Take time to read the responses of your classmates and select two classmates and then compare and contrast their findings with yours and comment and reflect on what you now understand about the future challenges for logistic & operations organisations.
Customer satisfaction and loyalty can be affected by last mile delivery. (Callarman, 2020) It’s essential for Logistics and operations to manage the fastest possible delivery routes for the lowest cost, which brings a range of challenges. The external environment provides knock on consequences for logistics (Rushton, et al., 2017) the deregulation within the European Union and the consequent reregulation following Brexit, changes the time frames available either removing or putting up barriers to trade and transit, which logistics and operation will need to manage to reduce the impact for customers.
Covid- 19 brought a new era of shopping for many consumers, as shops were forced to close, a move to online was accelerated, a reduction in public transport of 76% globally triggered a changes for logistics and operations. (Andruetto, et al., 2021) Air cargo capacity has been reduced by 9% (Accenture, 2021) and sea freight struggling with container shortages and soaring prices. The future for logistics and operations now requires further ahead planning, with multiple options evaluated to provide on time delivery.
Over recent months Logistics and operations within Xaar have needed to review their inventory reductions plans to ensure the production line kept running. Evaluating processes and contingency planning for a possible local shut downs due to Covid, and preparing for change in regulations with the removal of free trade to the EU. Months after Brexit there are still many levels of uncertainty (Trepins, 2021) Xaar is finding customers require a higher level of support then pre Brexit trading. The operations function within Xaar now incorporates and transit buffer into the lead time to allow for boarder delays, with the goal of eliminating disruption to the production line. (Slack & Brandon-Jones, 2019)
Second classmate for comparison
I hope we are all well and having a good week.
According to Callarman (2020), 93% of customers expect visibility in the order process, from ‘in-transit status to arrival date’. They recognise that there is a challenge for further transparency within the supply chain.
Furthermore, research by Tadejko (2015) supports that technology is a current challenge faced by the logistics sector as we step into an era of digitisation, with the Internet of Things (IoT) being a prominent challenge.
Additionally, the logistics and operations industry also faces the challenge of environmental issues, as ‘studies have shown the negative impact big business supply chains have on the environment (Management, 2014).
Future challenges that the industry faces have been highlighted further since the COVID-19 pandemic. For example, fuel prices are likely to increase even further, with petrol prices ‘at their highest in two years’ in order to ‘make up for lower fuel sales during the pandemic’ (News, 2021). However, the changes within the industry regarding technology could mean fossil fuels are used less frequently, especially due to the environmental pressure to operate a greener supply chain.
A further challenge for the future comes from the limitations of existing logistics systems, with research suggesting they are ‘not flexible and adaptable enough to integrate new or change present processes and systems rapidly’ (Roth, Klarmann and Franczyk, 2013). However, can we really predict the issues that will arise, or is this simply guesswork?
CEVA Logistics clearly understands the need to keep up with technological advancements, which is why they have teamed up with ZeBox incubator programs, ‘scouting for innovative solutions around industry 4.0, AI, Blockchain, the Internet of Things and robotics’ (Logistics, 2018). This will be beneficial to CEVA as the introduction of AI can allow for ‘reduced costs related to transportation, warehousing and supply chain administration’ (Dash, McMurtrey, Rebman and K. Kar, 2019).
Additionally, CEVA has introduced ‘green’ procurement in Italy, with ‘training courses on environmental issues’ (Logistics, 2018).
Type of service: Academic paper writing
Type of assignment: Essay
Number of Sources: 8
Academic level: Master’s
Paper format: Harvard
Line Spacing: Double
Language Style: UK English