IoSCM Submission Template - Assignment

Qualification and Unit PORT AND SHIPPING MANAGEMENT – Unit -

Title LOGISTIC
Name/Student Number: JASPREET SINGH/ 102191120
Learning Outcome Understand the principles behind logistics requirements of a
supply chain.
Assessment Criteria 1 Understand the principles behind logistics requirements of a
supply chain.
Assessment Criteria 2 Understand how to schedule logistics operations to meet
customers' needs.
Assessment Criteria 3 Understand how to optimise the use of logistics operations
Assessment Criteria 4
Assessment Criteria 5
Assessment Criteria 6 Insert Assessment Criteria 6 here
Assessment Criteria 7 Insert Assessment Criteria 7 here
Assessment Criteria 8 Insert Assessment Criteria 8 here

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Assessment Criteria 3:

AC 3.1 Describe the factors that affect the availability and demand for logistics
resources (800 - 1000 words);
As a crucial part of the industry, the logistics industry has received considerable
attention in recent years within the industrial and academic fields.
Logistics integrates multiple industries like transportation, warehousing, freight
forwarding and knowledge. The logistics industry is additionally considered an
essential and strategic industry because it supports national economic development.
With the continual improvement of this industry, its service provider has attained
supply chain characteristics.
Logistics is essential because it creates value for customers and suppliers of the firm
and value for its stakeholders. Products and services have little or no value unless
they have customers when (time) and where (place) they wish to consume them.
Logistics services are generally targeting urban logistics development.
Logistics service integrates because the core players of business activities play
decisive roles in supply chain operations. They function as intermediaries and
bridges between the demand side and the service side of the logistics.
On product supply chains, the opportunistic behaviour of suppliers negatively affects
the content and quality of data sharing on supply-and-demand interactions. Demand
uncertainty reduces opportunism, whereas supply uncertainty increases opportunism
supply-demand interaction as a prerequisite will significantly affect the sustainability
of supply chain performance.
Technology and relationship factors are required for promoting enterprise
performance growth in an agile supply chain.
Information sharing affects a company’s performance through the intermediary role
of supply chain agility, which is additionally regulated by environmental dynamics
and knowledge system capabilities. However, when integrators take opportunistic
actions, it's unclear what impact they need on supply chain agility and integration
capabilities. Due to the immediate benefits of opportunism, integrators may
temporarily improve their interests.
To improve logistics performance, it's crucial to spot factors that affect logistics
performance.
Critical factors are Identified for the availability chain management performance,
including environment uncertainty, information management, and communication.
The importance of relationships among supply chain partners while others assessed
supply chain risks within an offshore sourcing decision.
Based on the logistics performance measurement, the critical factors that affect
logistics performance in most countries, the govt takes active roles in developing
complex domestic logistics systems and cross-border trade facilitation.
Industrial policy priorities specify stages of the economic process, capital resources
allocation criteria and regional/national development clusters. Industrial policy
priorities are defined as a long-term commitment of provincial and federal
government entities to oversee macro-level resource allocations in the form of
monetary and political support decisions and action plans.
Domestic and global logistics requires efficient network design to deliver products
and services to customers on time.

Strategic infrastructure development defines long-term goals to enhance capably

intermodal transportation network, including integration between maritime, land, and
air transportation for overall economic process and societal development.
Countries with well-organized logistics systems have excellent maritime
transportation systems, road systems, waterways, and rail systems. Such complex
logistics infrastructure facilitates the movement flows of data, products, services and
cash through the worth chain. Furthermore, it is instrumental in drawing potential
investors to line up new business activities or expand existing ones.
Globalization and knowledge technology advances catalysed the unprecedented
growth of public-private logistics, including intermodal transportation systems (e.g.,
air, sea and land transportation).
Communication network configurations ask for the systematic implementation of the
broad scope of adequate information flows through inter-firm and industry-wide
interfaces.
The proper use of data technology increases a firm's capabilities to
enhance service quality, decrease logistics cost, and enhance productivity six
components to living logistics performance, including
1. The efficiency of customs and border clearance
2. The standard of trade and transport-related infrastructure
 3. The convenience of arranging competitively priced shipments
4. The competence and quality of logistics services
5. The power to trace and trace consignments
6. Timeliness of shipments reaching the destination the critical factors and
logistic Performance, alongside their definitions
a) Industrial Policy Priorities:- Explicit vision and goals of regional and
national government entities to oversee macro-level resource allocations
within financial and political support decisions and action plans.
b) Strategic Infrastructure development: - Long-term plans can enhance
capable intermodal transportation network, including integration between
maritime, land and air transport for overall economic and societal
development.
c) Public-Private Logistic Markets Growth: Expansion of government-initiated
and profit-driven inter-modal industry infrastructure (e.g., land, air, sea,
railroad) in scope and volume.
d) Communication network Configuration: - Systematic implementation of the
broad scope of helpful information flows in inter-firm and industry-wide
interfaces.
e) Logistic Performance: Productive results of firm, industry and country-
level outcomes in cost, quality, delivery, time, and financial measures.

