The effective management of transportation and logistics systems is crucial for the success of businesses and the economy. However, managers in this field encounter many challenges leading to delays, rising costs, and overall business inefficiency. This paper aimed to identify the challenges faced by transportation and logistics management. The literature review was conducted, which showed that the issues encountered by transport and logistics managers included poor infrastructure, limited transport capacities and resources, a lack of skilled labor force, the need to comply with CO2 emission regulations, and rising costs due to warehousing issues. Further, the paper provided the researcher’s ideas on transportation and logistics management issues. Finally, the solutions to the discovered issues were suggested, including establishing partnerships with the private sector, hiring and training a highly skilled labor force, and implementing new technologies.
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Transport, supply chain, and logistics are crucial operations for businesses to maintain their competitive position in the current significant economic activities. The transport sector, particularly the operations area, is one of the substantial contributors to toxic substances such as greenhouse gases (GHGs) emitted into the air, which causes devastating consequences on humans and the environment, including global warming. The adverse outcomes of pollution have increased the concern on limiting the number of emissions globally. Currently, the competence of a business organization is based on various factors such as lower costs, lower emissions, shorter production time, short lead time, less stock, excellent product variety, highly reliable supply time, effective customer services, high value, and offering proficient arrangements between demand, supply, and production (Brdulak, H. & Brdulak, A., 2021). Various components of a company determine the effectiveness of the logistics operations. The logistics system of different companies’ categories has to be efficient to enhance the performance and profitability of a business. An efficient logistics system is vital for the corporate sustainability of various firms such as dairy industry organizations. A practical and reliable national transport system is also crucial for the sustainable economic growth of a region.
Several factors determine the efficiency and reliability of the transport and logistics operations of any organization. Infrastructural development is a significant component of transport and logistics. The quality of road and rail networks is a vital feature of infrastructure in the transport and logistics industry. The technological environment includes digitization, automation, storage systems, and other new technologies in the industry. The technical setting has various ways of shaping the success of transport and logistics. On the other hand, macroeconomic environmental factors such as demand and supply, trade routes, and market determine the transport and logistics sector’s productivity (Brdulak, H. & Brdulak, A., 2021). The organizational background contains several characteristics that affect the operations of the logistics sector. These environmental elements include demand for warehousing services, outsourcing, workforce availability, and pressure on wages, which are essential for transport and logistics operations. A legal setting that consists of rules and regulations in road transport in various regions needs consideration when examining its productivity.
In addition to the numerous requirements a firm must meet to become successful, most companies face difficulties concerning their operations and management in transport, logistics, and supply. Corporate entities encounter many obstacles to realize effective management of transportation and logistics systems. Some of the challenges are related to the various elements above, which determine the system’s operations’ success. This sector faces management issues connected to infrastructure, costs, government policies and regulations, and the availability of human resources and information technologies. The hindrances differ depending on geographic location, the policy setting, and other contextual factors. Consequently, Brdulak, H. and Brdulak, A. (2021) assert that solutions to these problems can hardly be universal. Some difficulties are also related to broad categories of organizational settings, legal, environmental, and macroeconomic background.
This research paper identifies some concerns facing transportation and logistics management. The literature review conducted shows the hitches and issues influencing transport and logistics managers to achieve the research paper’s objective. The study discusses several problems, including poor infrastructure, limited transport capacities and resources, a lack of skilled labor force, the need to comply with CO2 emission regulations, and rising costs due to warehousing issues. Further, the paper offers the researcher’s ideas on transportation and logistics management difficulties. Lastly, identification of the solutions to the complications described is given. Intervention measures, including establishing partnerships with the private sector, hiring and training a highly skilled labor force, and implementing new technologies, are suggested.
This section identifies and analyses the studies by previous scholars on the challenges in transportation and logistics management. Despite operating in different sectors, administrators working within the transport and logistics industry face common problems. The extant literature review reveals that transport and logistics managers face numerous common challenges despite the difference in the industries they serve. For instance, the agro-food sectors such as the dairy industry experienced several challenges that can be identical to other industries such as the logistics service companies. Various segments, including warehousing, overseas shipping, and market forces, face difficulties that affect the general transport and logistics sector.
