End to End Logistics Case Study Solution
Environmental issues:
The emissions caused by the trucks are extremely harmful. Therefore, regulation have been passed by the governments which has increased the overall cost. In some cases, the compliance cost has exceeded the benefits provided.
Vehicle breakdowns:
This can happen if due to any reason vehicle wasn’t checked prior to starting the journey. Having a vehicle that travels smoothly with no abruptions significantly effects the overall logistic system.Regular checkup of the vehicle must be conducted and a record must be maintained
Road disruptions:
These happen when there is some sort of issue on the road. It could probably be a construction work going on, or a repair work for broken road. It’s really important that schedule is developed with strategic planning as to which route would be the shortest with minimal hindrances.
Infrastructure/ port congestion:
Having a slammed port or truck station is pretty common. This may not only disturb the on time delivery, but also reduce the efficiency of staff performing their duties. Often the places are so swamped that operations have to be conduction in a rush, causing mismanagement and harm. This problem mainly occurs in developing countries where there is lack of infrastructure and many in line to use the facility. Investments must be made for improvement in infrastructure.
Capacity
Its really important that warehouse space is effectively utilized. If due to inadequate arrangement of goods, only half of the goods could be stored, this would not reduce the rent of warehouse. It woudn’t be cost effective if we don’t optimally utilize the space.
Tight capacity of domestic shipping is affecting the logistics of the business. Drewry and Alphaliner have conducted several studies and found out that due to large vessel deliveries there is a continuous pressure on freight rates.Order capacity of Maersk, MSC CMA CGM is 15.6% compared to their current combined fleet(REGENS, 2017).
Security
This is another main concern in logistics industry. Goods are passed from provider to provider. Cargo is booked by the shippers which is then delivered to the local warehouse. Form there the cargos are loaded to the truck who delivers the container to port. When shipment reaches the final destination it has passed through several hands. If any party in between the process of shipment and receiving breaks the procedure, the security has breached. A check and balance has to be kept at each stage, so products are not harmed in any way.
On time delivery:
Due to several factors, on time deliveries are sometimes not possible. These may include, strikes, holidays, or any other political or social event that somehow bounds the delivery to occur late. A timetable must be developed and strict instructions must be passed to the driver to stick to the schedule.
Government regulations:
State government and local authorities often impose regulations that are not in favor of the logistics industry. These may include heavy taxation or toll charges and compliance to certain rules whilst transporting.
Ineffective goods handling:
In the whole process of shipping, goods are moved between several hands. Apart from raising concerns for security, it also results in mistakes during movement of goods, which reduces business effeciency and gives rise to unnecessary costs. A supervisor must be hired on each stage who’s main responsibility would be to keep the operations error free.
Conclusion
Logistics system may appear simple since it involves the transport of goods only, but by critically evaluating this is the backbone of whole system. A lot of skills, knowledge and professional management is required in managing it. Specialized assistance is required in to make it flow smoothly. Just like marketing increases the customer, Logistics retains the customers. Bringing automation to logistics can really change the course of industry. Through potential digitalization, many task can be performed more conveniently. Automation in task assignment and management shows significant potential. This way task wont’ be forgotten, and in case of any shortfall, the person responsible for not completing the task can be pin pointed. Automation in inventory management will be a significant achievement, and large inventory can be managed efficiently. Without automation of inventory, it’ll be troublesome to manage the large stock. Automatic notification and alerts must be provided so during a malfunction, relevant person can intervene and take necessary action. This would accelerate the workflow with minimal need of transferring information manually. A comprehensive IT system must be developed for full transparency so coordination with different participant s can be easier. The IT system must be accessible to every participant of the company. A common system will increase the efficiency and speed of transferring the information and can be accessed from various devices like cell phones, laptops, tablets etc. An effective merchandize tracking system must be enabled...............
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