ABH-SEP LOGISTICS SUPPLY CHAIN MANAGEMENT



LOGISTICS AND SUPPLY CHAIN MANAGEMENT

Executive Summary

The study sheds light upon proper supply chain management system of Waratah Coal limited. It focuses upon growth in the mineral wealth of Australia. The study states the ways by which the venture conduct their business such that no issues remain in the business. Several logistic as well as Australian custom issues are highlighted in the course of work. The study informs regarding the underlying cost related to the chain management task. Various risks related to the business are clearly focused on. This assists in analysing the risk in a proper manner thereby, reducing the chances of error. Ware house management is also clearly discussed in the course of work. All these elements have made the study more informative and this has resulted in the smooth conduction of work.

 

1.0 Introduction

Background

Proper business needs to have proper management system. In order to run the business in the appropriate way, it is necessary to manage the supplying procedure in the effective way. For every organisation, the transport system is the important matter as it helps to deliver the products, goods or services in the efficient way. In case transport management, the organisations need to develop the operating system of transport, contract distribution, purchasing and many others. In the context of the management of supply chain, The Waratah Coal Company has been chosen. This organisation helps to develop the economic condition of Australia by increasing the growth of mineral wealth. This is the mine development of Coal Company. This enterprise has established in the year of 2005.  It has focused on the development of coal in the country of Australia. In the beginning, it proposes around $8.4 billion coal mine project in Queensland. Waratah coal is the part of the group of Mineralogy pty Ltd. However, in the recent day, 100% business has been taken by Mineralogy.

Aim

The aim of study is to focus on the issues of logistics and mode of transport and solve it in the efficient way. In order to solve the problems, this study will provide discussion on Warehouse management and risk management.

Scope

This study will help to manage the transport system in the efficient way. It would provide the recommendation which assists to management the supply chain appropriately.

Findings

2.0 Logistics Issues

As mentioned by Christopher (2016, p.54), the logistics is considered as the procedure of movement from the vendors to the door for customers. This procedure includes the system of the facilities of manufacturing, third parties like distributors, repackagers, warehouse and many others. Often, it is seen that the organisations are not able to manage their transport system in the appropriate way. In case of Waratah Coal, it is seen that it has faced many problems related to their transport or supply system. These problems are followed by –

 Movement of Products

It is seen that in 2013, the commodities division of company have been progressed. They start to develop the management system of supply chain and logistics. In the time of supplying the goods, they maintain the system which is coal owners, cal contractors and jetty operation. In time of moving the goods, the coal owners receive the payment from the contractors of mining. In this case, often, it is seen that, few goods are damaged. As per the viewpoint of Stadtler (2015, p.10), it is the natural matter that all products are not possible to handle in the efficient way. Therefore, it is difficult to reach the goods of the locomotives of 40 standard gauge and coal wagons of 600 safely. As it transported in long distance, the managerial people often are not able to provide correct information to the customers. This is considered as one of the issues of logistics.

Movement information 

In the recent days, people are able to track the shipping products. As commented by Brandenburg et al. (2014, p.300), the organisations need to handle lots of goods at a time. In this case, often, they mix the information with others goods. It creates the problem. In case of Waratah Coal, they follow the specific supply chain like mining contractors, coal halting and many others. In this system, many workers are involved. Hence, they mix the information with other goods. Furthermore, often, the customers are not able to track. This is the problem that is seen in time of supplying.

Cost

In case of Waratah Coal, often, they face problems related to the cost of shipping. It is seen that, the cost is US$40000-$80000 per barge. In the project of short term, they provide 6 barges, which is similar to 1 Vessel per month. In time of Berge loading, the customers need to pay around 90%. Many a times it is seen that, the customers are not able to pay the amount at a time. In this case, the problems have occurred. As the Waratah coal has provided their products from Australia to Germany, they can face problems, which are related to logistics (Schorsch et al. p.250).

Time or services

Often, it is seen that, the employees of transport management are not able to provide the products or goods in the proper time due to natural calamity. As the goods are transported by sea or road, excessive storm can prevent the operation. If the ventures have urgency to receive the goods in the proper time, they can contact with other organisation. This is considered as the logistic issue in the management of supply chain.

Discussion

3.0 Transport Mode- Road & Sea (Refer to appendix1)

In order to deliver the products or goods in the appropriate way, it is necessary to plan the system of transportation in the effective way. In case of urgent delivery, the authority of the organisations needs to select the proper cost as the shipping charge. The charge of the goods depends on the weight and size. As mentioned by Seuring (2013, p.1516), the excessive weight can damage the cargoes and bring huge loss for the country.

Govindan et al. (2015, p.620) commented that, it is seen that, the ocean freight is used for moving the bulk commodities. It is considered as the less expensive in time of shipping the goods. Coal, iron, agri products and many others are transported by this mode. The ship can carry around 2000 twenty-foot equivalent units (TEU) at a time. However, it takes much time for reaching in the destination place (freighthub.com, 2016).

On the contrary, Seuring (2013, p.1520) stated that, the transportation system of road is the effective way as it helps to provide the goods to the door of the customers. It provides the flexible services. People can keep track about their products. This transportation system helps to save the packing cost.

