REGIONAL MARITIME UNIVERSITY

TOPIC

DISCUSS THE LOGISTICAL CHALLENGES OF WAREHOUSING AND

TRANSPORTATION FROM THE VIEWPOINT OF THE FOCAL FIRM IN A

SUPPLY CHAIN. TAKE INTO CONSIDERATION THE BEFORE AND AFTER

RELATIONSHIPS WITH SUPPLY CHAIN PARTNERS. CITE EXAMPLES FROM A

LOCAL CONTEXT.

FUNMILAYO LIDEL OMOJOWO

M. A INTERNATIONAL SHIPPING AND LOGISTICS

MISL867623

GLOBAL LOGISTICS

FEBRUARY 2023
INTRODUCTION
In recent years, the area of Supply Chain has become very popular. In today’s global world of

extreme market dynamism, firms recognized the importance of designing and coordinating

their supply chain distribution network to deliver goods and services most efficiently and

effectively. Due to this reason, the importance of supply chain integration has been enhanced.

Most human activities and organizations require the production and consumption of goods and

services. In most cases, there is a geographical distance between the production and the

consumption of goods and services. The level of complexity increases with the increase in

distance. A supply chain is a collection of people, businesses, resources, tasks, and

technological advancements involved in the production and distribution of a good. The supply

chain outlines every step of the manufacturing operation, including the tasks performed at each

level, the information exchanged, the natural resources converted into useful materials,

personnel management, and other elements that go into the complete good or service. Logistics

is concerned with the transit and storage of commodities along the supply chain. It involves

planning and carrying out the organization of product storage and transit between various

supply chain nodes. Logistics coordinates facilities, workers, technology, and other facilities to

guarantee that things move when they ought to and that there is space for them at the next stop.

Given the numerous challenges facing the logistics sector, it is not surprising that the global

supply chain is currently experiencing significant disruptions for customers. Transportation

logistics are always expensive. It's usually a company's most costly overhead, and that won't be

changing anytime soon. With growing prices for gasoline and diesel combined with a need for

higher wages, transportation may become much more expensive than it already is. From the

manufacturer through the business owner to the consumer, that effect cascades. Unpredictable

demand, a range of labor prices and requirements, and erroneous inventory data will all be

common warehouse issues in present times. These issues call for powerful systemic solutions
to keep management informed of changes and aware of any gaps that need to be filled. Under

uncertain circumstances, focal firms must be able to balance trade-offs while maximizing

performance. Supply chain inefficiencies, such as missing parts, unused production volume,

surplus inventory, escalating transportation costs, and warehouse issues are challenges that can

waste operational costs. Furthermore, uncertainty develops since a lot of things can't be

predicted, including product demand, delayed supplier shipments, faulty components or raw

materials, and production process failures. The unpredictability, in which information

regarding a product's demand is skewed as it moves from one entity to another across the

supply chain, is lessened by more precise data from supply chain management systems. A

company can successfully adopt a just-in-time strategy, delivering goods in the appropriate

quantity and at the precise time they are needed if it has complete knowledge of supply and

demand.

BODY

Supply chain partnerships amongst companies have evolved into a competitive, effective, and

important way to solve a company's operations that assist the organization with complicated

issues such as sustainability, financial strength, and competitive edge. Supply chain planning is

essential. The functions of an organization or institution provide specific advantages that help

the organization's affairs run more smoothly. It is essential to choose the correct partner, that

is a logistics service provider or a because switching providers is time-consuming, expensive,

and demands a lot of effort. In order to manage the partnership effectively over time, it is

crucial to have a strong contract with the appropriate service level agreements, Objectives, and

account management framework set up after choosing the ideal partner. In order to ensure that

goods are delivered in the proper amounts, to the right location, and in an efficient manner,

modern supply chains are extremely complex, with numerous alternative tangible and system

levels taking place. A company's relationship with its supply chain partner can directly help its
company by increasing the productivity and efficiency of its supply chain. Once you've started

developing a solid supply chain network, firms will need to keep up with relationship

management to make sure it thrives. Businesses tend to save money on sourcing, onboarding,

and negotiations as they devote time and resources to maintaining relationships with their

existing partners. By developing a strong and reliable relationship management process, firms

can pinpoint aspects of their relationship that are successful as well as those that could be

improved.

When a corporation chooses the wrong supply chain partner, it leaves itself open to logistical

difficulties including warehousing and transportation issues. Typical warehouse issues include

inconsistent demand, variable labor charge requirements, and inaccurate inventory data.

inadequate storage space as well as inefficient use of available spaces are common problems in

warehouses with poor facility layouts. Undesirable warehouse design is a major concern for

firms as there is a direct correlation to a potential negative impact on profits. These issues all

call for comprehensive systemic solutions to keep management informed of changes and aware

of any gaps that need to be filled. The Ghanaian economy for instance suffers more from rising

inflationary demands and a worsening financial problem that comes hand in hand with high

fuel prices. Consequently, the logistics industry faces pressure from increasing compliance

regulations, diminishing demand, increased capacity, and escalating critical overhead

expenses. higher fuel prices are anticipated to drive up transportation costs for supply chain

companies. Agility Logistics Park, Eagle Express Limited, and FQ Logistics and Supply Chain

are focal firms in the supply chain business.

CONCLUSION

Economic developments like globalization have caused businesses to face significant

transportation and warehousing challenges. Businesses might have no choice but to look for
efficient ways to manage the market on a worldwide or local scale. The flow of

commodities coming in and being distributed have deeper ties to supply chain companies, the

most crucial component of organizing any business. Since market demand patterns are

changing and now expect quick and precise deliveries of goods, it is necessary to make all of

these commitments easier to fulfill. Because of this, businesses require closer ties to the

distributors and suppliers in the supply chain. This connection enables businesses to quickly

meet client expectations. Regardless of the items being stored, businesses can speed up

operations and reduce waste by making a few adjustments where strategies for decreasing

logistical expenses can range from restructuring inventory levels, revising smarter supply chain

networks, providing better processes, maintaining good relationships with supply chain

partners