Discuss about the Logistics and supply chain management of Qube.
Logistics and Supply Chain are the vital departments of an organization. The effectiveness and the efficiency of the operations is determined by the successful implementation and proactive functioning of the logistics and supply chain management of the respective organization. In addition, individual logistics companies are instrumental in supporting theirs as well as operations of the other companies as well (Schönsleben 2016).
This report deals with the case study related to the logistics and supply chain management of Qube as one of the largest logistics and service provider in Australia along with the analysis of the main concerns related to the existing logistics network in New South Wales region. This report encapsulated the required remedies that can act as a viable solution to the existing issues as well as the probable contribution of the New South Wales Government in the resolution of the problems.
The main purpose of this report is to deal with the main concerns that are being faced by Qube with respect to the fundamental theories of logistics and supply chain management. This report further helps in developing the extensive analytical skills to help analyze the problems and recommend the viable solutions to the problems with the understanding of the logistics and the management theories.
Qube is considerably the biggest import export and logistics service provider in the whole of Australia. Qube Logistics is however, one part of the entire company that is fundamental in providing and dealing with various other services such as rail road transporting, warehousing, operations and distribution, container parks and much more. The company has expanded enough to become the best service provider in the whole of Australia in the past years, where only the Qube logistics department contributes to around 45-46 % of the total revenue generation by the company (qube.com.au 2018). The control over the railroad transportation of the containers along with the port and bulk contributes to around 50%, whereas the strategic asset carves around the remaining 5% of the total earnings along with its land holdings (Gonzalez-Feliu, Semet and Routhier 2014).
Qube Logistics in New South Wales (NSW) is a colossal import and export service provider and facility in the respective region with an effective strategy to incorporate the integration of the logistics and the smaller scale companies to consolidate and congregate into more effectual and proficient company. It can be justified by the fact that Qube has also undergone and implemented several acquisition and merger strategies to extend its operation networks (Jacobs and Chase 2017). In this manner, it can be considered as highly competitive in its nature. However, based on the case study, it can be justified that the mother company of Qube is the main structure behind the operations, nationally. Qube operates in the freight depots, parking of the empty containers along with warehousing. It possesses the longest rail terminal network in the NSW region with the rail fleet size comprising of around 65 locomotives and 750 wagons. Qube has an effective quality management team, which helps it to achieve around 17% of revenue from the importing of retail goods under the supply chain system and services of the company (Zimmermann and Foerstl 2014).
Qube has achieved a lot of success based on its operations in the past activities however; the success of the company is highly subjected to risks due to the fact, that the industry beneath which the company operates is extremely unpredictable, uncertain and competitive in nature (Christopher 2016). It can further be elaborated that the operations are most often affected by some certain and uncertain factors that can tamper with the functioning of the company’s functions creating challenges for the same. Based on the topic the certain challenges that are faced in the NSW regions are due to the legal regulations by the government, lacks in the planning, internal clashes and lack of investment in the infrastructure and planning (Mangan and Lalwani 2016). The main factors have been elaborated below.
The main purpose to manage the Logistics of the company is to take necessary steps to manage and reform the service to a better level at an effective cost. The logistics can be defined as the entire process involving the entire transportation process, beginning from the initial stage of retrieval of the goods from the pickup point until the dropping of the product to its assigned destination. It can be stated that the supply chain management of every company keeps on changing and improvising from time to time, hence it can be suggested that there is an utmost need to revise the strategies that has been used to manage the Logistics (Bai and Sarkis 2013). Another factor, which can be taken into consideration, is that Qube has customers all over the world and operates through different locations, which requires the necessity to make important changes in the strategy due to the constant changes in the market needs and demands (Dyckhoff, Lackes and Reese 2013). Based on the investigation as done before, it can be stated that Qube has been facing certain concerns related to it existing Logistics strategies, which ultimately calls for the need to change its strategies to improve the current situation. It can be connoted that the strategies are formulated based on certain factors that should be kept in mind, such as Structure, Function and Application (Waters and Rinsler 2014). The structural strategies refers to the designing of the strategies post analysis done one the structure of the company, which includes factors such as count of the warehouses, availability of the area, the distribution centre and the channels (Roh, Jang and Han 2013). The function element refers to the designing of the strategy based on the functional excellence of the organizational structures as defined previously. The application element refers to the main purpose of the strategy as well as how it is put into operation within the whole organization.
