Bachelor Of Business Administration (Hons.

) Operation Management
OPM560 Supply Chain Logistics Management

Case Study on
Analysing Supply Chain Logistics :
SWOT Analysis in Logistics Industry

Group Members :
1. Mohd Redzuan Bin Ali 2021157919.
2. Ahmad Afiq Bin Norman 2021386037
3. Ayub Bin Abu Bakar 2021508731
4. Ameer Naqiuddin Bin Abd Rahim 2021786199
5. Muhammad Armi Nuruddin Bin Mohd Rosli 2021785919
6. Mohd Norazlishah Bin Mohd Ali - 2021683966

Class : NBO7B

Prepared for : Dr. Shariff Bin Harun

Table of contents

Title Page

i. Executive Summary i

01 Introduction 1

Supply chain practise, trends & challenges 6

02
Analysis internal and external factors impacting supply aspect 10
03
04 SWOT Analysis 14

05 Conclusion & Recommendation 16

06 References 21
Executive Summary
The logistics industry is an essential sector underpinning global trade. It
encompasses the planning, movement, storage, and management of goods and
materials, ensuring their timely and cost-effective delivery. This presentation
explores the key components of logistics, transportation, warehousing, inventory
management, supply chain management, and information technology, highlighting
their role in facilitating efficient supply chains.

The significance of logistics lies in its contribution to global trade,

economic growth, and supply chain efficiency. By enabling the movement of
goods across borders, logistics connects producers and consumers worldwide.
Efficient logistics operations reduce costs, improve delivery times, and enhance
the competitiveness of businesses and countries.

The presentation then discusses the evolving landscape of logistics,

marked by trends such as digital transformation and a growing emphasis on
sustainability. The use of digital tools and platforms is streamlining operations and
improving customer service, while sustainable practices are being adopted to
reduce the environmental impact of logistics activities.

Following the analysis of these trends, a more comprehensive

presentation would delve into a SWOT analysis to identify the strengths,
weaknesses, opportunities, and threats faced by the logistics industry. This
analysis would provide valuable insights for logistics providers to capitalize on
their strengths and opportunities while mitigating weaknesses and threats
01
Introduction
What is logistics
industry ?
The logistics industry is a crucial component of the global economy, encompassing a wide
range of activities that facilitate the movement, storage, and management of goods and
materials. It involves the planning, implementation, and control of the efficient flow and
storage of goods, services, and related information from the point of origin to the point of
consumption to meet customer requirements. This industry serves as the backbone of trade
and commerce, enabling businesses to deliver products to consumers and other businesses
in a timely and cost-effective manner
 Key Components
Logistics Industry

Transportation Warehousing Inventory Supply Chain Information Customer

Management Management Technology Service

Modes: Function: Processes: Scope: Tools: Role:

Includes Involves the Encompasses Encompasses the Utilizes software Involves
various modes storage of goods the tracking and end-to-end systems such as managing
such as road, in facilities such managing of coordination of Warehouse relationships
rail, air, and as warehouses inventory levels, the supply chain, Management with customers
sea transport. and distribution orders, sales, from raw Systems (WMS), and ensuring
centers. and deliveries. material Transportation their logistics
procurement to Management needs are met.
Importance: Goal: final delivery to Systems (TMS),
Role: Provides a buffer To maintain the consumer. and Enterprise Significance:
Ensures the between optimal stock Resource Planning Critical for
physical production and levels to meet Focus: Ensures (ERP) systems. maintaining
movement of consumption, demand without efficiency, cost- customer
goods from allowing for overstocking or effectiveness, Benefits: satisfaction and
one location inventory stockouts. and Enhances visibility, loyalty
to another management responsiveness accuracy, and
and timely across the supply efficiency in
distribution chain logistics
operations.
Importance of Logistics Industry

Contribution: The logistics industry is a significant contributor to

the global economy, providing jobs and supporting commerce and
Economic Impact trade.

Multiplier Effect: Efficient logistics enhance the overall

productivity of other industries, facilitating economic growth.

