Introduction business organisation, which deals with numerous services like

Introduction

The importance of the logistics management is
improving day by day with the changing needs of the business organisation. The
value chain of an organisation is largely reliant on the efficiency of the
logistics section of the organisation. The supply chain of an organisation
often fragments and often the supply chain becomes expensive. In this context,
the importance of the logistics services providers like Qube is growing. Qube
is considered as the biggest logistics services providers. The company has
substantial presence in the import as well as export logistics services in
Australia as the company has efficient import and export logistics services.
The company was established in the year of 2010. The Qube Logistics is the
important part of a business organisation, which deals with numerous services
like rail plus road transport, warehouse, distribution, and containers park.
The services typically given individually and hence failed to accomplish the
requirements of the customers. The company has made significant expansion to
become the biggest logistics services providers in Australia over the last four
years. Qube Logistics provide 45% of the total income, and the company has
substantial control over the rail plus road transportation of the containers.
The company has a significant strategy of integrating domestic logistics
companies as well as small firms to consolidate plus create a company which is
more effective and efficient. In this matter, the company has acquired the
small companies.         

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Key
Logistic Issues

Qube
Logistics though achieved many successes in the past years, but the operations
of the supply chain are found to be highly unpredictable and also becoming more
competitive in nature. The Qube logistic industry is found to be affected by a
large number of factors which are surrounding the challenges faced by the
industry due to the improper functioning of the system.  It is founding to be facing some of the
issues related to the national strategies and policies, transport planning,
investment in the infrastructure and also is found to be facing the issues
related to the regional planning and the development policies (Aiek, 2012). In
the last few years, the changes in the policies are found to be affecting the
logistic supply which is clearly evident from the explained following points:

 

·     
Multi-modal accessing of
Transport: The activities related to the Port Botany and the Port Jackson are
depicted to be resulting in the modification of the modal spitting of the
containers. Though the designing of the pathway of the Port Botany is made for
the moving of the trucks to the containers, but the routes are found to be
restricted which is providing the barriers and also the heavy traffic is
created in the area of the Port Botany. The import and the export for the
companies are becoming tough for which the issues are faced by the company
(ABC, 2015). The local council is creating the barriers by which the
development of the environmental effects is seen which are creating the
barriers in the industry. The authority is found to be surrounding the
development of problems regarding the freight transfer and also the rail
network is established which is making a disturbance on the routes.

·     
Inland Deport Conflicts:
The conflicts are found to be going on in the area of the Port Botany and also
the area is showing the development of the intermodal facility which is found
to be supporting the activity in the area. When the state government is found
to have announced the development of the Port Botany area, the conflicts are
depicted to be raised with the local government present in the Port Botany
area. The terminals are becoming the vital part of the enhancement of the
logistic network (Banarjee,
2013). It is found to be reducing the costs as
well as the tracking of the shipping records are executed in an easy way. But
the limited space established for the terminals are found to be creating
conflicts and the issues in the management of the logistics network.

·     
Privatisation and Asset
recycling: The lease of the Port Botany is found to be made under the NSW Ports
consortium by which the privatisation is made by the Australian government. The
transaction of the new construction in the lines present in the Port Botany are
targeted for making the functions to be carried out in an appropriate way. This
is found to be providing the better functioning facilities by which the
reduction of the problems can be made. But, the conflicts are found to be
raised between the existing network and the new network which is making the
problem for the industry(Musgrave, 2013). The lack of funding is becoming a
complete part of the proposed plan which is also depicted to be weakening the strategy
of Qube logistics made for carrying out the operations.

·     
Commodity Market
Downturn: The Qube is found to be new in the market of commodity and in order
to pose an image, the services must be of high quality to create goodwill in
the commodity market. The current downturn in the commodity market is found to
be affecting the activities related to the operations as well as it is found to
be weakening the activities and are also lowering the demand for supplying the
goods (Emmett and Crocker, 2010).

·     
Acquisition Risk: The
Qube is found to be present in the form of the largest service provider in
Australia and also the acquisitions are provided to Qube for the purpose of
increasing the credit. The acquisitions carried out by the Qube on the higher
multiples are found to be creating the risks in the form of integrating the
functions and are also creating the unfavourable conditions for Qube. Thus,
this factor is providing the barrier in the logistic management of Qube which
is provided regarding the acquisition risks.  

