Contents

• This assignment is based on the following assignment description –
• Procuring machinery and components from overseas is no longer a cutting-edge logistics strategy; it has become commonplace – but that does not make it any less complicated. Companies that venture to the markets such as the Asia Pacific Rim must deal with culture, language, and currency differences, as well as regulations, tariff codes, terms, restrictions, and quota levels, among other issues.
• Consider the following scenario:
• An international mining resource company needs to transport thermal coal on a soon-to-be built 500km railway which goes from the township of Alpha in central western Queensland to Abbot Point Port in northeast Queensland. The company needs to procure 40 standard gauge locomotives, 600 x 106-tonne wagons and their spare parts from Asia Pacific. The machinery and spare parts are to be delivered to the mine site in central western Queensland.
• Prepare, with reference to the literature, a report that explains what logistics management would involve for the mining company. The report should address logistical issues: procurement, sea/air inland freight management, activities at the ports, material handling, warehousing and control requirements.

Description

Logistics management is the part of the supply chain that planning, implementing and controlling of the effective and efficient flow and storage of goods, service and information from the point of origin to the point of consumption. Logistics management involves various activities of the business process. A mining company which needs to procure and have goods delivered to central western Queensland from Asia pacific has to consider logistics management in order to reduce costs and achieve profits. The various logistics managements involved for the mining company are procurement management, freight management, transportation management and warehousing management. The various other concepts and sub-processes that are involved in the above and they are procurement planning, solicitation, supplier selection, contract administration and closing, FOB, freight absorption, landed costs, freight consolidation, carrier selection, fleet sizing, etc. Also the company must take into consideration the various cultural, political, social, economical and legal differences into consideration. Third party logistics, freight forwarders, pricing strategies, etc are the various ways that the mining company can use in order to achieve efficient and effective logistics management.