QUESTION
Write 2750 Word Research Report E-Logistics and International Supply Chain Management
ANSWER
Introduction
E-logistics is systematic way of maintaining an effective delivery service with the aid of strong networking system and web based applications. Key application of web based technologies having strong networking system is the function of e-logistics based on which companies can maintain sustainable supply chain network. Through digitization process and conversion of power generated technologies to green energy system, different business organizations can be able to control over supply chain network and deliver great service to customers. Effective delivery service without affecting environment and damaging products can be processed by monitoring and controlling over whole distribution process. The current report sheds light on e-logistics and sustainable supply chain network. Along with that, it demonstrates different factors influencing sustainable supply chain network and issues in case of achieving sustainable supply chain network procedure.
Logistics based on internet technologies is the strategic way to monitor and control on regular basis of the distribution process. This ensures effective delivery process to consumers without damaging products and hampering human life. As opined by Pettit and Wang (2016, p.23), strategic decision related to the way of maintaining sustainable environment condition is most significant approach in case of achieving sustainable supply chain network. Transportation of goods with the aid of old technological based vehicles can be reason of hampering natural elements by enhancing rate of pollution limit. As stated by Żurek (2015, p.133), with the aid of modern technology based vehicles such as installation of automation system and robust technologies, environmental condition can be maintained effectively/ key aim of e-logistics is to control over whole distribution process at each time so as to ensure damages of products and negative impact on climate with the aid of web-based applications.
Senior experienced managers and administrative department of different business organizations of EU are fully concerned in monitoring distribution process such as loading and transmission from control panel. As mentioned by Eskandarpour et al. (2015, p.13), logistics is significant part of supply chain network which deals about proper way of managing network by considering different steps such as strategic plan as well as implementation and effective control. Based on internet-based technologies, products distribution as well as shipping order and transportation of inventory to customers are processed significantly. It can be demonstrated that E-logistics play vital role in supply chain network due to focusing on major parts such as effective way of monitoring and controlling process with the aid of system software (Martínez-Jurado and Moyano-Fuentes, 2014, p.139). European auto companies can be able to fulfill their objectives such as avoidance of damages of products and sustainable environment by considering significant approaches such as monitoring on regular basis and tracking destination (ft.com, 2019).
Describing importance of supply chain network
Supply chain network is most significant part of effective operation process due to assessing policies and different programs of companies. As opined by Farahani et al. (2014, p.93), for the purpose of meeting long term strategic objectives such as sustainable business process, supply chain network of an organization plays vital role. Effective supply chain network of different business organizations includes four significant steps such as manufacturing as well as data analysis and transportation and feedbacks of customers. Based on data related to damages of products and lack of stable environmental condition, different European auto companies could consider strategy regarding inspection and final outcome of delivery process on regular basis. As mentioned by Yu et al. (2016, p.181), management group of an organization can be able to maintain sustainable supply chain network by implementing strategic long term objectives such as sustainable climate and healthier people.
With the aid of including cobalt into lithium ion batteries and transforming vehicle automation system to fully green energized system; European auto companies could gain competitive advantages such as increased number of targeted customers (ijsrp.org, 2019). As suggested by Melnyk et al. (2014, p.39), increased burden on supply of raw materials such as cobalt is most key reason of affecting supply chain network of an organization in a negative way rather than increasing charges of green energy. From this point, it can be pointed out that European auto companies could consider reduction of supply of cobalt for the purpose of strengthening their delivery process and maintaining sustainable supply network (Refer to Appendix 1).
Supply chain network focuses of manufacturing and delivery process of organizations due to which European auto companies could consider use of renewable energy rather than using nickel for battery automated system. As stated by Mangla et al. (2014, p.119), effective supply chain network involves maximum flow of information related to sustainable business and enhancement of profitability.
Interrelation between e-logistics and supply chain network
E-logistics and supply chain network of European auto companies are strongly linked with each other due to focusing on monitoring and controlling process as well as strategic long term objectives. As suggested by Harriso and van Hoek (2014, p.23), with the aid of strong networking system and web-based applications, senior managers of logistics organization are able to control over whole operation process and supply chain network. On the other hand, supply chain network is the systematic process of dealing about transportation and manufacturing process. European auto companies could consider strong web-based applications and networking system for the purpose of tracking distribution process on regular basis and ensuring about impact of delivery service. As mentioned by Murphy and Wood (2014, p.33), taking strategy related to the way of controlling overall distribution network by including transportation and manufacturing process is significant way of fulfilling long term sustainable business objectives.
