Logistics Management

Question: Discuss about theLogistics Management. Answer: Introduction Logistic Management is a component of supply chain management that is utilized to achieve customer satisfaction by meeting customer by planning and organizing the effective movement of information, goods and services from the origin point to the point of destination. Logistic management is useful in achieving customer satisfaction. The research study is focused on the logistics management of QUBE. QUBE is a provider of logistic and management services in Australia. The company offers logistics and port management services. The company also offers expertise in services like warehousing and distribution, handling and managing of cargos and also management of vessels. The report focuses on the critical analysis of the logistics management of the company and shed critical light into the management practices adopted by the company in relation to the current logistic issue observed in Australia. The report also offers proposed recommendations and remedial actions used for combating such issue (Jim Wu et al. 2013). Logistic Management of QUBE The logistic operation service of Qube Logistic covers road and rail transport, distribution, warehousing, container Park, intermodal logistics hubs that includes international freight forwarding and rail terminal (Qube.com.au. 2016). The service is also combined tailored and integrated solution to the customers for providing customized transportation to the customers. From the past, four years the organization has expansively expanded and developed the logistic portfolio for becoming the largest logistic organization in Australia. The organization is highly focused on developing and growing its infrastructure. The organization has also established various logistics hub for ensuring better logistic management in different ports and islands. The multiuser terminals of this organization are strategically located for regional rail services, interstate and port shuttles. Unparalleled synergies are provided with the 24/7 hours in largest ports of Australia. In order to mitigate the weathe r related issues of different regions, the organization provides hub facility, where the client organizations can temporarily keep their goods on stock for climate problem and after the climate change, the client organizations can shift the goods to right destinations. The organization also provides transport and warehouse visibility system. Current Logistic Issue in Australia Technological Issue Existing in Australia Regarding Logistics Australia is a developed economy with a good state of technology available in the country. However, it can be seen logistic practices are growing on a high scale, which has led to a greater technological requirement in the country. The logistics management in the country demands a high level of technology and the country is striving to achieve it. However, it is viewed that the current technological state leaves the country in the grip of technological challenge in relation to logistics management (Prajogo and Olhager 2012). The global financial crisis has crippled the economy of many countries including Australia. It is inferred that the economical stage has been witnessing cyclical fluctuations in the economic trend and also witnessing a weak economical state. The growing logistic services and the increasing relevance of logistic to business tend to create strong technological demand in such regards. The current technological state is estimated to be insufficient for carrying out extensive and high scale logistic operations. Therefore, additional cost has to be incurred on adopting new technology. This increases the cost burden in the wake of the global financial meltdown. The application of new technology would lead to extra investment and leads to cost burden regarding logistics. This would lead to increased level of budgeting and forecasting regarding cost related to logistics. This is an important aspect in relation to logistic issue existing in Australia. Cost considerations tend to affect the profitability of organizations and affect the economic state of the country. (Prajogo and Olhager 2012). The need of new and advanced level of technology would require strong and more integrated level of systems. The adoption of advanced technology often leads to development of new integrated systems. The high scale suppliers and customers could change to the changing level of integrated system but small-scale suppliers often might not have access to the changed integrated system. Thus, it leads to a clash between integrated systems involved in logistics. This disrupts the efficiency in logistics. This would lead to disruption and hindrance in the information system and the glow of information. This would also lead to delay in operations and also leads to time snag (Bhakoo et al. 2012). The increasing need of technology in logistic management has led to an increased dependency of technology. More and more companies are adopted the method of digitization in regards to information technology. However, technology comes with its share of unmixed blessings as well. System crash and software corruption are a product of viruses and malicious elements existing in the technology. This increase the perils related to technology and computer system. In such a scenario, the common step adopted is increasing the backups of information and data fed on the computer system, which would salvage the necessary and significant information required by an organization. Increasing the level of backups and the