Operations management assignment writing report analysis: Green logistics in Singapore
Executive Summary
Singapore port has been in existence since long and the Maritime and Port Authority of Singapore is managing the port since 1996. There are certain things which have been ignored by MPA due to which, the port isn’t able to perform as per international standards.
Singapore needs to understand that the competition is very high in the market and if they are not able to perform then some other port will take up their position. They should outsource the processes which they aren’t able to handle. Apart from that, they should be very punctual with the time. They should pick up and deliver the goods on time so that the customers can trust them rather than worrying about the safety of goods that are in the process of transportation. Communication from the senior management to that of the floor employees should be very clear. If the senior management alone at MPA isn’t able to manage the communication process then they should decentralize it. Decentralization of communication process will lead to the formation of various departments and this is one of the best things that MPA can do.
Information technology should be implemented by MPA so that the flow of information is smooth. The implementation of information technology in the port will allow the senior management to be updated about the things that are happening at the port. Not only the senior management, even the customers will be aware about the exact position of their goods thus, making them feel relaxed. The port can also set up a customer relationship management department so that the customer has a point of contact whenever they have some problem or any query regarding the services provided by the Singapore Port.
MPA should implement policies that will allow them to be environmentally friendly. Environmentally friendly policies should start with warehouse and it should continue till the goods reach the final destination. The warehouse should be close to the port and the ships that are used for the transportation purpose should be fuel efficient. There are many fuel efficient ships available in the market so MPA should purchase this and they should replace their old existing ships.
MPA needs to implement logistics policies in the port so that the process can be improved and at the same time, they should also take care of the existing policies. If MPA ignores the basic things then they will have to pay a heavy cost.
Introduction
The Maritime and port authority of Singapore has been managing the port since long time but it is being noticed that there are certain things which is ignored by them. If MPA wants Singapore to be a global hub then they should increase their standard in all the possible things rather than that of sticking to the old methods.
Issues with Logistics department of Singapore port
If few things are changing in the Singapore port then they can, for sure, be a global port. Few issues that need to be addressed in the Singapore port are discussed below.
Singapore port tries to do all the things by itself. It is, merely, impossible for anybody to take care of all the activities by themselves and so is the case with the port also. It was noticed that right from the time, the good enters the warehouse, till the time, the good reaches its final destination, everything is done by the port authorities. If a good has to be transported from Singapore to that of US then they can outsource the US process to some other company in the US rather than that of doing on their own. This will allow the port to save costs and the process will be further smoothened as well (Waters, D 2010).
Singapore port is a very well established port in Singapore and hence, they misuse the reputation that they have created in the market for themselves. It was noticed that they take their leisure time in delivering the goods to the final destination. The Singapore port needs to understand that the competition presents everywhere and in case, if they are not able to deliver the goods on time then some other competitor will take their position. The employees at the port should be asked to work faster than their regular speed. There are many customers who are willing to pay extra but they want the goods to be delivered on time (Waters, D 2010).
The Singapore port doesn’t manage costs properly as they tend to waste a lot of space in the warehouse. Singapore port has multiple warehouses and it was noticed that most of the warehouses were half-filled. If the warehouse is half-filled then too, it is utilizing the resources that will be required for a full warehouse. In such a situation, the cost incurred is more than what it should be. Singapore port should save money by way of storing all the goods in one warehouse and the other warehouses should be left empty until and unless, the initial warehouses aren’t filled (Rushton, A 2010).
There is a lack of planning in every task, that is, undertaken by Singapore. Singapore port starts up with anything that they feel like without any proper planning. MPA officials need to understand that they need to plan everything before they start with. For example, if Singapore port decides with purchasing a new warehouse then they just blindly purchase one but that is really wrong and the organization will have to spend a huge cost for such decisions that they take. If the Singapore port wants to purchase a warehouse then they should check the capacity of current warehouses and the capacity that they will need in the new warehouse, they should also plan the finance that they are willing to invest and the distance from the port. If they plan things strategically then life will be simpler for the MPA officials (Sullivan, B, R 2010).
Communication needs to be improved at the Singapore Port. It is seen that all the news and orders are given to the employees from the manager of the port. Every function in the port must have a different departmental manager so that the communication is clear and at the same time, the employees at the lower level will be clear regarding their reporting. Apart from that, if there is any meeting among the top management members or the employees then same should be communicated to everybody. All the final decisions about the process must be clearly communicated so that all the employees can follow it. In case of lack of communication, 100% performance from the employees cannot be expected. (Sullivan, B, R 2010).
Strategies that will help Singapore port to improve
The MPA authority of the Singapore port needs to undertake certain things so that they can reduce the cost and at the same time, they can improve the quality as well. Few strategies that will help Singapore port to become a renowned global hub are discussed below.
First and foremost, information flow needs to be managed. The information should be managed in such a way that the supplier should be updated regarding the requirement of material at the port and the customers should also be aware about the current location of the goods that are to be transported. Managing relationships is very important and hence, MPA can set-up an internet and intranet connectivity so that communication becomes an easy task to achieve. If a manager at the port wants to know whether the warehouse is full or not then he will have to, personally, visit the warehouse but this is a waste of time and this problem can be overcome if communication software is set as the manager will be able to understand the warehouse situation and other things by just having a look at his computer (Kane 2008).
Automation at the port can also be opted for, if MPA wants more perfection in the work they do. If a task is done manually then errors are going to happen and that cannot be avoided but errors can be avoided if the process is automated. A sensor technology can be used so that the goods that are entering the port and leaving the port can be automatically entered in the system. Apart from that, sensor-based autonomous gates can be put so that it automatically opens up when a person or a person with identity card is entering. Doing such things will also lead to utilization of the available resources at some other place so that the port has human resource that is working to their fullest capacity (Schuldt, A 2011).