However, the other scholars have agreed with the opinion of the first scholar. In case of coal, the transportation system of sea is the best way. In case of Waratah Coal, it is seen that, they try to build the supply chain. In this case, the products are moved from mine to jetty and then to barges. As per the Alpha North coal project, it includes around 6.4 billion dollar project of mining. In this case, they need to follow this system in the appropriate way. Though, the transportation system of ocean is the time consuming procedure, it helps to deliver the goods in the protective way. The chances of damaging the goods are low. Hence, Waratah Coal follows the transportation system of ocean in time delivering the goods to Germany.

4.0 Australian Customs Issues (AQIS)

In Australia, it is necessary to move the products first in the official way, after that in the physical way. As per the customs of Australia, the custom officers check the products in time of transporting. In the opinion of Golicic and Smith (2013, p.90), Australian Quarantine and Inspection Service (AQIS), includes the system of Australian custom for getting effective outcome. However, many times it is seen that, the custom officers do not play the job in the appropriate manner. In this case, they are not able to keep track about the transportation. In this case, different kinds of problems like stealing have been seen. As the AQIS provide certificate to the organisation, the ventures try to complete their job in the efficient way. In case of Waratah Coal, the administrations need to focus on the work of the custom officers, who check the goods in time of transporting. In order to avoid the logistic issues, the authority of Waratah Coal can maintain the checking in the appropriate way. If they are able to check the goods in time of transportation, it helps to remove many problems like stealing.

In order to transport the products like minerals in the different country, it is necessary for the organisation to have the certificate of AQIS. It is the rule of the country is that, the entities can bring around AUS$10000. If the amount is exceeded from it, they need to inform the customs of Australia. As per the opinion of Govindan et al. (2014, p.560), the business organisations need to provide the tax in the appropriate way. In case of Waratah coal, if they can pay the tax in the proper way, they would be able to avoid the logistic issues. It is seen that, many times, the authority are not able to keep record about the transaction. Hence, if they pay tax, they can collect the receipt. It will compel them to keep record in the effective way.

On the other way, it is also seen that, the authority of the enterprises does not pay tax in the effective way. Hence, the organisations are not considered as the legal ventures. This creates the logistic issues in time of transportation. It is also seen that, in time of transportation, the organisations need to have the certificate of AQIS. Without paying tax, the ventures are not able to receive the certificate of AQIS.

As per the Custom form of B534, the organisations need to provide report to the officers before transporting the goods. According to the Australian Standard for Risk Management-AS/NZI 4360, the organisations should provide details of transportation. It ensures the safety of the products. In case of waratah Coal, as they have provided coal to Germany, they need to follow this custom. If they are able to maintain the custom of risk management, it helps them to remove the issues related to logistics.

5.0 The management of Warehouse (Refer to Appendix 2)

The warehouse management is considered as the technical way of moving the goods before moving it in the physical way. As per the viewpoint of Waller and Fawcett (2013, p.80), the warehouse is the software, that helps to keep all the information related to the goods. The warehouse is comprised on the system of information, tools like barcode scanners, computers, radio frequency and many others. This systems help to know the planning of enterprise resource (ERP). This planning assists the workers to know the standardised processes, rules, instructions, parameters and many others. It helps to imply processes in the appropriate way in time of transportation. As mentioned by Cai et al. (2013, p.760), the theory of supply chain management is the effective way of completing the task. This theory indicates to finish the task in the disciplinary way.

Therefore, in case of Waratah Coal, they follow this technique before transporting the goods to Germany.  If they the workers of Waratah Coal complete the management of warehouse in the perfect way, they would be able to finish the procedure of transporting the goods in the smooth way.

It is seen that the warehouse management system helps to give detailed instruction for storing, receiving, bin selecting, picking, shipping and reporting. The management system of warehouse helps to complete the task in the technical way using computer.  It assists to store the information related to the task. The software of Warehouse helps to increase the correction of the task up to 20% (Tukai et al. p.500). In case of Waratah Coal, the warehouse management assists to complete the task in the appropriate way. In order to transport the coal, they need to maintain the warehouse management. If they are able to manage it in the appropriate way, it helps them to get success in the supply chain management.

In order to decrease the logistic issues, the warehouse management is the efficient way. It assists to keep record in the effective way. If the authority of Waratah coal can manage the system in the appropriate way, it assists to get the effective outcome. In order to manage the transport system, the organisations need to run the procedure in the technical way. It also helps to reduce the risk of the organisation. However, it is seen that the employees are not able to keep information about their transaction. In this case, the employees of warehouse management complete this task in the efficient way.

6.0 Risk management

In order to manage the risk, it is necessary to find out the problems. It is seen that, the authority of Waratah Coal needs to manage the quality of their products. If they are not able to manage the sample product in the appropriate way, it creates problems. This is considered as the medium risk of the venture. As commented by Apak et al. (2016, p.1440), in time of transaction, around 4x 25% needs to pay in advance. If the authority of the business is not able to pay it, they face difficulties. The authority of Waratah Coal uses the bank of Indonesian for rapid transaction. This is

On the other hand, it is seen that they are not able to keep the information about their transportation. In this case, it is necessary to manage the warehouse in the appropriate way. As commented by Tian et al. (2014, p.100), if the authority of business ventures does not maintain their cost in the appropriate way, they face difficulties in time of transportation. They pay in rupiah in time of transportation. This is considered as another risk for Waratah coal.