cost of creating such level of security increases the cost involved in technological procedures. This increased burden of cost in logistic management affects the cost structure of an organization and ultimately leads to decline in the profitability of the company, which would severely hamper the economic growth of Australia in the wake of global financial meltdown (Francis et al. 2014). The technological state is not equally distributed among various states and regions in Australia. It can be observed that the major cities and states in Australia have a high standard of technology and the state of technology presented in credible. However, it is not true for every other city and state in Australia. Some regions in Australia do not have a very high state of technology. Slow internet speed and lack of requisite integrated information system is not present some regions of Australia. As a result, there is low level of technology present in some regions of Australia. It surfaces as a challenge to the logistic operators in adopting new technology to update to the increasing level of logistic operations existing in the country (Jim Wu et al. 2013). Technological change in logistics gives many areas of concerns. Resistance to change is an age old term, which is familiar to all. Resisting to a change is a common human phenomenon and psychology. Change in technology is at times viewed as disturbing and time consuming for people. Change in technology in logistics commonly refers to the change in ERP system and such changes often lead to changes in the management of an organization. Any new change in technology often requires training and development process to be undertaken by the employees. The employees do often not greet this in the warmest spirit and it leads to grievances from the employees. In addition to it, excessive training and development process can lead to increase in the cost of the company. Therefore, changing technological level causes disruption and resistance from the employees (Cabalag et al. 2013). Change in technological level and adoption of new technology causes adjustment issues among people (Chhetri, Butcher and Corbitt 2014). Adjusting to new and advanced technology often leads to adjusting to new systems. This increases the risk of employees of failing to adjust to new technology and also leaves the companies and its operations at the perils of such failure. There could be technical and increased jargons involved in the change of systems and technology. There is growing need of external assistance from beyond the geographical locations of Australia in such matters. As a result, there is an escalation in the cost structure and causes delay in production and distribution processes (McKinnon 2013). Analysis of QUBEs Logistic Management Related to Issue The above discussion discloses the main problem of logistic management in Australia. It has been found that logistic management issue of Australia in primarily focused on technological issue. As Australia is facing issues relate to current technology that are adopted by the various logistic organizations, the management of Qube logistic in facing various issues. Additional Cost of Logistic Management New technologies are extremely costly to be adopted in logistic operation, which will eventually increase the cost of management (Reiners and Wood 2013). It is very advantageous for the logistic organizations to adopt new and up-to-date technologies to bring competitive advantage. Although Qube Logistic uses GPS enabled technology but it has been found that the technology is not up to the level and does not provide timely information to the customers (Storer et al. 2014). In this situation, the organization needs advanced level of GPS enabled system that will provide accurate and timely information of warehouse and transportation. Qube logistic management is facing high cost for implementing and maintaining such advanced level of GPS enabled system. Disintegrated System It is very important for the Logistic organizations to integrate all the systems of their own organization as well as the client organizations. It has been found that the largest clients of Qube Logistic are using integrated system as used by Qube Logistics and thus, they are getting timely information from the organization by ensuring its exact value (Fahimnia et al. 2013). On the other hand, the organization is facing problems in logistic operation when it is dealing with small-scale organization regarding their logistic operations. It has been found that small scale organizations are not able for use the same level integrated system as Qube. Therefore, system clash between the organizations is leading disruption and delay in information flow. Technology Dependency All the organizations are going digital and thus, it is necessary for Qube logistics to keep all the information stored in computers as well as in internet servers. As the organization deals with numerous clients in Australia, keeping all the information on computer and internet servers make it very difficult to maintain the integrity of the organization (Sohal and Rahman 2013). Due to huge range of information, it makes overload of the information on the internet servers and computers. Information overload on the internet server and computers sometime cause disruption of information and thus, occurs information loses (Waters and Rinsler 2014). Regional Issues Some regional areas in Australia find it hard to accommodate new technology large size and low population density of Australia. Internet speed of regional area is commonly