Advancement in research and innovation has promoted autonomous vehicles and drones to offer sustainable solutions to conventional transportation and logistical issues. Azmat and Kummer (2020) investigated and identified numerous logistical problems in a humanitarian supply chain. The study found that technological developments in mobility limit the potential to reduce the International Humanitarian Organizations’ (IHO) current issues. Challenges such as long distances, customs clearance, border control, or the host government regulations affect transport and logistics in IHO (Azmat & Kummer, 2020). Scarcity in resources such as workforce and inadequate vehicles is the most significant challenge in humanitarian operations. On the other hand, infrastructural factors such as poor road networks and additional coordination and communication facilities limit an organizations’ functions (Azmat & Kummer, 2020). The researcher has identified IHO as a sector that highly depends on transport to deliver its services and, hence appropriate and relevant for understanding the challenges.
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Various studies have attempted to address the problem of environmental sustainability with the supply chain network. Carbon control has become a significant challenge to the logistics and freight transport field. Herold and Lee (2017) researched carbon control in the logistics and transportation area for fifteen years, focused on several components. Carbon approach, risk evaluation, target setting, curtailment measures, reporting, and performance constitute the core elements for the criteria for managing GHGs.
Security is a significant element for effective operations of the transport and logistic industry. Goodrich and Edwards (2020) carried out their study on security challenges within the transport and logistics sector. Terrorists have invented new tactics and attack strategies against transportation assets. Vehicles and railway lines are potentially self-destructive by design and hence vulnerable targets for terrorists. Poor infrastructure and maintenance of transportation facilities expose the transport facilities to easy terrorist attacks. Although Goodrich and Edwards (2020) focused their study on security aspects, the factors that determine their operations’ safety are also direct challenges to the transport sector and consistent with those discussed by other authors in this section.
Warehousing is an essential component of transport and logistics in numerous countries. A study by Karim et al. (2018) in which they adopted an analytic hierarchy procedure established the three primary limiting determinants for warehouse efficiency in the Malaysian logistics division. Labor output, warehouse exploitation, and inventory usage are the three primary sources of warehouse production limitations (Karim et al., 2018). Accidents and miscommunication due to language barriers between the locals and the foreign workers negatively affect warehouses’ labor productivity. Less advanced technology that results in a smaller value of hourly demands reduces the logistics sector’s warehouse utilization. On the other hand, inventory storage utilization faces poor layout design challenges that manifest as less surface allocated for goods storage (Karim et al., 2018). The research findings indicate that warehouse management challenges are similar to other transport sectors and consistent with the study by (Azmat & Kummer, 2020). Warehouse productivity, therefore, determines the effectiveness of transport and logistics management.
In identifying the main targets of imports and exports, ports play an important role in logistics. A port’s ability to promote cargo transfers is a vital parameter of the general responsibility as a transport mode. Rahman and Najib (2017) studied the effects of various port parameters as potential transport and logistics challenges. Long distance, high bunker cost, long journey time, and inadequate port facilities such as warehouse and material handling vehicles have negative effects on logistics and transport using ports (Rahman & Najib, 2017). The study findings are related to the broader categories, including infrastructural settings, which determine its capacity.
The current transport and logistics systems experience significant global challenges, including traffic jams, environmental pollution, noise, traffic accidents, and freight flow congestion in freight terminals. Changing environmental conditions pose different serious challenges to the transport and logistics sector. Road transport safety is significant for effective operations. Increasing demand for transportation of dangerous goods has created difficulties to road transport safety in the Baltic Sea Region (Hwang et al., 2017). Consequently, the number of carriers, vehicles, and operators is also increasing on the European Union roads, which poses a threat to road safety.
Transport Forwarding Logistics (TFL) faces a wide range of unique problems. Brdulak, H. and Brdulak, A. (2021) investigated the challenges and threats faced by international logistics companies in the Polish market concerning sustainable development in 2020. The findings of this research indicated that the improvement of technical infrastructure, automation, and technology development was the most significant challenges. Economic and social changes, legal regulations, the possibility of entry to new markets, organization transformations, and intermodal transport development also have potentially adverse effects on logistics (Brdulak, H. & Brdulak, A., 2021). Transport and logistics Services Company directly deals with all the aspects of logistics, and hence the challenges cover all the categories, including infrastructure, environmental and macroeconomic environments. Brdulak, H. and Brdulak, A. (2021) also describes the technological challenges that influence the productivity of the company in Poland, which could also affect any logistics service organization operating in other regions.