The processes that are taking place at the port aren’t efficient enough. If everything is taken care by the port it then achieving perfection in various tasks will be a difficult task. The port should train its employees to achieve perfection in the day-to-day task and the other things should be outsourced. There are many organizations that take care of specific function so particular activity should be outsourced to particular organization rather than that of doing it without perfection. The manager at the port should identify the process that needs to be improved. The team which is handling the particular function needs to be informed regarding the lack of perfection that they are achieving. If any improvement isn’t seen then the port should outsource it to a specialist organization. For example, if the port isn’t perfect with the packaging process then there are organizations which takes care of packaging only so this process should be outsourced to them (Schuldt, A 2011).
The relationship needs to be maintained with the customers so that they come back to the port again. MPA should market the processes that are available at the port. If the port introduces anything new then this should be known to the prevailing customers as well as the potential customers. This thing can be known to the customers by way of advertisement or by way of simple word-of-mouth marketing. Apart from that, the port can organize small departments that will take care of the customer’s requirement. CRM department can be set so that the customers can call up to sort out if they have any problem. The CRM department should call the customer once their goods have reached the desired destination so that the port can also get a feedback about the service that they have provided time (Waters, D 2010).
The port should be able to map the supply chain at any given point of time. Mapping the supply chain of the port means that the managers at the port should be able to give a clear picture regarding the process that is followed in the port. The management should have the details, of the goods, right from the time, they enter the warehouse till the time they reach their final destination in safe mode. If a manager is asked then he should be able to provide details like the person who handled the good and timing when the good entered or when the good reached the destination. A proper supply chain mapping system can be set so that they can track the details of all the goods accordingly. MPA may think that they don’t need this but that’s not true because this system will allow the managers in the port to understand the performance of the port. A proper timing needs to be set so that all the processes can be completed on time. For example, if a good has to reach the port from the warehouse in an hour’s time then the complete one hour schedule should be broken so that it becomes easy for the worker to achieve it (Lambert, C 2000).
How to reduce the impact on the environment?
Not only the Singapore port, all the organizations are forced to undertake policies that will safeguard the environment rather than that of harming it. Every country is forced to be environmentally friendly and if an organization is environmentally friendly then it builds reputation in the market.
As a first step, MPA should reduce the emission of carbon dioxide. Carbon dioxide is one of the major gases which cause pollution in the environment. It was noticed that the distance between the port and warehouse is very far. The goods which need to be transported reach the port with the help of a vehicle. Usage of vehicle leads to emission of carbon dioxide so an environmentally friendly measure, MPA should relocate the warehouse to a nearby location so that the usage of vehicles is avoided or reduced to the minimum (McKinnon, P 2010).
Fuel is a natural resource and that needs to be used only as per the requirement rather than wasting it. The ships that are used in the port should be cleaned at regular intervals and this will reduce the usage of fuel. Apart from that, there are many fuel efficient ships available in the market so if MPA is planning to replace the existing ships then they should opt for fuel efficient ships rather than that of the regular ones. Fuel efficient ships are slightly expensive than that of the regular ones but it is worth because the cost of fuel will be reduced to a minimum (ImperialLogistics 2010).
MPA should see to it that all the ships that leave the port should be full. If the ships are full then it can be said that the authority is trying to utilize the available capacity. Doing this will also reduce the movement of ships thus; the usage of fuels will be reduced automatically. If a ship has space to load few more goods then they should do it otherwise the ship will have to come back again to take those goods back. Apart from that, MPA should also opt for route optimization so that they can save the usage of fuel. They should try various sea routes and the route will takes less time should be opted so that the usage of fuel is reduced and at the same time, the goods will also reach the ultimate destination sooner (Emmett, S 2010).
MPA should plan all the possible things before they implement it. Planning will allow MPA to understand the resources that they will be using. If the decision authority feels that they are using a lot of resources in some particular process then they should look for some or other alternative. They should opt for the same process only when they are sure that there isn’t any better alternative. If MPA isn’t sure that they will be able to do this or not then they can hire a team of professionals who will help the port to plan things in an environmentally friendly manner. Initially, hiring of these professionals may seem to be an expensive deal but later, the port will reap benefits. Benefits will be in the form of goodwill as the society will trust the port and reduction of costs (Emmett, S 2010).
Green warehouse must be built so that the port can save electricity. If a warehouse is planned properly then that will automatically reduce the cost of electricity and this can be a huge money for the Singapore port. If the warehouse has lots of lighting then the MPA should try to use the natural lighting rather than that of tube lights and other modes of lighting. Usage of natural lighting will reduce the presence of heat in the warehouse and hence, the usage of fans will also be reduced automatically. There are roofs available which will stop the entry of heat inside the warehouse so it is better to use such roofs rather than that of the regular ones. If regular roofs are fitted then refrigerator will have to be fit so that the temperature can be maintained. (Roy 2010).
Packaging shouldn’t be ignored while talking about the environmentally friendly policies. Usage of virgin material should be avoided to the extent possible so that trees can be saved. Paper or wood is used in MPA for the purpose of packaging and both the things are produced from trees. If wooden packaging is used for packing a box then the packaging department should see to that the packaging is removed properly and safely so that the same can be used for packing some other good as well. Apart from that, all the goods need not be packed. If the packaging department thinks that a particular box can be left open at the time of transportation then it is better to go ahead without packaging to save the material that is used for packaging. (Emmett, S 2010).
Conclusion
Logistics is a very important function in the port so that cannot be ignored at any cost. It is always better to plan and move ahead so that the wastage can be reduced to a minimum. Opting for green is no more an option, it is a compulsion so every organization should opt for it today itself. If MPA ignores it then they will be a history soon as they will be boycotted by the society and business partners as well.
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