known to be low speed and thus, the organization faces high difficulties in operating with the organizations in small regional organization (Prajogo, Oke and Olhager 2016). The organization is not able to communicate timely with the organizations in small regional areas due to low internet speed. Mobile phone reception in these areas also is very weak and thus, high communicational issues in logistic problem are arisen. Employee Resistance The management of Qube Logistics is facing difficulties in managing the employees who are involved in logistic transportation. Many employees of Qube Logistics feel that accommodating and adopting new technology is very hard and it is even unnecessary (McKinnon 2013). Therefore, the management of this organization is facing difficulties in convincing the employees in adopting new technology in the organization. In order to implement new ERP system, the organization needs several weeks that also need high level of technological training to the employees, but the employees are resistant to change that is preventing the organization in adopting advanced technology. Recommendation While developing certain recommendations, it can be said that the organization needs to identify certain potential solutions, which will ne elaborated in the following table: Challenges Potential Solutions Additional cost of Logistic management Enhanced forecasting: Qube Logistics needs to identify better solutions for quality management and therefore, it needs to incorporate advanced GPS system, which has already proved beneficial for other similar companies. This will reduce the risk of involving unfamiliar technology. Cooperative Purchases: Additional management cost can be only reduced by joint purchases from suppliers, as the amount of technological procurement will be reduced (Pateman, Cahoon and Chen 2016). Technological Options: The organization needs to incorporate real-time based tracking system on all its categories, so that immediate query of the clients can be reduced. Disintegrated system Compatible system: Qube needs to incorporate certain technology where both its large-scale clients and small-scale clients can be intercepted. For this, real time based information needs to be shared by separate terminal. The terminal for small-scale clients will be not highly cost effective and can be easily incorporated and through that, main data can be allocated at the interface used by Qube, which will eventually reduce compatibility issue (Wang, Jie and Abareshi 2015). Technological dependence Using Backup System: Qube is prone to lose vital information, as it does not have suitable backup system. The organization needs to include automated backup system where all the day-to-day information will be stored. Client information, supplies, database, accounts and other dimensions are to be recorded within the system so that minimal loss of data occurs (Su 2015). Regional Issues Satellite Communication: Qube is expanding in all over Australia and therefore, the organization needs to develop its own satellite communication system with radio signals for communicating with deeper regions. This might be a huge investment for the organization, but it will lead to best communication along with market penetration. Employee Resistance Training and Support: Qube needs to entertain and enlighten its employees to understand the requirement of technological incorporation. Organization needs to ensure training and development programs where employees will feel the necessity of change management. Technological Adjustment Better Planning: Qube needs to ensure better planning and coordination at the initial stages while developing its new technological platforms. Proper decisions and support is to be gained from its stakeholders. Stage wise implementation: The incorporation of technology is to be done according to stages, where evaluation of new ideas is to be tested and then finalized (Keating 2013). Support and training: Finally, Qube needs to justify the technological adaptation and then provide training and development programs to its employees so that any sort of discrepancies are eliminated. Table 1: Recommendations for QUBE Logistics (Source: Created by Author) Conclusion While concluding, it can be said that technological issue in one of the most impactful factor in the logistics industry of Australia. It has been found that logistics organizations mostly rely on the internet for communication but most of the regions in Australia are having poor internet service. This results in diminishing prompt services. If the organization Qube is considered, it can be said that the same issue is experienced by it, which has eventually raised the financial consideration. The organization is trying to reach beyond the capabilities of supplies, but it is facing certain communication problems. Moreover, the organization is failing to update its technologies as it is not receiving employee trust. Therefore, certain recommendations have been established in favor of Qube, which will help in developing its business in future. Some of the most essential points that need to be included are technological dependence, integrated communication platform and financial managemen t. Such factors will raise the bar of corporate expansion and sustainability of Qube in future. Reference List Bhakoo, V., Singh, P. and Sohal, A., 2012. Collaborative management of inventory in Australian hospital supply chains: practices and issues.Supply Chain Management: An International Journal,17(2), pp.217-230. 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