefore help to provide better
information and maintain high level of clarity within the supply chain management.
Figure: Uncertainties in Logistics Supply chain
Source: (Nilsson 2006)

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As the uncertainty factors within the Logistic management are predicted using the above
theory, it is possible to bring about sustainability. It will be possible to identify the factors that
are causing delay in the overall transportation in intermodal freight. With faster mode of delivery
approach it is possible to reduce the overall energy consumption in the supply chain process. As
mentioned by, Wu et al. (2015), it is important to consider the above-mentioned uncertainty
factors that includes general trends and change in customer demand that can help in
implementing a proper strategic theory for sustainability in the supply chain.
The institutional theory can be applied in the given context, which can help the
International freight transport organisation to understand the social structure and thereby
implement the respective corporate social responsibility principle. The organisational structure
can therefore be modified accordingly to changes that occurred in the external business
environment. The institutional theory can also help the supply chain firm to understand the
pressure for a particular mode of transportation and thereby suggest alternative transportation
routes. This can be Highly Effective in the current situation of New South Wales. There is also
the element of stakeholder theory, which can help in a coordination of multiple level of
stakeholders, who are associated in the operation process of Logistics.
The NSW government also plays a significant role in providing the basic transportation
infrastructure that is required for movement of the vehicles. They can also play significant role
onto deciding of the technological infrastructure that can provide detailed information related to
that of the movement of the inbound logistics.
The transaction cost theory can helpful in improving the level of cost efficiency in the
overall transportation process (Touboulic and Walker 2015). In the area of New South Wales

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most of the products are being imported from foreign regions. It is essential to increase the total
number of channel of trade and transportation business, which will allow the company to get
better quality of cost effective service and co-ordinate most of their activities in easy manner.
This can also help to deal with the competitive challenge that are currently encountered by the
international freight transportation company due to cheap availability of railway network in New
South well areas. In the given context, the government plays the important role by reducing the
taxation for trade and transportation.
Karatas-Cetin and Denktas-Sakar (2013), have mentioned about the importance of
implementing social network theory as a part of the supply chain operations. The social network
is believed to be one of the effective tool of business communication in modern days that are
aimed to provide greater information details. The overall social structure of the organisation can
properly be evaluated with the help of the social networking theory. As the complexity of the
social structure within the supply chain is increasing, it is essential to collect essential
information relevant to transportation operation. It therefore possible to analyse multiple
dimensions like the frequency and total duration in a supply chain business. Most continuous and
discontinuous process of supply chain can be analysed through the medium of social network.
Optimisation of product design and product management is considered to be essential in
bringing about innovation for supply chain operations. This can also help to bring about
sustainability within the market and deal with essential changes. It is highly essential to
implement effective decision in the early cycle of product development, which can help to
improve upon the cost effectiveness. Optimise product for the supply chain can minimise the
hazard and risk of damage during transportation. All essential cost required for the transportation
purpose need to be analysed to maintain balance across end-to-end business.

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Recommendations
The about section has clearly highlighted about essential theories that are relevant in the
context of dealing with the issues faced by Moorebank. It is highly recommended for the
company to consider the practical application of each theory owing today present condition of
sustainability issues along with competitive challenges.
 Primarily it is essential for the company to improve upon their IT infrastructure and
implement RFID. This will provide them very essential and updated information.
 Use of social media for internal business communication and digital marketing can also
help to provide detailed information to the respective client and thereby improve upon
their customer base relationship (Borgatti and Li 2009).
 Strictly monitor every source of spending that are needed to improve upon the cost
effectiveness of the entire supply chain process.
 Another strong recommendation for the company is to procure their resources by
increasing the total number of vehicles. It is also essential to considered the factor of
environmental degradation and improve the quality of vehicles that are used in
transportation purpose.
Conclusion
Thus, from the above discussion, it can be concluded that, there are various issues being
faced by the intermodal organizations such as Moorebank intermodal company in Australia. This