Cost and Pricing Overtime transportation costs can change as supply/demand in

markets changes. This can drastically change the overall cost of operating a supply
chain. Rates for trucking, ocean and air companies are somewhat seasonal as well,
so if you need to move Cargo during the peak season, expect to pay more than other
times of the year. Many companies use a combination of contract rates and spot
market rates with multiple carriers for any mode of transportation to hedge any
potential rise in rates. Generally, the more volume you move, the more negotiating
power you have.

Laws, Politics and Trade Agreements: Political changes can quickly alter the
international logistics landscape. The addition of tariffs can make doing business or
buying products from a particular country much more expensive overnight. These
rapid changes are hard to deal with and mean companies importing from affected
countries need to scramble to remain profitable.(Word Count 884)

Hwang David, Hong C Paul (2017)Critical factors that affect logistics performance: a
comparison of China, Japan and Korea [Online ] [Accessed on 12th April 2021]
Available from
https://www.researchgate.net/publication/312008881_Critical_factors_that_affect_log
istics_performance_a_comparison_of_China_Japan_and_Korea/
AC 3.2 Describe the relevant factors affecting the use of logistics resources (800 -
1000 words);
Customers are the most important asset for any company. They command the entire
supply chain, including Logistic, manufacturing and marketing. That’s why a
company needs to understand customer demands and keep up with the customers’
expectations satisfied. Once the company understands its customers’ requirements,
it must devise a strategy to use logistics services to fill them. This means that the
company Must have a clear understanding or assessment of the company’s strategic
direction.
Multiple factors can affect logistics Services. These issues need to be anticipated,
prepared for and taken advantage of for a company to be successful in today’s
market.

