Current Challenges in New South Wales Supply Chain
Discuss about the Sustainable Supply Chain Network Design.
This purpose of this essay is to determine supply chain’s current trend that is experienced by the logistic firms as well as retailers who are situated in New South Wales. Several studies that have been conducted regarding the supply chain challenges indicate that there is ports congestion in the neighboring New South Wales regions such as the Port Kembla, Port Jackson, as well as Port Botany. The most important ports of the above is Port Botany since it is able to handle materials’ highest capacity. The state’s present practice is suffering from high costs that are associated with congestion among the traffic routes as well as other challenges that are as a result of network routes. Insufficient land availability in Western Sydney adds to the challenge of developing the logistic infrastructure particularly close to the port areas. These concerns regarding the current challenges have been researched on according to firm’s case studies. Such studies have been by conducted on Qube Holdings Pvt as well as Kiosk Zara among other companies that are facing similar challenges. These case studies have highlighted the different challenges that face all these organizations. Current trends indicate that a company such as Zara is experiencing problems to do with the decline in the quality of customer service. Additionally, the report as well addresses various concerns that are linked to supplier breach of the code of conduct aiming to have a fast transportation channel. The referenced situation on Qube Holdings is associated witha new intermodal station’s setup necessary to improve the logistic systems in Moore bank in Western Sydney. The upcoming facility’s likely problems are addressed deeply in this essay. Nonetheless, different qualitative research indicates that there is a need for government’s contribution in addressing the current logistics issues. The operations’ sustainability has been shown based on different qualitative studies that have been carried out on various challenges.
The main issues that are related to Western Sydney presently are issues that are related to the dispersed terminal station that monitor the state’s logistics activities. The current guidelines on materials’ demand are not according to timely delivery of these materials (Bierwirth, Kirschstein and Meisel, 2012, pp.200). The stakeholders’ lack of attention is as well having severe impacts on the organizations that take part in this business. Nonetheless, there are many issues faced by the government when it comes to regulating the activities at the ports as well as the maximum utilization of the available land area that includes the rail route’s scope located near Port Kembla.
Case Studies: Qube Holdings and Kiosk Zara
According toBlack, Roso, Maruši? and Brnjac(2018) KPMG devised a model that assists in studying the challenges that relate to the deficiency in skilful labor in New South Wales’ logistics industry. Additionally, entry barriers of new truck drivers have further enhanced the challenges that are related to the employees in the logistic system (Black, Roso, Maruši? and Brnjac, 2018, pp.43). The deficiency of skilful employees in cargo handling among every third party logistic operator adds to the current situation’s detrimental condition. Also, the study by McEvoy indicates that workers taking part in the field of supply chain activities do not possess soft skills thus the need for them to upgrade their skills regarding managerial and leadership skills thus improving on operations in the current situation.
Nonetheless,Dekker, Bloemhof and Mallidis(2012)demonstrates that organizations like Qube are almost taking a crucial lead of developing an intermodal terminal at Moorebank (Dekker, Bloemhof and Mallidis, 2012, pp.674). The various firms that were earlier mentioned are experiencing many challenges in their network routes which are continuously affected as a result of the interrupted trade routes associated with the upcoming inland passenger rail service crossing from Melbourne to Brisbane. As a result, the organization’s transshipment of materials from the Port Botany to South Australia may end up being affected at a later date after the completion of the rail project (Ghaderi, Cahoon and Nguyen, 2015, pp.72). There are many questions arising as to whether the intermodal station services are capable of delivering open ended logistics solutions to the area’s tenants. In addition, there have been objections from the Liverpool council concerning the likely health hazards as well as carbon emissions associated with the construction activities. Also, some of the experts have raised concerns about the increased traffic congestions caused by the construction activities.
Nonetheless, the supply chain activities of firms such as Zara are questionable. This organization is well-known for its behavior of breaching the convectional practices that govern the supply chain operations, particularly in the clothing sector. The company believes in the product’s successful control until that same product has been delivered to the end client (McIntosh, Newman and Glazebrook, 2013, pp.37). These unethical practices by Zara associated with its supply chain’s activities have raised concerns about the ethical issues. Thus, Zara has to improve substantially on its social as well as working conditions as well as giving extra priority to its workers.
