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Economic impact of globalization in australia
Economic impact of globalization in australia
Importance Of Third Party Logistics Providers
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Executive Summary
The performance of the logistics system has a major impact on cost structures, revenues, service quality, and competitiveness in Australian industry. Logistics activities have been evolving rapidly in response to changes such as globalization, general industry restructuring, new production processes, and technological advances.
Many firms, government agencies and joint industry/government bodies are developing programs to improve logistics performance in Australia. The initiatives include the Freight Transport Logistics Industry Action Agenda.
This report develops a broad framework for analyzing logistics activities in Australia. This report will also look at the importance of Third Party Logistics to the Australian business. We will also look at the emergence of the 3PL in Australia and what benefits do the businesses get by adopting the 3PL.
The most significant supply chain trend that is affecting business in Australia.
Introduction
Ever increasing competition in today’s global markets, introduction of new products with shorter lifecycles, faster dissemination and proliferation of information and heightened expectations of customers have forced enterprises to invest in, and focus attention on, entire supply chains. Today, some companies are extending their reach outside of traditional supply chain boundaries to engage in activities that go beyond their own sphere of control. To do this, they organise competitive networks of enterprises to develop and access supply chain capabilities for those organisations that are part of such value-adding networks. The scope of this research report covers aspects ranging from in-house logistics, with a focus on productivity, cost-savings and functional excell...
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With different prices and services across the facilities, management is trying to identify opportunities to standardize costs and services across the business units. The goal of this case study is to update Deere and Company’s logistics by recommending solutions to cut logistics cost by 69 million over 3 years
In the 1960s through the 1970s, companies realized strong engineering, design, and manufacturing functions were strong market strategy keys to create and capture customer loyalty. As the demand for new products rose in the 1980s, these market requirements were to increase their flexibility and responsiveness to adapt existing products and processes or to develop new ones in order to meet customer needs. As manufacturing improved in the 1990s, managers began noticing material and service inputs involving suppliers and their major impact on an organization’s ability to meet customer needs. As a result of these changes, organizations now find that it difficult to manage their own organizations. First, they must be involved in the management of their network of all upstream firms that provide directly or indirectly, as well as the network of downstream firms, which are responsible for delivery and market service of the product to the end customer. In order to succeed, managers have to realize that they cannot do it alone and they must work together on a daily basis with the whole organizations in their supply chains. Because supply chain management involves all functions within an organization, managers need to know what a supply chain is, why it is important, and the impact of supply chain management on the success and profitability of their organization. Today, Wal-Mart topped the list of the America’s biggest companies on the Fortune 500 list, “with sales of almost $345 billion — more than a quarter of a trillion dollars” (Forbs). Wal-Mart’s supply chain management is becoming recognized as a core competitive strategy.
Having spent the better part of 35 years in the shipping and cargo field, Craig Raucher has established many non-asset and asset based operations for DHL Worldwide Express, Total Freight Solutions Global, and Corporate Express Delivery Systems. His ability to determine whether the third party logistics company will retain and use their own assets or others has increased the profits of each
Zanjirani F., Rezapour, S. & Kardar, L. (2011) Logistics operations and management concepts and models, 1st ed. London ; Elsevier.
Rao, K., and Young, R. R. (1994) Global supply chains: Factors influencing outsourcing of logistics functions. International journal of physical distribution and logistics management. Vol. 24. No. 6.
Our Logistics unit is driving for synergistic growth, developing and securing its links to Container Shipping
Woolworths has distribution centres in different geographical places in Australia. Products manufactured from different suppliers driven into distribution centre in the specified state or province. According to the ordering data, these products are assembled and distributed from distribution centres and moved forward to the prescribed retail stores.
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
Based on the customers’ needs and market conditions, third party logistics provider normally provide the integrated operation, warehousing and transportation services that can be customized and scaled. For instance, the different requirements for delivery services and the different demands for products and materials can be scaled and customized for different customers. 3PL targets a particular function in supply management, such as warehousing, transportation, or raw material provision. (O'Byrne, 2011)
Logistics is the designing and managing of a system in order to control the flow of material throughout a corporation. This is a very important part of an international company because of geographical barriers. Logistics of an international company includes movement of raw materials, coordinating flows into and out of different countries, choices of transportation, cost of the transportation, packaging the product for shipment, storing the product, and managing the entire process. The concept of logistics is fairly new in the business world. The theoretical development was not used until 1966. Since then, many business practices have evolved and logistics currently costs between 10 and 25 percent of the total cost of an international purchase.
In logistic industry, they have been through lots of challenge in worldwide market. As the containerization of the global economy scopes, a phase of development and explanation, ports find themselves inserted in ever changing commercial environment where logistics is the forefront. Thus, this industry reaches a phase of maturity and rationalization due to the process of logistic on land.
Organisations that are having a hard time in their logistics functions because of increasing competition in the market, high customer service expectation set by a company’s cooperate strategies has shaped for the requirement of outsourced logistics service. Organisations decide to use 3pl so that they have a wider access to enter new and existing markets expansions, to assess market prospects for production an services, to reduce supply chain costs and have expertise to exploit new trends in developing technological advances in supply chain in supply chain management, the need to know whether their product has competitive advantage. Bolumole (2001).
Creating logistics value is costly. Logistics accounts for one of the highest costs of doing business. Logistics expenditure normally ranges from 5% to 35% of sales depending on the type of business. Thus logistics even though very important for any business success is expensive.
Since the beginning of human civilization there has been movement of goods from one place to another. When it comes to modern logistics most professionals thinks it as the most exciting and competitive area of any business. People in this area work 24 hours a day, 7 days week and 52 weeks a year in order to satisfy the demands and needs of the consumers of goods and services.
As an outcome of the thesis, my professional interest on the issue associated with the development of logistics sector has been enhanced. Furthermore, I am planning to keep an eye on the sector to enhance my knowledge which will benefit me and the organization I work for.