1. Fuel Costs. One of the highest costs contributing to the ‘cutting transportation
cost’ concern is fuel prices. Higher fuel prices are likely to increase
transportation costs for shippers this year by pushing up fuel surcharges.
Increasing diesel fuel prices adds extra taxes to freight Charges; looking into
reversing a two-year trend, it cuts the revenue and earnings of transporters as
fuel prices rose sharply.
2. Business Process Improvement. The requirement of new technology has
become an increasing challenge for the logistics industry to be a leader and to
remain on top of recent advances in getting new business. Taking advantage
of these new business opportunities sounds highly attractive, but adoption
and onboarding can be overwhelming.
3. Improved Customer Service. Customers want full transparency and
information about their deliveries at all times. In the current business world,
the location of a package is as interconnected as your social network.
Customer expectations are continuously increasing. Their willingness to pay
for fast shipping has reduced, with more percentage of consumers do not
want to pay anything extra if the delivery is within two days. Having satisfied
customers together with your business and your products is a crucial goal for
any business. A happy customer keeps returning. If the order is placed and
delivered after too long, they may have their needs met elsewhere.
4. Economy. With high fuel prices comes a more significant credit crisis and
rising inflationary demands that take a tremendous toll on the economy. This
industry is then pressured by increasing compliance regulations, declining
demand, additional capacity with additional increases in key cost centres.
5. Driver Shortage & Retention. If the demand is lower, it is very difficult to hire
and keep them in employment for a longer time.
6. Government Regulations. Transport service faces significant compliance
regulations imposed by federal, state and local authorities.
7. Environmental Issues. The anti-idling and other emission reduction
regulations of state and local governments have created concern that the
compliance costs could exceed benefits.
8. Technology Strategy & Implementation. While the industry understands
and supports many of the benefits of these technologies, the question
remains the same: how they will pay for it and who will help implement the
improvements. Technological innovation is part of every industry current days,
 and logistics has also adopted it ultimately. Currently, there are new ways to
speed up organization efficiencies and reduce manual intervention that leads
to mistakes. For example, you might consider a smart weighing scale that
integrates inventory management and communication software to provide
real-time updates on cargo movements. Companies must find the solution to
the particular challenge they might be facing today and make their business
much more profitable at the same time. DDC FPO(2017) Top 8 Logistics
Challenges Facing the Industry(2017) [Online] [Accessed on 15th April 2021]
Available from:
https://www.logisticsmgmt.com/article/top_8_logistics_challenges_facing_the_
industry
9. Poor Storehouse Management
The storehouse is a central piece of business. Managing it properly means
everything from the quality of products to lead time and inventory
management works well. Otherwise, the operation may be slow and create a
lot of waste. The type of product is sold in the process of the storehouse.
Focus has to on less wastage and faster operation. Help staff weigh goods
faster and much more accurately by installing the right industrial weighing
scales. Retail Minded (2020) 5 Ways Poor Logistic Management can affect
your business(2017) [Online] [Accessed on 15th April 2021] Available
from:https://retailminded.com/5-ways-poor-logistics-management-can-affect-
your-business/#.YHbV1S351pR
10. Inefficiencies in Transportation
When transportation is not adequately planned and implemented, it will not
support the delivery timeframes—having the possibility of Cargo getting
damaged in transit and will impact the reputation of the transport company. If
the cost of transportation is higher, it will increase the cost of goods at the
same time. Planning routes better will make sure every load is a full one. If
required, redesign the packaging to reduce weight and size without
compromising quality and safety.
11. Inefficiencies in Production
When workers do not function as a cohesive unit, business suffers. Adding
good information flow across the logistics chain, implement a double-checking
system to for min. Human error and duplicate shipments.
Make sure every member of the team understands their roles and
responsibilities.
12. Digital Technology
The emergence of digital technology is redefining the world of transportation
logistics in supply chain management. Due to increasing mobility demand,
challenges like financing, dealing with emissions and volatile oil prices are
accentuated. Decision-makers in the areas of policy and planning have to
address these challenges and have to try to develop a transportation system
capable of meeting the future needs of society and the economy. (Word
Count 827)
Thevar Vikneswaran(2017) Key Factors Impacting Transportation in Logistics
in Supply chain management (2017) [Online] [Accessed on 17th April 2021]
Available from https://sipmm.edu.sg/key-factors-impacting-transportation-
logistics-in-supply-chain-management//
AC 3.3 Discuss ways of improving or developing logistics resources used in logistics
operations (800 - 1000 words)
Logistics optimization process will enable you to extend your supply chain efficiency.
One can track goods right from their origin until it reaches them. The method also
can reduce waste and ensure proper management of sensitive and fragile products
like glass objects or meat.
There are always possibilities for improving logistics regardless of whether it's a
coffee hanging fruit/quick win or future planning’s.
The scope for logistics improvement covers the flow within the entire supply chain,
i.e. from raw materials sourcing all the thanks to the delivery to finish customers.
To understand the opportunities, following one among the foremost classical ways to
segment the spectrum, separate the optimization levels into operational, tactical and
strategical ones. It doesn't involve dramatic logistics and provides chain change as
compared to strategic level optimization. But it's also crucial because it can
contribute to department and regional excellence.
Individual departments within a corporation typically spearhead development
projects.
Some project examples are listed below.
 Logistics rates review and negotiation with vendors
 3PL scorecard evaluation and improvement
 Business intelligence (BI) tools/dashboard introduction
 DCs Replenishment frequency adjustment
 Capacity evaluation and shifting for work centres and Storage houses.
 Production line balancing/Kanban introduction