Enabler: Logistics enables global trade by connecting producers

Global Trade and consumers across different geographies.
Facilitation
Competitiveness: Efficient logistics systems enhance the
competitiveness of countries and businesses in the global market.

Optimization: Effective logistics management helps optimize

Supply Chain
supply chains, reducing costs and improving delivery times.
Efficiency
Resilience: A well-managed logistics network enhances the
resilience and flexibility of supply chains, helping to mitigate risks
and disruptions

Innovation Driver: The logistics industry is at the forefront of

Tecnological adopting and driving technological innovations such as
Advancement automation, artificial intelligence, and blockchain.

Digital Transformation: Continuous digital transformation in

logistics enhances operational efficiency and customer service.
Evolution and Trends
Initially , it focused on basic transportation and storage for traditional
logistics. However , as time goes by , modern times allow logistics to evolve ,
providing a much-sophisticated supply chain management practices,
technology integration, and a focus on sustainability.

Current trends shows advancement in criteria as below ;

Digital Transformation
Increasing use of digital tools and platforms to streamline operations.

Sustainability
Growing emphasis on reducing environmental impact through green
logistics practices.

E-commerce Boom
The rise of e-commerce has transformed logistics, increasing the
demand for faster and more flexible delivery options

Automation and Robotics

Enhanced use of automation and robotics in warehouses and
distribution centers to improve efficiency and accuracy

Omnichannel Logistics
Integration of various sales channels to provide a seamless customer
experience.
02

Supply chain
practise, trends &
challenges
Supply chain practise in logistic
industry

Align the Supply

Chain Team

01 02 03

Recruit & Develop Sustainable

Supply Chain Practices
Professionals

1.Recruit & Develop Supply Chain Professionals:

• Due to evolving technology and globalization, skilled supply chain workers are
in high demand. Consider hiring from specialized supply chain recruitment
agencies or building relationships with universities to create a talent pipeline.

• Invest in training and career development for existing staff to enhance their
skillsets and promote cross-functional mobility.

2.Align the Supply Chain Team:

• Efficient supply chain execution requires collaboration across functions. Break

down silos by integrating processes, systems, and procedures.

• Ensure seamless communication between business units, prioritize shared

goals, and allocate resources effectively.

3.Sustainable Practices:

• Use local suppliers and recycled materials to reduce environmental impact.

• Minimize waste by eliminating unnecessary packaging and transitioning from

paper to digital processes
 Trends on supply chain management in
logistic industry
Ai And E- Big Data And
commerce Supply Chain
Expansion: Risk Mitigation:

The rise of e-commerce demands Leveraging big data helps

faster, more efficient logistics mitigate risks in global supply
solutions using artificial intelligence chains. By analysing complex
(AI). Industry giants like Amazon and networks of moving parts,
DHL are already integrating AI into companies can make
their operations to optimize pricing informed decisions and
enhance supply chain
strategies, enhance customer 01 resilience.
satisfaction, and elevate e-
commerce experiences.

02

04
Internet Of
Sustainability Things (Iot) For
Visibility
With growing awareness of
03 IoT enables greater supply
environmental impact, logistics
chain visibility by connecting
companies are adopting sustainable physical objects and
practices. Trends include alternative exchanging data over the
fuels, electric vehicles, and carbon internet.
offset programs. DHL, for instance, Real-time tracking, monitoring,
has committed to reducing its and predictive analytics
logistics-related emissions to net improve efficiency and
zero by 2050. responsiveness.
Challenges in logistics industry

02 04
Transportation Costs Real-time Data

01 03 Tracking 05
Data And Compliance Laws Cost Management
Technology And Standards
Management

Data and Technology Management:

Handling massive data volumes is critical. Logistics companies leveraging logistics software,
cloud services, and smart technologies can predict demand, manage operations, and respond
effectively to supply chain crisis. Lagging in technological adoption leads to inefficiencies,
competitive disadvantages and can even start the business downfall.

Transportation Costs:
Rising transportation expenses impact budgets. Effective transportation management through
route optimization, third-party logistics partnerships, and eco-friendly vehicles helps control
costs.