The technological environment can pose a threat to logistics through innovation and digitization. Artificial Intelligence and blockchain are innovations that offer challenges to the industry and the development of internet commerce (Brdulak, H. & Brdulak, A., 2021). The changes in the legal environment also create problems for transport-freight logistics. For example, Brexit and alterations in other transport-related policies in regions such as the UK create industry issues. The organizational environment can experience changes such as consolidation, industrial standards, offshoring, and challenges. Macroeconomic environmental factors are also significant determinants of the effectiveness of the transport and logistics business. Changes in the macroeconomic environment, such as growth in the collective success, general economic development in the European Union territorial enlargement, and entrance into new markets presents new management dilemmas (Brdulak, H. & Brdulak, A., 2021). These trends impact the transport and logistics operations, primarily due to workforce deficit.
Global attention on the maritime transport and logistics industry’s sustainability issues has been less than the attention stakeholders give to aviation and overland freight segments. The establishment of the international marine organization regulations on ships and port town dealings has drastically enhanced sustainability matters across all aviation and transport and supply chains. Lee et al. (2019) investigated sustainability issues in the shipping industry. The International Maritime Organization has taken various strategies to reduce GHGs emissions, but it faces a challenge on achievement, performance, and sustainability implementation in the port section.
Warehousing and the relationship to other factors such as inventory and transport management influence the performance. Lee et al. (2016) discussed warehouse management’s impact on logistics and transport operations’ productivity. Transport and logistics operations determine the sustainability of business activities. Mangla et al. (2019) analyzed the interaction between supply challenges targeting operational efficiency and more remarkable corporate green growth and sustainability perspectives. Food organizations such as the Indian dairy product-based organizations face various challenges such as wastage, financial losses, and environmental issues. The outcomes of the studies by Mangla et al. (2019) and Lee et al. (2016) are inconsistent in that the operational efficacy determines the transport sector’s sustainability.
Climate change and the rise in carbon emission are among the significant challenges for businesses and society. In their study, Herold and Lee (2017) examined carbon emission control in the logistics and transportation division along with the corresponding challenges. Despite deeper insights into GHGs footprint, risk assessments, reduction, performance, and reporting, measures taken to contain the release of these toxic gases into the environment focus more on management with little emphasis on prevention.
Discussion of Ideas on the Problem
Warehousing is a vital industry for countries that depend on trade. Effective warehouse management plays a vital role in increasing warehouse productivity and efficiency while also reducing and controlling inventory and shipping costs. Countries such as Malaysia have experienced a growth of productivity in transportation and storage services, which increased by 10.1% (Karim et al., 2018). Warehouse productivity consists of various factors that act as performance indicators. These parameters include “warehouse utilization, inventory space utilization, outbound space utilization, picking productivity, receiving productivity, and turnover” (Karim et al., 2018, p. 153). Picking productivity and turnover are essential elements of warehouse management.
Different aspects of warehouse management face other challenges, which eventually affect productivity. Labor productivity faces several problems in warehouse management. There is less job satisfaction among various employees in warehouse settings. Ineffective communication levels among the workers also reduce warehouse operations’ effectiveness (Karim et al., 2018). Inconsistent training programs for the workers and the management prohibits the development of efficient warehouse management. Throughput describes the number of items or goods leaving the warehouse over a certain period. The efficiency of throughput may face problems like errors in the picking procedures and poor management of the inventory. Shipping productivity indicates the total number of goods shipped per period affects warehouse management and efficiency. The sector faces delays in performance pathways in cross-docking (Karim et al., 2018). Also, the late conclusion of activity can delay a vessel’s departure and, hence, negatively impact warehouse operations’ efficiency. Warehouse utilization refers to the approximate amount of warehouse space utilized over a particular amount of time.
The utilization may be underutilized due to a small volume of orders in a specific period or a small value of times within a certain period. Several warehouse managers may execute excessive warehouse space division and a challenge to outbound space utilization of the area inside the facility. The control may be ineffective in the picking process that determines the picking productivity. Challenge in the number of products picked within an hour maybe a shortage or excess picking while on the other hand; mix-up of the undetectable objects may result during the picking activity (Karim et al., 2018). Turnover, a ratio between the product prices and the typical inventory level, significantly affects other warehouse facilities. A decrease in inventory turnover will prolong the expiration and record allotment overheads. Therefore, warehouse management faces different problems that have a relationship with various productivity performance indicators.