For the purpose of maintaining sustainable supply chain network, consideration of strong internet based logistics is required due to getting quick response about delivery process. As per views of Mangan et al. (2012, p.39), supply chain network is the way of improving raw materials of production and distribution process which can be processed by taking advantages of strong internet based technologies and networking system. European auto companies could consider improvement of electric vehicles by using green energy by monitoring continuously of functions of different materials such as cobalt and nickel and its impact on natural elements (influenced by Stock and Lambert, 2001, p.23). They could adapt strategy regarding high operating cost for decarbonization rather than supplying raw materials. Different guidelines related to assembly of cells and different battery packs as well as sophisticated machineries can be processed for maintaining sustainable supply chain network of European auto companies (influenced by Bowersox et al. 2009, p.33).
Factors affecting supply chain network and E-logistics
Strategic plan: for the purpose of transforming electrical energy into battery automated vehicles, strategic plan related to avoidance of high cost for supplying raw materials is required. European companies are facing issues regarding high demand of raw materials for using battery operated vehicles. As mentioned by Chaffey (2009, p.53) use of battery automated vehicles are essential for maintaining sustainable environment which is the key strategy of effective supply chain network. Major problem is related to higher requirements of cobalt in case of using lithium ion batteries into vehicles due to which managers of European auto companies could consider effective strategy related to discussing with mining companies is required. In case of maintaining proper balance in two sides such as sustainable environment and high demand and cost of cobalt, opinion of mining companies is necessary. Negligence of overall cost of supplying raw materials and using lateritic ore are strategic ideas for maintaining an effective supply chain network (influenced by Christopher, 2011, p.43).
Information:
Gathering information related to demand and cost of raw materials by discussing with mining companies is key step for European auto companies to maintain long term strategic objectives such as sustainable business environment. As mentioned by Ballou (2004, p.39), transformation of electric vehicles into battery automated vehicles is not easy due to having negative impact on supplying of raw materials. Most people of European countries are ready to pay de-carbonization charges rather than focusing on increased rate of supplying raw materials. For the purpose of implementing battery automated vehicles, lithium ion battery requires high amount of cobalt so as to improve functional criteria. Democratic Republic of Congo has massive reserve of raw materials due to which Government of DRC has advance information regarding current demand of cobalt.
Inventory management:
European auto companies could consider approach taken by environment specialists and manufacturers for avoiding use of cobalt into battery automated vehicles. In the following context, Sadler (2007, p.69) stated that focusing on operation process and sciences of working principles of battery is most significant approach of maintaining sustainable supply chain network. Designing of cobalt is not easy step due to having complex problem regarding management of inventories into European auto companies. As per views of Stadtler (2015, p.12), inventory management technique deals about flow of goods and required materials as well as related cost based on which supply chain network can be followed in an effective way.
Different challenges in case of achieving sustainable supply chain network
As the whole world is moving towards the go green policy in every respect, the time has arrived for Europe to think over its vehicle status. It will be not that easy to achieve a green status for Europe. In order to achieve Electric Vehicle (EV) status for all over its battery production, Europe needs to encounter several challenges more than their actual thoughts. As described by Zylstra(2005,p.1324), it is a well acknowledged issue that public support is a key factor that a country needs to gain first in terms of applying charges regarding de-carbonisation.
Apart from that the problems or challenges exist somewhere else. The massive burden that the governments of Europe may face in importing different raw materials such as graphite, manganese, nickel, cobalt and some components of primary nature. It is very tough to find some material on earth’s surface but none of them are called metals of rare kind (Waters, 2011, p.987). The batteries of electric vehicle are mostly based on lithium. Cobalt is a necessary component needed for the production of lithium batteries. It is a well known fact that more than sixty percent of the net export of cobalt which is supplied worldwide comes from Congo. This republic country has maintained bad records in its human right practice within its states. The exploitative nature of its labourers can force countries to import from other means which may cost extensively for Europe. Another fact is that on realization of the increased value of this essential material the royalty charges has been fixed triple times higher than before by the government of Democratic Republic of Congo (DRC). This has put additional pressure on the economy of Europe in general.
