Qube Logistic Management - Case Study Example

Qubе Logistic Маnаgеmеnt Name Institution Qubе Logistic Маnаgеmеnt Introduction Logistics providers are third party handlers of goods or materials that are outsourced by customers for their logistical services for either the entire or part of the customer’s management of supply chain functions. The provider usually runs a chain of integrated operations that can be hired either in –part or entirely from receiving, storing to transportation services. The services are usually either offered in a way that suits the needs of the customer. This means that they can be customized by being scaled up or down to suit a customer’s requirements but in compliance with the prevailing conditions of the market and regulations that govern the delivery of respective products and materials. In logistical management, providers may specialize in certain parts of the supply chain, for example, warehousing, raw material provider or transportation (Harrison & Hoek 2007, 13). In such a case the process comes to be known as Third Party Logistics System. However, services that go beyond provision of logistics and operate such as to even integrate the different functions in the supply chain and its parts, the provider comes to be known as Third-party Supply Chain Management Provider (3PSCM). Overview By definition, logistical provision would preferably bundle together or integrate all the functions and parts of the supply chain. This becomes a high definition process that requires proper planning and collaboration between the provider and the customer. From the case of Qube holdings that is a logistics company, it can be learned that thirds-party logistical provision is of higher time and cost effectiveness which most clients who want to get products through the supply chain so much need. Qube as a company is regionally placed with significant logistical advice for clients and is as well globally linked and hence similar third party providers can be instrumental in safe initiation and completion of a supply chain (Sarkis 2006, 17). Above all, the company regularly upgrades its systems to meet the varying demands of consumers and hence saves most production companies and manufacturers the agony of having to regularly update their way of handling and distributing materials and products. They may not have the time or resources to enable them acquire the necessary technologies and expertise as fast as is needed. As an elaborate industry, provision of logistics will need a lot of planning and expert handling of issues as well as materials (Sarkis 2006, 17). This poses many challenges in the industry. This report wills emphasis on the difficulties that logistics networks face in light of Qube Holdings’ case and in New South Wales context. It will also explore possible solutions to the problems and suggest using the NSW case the possible role of governments in streamlining logistics networks. Problems of Logistical networks in NSW Provision of logistics has become a necessary part of the supply chain because of the fact that there are obstacles and challenges that hinder the smooth flow of freight. It would require logistics provision services since the flow of goods from manufacture to the market passes through different process that have different challenges. As such, NSW is one country with a less that sufficient logistics network which makes it quite costly to get freight timely and efficiently to the end of the supply chain. There are many problems with the logistical framework of NWS. However, most of the problems emanate from the fact that there is no sufficient infrastructure to allow the passage of goods, store or deliver hem in time (AUSTRALIAN ROAD RESEARCH BOARD 1992, 64). This makes transportation delivery and forwarding a time-consuming process. This report considers the problem of lack of proper transportation network in greater detail. Poor Transportation infrastructure Most logistics providers such as Qube rely on transport networks. This is based on the fact that the commodities that people use daily, exports, imports, food, clothing and other materials will at some point have passed through the railway, road, waterways or airlines. This means that transportation infrastructure falls squarely at the core of logistics. There would be no logistics without a transport network. However, in NSW most of the transit of freight uses and competes for the same transportation space with humans (AUSTRALIAN ROAD RESEARCH BOARD 1992, 73). The roads for tankers are the same ones people use to go to work or to attend to their recreational activities. If the goods that support life such as food, clothing, medicine pass through these avenues of transportation that are subject to logistics, it then follows that the economy depends on logistics. NSW is still struggling with the problem of insufficient transportation space. The state now has more global business that ever before and its interstate links are opening it up to global trade and exchange. With increasing levels of consignments being received and send at the airports, harbors and railway stations, the existing transportation network has posed overreaching challenges to the way logistics can be played. This has led to regular jamming of airports, backlogs, slow delivery and movement of freight. Inadequate funding Besides this, the government of NSW has had a recent history of not vesting a lot of budgetary allocation to solving the issues facing the logistical network. Little has been done by governments to ensure that logistical providers such as Qube are supported either through protective legislation or budgetary allocation. There are also no elaborate blue prints through which the government has declared commitment to implement in easing the problems of logistical networks. Such problems include the small size of airports and