Based on the existing concerns and issue related the present logistics management, the company can be suggested with some of the potential strategies that can help improve the present scenario. The relevant strategies have been elaborated below.
Governments can play an important role in the process of devising the strategies to improve the current crisis related to the logistics management of Qube. The following measures that can be taken by the government has been elaborated below.
No major recommendation can be suggested to Qube since Qube has applied most of mitigation and logistic improving measures on a long-term basis. However, it can be suggested that the theories of Supply chain management can help Qube achieve a better sustainability if the entire company can be optimized with accordance to the same. In addition, it can be suggested that the steps to be taken by the Government can be considered as measures to help Qube perform better globally (Wisner, Tan and Leong 2014).
Conclusion
With the help of this report it can be concluded that Qube is one of the largest operating Logistics Service providing companies in Australia, which is ever expanding by the help of its acquisition strategies. However, like other logistics companies Qube also faces certain crucial issue that can hamper the business of the company. It can further be added that the company has followed most of the theories of Logistics and Supply chain management to help it in better performance. Nevertheless, it can be suggested that the mitigation measures to control the rising concerns along with the cooperation from the local government can help the company to achieve its mark and help it grow globally
References
abc.new.au (2018). [online] Available at: https://www.abc.new.au/new/2014-06-24/extended-interview-with-maurice-james//5547814 [Accessed 18 Jan. 2018].
Bai, C. and Sarkis, J., 2013. Flexibility in reverse logistics: a framework and evaluation approach. Journal of Cleaner Production, 47, pp.306-318.
Brindley, C. ed., 2017. Supply chain risk. Taylor & Francis.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Dekker, R., Fleischmann, M., Inderfurth, K. and van Wassenhove, L.N. eds., 2013. Reverse logistics: quantitative models for closed-loop supply chains. Springer Science & Business Media.
Dyckhoff, H., Lackes, R. and Reese, J. eds., 2013. Supply chain management and reverse logistics. Springer Science & Business Media.
Ellram, L.M. and Cooper, M.C., 2014. Supply chain management: It’s all about the journey, not the destination. Journal of Supply Chain Management, 50(1), pp.8-20.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan page publishers.
Gonzalez-Feliu, J., Semet, F. and Routhier, J.L. eds., 2014. Sustainable urban logistics: Concepts, methods and information systems. Springer Berlin Heidelberg.
Grabara, J., Man, M. and Kolcun, M., 2014. The benefits of reverse logistics. International Letters of Social and Humanistic Sciences, 15(2), pp.138-147.
Jacobs, F.R. and Chase, R.B., 2017. Operation and supply chain management. Mc GrawHill.
Mangan, J. and Lalwani, C., 2016. Global logistics and supply chain management. John Wiley & Sons.
Myers, M.D., 2013. Qualitative research in business and management. Sage.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a digital strategy. John Wiley & Sons.
qube.com.au (2018). Qube | Qube Holdings | logistics services, port services, bulk material handling, third party container logistics, infrastructure. [online] Qube.com.au. Available at: https://www.qube.com.au/ [Accessed 17 Jan. 2018].
Roh, S.Y., Jang, H.M. and Han, C.H., 2013. Warehouse location decision factors in humanitarian relief logistics. The Asian Journal of Shipping and Logistics, 29(1), pp.103-120.
Schönsleben, P., 2016. Integral logistics management: operations and supply chain management within and across companies. CRC Press.
Waters, D. and Rinsler, S., 2014. Global logistics: New directions in supply chain management. Kogan Page Publishers.
Wisner, J.D., Tan, K.C. and Leong, G.K., 2014. Principles of supply chain management: A balanced approach. Cengage Learning.
Yang, C.C. and Wei, H.H., 2013. The effect of supply chain security management on security performance in container shipping operations. Supply Chain Management: An International Journal, 18(1), pp.74-85.
Youn, S., Yang, M.G.M., Hong, P. and Park, K., 2013. Strategic supply chain partnership, environmental supply chain management practices, and performance outcomes: an empirical study of Korean firms. Journal of Cleaner Production, 56, pp.121-130.
Zimmermann, F. and Foerstl, K., 2014. A Meta?Analysis of the “Purchasing and Supply Management Practice–Performance Link”. Journal of Supply Chain Management, 50(3), pp.37-54
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