Compliance Laws and Standards:

Navigating government regulations (federal, state, and local) and environmental standards is
essential. Noncompliance can result in fines, operational issues, and reputational damage.

Real-Time Data Tracking:

Ensuring visibility through real-time data tracking helps optimize logistics operations. It is
common nowadays, that every e-commerce platform uses real-time tracking when delivering
their parcels. This is to build up a good relationship with the customer, making them stay using
the platform when buying online.

Cost Management:
Managing costs, especially in the face of raw material price fluctuations and resources
shortages. This is crucial in ensuring the success, making optimum output with most competitive
cost and also to stay resilient in a long term.
03

Analysis internal and

external factors
impacting supply
aspect
Strategic planning project plan

Operational Workforce Infrastructure Inventory Financial Quality

Efficiency Management Management Resources Control

Process Skilled Labor: Warehouse Stock Levels: Capital Standardization:

Optimization: Facilities: Maintaining Investment: Implementing
Availability and
Streamlining Adequate and optimal Availability of standardized
training of a
warehouse strategically inventory levels financial processes and
skilled
operations, located to meet resources to quality checks to
workforce to
transportation warehousing demand invest in ensure consistency
handle complex
routes, and facilities to without infrastructure, and reliability.
logistics
inventory support efficient overstocking technology, and
operations. which ties up
management to storage and workforce
reduce costs and distribution. capital and development.
improve delivery space.
times.
Error Reduction:
Employee Minimizing errors
Technology Transportation Demand Cost
Productivity: in order
Integration: Fleet: Forecasting: Management:
Effective processing,
Implementing Well-maintained Accurate Effective
management handling, and
advanced and modern prediction of management of
and motivation delivery to
technologies like transportation demand to costs to maintain
of employees to enhance customer
automation, AI, assets to ensure ensure the right profitability while
ensure high satisfaction
and IoT to amount of stock ensuring high
reliable and timely
enhance productivity is available. service levels
delivery of goods.
operational levels.
efficiency and
visibility.

01 02 03 04 05 06
External Factors Impacting the Supply
Aspect in Logistics

01 Economic Environment:

Market Conditions: Economic fluctuations that affect consumer

demand and supply chain stability.
Trade Policies: Tariffs, trade agreements, and regulations that
impact cross-border logistics operations

Technological Advancements 02

Innovation: Rapid technological changes that require continuous

adaptation and investment in new technologies.
Cybersecurity: Ensuring robust cybersecurity measures to protect
against data breaches and cyber-attacks.

03 Regulatory Environment:

Compliance: Adherence to national and international regulations

related to transportation, safety, and environmental standards.
Customs and Duties: Navigating customs regulations and managing
duties to ensure smooth international trade.C

Competition
04

Market Competition: Intense competition from other logistics

providers, which can impact pricing and service levels.
Customer Expectations: Rising customer expectations for faster,
cheaper, and more reliable delivery services.
External Factors Impacting the Supply
Aspect in Logistics

05 Supplier Relationships

Supplier Reliability: Dependence on reliable suppliers for materials

and goods to maintain smooth operations.
Partnerships: Building strong partnerships with suppliers to ensure
timely and cost-effective procurement.

Environmental Factors:
06

Sustainability: Increasing pressure to adopt sustainable practices and

reduce the environmental impact of logistics operations.
Natural Disasters: Managing risks associated with natural disasters that
can disrupt supply chains.

07 Geopolitical Factors:

Political Stability: Political events and instability that can affect

logistics routes and supply chain security.
Global Trade Tensions: Trade disputes and tariffs that can lead to
supply chain disruptions and increased costs

Consumer Behavior: 08

E-commerce Growth: The rise of online shopping, requiring logistics

providers to adapt to new delivery models and expectations.
Changing Demands: Shifts in consumer preferences and buying
behaviors impacting inventory and distribution strategies.
04