Risk Assessment
High Risk Medium Risk Low Risk
Rapidly use the bank of Indonesia Low quality of coal Payment made in Rupiah
     

Table 1: Risk Assessment

(Source: Tian et al. 2014, p.98)

Recommendation

The Waratah Coal has faced different problems related to the logistics issues. It is seen that, they have faced problems related to the information of goods in time of transportation. Hence, the authority can develop their management system of warehouse for getting effective outcome.

On the other hand, it is also seen that, the authority of Waratah Coal faces the cost related problems. They need to provide the payment in advance. In this case, many times the organisations are not able to do this. Hence, the authority can change the system of giving the money in advance. They can allow the system of cash on delivery. If they are able to follow this system, it helps to get effective outcome.

The organisation can develop their services as they can provide the products in the effective way. In this case, they need to develop the system of warehouse management. They can provide training to their workers for reducing these problems. They need to use their own bank account of the country.

7.0 Conclusion

In order to run the business in the proper way, the authority of the ventures needs to manage the supply chain accordingly. If the management of supply chain is not good of the ventures, they are not able to hold their position in the market. In this case, logistic issues have been seen. The entire study has focused on the logic issues, management of warehouse and risk management. The logistic issues, like wrong information of movement, costs and many others, create difficulties in time of transportation. In order to solve these problems, the warehouse management is the effective way. This software helps to keep the information in the about transportation in the appropriate way. The theory of supply chain management helps to reduce the logistic issues. It helps to manage the whole process in the effective way.

Reference list

Apak, S., Tozan, H. and Vayvay, O., (2016). A new systematic approach for warehouse management system evaluation/Novi sustavni pristup ocjenjivanju sustava upravljanja skladistem. Tehnicki Vjesnik-Technical Gazette, 23(5), pp.1439-1447.

Brandenburg, M., Govindan, K., Sarkis, J. and Seuring, S., (2014). Quantitative models for sustainable supply chain management: Developments and directions. European Journal of Operational Research, 233(2), pp.299-312.

Cai, X., Chen, J., Xiao, Y., Xu, X. and Yu, G., (2013). Fresh-product supply chain management with logistics outsourcing. Omega, 41(4), pp.752-765.

Christopher, M., (2016). Logistics & supply chain management. New Jersey: Pearson.

freighthub.com (2017), Modes transportation, Available at: https://freighthub.com/en/blog/modes-transportation-explained-best/ [Accessed on: 21 September 2017]

Golicic, S.L. and Smith, C.D., (2013). A meta‐analysis of environmentally sustainable supply chain management practices and firm performance. Journal of supply chain management, 49(2), pp.78-95.

Govindan, K., Kaliyan, M., Kannan, D. and Haq, A.N., (2014). Barriers analysis for green supply chain management implementation in Indian industries using analytic hierarchy process. International Journal of Production Economics, 147(3), pp.555-568.

Govindan, K., Soleimani, H. and Kannan, D., (2015). Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future. European Journal of Operational Research, 240(3), pp.603-626.

Grob, S. and Benn, S., (2014). Conceptualising the adoption of sustainable procurement: an institutional theory perspective. Australasian journal of environmental management, 21(1), pp.11-21.

Mena, C., Humphries, A. and Choi, T.Y., (2013). Toward a theory of multi‐tier supply chain management. Journal of Supply Chain Management, 49(2), pp.58-77.

Schorsch, T., Schorsch, T., Wallenburg, C.M., Wallenburg, C.M., Wieland, A. and Wieland, A., (2017). The human factor in SCM: Introducing a meta-theory of behavioral supply chain management. International Journal of Physical Distribution & Logistics Management, 47(4), pp.238-262.

Seuring, S., (2013). A review of modeling approaches for sustainable supply chain management. Decision support systems, 54(4), pp.1513-1520.

Seuring, S.,(2013). A review of modeling approaches for sustainable supply chain management. Decision support systems, 54(4), pp.1513-1520.

Stadtler, H., (2015). Supply chain management: An overview. In Supply chain management and advanced planning,45(2), pp. 3-28.

Tian, Y., Govindan, K. and Zhu, Q., (2014). A system dynamics model based on evolutionary game theory for green supply chain management diffusion among Chinese manufacturers. Journal of Cleaner Production, 80(5), pp.96-105.

Tukai, M., George, A., Delamare, P., Toure, C.K., Tounkara, A. and Dembele, A., (2016). Report on Strengthening the Warehouse Management System for the Pharmacie Populaire du Mali, 45(2), pp.498-582

Waller, M.A. and Fawcett, S.E., (2013). Data science, predictive analytics, and big data: a revolution that will transform supply chain design and management. Journal of Business Logistics, 34(2), pp.77-84. 


Another major change in the work place is that the companies can no longer work in isolated groups and ensure that the success of individual departments can help them in attaining the goals of the

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