Supply Chain Assignment help on : Global supply chain management

Executive summary:

Intend of this paper is to discuss about supply chain management and logistics of Maritime and Port authority of Singapore which is also known as MPA. To address the entire description, report has been managed in three key segments. In the first part of this paper, issues related to logistics and current supply chain of MPA will be identified and evaluated in relation to both international inbound and outbound cargo transport to the Singapore. Moreover, a brief introduction of MPA’s would be described before identifying and evaluating those key issues. Therefore, by looking into MPA’s logistics issues, competency level of it would be assessed by taking PEST and five forces model into consideration. In contrast, key areas of supply chain management such as supply, manufacturing, transforming into finished goods, ordering, delivery systems, etc would also be included in the discussion. In this context, company’s entire chain and processes used throughout the logistics have also been outlined.

Afterward, a few supply chain strategies would be indicated and described in order to help MPA so that they could reduce the cost and foster quality and key competitiveness in their logistics network. As the strategies have to be described with regards to a particular environment, emphasis has been made on global supply chain strategies. Similarly, the description will include global supply chain structure used by successful companies, inbound and outbound logistics strategy, lean manufacturing, six-sigma strategy, total quality management, performance measurement, sustainability of supply chain management, etc. The focus would be made on the strategies that provide flexibility, quick response and effective outcome in the system and makes the logistics and supply chain efficient and sustainable. Thus, strategies will be linked to the issues discussed in first segment so that an analysis could be made out for determining the most appropriate strategy to be implemented in MPA. On the other hand, a regression analysis would also be discussed in order to assess the growth of the cargo in Singapore.

Finally, third segment would demonstrate some key issues in sustainability of supply chain and logistics addressed by MPA’s cargo transport. In addition, strategies would be a part of overall discussion that can help MPA to reduce global Maritime cargo logistics’ environmental impact. Therefore, entire discussion will include determination of both volume and firming of consumer’s requirements and their delivery schedule as and when required. The strategies discussed would be linked to company’s efficiency, responsiveness and effectiveness. Innovation is also a part that may be critically evaluated with quality delivery and technical capability of the firm. Other than this, paper has made recommendations to act in response to customer’s demand and produce what is required at upstream. Overall discussion will throw light on significance of effective supply chain management and logistics. Besides, the concepts of order winner, order qualifier and quality have also been included as the objectives and scope of supply chain. Lastly, at the end, some decisive points including logistics, marketing and inventory management would be drawn out of the discussion.

Introduction:

Maritime and port authority of Singapore regulates and handles marine and port services, activities and competencies within Singapore. This encompasses vessel traffic navigational security and wellbeing mainly through regulating operational efficiency and the environment. Moreover, it also works as a developer and promoter with government agencies of Singapore and partners of maritime industry in order to make the country a universal hub port and global maritime centre. As a team member of the advisory team, some key issues related to logistics and supply chain management of MPA has been identified. Ports are used at their best in order to transfer goods from one mode of transport to another mode (MPA Singapore, 2009). Moreover, ports play a different role in the management of materials and further information flow. There are some following issues which become obstacle in a supply chain:

• Non-availability of well-organized and competent infrastructures and national associations, as a portion of worldwide transport system.
• Less and poor ability of transport operators and logistics making a contribution to value creation and in addition to achieve demand’s qualitative features such as reliability, frequency, security, punctuality, and availability of information.

Issues in cargo transport logistics in MPA:

Additionally, PEST analysis can be done in order to know the key issues involved in logistics management of Singapore maritime and port authority. As there are six main drivers of the change for the transportation system such as policy, environment, economics, society, finance and technology. Each factor plays a role in affecting both inbound and outbound logistics of MPA.

• Policy: This factor includes governance, security and regulations which are imposed upon by the government of a particular country. Further, governance issues encompass regulations that pertain to safety, security and the environment during transportation. All such regulations and the transport activities’ taxation as well, make an addition to the complexity of the management and the cost of burden in Singapore. More issues take place in relation to economies of scale, port terminals and establishing maritime networks for cargo shipping. Not only this, policy factors for maritime and port shipping in Singapore may also involve issues of continuity and capacity of intermodal logistics. At the end, it can be stated that some government policies and regulations may lead to unproductive, fruitless and unintended outcomes in cargo shipping (P.W. de Langen, 2008).
• Demographic and social factors: Society matters in terms of demand and production according to that. Population growth is linked with demands in mobility and increase the level of consumption.
• Environment and energy: There are a number of issues related with the availability of raw materials mainly fossil fuels that are more likely to undergo and turn out to be more discriminating. On the similar hand, these issues are reflected in greater prices of energy or raw-materials. Moreover, since each mode of transport consists of different level of elasticity, relative advantages of modal alternatives would change towards the transport chain having greater energy efficiency. Therefore, energy and environment of transport to be used for inbound and outbound cargo shipping becomes a key issue from both international and Singapore’s perspective (International transport forum, 2010).
• Technology: As technology innovations is a very complicated process to look forward to and impact of it is even more difficult to evaluate. Therefore, from transportation’s point of view, it is either concerned with the supply chain or logistics management or the motion used. It is often anticipated that information technologies that are inclined to alter mobility with a developed flows’ command and practices of supply chain management. In Singapore, this turns as an issue because it is usually related with optimum utilization of already existing and available assets and their derived gains of productivity.
• Economy: As the process of cargo transport of both inbound and outbound logistics is subject to growth cycles, recession and consumption limits that are credit based, the level of activities and national economic structure of Singapore affect both national and global transport system of MPA. Apart from this, rise in transportation cost have been expected on the medium term, demand for transport will become an issue as it has to be readjusted in accordance with volume but that is also in action.
• Competitive rivalry: There are many competitors available that are transporting both inbound and outbound logistics effectively. These are APM (a private maritime shipping company), COSCO (public), Evergreen (Private), APL (private), and Hanjin (Private) (Christopher, 1995).