Challenges Affecting Infrastructure
Infrastructural components include transit-related erections and amenities for signage and patterns, security, illumination, communication, landscaping, and preservation. Poor infrastructure in most developing countries leads to ineffective transport and logistics. The common problems include safety and security concerns, inefficiency and poor odal mix, and the absence of common standards.
The infrastructure network of transport and logistics lacks harmonious transport policies, regulations, and standards and results in high inefficiency and business transaction expenses in the area. Most developing countries such as East African states exhibit much higher transport costs than the developed economies’ transport costs. Road safety is another challenge in developing regions (Dufour et al., 2018). Safety issues such as road accidents and fatalities are dominant in most parts of the developing areas. Ineffective implementation of road safety regulations and poor infrastructural standards contributes to the high road accident levels. Infrastructure requires modernization of facilities such as the railway network, constructing the central communication port, and investments in road terminals. The challenges affecting countries like Poland in infrastructure include delays in the modernization of road and rail transport (Brdulak, H. & Brdulak, A., 2021). Poor infrastructures, particularly road, rail, and port networks, compromise warehousing management.
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Embracing new and advanced technologies is a powerful approach for logistics management to reduce carbon emissions. Companies need to adopt electric vehicles or convert the available cars into electric cars to promote carbon reduction (Richter et al., 2020). Unreliability of battery technology and sustainability of sources of fuel are some of the challenges limiting the use of electric vehicle technology, which eventually make the organizational administration preserve the existing options instead of adopting the innovations.
Local civil uncertainty is an additional severe difficulty that affects the infrastructure in the transportation and logistics division. Developing countries that face political instability issues such as post-election violence witnessed in Kenya during the 2007-2008 election period reduces the efficiency gains (Munim & Schram, 2018). Customs efficiency becomes poor and affects the transport and logistics operations within the region and neighboring states. Furthermore, car ownership levels determine the infrastructural capacity level to sustain the particular number of traffic capacity. Many areas are experiencing an escalation of motorization level due to increasing transit vehicles’ ownership (Munim & Schram, 2018). However, inefficient regulatory measures prohibit the proactive promotion of mass transit solutions in a more cost-effective and ecologically sustainable way.
Crucial transport modes such as ports and airports are significant determinants of logistics and transport management’s efficiency. The underperformance of the basic transport modes like ports and sub-optimal modal mix manages the logistics and transport sector. For instance, the underperformance of Mombasa’s port in East Africa has limited the regional operations and efficiency of handling bigger vessels and cargo while also performing trans-shipment roles (Dufour et al., 2018). Ports such as the Dar es Salaam port experience congestion due to limited capacity and hence fail to manage regional operations in logistics efficiently (Munim & Schram, 2018). On the other hand, rail transport in developing countries is still poorly designed. Efficient infrastructure needs emergency preparedness. However, most developing countries like the East African states have ineffective emergency preparedness strategies, which inhibit the capability to manage natural occurrences such as unpredictable and life-threatening climate conditions that destroy transport systems like roads and rail infrastructure (Brdulak, H. & Brdulak, A., 2021). Unprepared regions need long recovery periods from such natural calamities, posing a challenge to transportation and logistics management.
Infrastructure development also depends on institutional capacity components such as policies, management flaws, and financial funding. Some regions face effective key policy and planning problems that include development clusters and total transport logistics. The lack of planning has led to poor policies that cannot promote the development of sustainable infrastructure. Several regions also face management flaws of the infrastructure for transport and logistics. Ineffective project management and low maintenance drive are among the firm’s issues (Cho & Lee, 2020). Some areas have weak monitoring and evaluation practices and transboundary project management that lacks high and harmonized supervision and control standards.
The problem of infrastructural financing determines the efficiency of managing transport and logistics. Limited finances to support infrastructure causes inadequate infrastructural facilities such as road and rail networks, resulting in high transportation and logistics costs. The increased transport expenses also result from the high maintenance costs of transport equipment and high cargo and equipment insurance (Munim & Schram, 2018). Munim and Schram (2018) caution that the economy of developing countries such as the East African states has overstretched. These nations lack sufficient public finance to effectively complete and sustain operations and maintenance of the completed infrastructure facilities, contributing to high transport and logistics costs in such regions.