waterways which call for expansion and laying of strategies on how to reduce the competition for traffic between humans and freight. Lack of collaboration There is also a disconnection among the various players in the logistics network. The government being the foremost, manufacturers, investors and private developers all work separately due to a lack of an integrated master plan that brings them together to resolve the problems of the industry. Logistics is a network and goes beyond transportation even though it is about it. Logistics has not been made a process that brings together all the stakeholders who benefit from it either as customers or clients. This means that in NSW, logistics thrives as an industry on its own that is not guided by a well-drawn master plan on how it can be conducted or improved. Logistics providers are as search mere business entities that operate for their gain and not to contribute much to the growth of the economy’s logistics network (Sarkis 2006, 44). The nonexistence of an integrated plan which brings together players in the industry only worsens the already struggling industry. The government is however to blame for most of the problems emanating from this lack of a master plan that connects the stakeholders of logistics. Qube in its manner of operations appears not to have any more obligations to the government other than payment of taxes, placing the filings and releasing annual reports. There is no clear sign of the role it plays alongside other stakeholders to improve the state of the dismembered logistics network in NSW. Resolutions to the problems of logistics network in NSW Problems in nations only persist if there is no willingness by the various players to sit and deliberate on how best to handle them. The problems in the logistics network in NSW have persisted for long enough. It is not well researched how the logistics industry is one with huge potential for boosting the economies GDP. Evidently the government is aware of the problems in the sector. Most of the leaders in the state have recognized the vital role logistics play in the economy. However, this has only remained vocabulary in their words that have not been accompanied with committed action plans that can draw a road map of tapping the full potential of the sector. Resolutions to the problems in logistics network are therefore economic as much as they are political. One resolution is for the government to spare substantial budgetary allocations specifically to expand the space for movement of fright and humans. This will mean that the government has to develop strategies of systematically expanding ports, airlines, railway networks and roads. This allocation should not stop at expansion by drawing clear designs of use of the various avenues of transport on a reliable pattern basis. The government through setting patterns can create peaks and off-peaks and periods when freight can pass with no competition and times when humans can pass. Qube as a logistics provider experiences numerous inconveniences due to long periods of waiting on the line due to traffic jam and poorly coordinated patterns of transit for freight (Harrison & Hoek 2007, 67). These can be resolved by expansion of exits and entries while ensuring that there are different places of waiting and loading. All these require enough government funding to come up with. A taskforce can be appointed to assess the problems in the sector, evaluate them seek expert advice and recommend possible solutions that should be taken up for implementation with a lot of commitment. With good budgeting that caters for the most vital sectors that matter to the economy. This will draw interest in resolving the problems of the logistics sector as long as the government leads the way for other players to follow. There also is a need to adopt a national policy for the integration of the various players in the logistics sector. These players will be coordinated by the government to guarantee that the plan is drawn to have all of them play a part in the expansion, maintenance and organization of the logistics networks including roads, railways, communication systems ports and airports. Logistics and freight movement cannot be made efficient by isolated efforts of the government or other players alone. They have to be spread to have all stakeholders play a role since they are beneficiaries of the sector. Industries that transport heavy freight that quicken the wearing out of infrastructure have to play their role in the maintenance of the logistics networks. Investors can also be invited to invest in such infrastructures that help to improve and sustain the integrity of transport networks. These may include provision of alternate terminals, technologies and forward spaces which may reduce the governments’ financial obligation in the development. Besides, the players have to come up with a master plan of how to ensure sustainable utilization of the available facilities for future purposes. Capacity Improvement through five-year plans From the case of Qube that provides logistics services, it can be learned that by improving the capacity levels of the available infrastructure, it may help in cost effective logistics planning. Qube is a huge logistic provider which handles huge cargo and freight. It has been experiencing undue delays in delivery due to long hours of clearance before they can set out on connecting the supply chain or their customers. This means that most of the transport centers are overwhelmed by capacity. The short-term solution to this would be to increase capacity on five years plans especially at the ports to handle the increasing demand for freight transportation. This would be a more cost-effective solution that the building of new terminals, ports or railway lines. Entry and exit points to ports can be made several to ensure that there is