SWOT
Analysis
 Strength Weakness
Efficiency in Transportation: Logistics companies often
High Operating Costs: Fuel prices, labor costs, and
excel in optimizing transportation routes and modes,
maintenance expenses can significantly impact
reducing costs and delivery times.
profitability.
Advanced Technology Integration: Adoption of
Dependence on Infrastructure: Delays or disruptions in
technologies like GPS tracking, RFID, and AI for route
transportation infrastructure (e.g., ports, roads) can affect
optimization enhances operational efficiency.
service reliability.
Global Reach: Many logistics firms have established
Regulatory Challenges: Compliance with varying
international networks, enabling them to handle global
international and local regulations adds complexity and
supply chains seamlessly.
costs.
Specialization: Some companies specialize in niche areas
Vulnerability to Economic Fluctuations: Economic
such as cold chain logistics or hazardous material
downturns can reduce demand for logistics services,
transport, giving them a competitive edge.
impacting revenue.
Strong Partnerships:
Cybersecurity Risks: Increasing reliance on digital systems
Collaborations with shipping lines,
exposes companies to cybersecurity threats and data
airlines, and trucking breaches.
companies help streamline
operations and reduce costs.

S W

Opportunities
O T Threat

E-commerce Growth: The rise of online shopping Competitive Pressure: Intense competition from global and
increases demand for efficient logistics services, local players can lead to price wars and margin erosion.
especially last-mile delivery. Disruptive Technologies: Adoption of autonomous vehicles
Emerging Markets: Expansion into emerging economies and drones could potentially disrupt traditional logistics
presents opportunities for growth in logistics demand. models.
Sustainability Initiatives: Offering green logistics Political Instability: Changes in trade policies, tariffs, or
solutions can attract environmentally conscious clients geopolitical tensions can disrupt supply chains and
and government contracts. increase costs.
Technological Advancements: Integration of IoT, Natural Disasters: Events like hurricanes, earthquakes, or
blockchain, and big data analytics can improve pandemics can disrupt logistics networks and supply
operational efficiency and customer service. chains.
Customization of Services: Tailoring services to meet Labor Shortages: Difficulty in attracting and retaining
specific customer needs, such as same-day delivery or skilled labor, especially drivers and warehouse workers,
real-time tracking, can attract new clients. can impact operations.
04

Conclusion &
Recommendation
Conclusion
The logistics industry is super important for global trade and economic
growth. Over the last ten years, it has changed a lot thanks to new technologies,
changing customer habits, and globalization. The industry's ability to adapt and come
up with new ideas has been crucial in keeping goods and services moving smoothly
around the world. When we look at the strengths and opportunities in the logistics
industry, it’s clear that it’s in a good position to keep growing and contributing to the
global economy.

One major strength of the logistics industry is its use of advanced

technology. Things like artificial intelligence (AI), the Internet of Things (IoT),
blockchain, and big data analytics have really transformed logistics operations. These
technologies help with supply chain visibility, route planning, inventory management,
and real-time tracking. Using these technologies has made logistics more efficient, cut
costs, and improved customer satisfaction.

Another big strength is the industry’s solid infrastructure. Major investments

in ports, airports, railways, and road networks have boosted the capacity and efficiency
of logistics operations. These investments make it easier to move goods across borders
and within countries, cutting down on transit times and costs. Also, the growth of e-
commerce has led to better last-mile delivery networks, which further enhances the
industry’s capabilities.

The logistics industry also has a highly skilled and adaptable workforce.
People in this sector are great at managing complex supply chains, dealing with
regulatory requirements, and using technology to optimize operations. Continuous
training and development programs ensure that the workforce stays competent and
can meet the changing demands of the industry.

Additionally, the industry’s focus on sustainability is a notable strength. As

environmental concerns become more important, the logistics sector has made
significant efforts to reduce its carbon footprint. Innovations like electric vehicles,
green warehousing, and sustainable packaging solutions contribute to an eco-friendlier
supply chain. These efforts not only help the environment but also improve the
industry’s reputation and attract eco-conscious consumers.
Recommendation
To make the most of the strengths and opportunities in the logistics industry, here are
some recommendations:

1. Invest in Advanced Technologies:

- Keep investing in and using the latest technologies. Companies should focus on
integrating AI, IoT, blockchain, and big data analytics into their operations. These
technologies will provide better visibility, improve decision-making, and streamline
processes, leading to cost savings and better customer experiences.