Information and statistical data are essential in supporting the planning, construction, and operation of infrastructure. Incomplete data and statistics are difficulties that deter effective regional transport infrastructure development, building, process, and decommissioning (Cho & Lee, 2020). Majority of regions such as the East African Community face information and data gap (Munim & Schram, 2018). This issue creates a problem to infrastructural development that is important in the transport and logistics industry.
Institutional and regulatory frameworks are significant factors in infrastructure development. Institutional blockages hinder capital budget implementation, which leads to considerable cost overruns, lagging engagement rates of funds meant for infrastructure improvement due to delays and inefficiency in the procurement process, sluggish viability appraisals, inappropriate supervision, and sluggish monitoring and evaluation (Kurul & Yalta, 2017). These framework characteristics are common in many developing countries, which eventually face problems with their infrastructure.
Governments’ climate regulations are the primary causes of carbon risks. The United States, for instance, have carbon policies on logistics design that produce different challenges in the implementation of the carbon policies that prohibit retailers from embracing carbon taxes. The policy implementation also faces difficulties in reaching a treaty on carbon restraints between the retailers and policy formulating bodies (Herold & Lee, 2017). The existing carbon pricing model is ineffective in initiating a necessary change in transport behaviors to limit carbon emission.
Like other sectors of the economy, the transport and logistics industry face various aspects of security problems. The United States, for instance, has experienced terrorist activities for the past numerous decades. Transport and logistics have been a common target for most terrorist activities have in the recent past shifted their mark to the transport sector, which they perceive to be vulnerable spots (Badassa et al., 2020). The attacks have led to the destruction of vital elements of the transport and logistics operations.
The transport system is an easy target for terrorist activities due to the nature of infrastructure and the security policies to protect the sector. The routes of transport are long with irregular terrain, limiting the development of an effective security plan. The industry also has a problem with ineffective procedures for screening people and vehicles. People’s high density using transport facilities such as trains and ports creates additional vulnerability to attacks (Badassa et al., 2020). Efforts to improve security face tight budgets, which lead to delays in the maintenance of infrastructural projects in the transportation sector due to terrorist-based destruction.
Market forces are important factors for consideration in the transport and logistics sector. Demand and supply directly affect logistics since the transportation of goods are towards the areas with high demand. Various market components may pose a challenge to the transport and logistics activities. Blockage of markets nepotism and trade wars in most markets in the European Union create problems in transport and logistics. Other markets have low unemployment rates and higher wage expectations, making transport and logistics operations expensive (Brdulak, H. & Brdulak, A., 2021). International transport markets exhibit differences in exchange rates, which cause uncertainty in the logistics sector. Certain regions experience an economic slowdown, especially in the European Union, which causes a delay in the transport industry.
Currency exchange rates dictate the market dynamics on costs of business operations. Markets are characterized by currency rate fluctuations against major currencies such as the USD and EUR, which creates uncertainty in the transport and logistics sector (Brdulak, H. & Brdulak, A., 2021). Margins in sales determine the volumes of goods handled by a logistics company. Logistics organizations may face a problem of profitability due to decreasing margins on foreign sales.
Several macroeconomic environmental factors may potentially cause difficulties to Logistics organizations. Recession is an economic activity that has affected various countries during the period of a pandemic like COVID-19 reduces the operational capacity of the transport and logistic organizations. The sea freight market has remained a problem to countries like Poland, influencing the firm’s logistical operations (Brdulak, H. & Brdulak, A., 2021). Importing or exporting companies lengthen the supply chains, which slows down delivering goods to the point of destination.
Transport freight logistics in Europe operates in a market that is currently experiencing numerous constraints. There is enormous uncertainty about the Brexit, which occurred on 31st January, causing unpredictability in customs policy, thus generating interruption. There is no conclusive decision on the exit strategy of the UK from the European Union (Brdulak, H. & Brdulak, A., 2021). The European GDP is also weakening due to various factors and, as such, creates a problem for the transport freight logistics company. The outbreak of Covid-19 has been one primary reason for the decline in the European GDP (Brdulak, H. & Brdulak, A., 2021). Competition exists among the transport and logistics organizations. An increase in competition among logistics companies from different regions affects organizations’ operations and efficiency. For instance, Poland’s freight companies face competition from Transport Freight Logistics companies from countries in the East such as Russia, Ukraine, and Belarus (Brdulak, H. & Brdulak, A., 2021). Therefore, the heightened rivalry among transport operators may compromise logistics efficiency.