2. Supply chain strategies:

The ultimate intend of a logistics framework is to satisfy the customers that is to make the product available to them at the right place and at the right time. In this term, some logistics strategies are taken into consideration and followed by MPA as it faces a number of challenges. These strategic frameworks include long range forecasting, capacity planning, MPS, MRP and shop floor planning (Shokri, Nabhani & Hodgson, 2010). On the other hand, supply chain strategies include supplier’s strategy, operations strategy and a mix of logistics strategy regarding inventory, operating facilities, flows of information and transportation. Therefore, it is required to understand the customer need first. In this order, company needs to know the exact quantity of the product which is required in each lot. Then, company also needs to know the response time that customer will tolerate until they are delivered the product. Next, variety of the products needed, service level, price of the product and desired rate of product innovation required are also point to be taken into account by the management to operate effective and efficient supply chain and logistics network (Christopher, 1998).

By doing this, a strategic fit may be achieved for the betterment of the organization. In this context, MPA should have achievement of lowest cost as its primary goal by minimizing production cost as its product design strategy. Afterward, pricing strategy will be efficient when it will have lower margins, manufacturing strategy will involve higher utilization of assets, and inventory strategy will consists of minimization of inventory. Similarly, supplier selection strategy will also help reducing cost and improving the quality. Finally, higher reliance on modes having low cost as a part of transportation strategy will also makes the supply chain and logistics of MPA effective and productive.

Logistics strategy:

Logistics strategy should also be a segment of strategies recommended for effective use of supply chain. At the first stage, the level of inventory is maintained and controlled through strategic control systems such as lean manufacturing, total quality management and six-sigma framework. Total quality management (TQM) is considered as one of the best strategic framework to control supply chain system and reduce cost on the other hand. Main common TQM practices that should be used by MPA are as follows (Online Wiley, n.d):

• Cross-functional designing of products
• Supplier quality management
• Committed leadership
• Process management
• Information and feedback
• Strategic planning
• Customer involvement
• Employee involvement
• And, cross-functional training

TQM, Lean, Agile, Six-Sigma:

TQM also considers cost of prevention, appraisal costs associated, internal and external failure costs. Similarly, six-sigma strategy is also used to minimize the variations in supply chain and logistics processes. Second it comes to location strategy including number, size and location of facilities that have to be used at the time of supply chain and transportation (Roy, Henrik & Hakan, 2006). In this context, stocking points should be located to appropriate sourcing points. Moreover, effective warehousing is also a part of location strategy which helps reducing costs, improving service levels and making the organization competent. Some are following strategies to be used for effective management are:

• Setting benchmarking (Walleck et al, 1991)
• Managing the labor force
• Reducing handling and lowering the cost of shipping
• Appropriate slotting
• Picking alternatives
• Performance reporting
• Effective freight management
• Using proper level of quality
• More efficient process returns
• Workforce software
• Better outsourcing options
• Determining right level of systems and automation
• Inventory management
• Finally, replenishment of practices (F. Curtis Barry & company, 2012).

Furthermore, six-sigma, TQM, lean, benchmarking and agile are other source of quality improvement that may be applied by any organization. Six-sigma helps improving cost, cycle time, order quality and resolves other business issues. Moreover, it has a striving for world-class performance for that order quality and accomplishment is maintained by using this framework. It also demonstrates the application of probability theory in order to process quality management and control in the organizations (Nabhani & Shokri, 2009). On the other hand, benchmarking metrics is also created and arranged by the organizations in order to seek the best changes and efficiency throughout the system. The metrics includes following points (Jens et al, 2006):

• Productivity annual entrance
• Most famous approaches to higher level of productivity
• Average cycle time per production initiative
• Average targeted revenue and savings goals (Best practices, LLC, 2012).

Further, lean production is also a considerable strategy through which waste is eliminated and value is added to the customer. In addition, lean method helps identifying alternatives and opportunities to foster product quality. It also lessens risk with product testing and applying feedback at every single opportunity. Therefore, its process of identifying waste diminishes cost and then develops profitability. Finally, it has a capability of instilling an environment of continuous improvement and learning with which a company may gain competitive advantage (Hakan et al, 2011).