2. Enhance Infrastructure Development:

- Governments and private companies should work together to further develop and
modernize logistics infrastructure. Investments in ports, airports, railways, and roads are
essential to handle increasing trade volumes efficiently. Developing smart logistics hubs
and improving last-mile delivery networks will also be crucial to meet the growing
demands of e-commerce.

3. Focus on Workforce Development:

- The logistics industry should keep investing in training and upskilling its workforce.
Schools and industry associations can help by offering programs that cover the latest
technologies and best practices. A skilled workforce will be better equipped to handle
the complexities of modern logistics operations.

4. Promote Sustainability:
- Companies in the logistics sector should continue to prioritize sustainability. Investing
in electric vehicles, adopting green warehousing practices, and using eco-friendly
packaging will help reduce the environmental impact. Additionally, exploring alternative
fuels and renewable energy sources for operations is essential.

5. Leverage Global Trade Agreements:

- The logistics industry should take advantage of global trade agreements and
partnerships. By understanding and navigating the regulatory landscapes of different
regions, companies can optimize their supply chains and expand their market reach.
Collaborations with international partners can also provide access to new markets and
enhance operational efficiencies.
Recommendation

6. Enhance Cybersecurity Measures:

- As the industry becomes more reliant on digital technologies, the risk of cyber
threats increases. Companies must invest in strong cybersecurity measures to protect
their data and operations. Implementing comprehensive cybersecurity strategies,
conducting regular audits, and ensuring compliance with international standards will
safeguard against potential cyber-attacks.

7. Encourage Collaboration and Innovation:

- The logistics industry should promote a culture of collaboration and innovation.
Encouraging partnerships between logistics providers, technology companies, and
academic institutions can lead to innovative solutions. Collaborative efforts can also
help address common challenges and drive the industry forward.
Recommendation
Opportunities

The logistics industry has lots of opportunities that can drive its future growth and
development:

1. E-Commerce Boom:
- The rapid growth of e-commerce is a big opportunity for the logistics sector.
Companies can tap into this trend by developing efficient last-mile delivery solutions,
optimizing warehousing operations, and using data analytics to forecast demand
accurately.

2. Emerging Markets:
- The expansion of emerging markets offers new growth avenues for the logistics
industry. By establishing a presence in these regions and understanding local market
dynamics, companies can capitalize on the increasing demand for logistics services driven
by economic development and rising consumer spending.

3. Technological Advancements:
- Continuous technological advancements present opportunities for further innovation
in the logistics sector. Autonomous vehicles, drones, and robotics can revolutionize
transportation and warehousing operations, increasing efficiency and reducing costs.

4. Sustainability Initiatives:
- Growing environmental awareness and regulatory pressures create opportunities for
the logistics industry to lead in sustainability. Companies that adopt green practices and
offer eco-friendly solutions will gain a competitive edge and attract environmentally
conscious customers.

5. Resilience and Risk Management:

- The COVID-19 pandemic highlighted the importance of resilient supply chains.
Investing in risk management strategies, diversifying suppliers, and enhancing supply
chain visibility can help companies mitigate disruptions and maintain continuity in
operations.

In conclusion, the logistics industry has many strengths and opportunities that can propel
it forward. By leveraging technology, enhancing infrastructure, focusing on workforce
development, and promoting sustainability, the industry can continue to thrive in an
increasingly complex and dynamic global environment. Strategic investments and
collaborative efforts will be key to unlocking the full potential of the logistics sector and
driving future growth.
References

Ghiani, G., Laporte, G., & Musmanno, R. (2023, January 8). Wikipedia. Retrieved from
Introduction of Logistics Industry: https://en.wikipedia.org/wiki/Logistics

Solink. (2023, April 7). Logistics SWOT analysis examples and explanations. Retrieved
from Solink: https://solink.com/resources/industry-insights/logistics-swot-analysis-
examples/