Workforce deficit is a significant factor that causes challenges to transport freight management. The workforce deficit is an outcome of the economic growth that triggers new employment opportunities in the economy. The dynamic economic growth along with workforce deficit stimulates unsuitable demographic inclinations and alterations in the pension policies. As such, logistics management faces a shortage of workers such as drivers, specialized workforce, and warehouse employees.
Sustainability issues affect the logistics industry in numerous ways. The diminishing quality of roads and congestion threaten the achievement of sustainable development of infrastructure (Herold & Lee, 2017). The challenges create problems to the carbon footprint. Technological innovations in organizations make problems finding solutions. The innovations tend to overlook the conventional logistic operators, which can be appropriate when tackling an issue. Macro-environmental effects in a country may cause sustainable development challenges when a country needs to expand its functionality as a transit country. For instance, Poland faced challenges related to sustainable development. The number of vehicles transiting on the roads in Poland increases in the absence of regulations, increasing pollution, more congestion, and noise.
Carbon target setting can help logistics companies to reduce carbon emissions for their operations. The problem with this approach is that it differs broadly in the field. Companies end up adopting company-level objectives without evaluating the carbon reduction ability by function and operations. Carbon target setting can help logistics companies to reduce carbon emissions for their operations (Herold & Lee, 2017). Another challenge of the carbon target setting is that some organizations can only achieve average emission reduction targets with more negligible effects on the total cost.
Despite the numerous available literature that state the significance of initiatives towards carbon management, few studies discuss the performance implications after implementing or adopting carbon reduction enterprises. Most of the previous research has centered on governing guidelines and their effect on the transportation and logistics business at an organizational level. For instance, Australia’s carbon pricing model is responsible for a minor increase in logistical expenses (Herold & Lee, 2017). Consequently, companies do not realize sufficient motivations to transform their operational behavior.
Humanitarian organizations greatly rely on transport and logistics to deliver relief aid during calamities and other disasters. Such organizations will improve their operational efficiency if they adopt remote-controlled ground and aerial vehicles (UAVs). The practical implementation and adoption of such strategies face various challenges. The lack of legal structures for these vehicles’ operation limits the potential use of these services (Azmat & Kummer, 2020). The strategy also lacks criteria of interoperability and best practices. The technology of using UAVs is still underdeveloped and at levels that are ineffective for commercial applications. There is also an inadequate number of experts to operate the equipment, which lowers the methods’ potential productivity.
Discussion of Solution to the Problems
The solution to Problems of Warehouse Management
Reducing labor productivity problems in warehousing requires a company to employ skilled workers according to the guideline of a company’s warehouse manager’s requirements. Having a professional workforce would help reduce accidents or failures resulting from human faults. The organization should establish various tactics to attract high-value employees. A company should increase productivity to attract high-quality human capital while also ensuring they change young job applicants’ attitudes by creating and promoting warehouse career routes (Richter et al., 2020). The transport and logistics company’s human resource division must provide a consistent and compliant process in enlisting and choosing procedures to get skillful employees in the warehouse section.
Training and development under the company’s human resource department’s initiative would significantly enhance labor productivity. Pieces of training should include Occupational Health and Safety Assessment Series (OHSAS) International Organization for Standardization (ISO), Work Health and Safety (WHS/OHS) or OSHE, and industrial hygiene as mandatory certification of each warehouse laborer (Karim et al., 2018). The warehouse management can eliminate miscommunication among the employees and top management when hiring foreign workers through training in the local language and other language courses.
Warehouse utilization requires a company to have an efficient warehouse management system (WMS). The utilization challenges will be limited since the WMS design optimizes the facility activities and rapidly manages the whole warehouse operations sequence (Karim et al., 2018). The system would help address the facility workers and material handling tools, creating roles for the users subject to the existing circumstances. This system abolishes paper documentation requirements since the system generates, transmits, processes, and optimizes the data. Adoption of available warehouse technology can solve the challenge of warehouse utilization. Pick-to-Light methods during the order picking stages in the warehouse with lighting function as guides for warehouse operators to product stations (Karim et al., 2018). The management can as such plan, control, and analyze the volumes of the picked orders using the operators’ movement on which product to choose and the method of determining.