Tactical level projects constantly have challenges, is the way to get the buy-in from
other departments. As there are tons of trade-offs in supply chain deciding, it's
necessary to possess a reasonable picture frame when considering the project's
impact. For instance, sales may be higher and possibly having satisfied customers,
but it's a nightmare for the logistics team.
Reducing refilling frequency will reduce the transport cost due to
consolidation/economy of scale, but the cycle stock of inventory will undoubtedly
shoot up. Waiting longer to supply in the container will reduce the shipping cost but
higher risk of delaying an order.
Thus, it's always good practice to speak with the team and other departments to
realize the general supply chain optimization (S&OP)has already been an excellent
platform for joint deciding for tactical level projects from the shipper side. However, if
the corporate outsource the logistics to 3PL and mainly when different 3PLs manage
transport and warehousing operation, there are always the risks of fragmented and
isolated deciding.
The solution to the current challenge is that the popular 4PL, LLP (Lead logistics
provider) solutions provided by various service providers, can help the corporation
extend visibility and more connected supplies.
Discussing about the operational level, it relates to the many individuals, especially if
one is in dealing with customer service, planning, sourcing, manufacturing,
transportation, warehousing etc. The development horizon might be as short as on a
day to day or as long as up to 1 year.
While the impact of operational optimization might not be as significant as a strategic
or tactical one, it should never underestimate importance because typically, the
result's seen right after the project.
Being operational, employees who are the method owners or roll in the hay on each
day-to-day basis should be functional.
As a choice, companies could dedicate the method improvement projects to the
method excellence department. Some project examples may include the
subsequent.
• Productivity improvement for the storage house operations team
• Optimising vehicle routing.
• Optimising Storage housing re-slotting SKUs, pick-path optimization
• Automation process Sourcing.
• Improving Manufacturing floor batch size.
There are three most significant challenges for executing the operational level
project.
1. Whether the workers have the will to enhance the daily routine or simply
complacent about the truth, showing the worth of the development to
employees, better employee engagement or properly designing incentive
programs can help beat the challenge. For instance, some 3PL companies
have designed productivity incentive scheme for storehouse employees.
There's profit-sharing between corporates and employees if a specific
productivity target is achieved.
2. People especially experienced industry practitioners, may fall under the trap
of believing or relying excessively on past similar experience. It's always good
practice to leverage expertise. However, depending on an excessive amount
of understanding without proper and in-depth analysis will certainly kill
creativity when encountering new problems.
3. The third challenge is that the lack of relevant knowledge and skillsets.

The Highest knowledge and technical skill sets include lean/six sigma, DMAIC, and
logistics supply chain knowledge, data analysis, modelling, and programming
(especially VBA) skills. These are often acquired by formal or online education also
as various training programs. Companies should also create an indoor sharing
platform and culture to encourage knowledge transfer. On top of that, corporates
could also create rotation programs to show employees different job functions to
accumulate other skills.
In summary, regardless of which level of optimization a corporation embarks on, it'll
generate positive results, improved process, greater customer satisfaction, lower
logistics cost, happier employees and more loyal shareholders etc. There are
challenges, needless to say, along the way. Still, it'll also offer great joy and
satisfaction for top talents after successfully solving the issues. ( Word Count 805)
Shan Qui(2017) A Brief Overview of Logistics Optimization in Industry(2017) [Online]
[Accessed on 16th April 2021] Available from https://www.linkedin.com/pulse/brief-
overview-logistics-optimization-industry-shan-qi/
Reference:

 DDC FPO(2017) Top 8 Logistics Challenges Facing the Industry(2017)

[Online] [Accessed on 15th April 2021] Available from:
https://www.logisticsmgmt.com/article/top_8_logistics_challenges_facing_the_
industry
 Hwang David, Hong C Paul (2017)Critical factors that affect logistics
performance: a comparison of China, Japan and Korea(2017) [Online ]
[Accessed on 12th April 2021] Available from
https://www.researchgate.net/publication/312008881_Critical_factors_that_aff
ect_logistics_performance_a_comparison_of_China_Japan_and_Korea/
 Qui Shan(2017) A Brief Overview of Logistics Optimization in Industry(2017)
[Online] [Accessed on 16th April 2021] Available from
https://www.linkedin.com/pulse/brief-overview-logistics-optimization-industry-
shan-qi/
 Retail Minded (2020) 5 Ways Poor Logistic Management can affect your
business(2020) [Online] [Accessed on 15th April 2021] Available
from:https://retailminded.com/5-ways-poor-logistics-management-can-affect-
your-business/#.YHbV1S351pR
 Thevar Vikneswaran(2017) Key Factors Impacting Transportation in Logistics
in Supply chain management (2017) [Online] [Accessed on 17th April 2021]
Available from https://sipmm.edu.sg/key-factors-impacting-transportation-
logistics-in-supply-chain-management//