Likewise, agile manufacturing is also concerned with addition of new futures after elimination of waste from the products. This strategy is mainly referred with its concentration on how operations respond to a dynamic environment. It is principle strategy which can be used by the companies in order to compete with its competitors by using best opportunities (Jose & Christine, 2011). It has been noticed that companies that have applied agile in their supply chain and logistics process are usually supported by innovative workforce, a well-organized and controlled organizational structure, a good and strong network of suppliers, consumer relations and the organizations based on knowledge management system. Therefore, all these strategies should be taken into account by MPA as it has faced challenges in its international inbound and outbound logistics cargo transport system to the Singapore port (Bozdogan, 2010).

3. Sustainability issues in cargo transport:

Transport system plays a critical role in entire supply chain and logistics system. Therefore, a sustainable transport should continuously contribute to developing the socio-economic interests without diminishing natural sources, environment destruction and hurting human being . Following this, further portion of the paper includes challenges that MPA faces for sustainability in cargo transport. In this regard following are some issues in making cargo transport sustainable:

• Business complexity: MPA faces key challenges in finding supportive ways to cultivate sustainable solutions due to their logistics system’s uneven nature. Therefore, management of MPA’s forwarders and transporters are quite challenging mainly when it is discussed about their sustainable development. Similarly, MPA also complains that it has improper research & development framework going on within the organization for that it is complex for them to follow all those carriers which use environment friendly trucks and evaluate their sustainability performance. Apart from this, it also has issues and complains that various technical issues by fusion or electrical trucks affect their entire logistics system and question its sustainable growth and advancement. Furthermore, transport related capacities also have effect on the environment and the society as a whole. It has been noticed that MPA has their own made environmental departments within their premises but they do not communicated with each other internally regarding importance of sustainable cargo transport system (Litman & Burwell, 2006).
• Time and cost: In making sustainable freight transport, challenges are also with regards to time and cost. Mostly customers generally consider transport as an activity which does not add value and thus it should be accomplished with lowest cost and time. As a result, resource utilization and fill rates of maritime and port authority are sacrificed.
• Transport avoidance: It is the most pressing task that is taken to influence spatial planning to avoid transport. Main issue which MPA is facing the selection of sustainable transport modes that should be used by the organizations in order to achieve competency and sustainability.
• Managerial complexity: Some of the issues are also associated with various managerial levels. In this regard, one complexity is to measure and assess properly. Additionally, there are other issues concerned with sustainability in freight transport such as delivery reliability, driver quality, rate charged, equipment availability, sustainable modality, optimizing lead factor, etc. As MPA has different standards and methods for evaluating environmental impact of operations related to cargo transport. On the other hand, company works with different kind of industries which have calls for transport system’s high flexibility. Therefore, changes and adaptations take time and become very expensive for the company (Viachos, 2008).
• Network imbalance: It is one of the major challenges faced by Singapore MPA. Imbalance in the flow of cargo is mainly due to the limitations in frameworks such as delivery has to be made at an absolute sharp time, and pick and delivery operations. Moreover, network imbalance decline resource utilization and fill-rates as well which means greater emissions and negative environmental impacts.
• Uncertainties: Other issues in sustainability are uncertainties about transport infrastructural changes for manufacturing and fossil free fuels in worldwide market. There is vagueness in government political framework, regulations and legislations which also become issues for cargo transport’s sustainability (Shokri, 2011).

Strategies for development for sustainable cargo transport:

Furthermore, there are a few strategies that may help reducing the environmental impact of the global maritime cargo logistics for maritime and port authority (Oglethorpe, 2010).

• Roadway level of service should be higher
• Average speed of traffic should be higher
• Parking convenience and price should be higher
• Consumption of fossil fuel and CO2 emissions should be lesser
• Emissions from vehicle pollution should be less
• Motor vehicle mileage per capita should be less
• Transport land consumptions should be less

The company should have objectives of reducing environmental impact by reducing climate change emissions and harmful vehicle air and water emissions by using environment friendly transport modes. Adequate road capacities should be utilized in order to improve the sustainability and use of land should be efficient. In sum, freight mobility and affordability should be there and service provided should be efficient (Gadema, 2011).

Conclusion:

On the basis of overall discussion, it can be concluded that MPA has main problems with its supply chain and logistics management for that some strategies such as lean, agile, total quality management and six-sigma have been described and related with their specific environment. In addition, report has also thrown light on issues that have been faced by MPA in its international inbound and outbound logistics cargo transport to Singapore. In this regard, some points related to politics, governance, economy, environment have been come out. At the end, sustainable issues related with its freight transport have also been described throughout the paper. Following this, aspects such as business and managerial complexity, network imbalance and transport avoidance have been taken into account for further description. Strategies which may be adopted by MPA in order to reduce environmental impact of its freight transport solutions such as cost-based pricing, traffic calming, cash prevention, emission standards, adequate transit services, sufficient road capacity, delivery services, average traffic speed and others have been defined. Discussing these strategies in brief, MPA would be able to implement all those in its premises and to provide effective outcomes.

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