Conceptual framework and warehouse arrangement are vital in ensuring the top standard of operational accuracy and limiting the failures resulting from poor inventory space utilization. The planning process would enable allocating suitable space and realizing maximum efficiency (Karim et al., 2018). The respective company needs to consider the construction cost, inventory holding regulation, auto-replenishment procedure, and the general material handling steps during the installation of a warehouse.
Possible Solution to Infrastructure
Ensuring vehicle development and improvement of roads promotes logistical operations. Expansion of seaports to accommodate higher regional capacity would be vital for adequate transportation of large volumes of goods. Modernization of the railway infrastructure would increase the efficiency and speed of operations. Governments’ efforts to enhance the condition of roads and rail networks will reduce the expenses of servicing the equipment and advance logistics organizations’ processes and productivity.
Digital technologies and warehouse software management are infrastructural advancements that reduce workload and limit the wastage levels that result from stoppages. The automation and robotization would also reduce the time of executing various activities. Competitors within a common market may decide to cooperate, and this strategy has multiple benefits. Collaboration implies better utilization of resources within the business and also along the supply chain. Cooperation also has positive impacts on the environment since the measure promotes the effective use of cargo space trucks which could otherwise be used in about 60-70% capacity (Brdulak, H. & Brdulak, A., 2021). The resultant number of vehicles crucial for handling orders will reduce and lower the carbon footprint. The challenge of sustainable development due to the increasing number of cars on the road can be prohibited by establishing policies that control emissions. Higher use of rail and intermodal transport is an appropriate approach to limit pollution, traffic congestion, and noise.
The solution to Carbon Emission Management
Transport and logistics companies need to have a carbon strategy that includes a shift from the short-term attitude towards the organization’s long-term interests to orient with climate strategies, develop a firm carbon policy, and offer oversight for its implementation. Furthermore, companies need to focus on heightening their competitiveness in terms of reducing and managing their carbon footprint and the impact of these toxic emissions. Carbon strategy overpowers the stakeholder pressure when executing carbon decrease procedures (Herold & Lee, 2017). Transport and logistics organizations need to embrace external necessities and view them as opportunities to enhance the firm’s internal resources by converting external demands into its internal initiatives.
There is a relationship between the company’s strategy and the initiatives to reduce carbon emissions. Companies need to establish a solid green system to greening their transportation extending from purchasing to operations outlooks to enhance environmental and carbon performance. Organizations have to consider the competitive advantage resulting from the company’s decision to provide green services in their operations (Herold & Lee, 2017). Therefore, logistics organizations’ management needs to combine the carbon strategy and consider competitive advantage to ensure effective carbon emission management in their operations.
Internal management is significant in enhancing carbon control since it involves carbon awareness and reduction involving both the employees and the administration. Companies need to promote the diffusion of environmental practices while also ensuring the commitment of the top management. Companies whose top management is committed to ecological management react to external pressure with less intensity since they have trained employees that respond competently to environmental issues. As such, transport and logistics companies’ management need to be environmentally aware and sensitive to reduce reaction levels towards external pressures (Herold & Lee, 2017). Having environmentally conscious leaders that promote environmental training and activities among the employees is significant as it would improve the organizations’ overall performance. Moreover, logistics companies can incorporate sustainability into carbon decrease accomplishments from an organization’s inner strategy perspective. Internal strategies such as holding executive managers responsible and adopting ‘the balance sustainability scorecard’ can improve the processes of estimating performance and benchmarking an organization’s position in environmental sustainability issues.
Logistics managers should consider utilizing and deploying ultra-modern and improved technological solutions in lowering their GHGs footprint. Apart from information technology adoption in moderating the ecological effects of transport and logistics undertakings, companies need more categorical green practices to help transfer technological competence within the organizations and promote a positive attitude towards environmental and carbon production reduction strategies (Herold & Lee, 2017). The companies need to adopt electric vehicles or convert the available cars into electric cars to promote carbon reduction.
Carbon risk assessment involves identifying and evaluating carbon-related dangers and opportunities and the relevance of their effects on operations, products, and financial outcomes. According to Carbon Disclosure Project (CDP), categories of risks may be regulatory, physical, and other climate change hazards and opportunities (Herold & Lee, 2017). The stakes may be regulatory, policy, product, or supply chain threats. Carbon target setting can help logistics companies to reduce carbon emissions for their operations opportunities (Herold & Lee, 2017). Corporate entities should consider adopting environmental performance management systems to streamline their carbon management strategies. Such innovations can enable them to develop a systematic mechanism for identifying areas for lowering GHGs emissions.
