The paper 'Understanding Logistics Management' is a great example of a Management Essay. Logistics refers to the process through which a product or service moves from the preliminary customer who orders for it to the final consumption point of the service or product. In the current business setting, logistics acts as a competitive tactic for the firms, which can assist them in meeting their customers’ expectations. Logistics helps supply chain’ s members to join together in a proficient manner. It does not comprise of a single component, however, it involves a wide range of disciplines and activities such as planning, coordinating, purchasing, customer service, warehousing, and distribution.
When carrying out any kind of business activity especially in manufacturing, it is important for a company to put in place adequate and efficient logistics’ infrastructure and plans. This will facilitate fast, timely and cost-effective transportation of products or services from their origin to the customer (Farahani, et al. 2011, p. 4). This essay will analyze the logistical challenges involved in the transportation of huge construction sub-assemblies from the site of manufacture in Hanjin Shipyard, Philippines to Curtis Island, Australia.
It will also give an explanation of how these challenges should be handled. Manufacturing Site Transportation modes and costs Transporting big construction sub-assemblies from the manufacturing site in the Philippines to Curtis Island might be quite challenging and also very costly. Different transportation modes will have to be used in transporting the sub-assemblies to their final destination. In the first place, sea transport will be used to move the commodities from Hanjin Shipyard to the port at Panay. Then, road transport through the use of wide-load trucks may be used to transport the materials within the Philippines to Negros.
Sea transport will have to be used again from Negros to a port at Curtis Island. Several challenges are likely to be faced during the conveyance of the materials from the manufacturing site to the final location. To start with, when it comes to sea transport, getting a vessel that will have the capacity to carry such heavy and large sub-assemblies within the Philippines may be difficult. Moreover, just in case a vessel is found, the transport costs of the goods will be very high.
In addition, most transit companies permit only a certain weight level during transportation and most of the roads in the Philippines are in poor condition. Out of a total distance of 213,151km in road coverage, only 54,481km is paved (PBFR 2012, p. 40). Therefore, getting a truck for carrying such a heavy load will be difficult and the condition of the roads worsens the situation. The challenges of transportation costs and modes can be solved through the use of a single transportation contractor to ferry the materials from one point to the other since it is likely to lower the costs and be more convenient as compared to using different transportation companies. Protection and storage of sub-assemblies During the manufacture and after completion of the sub-assemblies, they will need to be protected from such things as theft and bad weather.
The sub-assemblies occupy quite a large space and thus ensuring that there is enough security for them is very challenging. Security measures like the use of security control systems and security walls require lots of spending.
This challenge can be handled through the use of electric fences around the site to avoid external intrusion. Additionally, CCTV surveillance cameras can be used to monitor the movements of personnel within the site. Bad weather can take the form of direct sunlight, rain, cyclones, and hurricanes. In order to protect the sub-assemblies from such weather conditions, they should be kept under appropriate shelters. After completion, the assemblies will need to be stored as they await transportation to Australia. The use of private warehouse is more advisable in this case in order to avoid inconveniences that may be caused by the use of for-hire warehouses such as poor communications and lack of adequate space during high seasons (Kohn, et al.
2009, p. 72).
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