Another crucial issue is the unavailability of sufficient stevedoring organizations which are likely to be associated with the tenants near the port areas, particularly at Port Botany. Port Botany is viewed as Australia’s second largest port based on its annual demand (Poulos, et al, 2016, pp.260). The current stevedoring firms which include Brotherson Dock and Container Terminals Australia are showing signs of being insufficient in handling the huge annual demand that is approximated at twenty equivalent units’3.2 million annually. Also, the airport terminals face related problems which are contributed by the increasing air traffic among the routes that link Western Sydney freight line. Cargo activities and ecommerce increased levels contribute to these challenges of accommodating the air traffic’s capacity. The different measures that have been taken by the current and previous government have majorly focused on achieving the medium-term objectives and goals instead of aiming to achieve the long-run goals. The long-run planning has mainly been affected by the enhanced concerns on health matters as well as the effects on the environment. Nonetheless, the state is also concerned with the raising issues which are as a result of the unavailability of unoccupied land in Western Sydney, mostly in the urban areas. As a result of the described challenges, there is dire need to shift focus from NWS’s urban to the remote areas of NWS. In the year 2013, the government introduced extra rail routes.
Potential Solutions to Address the Challenges
Infrastructure firms such as the Brookfield Partners are famous in availing infrastructural resources to organizations like Qube holdings as well as Asciano Limited. To address the current challenges, it involves improving the port activities at the Asciano’s Patrick port division (Roso, Russell, Ruamsook and Stefansson, 2015, pp.271). This is because the port has a tremendous capability of accommodating the high demand for the containers. Additionally, the port has the potential of providing a long-term solution to the current problem of meeting Southern Sydney region’s logistic demand. Also, there is need that the logistics routes have an augmented focus on the rail routes with the expectation of increasing operations’ flow and the service’s speed.
The current issues that are associated with intermodal logistics hub can be managed by the Southern highlands’ intermodal logistics hub. Some regions in the Southern highlands contain large space that can be utilized to introduce new rail routes as well as lowering the current road transit’s traffic congestion, located at Port Botany and Moorbank. Research carried out suggest that a huge potential lies along the highway that connects Westlink M7 that links the M7 motorway route directly to the New South Wales’ Western Sydney. It is essential that the government puts importance while selecting a port’s facility. The intermodal trade route that crosses through Southern highlands possesses the highest capability of improving the supply service, which is facilitated by its strategic location.
Sturgess, Rahman and Argyrous(2018) observe that the rail route found in Port Kembla has reduced the possibility of being affected by the cargo transshipment via rail route. Accessibility easiness to the Sydney intermodal as well as the M7 route may seem the best position option of enhancing Sydney hub’s logistic services. By linking the above mentioned routes, then NSW will have proved to be useful in substantially improving the intermodal transportation using the rail routes. Additionally, studies have shown that logistics can further be improved by linking Sydney logistics via Illawara district. This district has the ability to connect Moss Vale’s logistic centers by using rail route. Notwithstanding, the route will also avail an alternative access to the Western Sydney and organizations will be in a position to congestion related to the network by making use of this route (Sturgess, Rahman and Argyrous, 2018, pp.68). The problems that are related to workforce challenges can be managed effectively by using the Transport for New South Wales. The company’s objective is focusing on the current delivery cycle as well as enhancing customer service, logistics services and transportation’s planning. The Transport Freight and Logistics Co located in New South Wales is to be blamed for contributing to the deficit of the current need for engineers. Additionally, it is linked with the shortage in transportation industry’s current requirements. To improve its current logistics activities, Zara has focused on leveraging its capital assets. The company has ensured that it increases its capital investments in the production as well as the distribution facilities. This is to ensure that the supply chain operations are more responsive. Recently, the company has invested huge sums of its money that assist in increasing and enforcing the current supply chain operation’s speed.