Carbon reduction initiatives are also an essential strategy in reducing carbon emission within the transport and logistics industry. A logistics company can take one of the reduction initiatives such as reduction of carbon emission through ensuring fuel efficiency. An organization can also replace carbon emissions through actions like electric vehicle opportunities (Herold & Lee, 2017). Activities involving transport management, tactical logistics system designs, and intermodal transportation help avoid carbon emission resulting from the sector’s operations. Initiatives to reduce carbon emission can include advancement in-vehicle technology while using an alternative energy source acts as a replacement approach. Logistics companies can adopt a transport management approach that involves direct operational activities based on reducing carbon emissions.
Logistical activities can increase load factors for particular products, which effectively help in minimizing carbon footprint. Vehicles that are partially loaded with a low frequency of shipment would imply a higher load than lower carbon emissions. The advantage of lowering shipment frequency as an approach to limiting carbon emission is its limited total cost. Logistics system design that describes the tactical-based fleet management planning on achieving carbon reduction is a practical innovation. Companies can enhance their investment in IT to promote performance. They are developing a container with the ability to self-control concerning green transportation. A technological investment that ensures the speed up of trucks is vital as it promotes a reduction in carbon emission.
Implementing the Carbon performance and reporting policy is beneficial to the transport and logistics sector. The strategy has economic benefits to an organization through the reduction of carbon emissions. The logistics industry can also achieve energy and ecological efficiency through this approach. Moreover, this industry’s logistics personnel can utilize insights from the trading market to improve their footprint reduction efforts. For instance, Canada’s new carbon legislation offers a trade-off between economic and environmental considerations (Herold & Lee, 2017). Therefore, all the strategies and models towards carbon emission reduction have to consider adopting implications to encourage transport and logistics firms to embrace the initiatives.
Solutions to Security Issues
There is a need for the transport and logistics stakeholders to collaborate with the relevant security and law enforcers and agencies in implementing counterterrorism strategies. Various transport and logistics agencies can adopt different strategies in response to the danger of terrorist activities. Institutions should enhance their materials and designs to initiate perpetrators’ capture (Badassa et al., 2020). Another security measure that the transport sector players need is installing good lighting and cameras at appropriate locations to enhance security patrols in identifying possible attackers before their intended attack. Aspects such as camera recordings are vital since they reduce the damage level by initiating a prompt response to the attack area. Companies have to facilitate field-based lessons and techniques for disrupting and stopping terrorist operations. Reviews of the past attacks are essential for organizations to use as lessons and become more adept at responding to the incidences. Security departments in transport and logistic organizations need to collaborate with law enforcement personnel to acquire skills and become proficient at infiltrating and monitoring terrorist compartments.
Deterrence is tactics that include active surveillance using operated cameras and rapid response power, and bomb-sniffing dogs would boost the deterrence of attacks since the potential planning and implementation of terrorists become difficult. The logistics service companies’ employees and customers should improve their knowledge and awareness of terrorist tactics and methods, which would help them detect abnormal situations and report them to relevant authorities (Badassa et al., 2020). Adopting these procedures would further help improve the security of operations in the industry.
Transportation and logistics management face challenges that are multidimensional but common among various categories of industries. The problems include inadequate infrastructure, limited transport capacities and resources, a lack of skilled labor force, the need to comply with carbon emission standards, and increasing operational costs due to warehousing issues and international shipments. Security issues have in the recent past become significant determinants of the success of any transport and logistical operation. Perpetrators of terrorism have continuously perceived the transport sector as a vulnerable target and weapon that can quickly become a self-activated self-destruction machine. Field-based lessons and techniques for disrupting and stopping terrorist operations need to be enhanced for use against specific attacks. One possible solution to these challenges is to partner with private business enterprises in the transport industry. Hiring highly skilled employees and providing them with training is also necessary to avoid unnecessary warehousing costs, security issues, and business failures due to the inability to respond to supply and demand fluctuations. The adoption of new technologies is required to deal with various transportation and logistics management challenges, ranging from ensuring security to effective warehousing management and reducing carbon emissions.
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