Supply chain management in an organization plays an important role, in maintaining the overall organizational management. Supply chain management needs to be properly placed with the proper risk management, in order to manage the further risks of the organization. Regardless, the organization, in the supply chain management, the customers and legislative regulations, needs to be maintained. The logistic is regarded as the art in terms of managing of the supply chain whereas the supply chain is process of managing the flow of services that are being delivered. In this there are five logistic issues that are needed to be solved by the company for having a good supply of the products. Moreover, there are some custom issues as well.
The logistics is regarded as the art of managing the supply chain along with that the managing of science as well as controlling the flow in terms of information and good. In addition to that, there are other resources as well such as energy and people who are having an aim of meeting the requirements of customers. In addition to that, supply chain management is regarded as the process of flow that include the services as well as good along with that the storage of the raw materials in terms of consumption. The main purpose of this coursework is to provide immense knowledge regarding the logistic and supply chain in terms of sea and road. In addition to that, it shows the various issues that are faced by logistic. There is a brief discussion regarding the warehouse management and risk management as well.
2.0 logistic issues
The logistic is mainly regarded as the process that includes the interaction with company, customers and many more. In addition to that, the logistics is responsible for any kind of movement of products from the vendors through the delivery to the customers. There are also some other moves such as the warehouse, third parties that includes the distributors, packagers and many more. In order to advice the AngloAmerican company those are transporting the thermal coal have to face some of the logistic issues. In the opinion of Schaltegger and Burritt (2014, p.232), there are mainly five key issues that are required to be focused by the company for smooth flow of product. The five issues are movements of products, integration, cost, movements of information and time.
Movement of product
The movement of the product is often viewed from the company's way. The products are required to be complements the corporate strategy. Moreover, if the company has mainly focused on the cost reduction, customer service or any other thing then the products are moving in such away that is remained constant with emphasis. As opined by Beske and Seuring (2014, p.322), the products are not just only about to move from one place to another but it is required to flow between the vendors, customers or the warehouse (AngloAmerican, 2017).
Integration is mostly done between the cautioners and company or the company and vendors in order to bring all the vital things together for the company. The company is required to bring all the elements together with the external players. The company’s vendors are mainly carriers and warehouse. As per the view of Christopher (2016, p.145), the company is required to share their visions as well as plans with the vendors.
The cost is major key that has effectiveness in terms of measuring the cost of the medium of logistics. In the opinion of Monczka et al. (2015, p.556), for the corporate profitability there are some of the important variable such as the controlling of cost, management as well as containment.
Time is the ability that shows the dynamics in terms of market place for focusing on the requirements of customers as well as the new sourcing. The company is required to get focus on the time for moving of products to the customers. As per Wisner et al. (2014, p.415), the raw material and the components are required to be arrived on the given time frame.
Movements of information
The products are required to be tracked on a timely basis which shows how far the products have been proceed. In the opinion of Brandenburg et al. (2014, p.301), there is required of the information regarding the coming of orders as well as when they are going to be delivered. The company is advised to have all the informations in a correct way so that it could have a track of all the orders that have been delivered or ordered.
Figure 1: Logistic issues
3.0 Transport Mode- Sea and Road
The mode of transport is mainly used for showing the various ways of transporting. In the logistic services there are various types of transport mode such as the road, sea, air, rail and many more. For the company the main mode of transporting the products is sea as well as roads. The road is the most common mode of transporting the logistic services as well as very comfortable in terms of using the services. In the opinion of Sindi and Roe (2017, p.8), road are the safer way in terms of transporting the logistics along with that it is globally connected and they can transport freely with innovative fleet. The road transport is helpful in terms of providing various services. The products are transported with the medium of truck and haulage.
The sea transport mode is not that safe or easy and along with that it take more time for transporting the logistics. The sea transport is helpful in terms of transporting any heavy or bulky goods. As opined by Wang et al. (2016, p.110), it is mostly suitable for those products which are with having long lead times. Moreover, the supply chain model is helpful for proving products to the customer with immense profit. The company can use the SCOR model in order to apply in their transportation mode with proper planning of the transportation.
4.0 Australian Customs Issues – AQIS
Inland and freight details
In Australia there are various problems in terms of inland as well as freight. In inland there is the CDV which stands for custom domestic value that is affected for the fair market value for exporting the usual for the ordinary expectation. In the opinion of Sindi and Roe (2017, p.10), custom value is equal with the domestic fair market value that is ten percent of the charges for freight and well as landing.
Australia is dependent in terms of shipping for both the international trade as well as domestic freight. The major ports provide the key location in terms of supply chain activities for the bulk as well as for the container facilities. As per the view of Wang et al. (2016, p.15), the private sector is the main player for the port operations as well as investments.