 

Theories of Logistics Management

One of the most important parts of the supply chain
management is the logistics management. The logistics management is effective
in meeting the demand of the consumers by efficient planning, controlling as
well as implementing of productive movement plus storage of relevant
information of the goods and services from the origin points to the destination
points. The logistics and operation management is crucial to the success of the
contemporary business organisations. The supply chain management covers the entire
operations of the business from the pulling out raw material, via the
manufacture of the products to reach the products to the end users. The key aim
of the logistics management is to devise a plan for coordinating the entire
important steps to obtaining the best possible services at possibly minimal
cost. The logistics of an organisation add the full transportation procedure,
which is starting from the picking up of the goods from the origin till the
dropping at the point of destination (Golinska, 2014).  Because of the evolution of the supply chain,
it is recommended that a strong logistic management strategy must be developed
by the company that covers needs of different customers, various locations,
plus diverse product lines. It is compulsory to plan which is flexible enough
to manage the demand of changing market. Because of the issues facing by Qube,
the company requires developing few efficient management strategies that
support the company in overcoming the issues and help in improving the efficiency
of the logistics sections of the organisation. The logistics issues must be
identified, and efficient solutions for the issues must be recommended so that
the company can minimize the impact of the issues or eliminate the issue from
the business operation process. The operation management concepts help the
company in improving the efficiency and effectiveness of the business organisation.

Resolution
to the problems

The organisation within the same industry should take
cooperative decision while implementing operational strategies. If the company
Qube takes a dominant decision, then it can adversely affect the logistics
operations. A logistic alliance will help to fight on the operational issues.
The rolling horizon approach can be applied by the company Qube in order to
manage a large number of containers with transit, inbound and outbound
containers. The movement of the container needs to be noted down and balancing
the load of work in an appropriate manner. The reverse logistics method can be
used to deal with the goods that are not required by the users anymore. The
process is applied to reuse the materials or move the goods from the point of
destination to the capture value (Branch, 2009). The fundamentals of the
reverse logistics consists of reduction, substitution, reuse and recycle. The
quantitative model of reverse logistic consists distribution planning,
inventory control, and production planning. The limited capacity method should
be used where there not adequate trucks, machines, and warehouse. The backhauls
can be used for taking out products from the vehicles. Qube is using different
modes of transportation which is beneficial because it allows delivering the
products in a faster manner with very less chance of loss or damage.
Just-In-Time deliveries should be used for frequent or small shipments.
Appropriate management of emergency shipments and regular shipments is a
complex task but results in higher profitability and customer satisfaction.
Quality, cost and on-time delivery are considered as the main factors while
making a decision as per the JIT model. The transhipments can occur in the
distribution system during the transfer of freight, and it consists of two
functions that are Break-bulk and Consolidation.

The ports at many places have less space; the
government should implement adequate strategies for reconstructing and
expanding the areas for appropriate functioning. The strategies will help the
logistics of Qube to meet the demand of the logistics services. The government
should invest funds for the development of infrastructure. The Heavy Vehicle
National Law and Road, Safety Remuneration Act, should update the internal
policies, safety systems, and training programs. The politics involved in the
infrastructure plan lead to the inappropriate selection of the projects.
Infrastructure NSW plan and Infrastructure Australia Plan were designed for
keeping the politics aside. The best solution needs to be determined to
decrease the costs and burden on the users, community investments and taxpayers
(Drake, 2012). The implementation of adequate strategies will lead to
maximizing returns from the investments. The funds of the public should be
invested appropriate, and cost-benefit analysis needs to carried out. It is
expected that the freight in Australia will be doubled by the year 2030 and it
is necessary to strengthen the networks of rail. The transportation mode can be
huge transfer amount of freight with low investment and risk. The cost
competitiveness enhances the increase in the haulage distance. The short haul
shuttles are needed to shift between intermodal Terminals and Port. The rail
track system in the areas needs improvement in order to deal with the issues.

The implementation of the strategies will help to
solve the issues with the application of the logistics management theories. The
government of Australia should also take adequate steps in order to improve the
logistics system. The optimization of the entire supply chain should be carried
out cooperatively. The middle and upper management team of the company should
be involved in the achievement of the objectives. The company Qube need to
follow adequate steps and approach in order to enhance its operational
management objectives (Mentzer, Myers & Stank, 2007).

Conclusion

The logistics management is one of the most
vital parts of the supply chain management and supports the organisation in
their business operation. Effective implementation of the logistics management
helps in improving the operational efficiency of the organisation. The leading
logistics company in Australia Qube has been facing few issues in their
business operations, and with the help of the efficient recommendation, the
issues can be minimized. The effective logistics strategies and efficient
planning of overall business operations of the organisation support in
improving the effectiveness of the organisation (Samson, 2011).  The
successful implementation of the conceptual frameworks of operation management
improve the operational efficiency as well as the effectiveness of the supply
chain management of the organisation and thus improve the overall efficiency.
Furthermore, with the improved and more efficient operation of the business,
the productivity of the business organisation can be improved in immense ways
that also support in increasing the profitability of the organisation.

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