As the import of cobalt is creating a problem an alternative source can take the place of that high-valued metal (Norbert Bartneck et al, 2009, p.873). In order to reduce the dependence of Europe on DRC the inclusion of Nickel at larger proportion in lithium batteries has been proposed. It has also become a problem as Nickel is collected from the high grade deposit of Nickel sulfide. Pure status of this metal is required in the preparation of lithium batteries. With technological advancement this is not a problem now a-days creating a concern for such deposits of Nickel sulfide. Over the years of mining the deposits have depleted gradually and increased our dependence on deposits of lateritic ore. Nickel from this lateritic ore can be produced using a process of high pressure acid leaching (HPAL).
It may prove risky as sulfuric acid can come out of machine due to high pressure. As opined by Fitzsimmonsc (2007, p.981), it is a complex process as it may generate high amount of risk creating serious health hazard. Asian technologies in making of battery cell are popular among Europe. Asia possesses the required production as they are vastly experienced in this field (Akao, 2004, p.1307). Lack of experience is a cause of hindrance in creation of battery cell in European context. They need to import the technologies from Asian countries such as Japan that creates a huge economic burden on Europe in creation of lithium battery for their objective of making Electric Vehicle.
Risks associated with supply chain network
Different challenges in case of achieving sustainable supply chain network
There are different types of supply chain risks which can be identified in the process of supply chain management. The risks have been discussed below:
Financial condition of the supplier
Supplier’s performance issues are related to finance. As per the views of Rajesh and Ravi (2015), due to these issues the products within an organization were delivered late and shortages were become to pile up at the sights. This has created confusion among primary and secondary suppliers of an organization which directly affects on supply chain management of that organization.
Inventory costs
Inventory management is a part of supply chain management. The main factor that affects the inventory management is the ordering cost. As stated by Tukamuhabwa et al. (2015), inventory procurement costs are the significant source that pressurizes the business that are facing the higher cost of freight each driven by higher energy costs. Along with that it also has effects on global supplier base which is rising very fast. Commodity costs and rising wages also has a negative effect on inventory procurement costs.
Customer service
One of the important elements of supply chain management is providing right quality product in people time to right people in right amount. However, this situation turns complicated when companies have faced different challenges related to supply of the products as well as for the quality of the products.
Recommendation
It can be seen from above discussion that there are different challenges as well risks that exist in supply chain management of different industries. Lee and Rha (2016) opined that along with the help of supply chain management within an organization, the firm can mitigate the challenges that have been caused by the risks of supply chain management. Companies can develop several steps in order to increase their production as well as other development towards achievement of a sustainable and stable supply chain. For example, in order to mitigate the problem of inventory costs the companies can take following steps:
Optimize packaging:
Different organizations can cut and reduce their costs by reduce the cost in packaging and add them in production. As stated by Rajesh and Ravi (2015), the production procedure starts with the designing of packaging, Companies can design the packages strategically that can be used to carry different types of products at the same time without spending much on the cost of producing different types of packaging.
Re-usage of the products
Health care supply chain maintains a constant rate of not using disposable products. However, some organizations have found different safety ways to use some of the products that can be used in without any harm. As per the views of Lee and Rha (2016), assurance of safety of the products and less cost will attract the customers that will improve their supply chain management.
Green environment
Concept of greenery in the supply chain management systems can enhance the safety and improvement of supply chains in different firms and industries which is directly connected to success of the company and develop a stable and sustainable supply chain.
|
Factors |
Description |
|
Specific |
|
|
Measurable |
|
|
Attainable |
|
|
Realistic |
|
|
Time |
2 months |
Table 1: SMART Recommendation 1
|
Factors |
Description |
|
Specific |
|
|
Measurable |
|
|
Attainable |
|
|
Realistic |
|
|
Time |
2 months |
Table 2: SMART Recommendation 2
Thus, it can be concluded that sustainable environment by focusing on green energy is the strategic approach of maintaining sustainable supply chain network. E-logistics is key application of strong network-based technologies based on which business organization can be able to monitor and control over whole products distribution process from storage area to customers. In case of maintaining battery automated vehicles, consideration of two significant factors such as high burden of supplying raw materials and related costs are essential.
In addition to that, sustainable supply chain network can be maintained by implementing alternative idea and choosing appropriate option from available options. High Pressure acid leaching is the strategic way to produce nickel-rich refined intermediate products. Cost effective strategy and maintenance of sustainable environment are requirements of transforming electrical energy into battery automated vehicles. Key application of web based technologies having strong networking system is the function of e-logistics based on which sustainable supply chain network can be maintained.
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