Figure 2: AQIS Custom issues
As the company will transport the thermal coal for the project of railway building, thus, it is necessary to maintain the rules and regulations of the Australian Quarantine and Inspection Service. In the view of Christopher (2016, p.221), the Australian Quarantine and Inspection Service helps to maintain the proper ecological system, in terms of the animals, plants and other human health factors. In addition to that, the AQIS also ensures the maintenance of the export system market. In order to maintain safety of environment and agricultural industries, the AQIS controls the exotic factors, which can harm the environment, through approaching the enforcement of federal law.
As the thermal coal transforms the water into steam, in order to produce electricity, thus, it can harm, the environment, in different ways. Thus, the AngloAmerican needs to maintain the alternatives, with considering the AQIS policies, in order to reduce the environmental risk, during the railway building project. In addition to that, the transfer of the thermal coal needs to be cleared with proper customized documents, which needs to include the information of the resources.
5.0 Warehouse Management
Warehouse management refers to the management of the organizational inventories, which are included under the segment of supply chain of the organization. In the viewpoint of Wisner et al. (2014, p.1402), the warehouse management plays a key role in managing the transportation and other directories of an organization. The warehousing and logistics are implemented collaboratively in the organization, in order to maintain the efficiency and effectiveness, regarding the manufacturization process and production. In the opinion of Brandenburg et al. (2014, p.300), warehouse is considered as the organizational place, where the products and goods are stored, in order to maintain the benefits of both the organization and customers.
With following the case study of AngloAmerican, the warehouse management can help them in different ways, such as:
The warehouse can provide the AngloAmerican, as a central location, in order to store, distribute and receive their products. In addition to that, the warehouse can help them to maintain the security and provides an environment, where the products of the entity can be preserved.
In terms of the economic benefit, the AngloAmerican can gain the benefits, through the process of accumulation and consolidation. In the opinion of Brindley (2017, p.965), the products of the organization can be shipped directly to a warehouse, rather than distribution from different locations. As the consolidation of the products can help to reduce the cost of product delivery, thus, it can help the organization to maintain external delivery product costs. Moreover, in the view of Sindi and Roe (2015, p.10), with the consolidation of the products, the customers, can be benefitted, as an outcome of lower delivery charges.
On the other hand, the accumulation of the products helps the organization to offer the warehouse as a buffer system, where the organization can store the products, for long-term period. As Wang et al. (2016, p.100), has commented that, the warehouse accumulation can help the organization, in vital business case, when the products are not available in various stores. The accumulation of the products can be stored in the warehouse, in terms for the seasonal and long-term storage.
6.0 Risk Management
Risk management is considered as the vital management strategy, which needs to be maintained and implemented in an organization. As Wieland et al. (2016, p.205), has commented that, proper risk management strategy, in the organization helps to minimize the potential and further organizational risks, in future. In case of the given organization of AngloAmerican, the need of proper risk management needs to be implemented, which needs to include the preventive and alternatives, in case of the further arises risks.
Figure 3: Supply Chain Risk Management
As Estampe et al. (2013, p.250), has stated that, the supply chain includes the raw materials, labors, equipments, delivery, suppliers, distributors and other required resources. Thus,if somehow the resource, fails to deliver the proper products, the supply chain management of the organization can be distorted, which can cause major organizational loss. In addition to the mentioned loss of organization, it can face other different loss, such as, negative brand image, cost inflation, lower market position and others.
However, on the other hand, in order to manage the risk, different risk management approach can be implemented in the AngloAmerican, such as:
External Risk Management
The external risks in the supply chain of the organization can include five different risks:
According to Manuj (2014, p.242), demand risks, in the organization can be formed, by the demand of end customers.
The product flow interruptions can cause the supply risk in the organization, such as interruption in the raw materials.
The environmental risks can be raised, from the potential risks of the social, economic or any legislative barriers.
In the opinion of Monczka et al. (2015, p.745), the financial stability can be raised the risks of the business risk.
Internal Risk management
In the opinion of Serdarasan (2013, p.533), the internal risks can be arised, due to the internal processes of the organization, such as, internal operation, planning, management and other internal organizational factors.
From the above study, it can be recommended that, the organizations, need to implement the strategy of corporate social responsibility. Implementation of the CSR in the organization can help the organization to gain positive brand image, which can help them to enhance their revenue generation and customer retention. In addition to that, the application of CSR policy in the organization can help them to enhance their brand reputation, as the organizations can approach the social and environmental well-being.
From the above study, it can be concluded that, in order to manage the supply chain of an organization, proper management of the logistics needs to be done. As the logistics can help the organization to enhance their organizational flow of goods and information, thus maintenance of logistics can help them to gain organizational enhancement, in terms of performance. On the other hand, proper customs duties and risk management strategies needs to be implemented, in order to gain proper flow of the organizational supply. In addition to that, approaching the strategy of CSR can help the organization to enhance their brand image with helping in social and environmental well-being.
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