no jamming as trucks and large tankers struggle for passage because of common entry and exits (Harrison & Hoek 2007, 77). Plans can be made to have foster centers for clearance constructed at different locations only as a way of dispersing the extra load of freight that need clearance at the ports before transit and which strain the capacity of the ports. This can also be done by linking the various means of transport directly from the ports such as railways and airport so as to quicken the speed of transit and smooth the logistical network of NSW. The role of government in solving logistics network problems The government is the main player in logistics networks because it is part of its work of renovating, maintain and improving infrastructure for efficient running of the economy. It plays the king role in any efforts that aim to streamline the logistics networks in NSW. It then means that the problems of capacity, delays and disconnections in logistics networks are majorly failures of succeeding regimes of the governments of NSW. In large part, the government of NSW has a responsibility of drawing a clear style of decongesting ports, expanding space and ensuring swift in and out-flows of freight. Development of patterns of transport for people and freight The government needs to draw a long-term plan of having separate lines for the movement of freight and people to reduce the many hurdles in cargo transit. This will ensure that there is no competition for space between freight and people on the transport avenues. However, this optimistic plans can be begun by adopting a coordinated pattern of movement of people and cargo at different designated times of peak and off-peak (Harrison & Hoek 2007, 75). For instance, fright can be allowed to move freely with competition at those times when people are at work and not need to move such as mornings. People can also be provided with exclusive means of transport such as railways at cheaper rates to discourage competition on roads and ease traffic and its flow. Such a plan can quickly address the problems of slow transit and the obstacles of time wastage while freight is on transit. Clearance and inspection screening technologies Acquisition of technologies to help in speedy clearance of consignments and cargo is vital to logistics. The government should help in the acquisition of technologies such as scanners that quickly inspect cargo for clearance at the ports and other terminals. The importance of such technologies is in the fact that they operate on a 24-hour basis which can reduce the backlog that most ports in NSW have at present. This will ensure that once the backlog is cleared, any arriving or leaving freight are handled quickly and forwarded in the shortest time possible. Trucks and other freight transporters will, therefore, not spend long hours of waiting at the ports and railway stations. Collaborative master-planning The most important responsibility that the government has is in adopting a plan of bringing the various stakeholders together to dialogue and deliberate on the mishaps that occur in the logistics networks. Logistics providers will explain themselves on what best steps should be taken to ensure that the state has smooth transit of cargo. In freight transportation, time is of the essence, and there would be no real logistics if there is too much delay in completing the transit of fright across the supply chain. Manufacturers, export and import dealers, and transportation service providers all have a place on the policy making table to play their part in ensuring that logistics are streamlined. Most of the countries that have achieved better logistics flow have done it in a collaborative manner. However, the government is the one that brokers the deal by drawing the stakeholders together to ensure that proper measures that are all inclusive are developed for all who have vested interests in the efficiency of the logistics network. Conclusion The logistics network in NSW continues to struggle with inefficiency and time wastage due to problems of capacity. The past couple of years have not witnessed any remarkable plans by the government to set actions of improving on the existing capacity and improve efficiency. Most of the clearance is done manually, and this creates a lot of delays and occasions a state of jamming and rough entry and exit of freight. This has made logistics a costly affair in NSW that scares investment and chokes the growth of business. The government is identified as the paramount player in any efforts that aim to streamline the logistics sector in NSW. The lack of proper budgetary allocation to improve infrastructure is responsible for much of the problem. The government needs to step up its commitment to the economy by developing strategies and master plans that will see the networks from air, sea to land improved. Freight movement continues to grow in the current global economy and hence governments such as the one of NSW have to wake up and improve the state of the transportation infrastructure. The various stakeholders have to be drawn together to develop an ambitious plan of how to decongest ports, create efficient networks and improve the seed of clearance and forwarding. Part of the solution ids to acquire technologies that help in speedy inspection of cargo for clearance. The government should, therefore, seek collaborations and seek investors that will help to reduce the current state of affairs in the logistics network in NSW. Bibliography Australian Road Research Board. (1992). Road & transport research: [a journal of Australian and New Zealand research and practice]. Nunawading, Vic, Australian Road Research Board. Harrison, A., & Hoek, R. I. V. (2007). Logistics management and strategy. Harlow, Financial Times Prentice Hall. Sarkis, J. (2006). Greening the supply chain. London, Springer. Read More