Logistics Management Research in Transportation Economics

Question: Discuss about theLogistics Managementfor Research in Transportation Economics. Answer: Introduction IndoAust Jaya (IAJ) Pty Ltd is an import/export company headquartered in Sydney with subsidiary offices in Brisbane, Melbourne, Perth and Darwin. IAJ also has offices in Cape Town, South Africa, Dublin, Ireland and Wellington, New Zealand. IAJ Pty Ltd has implemented an international purchasing strategy its organization. It imports various chemicals from Indonesia and Thailand. In the future projection and expansion the organization into countries namely, New Zealand and South Africa, it is quite vital for the organization to overcome the logistic requirements. The two suppliers of the company are Indonesia and one from Thailand. With the current expansion plans to be implemented, it is an important step for the company to raise its number of suppliers. The company aims at accomplishing this through engaging only the best people who bring professionalism and dedication to every aspect of our operation and who work collaboratively to achieve the goals of IAJ Pty Ltd. The logistic requirements are that of two more suppliers from Korea and china. IndoAust Jaya Pty Ltd deals with a variety of products and services to be offered in its business. They purchase waste paper and paper recycling shipped in Indonesia for pulping and creating rolls of print to be sold to publishing companies in Australia, New Zealand and South Africa. The suppliers under waste paper and recycling context are AMCOR in Western Australia, SKM Recycling in Victoria and Trans Pacific Industries Australia-wide. The other products are newsprint, chemicals and exporting live cattle to Indonesia. The logistic activities that are conducted by the IAJ that are conducted includes various suppliers in the field thereby helping in promoting the activities of production. The company aims at forming a long-term relationship with one or two transport companies that can meet IAJs requirements. It has aimed at negotiating a suitable contract with a new transport company that meets IAJs supplier requirements. The company that has been chosen is Mid Star Transportation. Successful logistic operations are a vital aspect of an organization in order to stay ahead of the competitors (Christopher, 2016). One of the main missions of IAJ is to be the first company that people think of when considering the products and services offered by the business. In order to achieve this objective, IAJ must be efficient enough to frame its logistic activities. The company must raise the number of logistic suppliers and should choose such suppliers who would offer the service levels at a competitive price. The suppliers for the waste paper and recycling segment must be chosen in such a manner, so that the suppliers reduces the cost and raises the productivity of the organization. The company must negotiate with a suitable contract with a new transport company that meets IAJs supplier requirements. The company should maintain the contracts which contains requirements of maintaining prime movers in good condition and that does not break due to mechanical failure. IndoAust Jaya Pty Ltd follows two logistics information systems, namely LIS 1 and LIS 2. The LIS1 controls the overall running of the business, which includes inventory control and order entry. Und er inventory control, maintenance of items, costing, pricing, entering transactions, posting, performing inquiries are done. The order entry role implies the maintenance of customers, posting and reporting activities. The second logistic information system or LIS2 is used for live export control. It is used to optimise control of the operations. The organization has framed an extensive logistic activity system that helps in framing an efficient logistic system for the organization. The logistic activities are efficiently maintained and employed by the company, thereby providing it with the opportunity of future growth in the market. IndoAust Jaya (IAJ) Pty Ltd is an import/export company headquartered in Sydney with subsidiary offices in Brisbane, Melbourne, Perth and Darwin. IAJ also has offices in Cape Town, South Africa, Dublin, Ireland and Wellington, New Zealand. The company uses Sage 300 ERP software to accommodate and control its business operations across all divisions and countries. This quite efficient software is analysed by the company. It has the capabilities of performing an extensive supply chain management. Its major capabilities include multi-currency, multi- location, easy of entry for intercompany transactions, bar code and infrared capability. The software maintains the inventory control along with the order entry. The policies and strategies associated with such a logistic system of the organization is perfectly illustrated, thereby it helps in framing an effective logistic system. It does not require any recommendation further to be implemented. The logistics management followed by the organization is perfect in maintaining the supply management on an international level. It does not require any recommendation for improvement. Yet in order to determine whether the supply management is being implemented effectively, a management group must be created under the logistic department. This management group would assist the logistic manager in keeping a track on the logistics management of the organization. The two forms of logistic information system must be well maintained and record must be kept regarding the services being offered by the sectors. The key performance indicator for the logistic supply would be the feedback from the customers and the smooth functioning of the suppliers. Any hurdle that would be noticed in the system must be overcome by implementing efficient strategies framed by the logistics management group. This implementation would help in maintaining the logistic requirements of the organization. The internal stakeholders of IAJ are the employees, managers and owners. The external stakeholders of the organization are suppliers and customers. Among the listed stakeholders the most important ones for the organization are employees , supplier and customers. It is vital being a logistic manager to maintain a healthy relation with the stakeholders, as they are one of the main factors regarding the profit and productivity of the organization (Islam, et al., 2013). In order to overcome the potential conflicts with the stakeholders, the organization must provide the stakeholders with incentives, benefits and opportunities that would attract them towards the organization and maintain their loyalty towards the company. The employees must be approached with effective plan of facilities and incentives that would help the employees to continue their work in the organization without any hesitation. The suppliers should be provided with facilities by following a competitive price analysis. This would help in maintaining the old supplier and attracting the new ones that would further help the organization in expanding the business. The customers of an organization are their vital aspect. The customers must be approached with the differentiated produ ct produced by the organization along with a price, which is comparatively lesser than the competitors. All the above approaches would help in overcoming the potential conflict that exist among the organization and the stakeholders. Reference Christopher, M. (2016).Logistics supply chain management. Pearson Higher Ed. Islam, D. M. Z., Meier, J. F., Aditjandra, P. T., Zunder, T. H., Pace, G. (2013). Logistics and supply chain management.Research in Transportation Economics,41(1), 3-16.