In the past, NSW’s government had put in place several initiatives aimed at responding to the problems associated with network congestion. Currently, the government has implemented various initiatives aimed at promoting the organization’s supply activities through the use of Public Private Partnership. With this in mind, the government is fully committed to enhancing Qube Holdings Private Limited’s supply activities. The firm is focused on establishing an intermodal station that connects Port Botany with the South Australian Suburbs via Moorbank. This project is not aimed focused at locating importers and exporters but it is as well aimed at enhancing the current NSW’s logistics trade routes (Regmi and Hanaoka, 2012, pp.31). The site that is selected to build the logistic center is more than 240 hectares. Hence, the land is available to establish industrial storage as well as the supply chain operations. The current challenges facing the warehouse managers and the tenants will be addressed since logistics service’s high demand will be sufficed to achieve the current capacity requirements. Additionally, the initiative will also improve the declining rail route service’s demand as well as focus on enhancing the current situation’s logistics operations. Nonetheless, the logistic operators and the tenants will benefit from this project. Qube logistics chairman elaborates that undertaking the interstate rail project by NSW’s government will not affect Qube’s current operations. This is because the proposed will only operate between Melbourne and Brisbane. He continues by saying that the Southern Sydney rail route has fewer possibilities of interfering with the freight route because there is train passenger’s unavailability. This route will facilitate transportation from Moorebank to Port Botany. Various other government institutions are as well helping in completing the project carried out by Qube Holdings, such as Australian Track Corporation. Additionally, NSW’s has also funded the project with $250 million within the first five years.
Additionally, the NSW’s government has taken a step ahead to include third party logistics operators to share the opportunity in accessing Moorebank’s terminal. Thus, government’s policy mechanism makes sure that the whole process of benefiting through intermodal terminal’s setup is mutually beneficial within the operations of the supply chain. These benefits are not only meant for the different tenants that engage in logistics and distribution activities but also enhance the transportation services aimed at improving competitiveness against other rival transportation facilities.
According toRegmi and Hanaoka (2012), there are many other initiatives initiated by NSW’s government. These initiatives include leasing two main ports situated in Southern Sydney. The two ports include Port Kembla which is specialized in handling grain products as well as Port Botany. The New South Wales government has also taken other initiatives aimed at refinancing the operations taking place at Port Kembla and Enfield Intermodal logistics center. This also includes other ports such as Cooks Rail terminal as well as Port Botany which is the most important port as earlier mentioned.
According toPoulos, et al(2016) the current initiative by the NSW’s is to construct a high-speed uninterrupted access to Port Yamba’s national rail network. Further, the government has taken the initiative of improving Port Kembla’s facilities through the development and upgrade of the Princess Highway that will end up facilitating road transport hence reducing congestion. Other initiatives were taken by the government to ensure that the port activities are efficient to include developing terminals at Port of New Castle as well as completing the first stage of constructing the Sydney freight corridor.
Varsei and Polyakovskiy(2017) describes that among the several current initiatives that the NSW’s government has taken suggests that the current actions are also aimed at expanding the terminal space that is found in Port Jackson. Also, it focuses on building new port facilities at Port Botany as well as engage in drilling activities with the intention of accommodating the rising demand. Other government involvements in solving the current problems include constructing new road terminal points aimed at improving Port Botany’s container operations (Varsei and Polyakovskiy, 2017, pp.237). Additionally, the government is almost taking the initiative of expanding container operations focusing to improve the speed of loading and unloading process at Port Botany that limits large containers’ distribution process. Other initiatives by the New South Wales government include incorporating warfare at Port Jackson. This will assist in promoting internal tourism growth as well as lead to improving the supply chain activities.
Conclusion
The deep analysis of the essay indicates that companies such as Qube and Zara holdings are affected by the current rail and road network problems such as congestion in NWS. Further, the essay has studied the different qualitative tools as well as action plans that can be put in place to enhance the efficiency of the current situation. The most advocated solution of addressing these problems that are associated to a deficiency in the intermodal logistics facility is the Public Private Partnership. The essay has also taken a deep analysis of the sustainability by ensuring that there is proper utilization of the land resources as well as constructing a logistic center at Southern Sydney’s Southern Highlands. Different initiatives that are taken by the government as well focus on sustainability of the current operations. The other qualitative analysis that is in the essay demonstrates that enhancement of Moss Vale enterprise zone will result in being beneficial in the facilitation of the present logistics activities.
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