Critical review of ‘Logistics
and supply chain management’ by D.M.Z. Islam, J.F. Meier, P.T. Aditjandra, T.H.
Zunder and G. Pace (2012).
The purpose of this paper is to review a sample of the
literature relating to the Logistics and Supply Chain Management, also, by
reviewing the main article written by D.M.Z. Islam, J. F. Meier, P. T.
Aditjandra, T. H. Zunder and G. Pace. This article is an introduction to the principles
and methods used in logistics and supply chain management. It explains
logistics background and gives a general understanding of the topic as well as
provides some methods of logistics global integration. Also, authors talk about
the freight transport logistics plan and practice, and policies. Followed by,
classical transportation problems. Furthermore, this article talks about
principles of sustainable transportation and the White Paper (WP) of the
In addition to the above, the literature is studied
from the supply chain integration perspective, where the commercial activities
are largely responsible for the success of the business and influence of the
customer towards that success.
This document also considers and introduces ‘Green’
transport for freight and impact on supply chain management as a next step in studied
In general, the research shows
observation and is more interpretive in nature. As from
the limitation of the main article, the research gaps
Principles of logistics
According to previously mention article, logistics
word was in use for many years before it was assigned to present business
meaning. It was originally used in military, where the divisions were
responsible for the supply of necessary arms, ammunition, and foods as and when
they were needed, but this was not always as simple as it sounds. In ‘Logistics and Supply Management’
(2016), writer is talking about the wars that have been won and lost due to
strength and capabilities and as an example, author mentioned the defeat of the
British in the American War of Independence in 18th century. Where
the lack of logistics abilities was accredited for the failure. In this case,
the whole army was relaying almost completely on the supplies, like equipment
and food, coming from Britain.
Additionally, Speranza (2016),
talks about the evolution of word logistics. Back in the 1960s and 1970s
logistics and transportation were different fields. Where transport meant traffic
and public transport, and logistics, was a field of physical distribution and
inventory management. Since 1990s, where logistics strongly focuses on
operations and shippers with the development into supply chain management and then,
in the next 20 years the author mentioned the significant barrier between
passenger transportation and freight started to fade.
Although, the historical understanding of how critical
the role of logistics is, only in the recent past, the business organisations
have come to recognise the significant consequence that logistics management
plays part in the achievement of competitive advantage.
Nowadays, the understanding of logistics covers
transport, warehousing and storage of materials, inventory and packaging as
well as information processing and marketing channels to maximise current and
future profits through cost-effective fulfilment of orders (Christopher, 2016).
With the transport being a major section. But not only this, as it was written
in the main article, “Logistics and
supply management” (2012), where authors, also, mentioned agreement
regarding terms and conditions while buying and selling product, transportation
of those goods and insurance, that either falls onto buyer or seller
Supply chain management versus logistics
The supply chain management builds upon logistics
planning orientation and framework. The framework that creates a single plan
for the flow of products and information within an organisation. Whereas,
supply chain management, is a linkage and co-ordination between those
processes, for example suppliers and customers and the company itself
(Christopher, 2016). This same writer argues, that the supply chain management
should be called “‘demand chain
management’ to reflect the fact the chain should be driven by the market, not
by the suppliers” alongside, the word ‘network’, replacing word ‘chain’.
This is due to multiple suppliers and customers. For instance, where the
supplier sells to another supplier, which then sells to either another supplier
or the end customer. In this case, the second supplier becomes the customer to
a first supplier as well as this supplier may still be a seller to another
supplier, so the multiple customers and customers’ customers to be included in
the total system. As of suggestion in ‘Logistics and Supply Management’ (2016,
p.3) book, previous supply chain meaning could be modified to new definition of
“A network of connected and
interdependent organisations mutually and co-operatively working together to
control, manage and improve the flow of the materials from suppliers to end
Transportation and logistics problems
Considering article written by D.M.Z. Islam, J.F.
Meier, P.T. Aditjandra, T.H. Zunder and G. Pace (2012), the logistics and
transport problems were described as optimisation, where the action has to be
taken to make the best or the most effective use of available transport and
capacity of a vehicle, maximising truck loads or warehouses operation. The
warehouses operation was explained in the example of the demand of the customer
(previous paragraph) and more to the point, the demand that may be greater than
inventory available. For that reason, some strategic planning would be the aim
to fulfil orders even though, it may means shifting some goods from one
warehouse to another or dispatching an order from further located warehouse. In
this case the cost structure is the main decisive factor. Authors, also, mentioned,
minimising the environmental impact.
On the other hand, those are not the only worries in
logistics and transportation. According to, Morales (2015), who speaks about
the volcanic descends on Europe affecting aeroplanes or tsunami in Thailand
disrupting port activities in California as well as fires in Los Angeles forest
leading to motorways closure. Even, IT issues having an impact on United
Airlines system forcing the New Your Stock Exchange shut down. In today’s
world, these are executives of logistics and transportation leading to crisis
that no longer are as simple as loading boxes and carrying them from point A to
point B. These issues involve and effect the international trade and development
Furthermore, challenges like minute-by-minute tracking available globally,
developing cost efficiencies while guaranteeing timely delivery. Even, thinking
ahead of any issues that may or may not occur and having an alternative
All of those represents the logistics and
transportation problems that may impact the whole supply chain operation.
the environmental impact, delivering sustainability through supply chain
The idea of sustainability and sustainable development
is not the latest concept, but with the increasing knowledge and requirements coming
from a general consumer, companies are still to catch up. Sustainability is not
only about the environment and workers’ rights, but it is a long-term viability
that is a part of business model, where all stakeholders seeking a future in
their business (Waters and Rinsler, 2015).
According to Islam et. al. (2012), sustainability
means more than set of tools or indicators. This topic means action and mission
in progress that affects many cultures. It has an impact on political process,
economy, society, environment also, institutions and transport.
Additionally, Panagakos (2016), is mentioning Brundtland
Commission definition of sustainability, describing it as a development process
meeting the needs of the present without compromising the ability of future
generation. Author, is also, talking about the 2001 Sustainable Development
Strategy (SDS) where the economic growth, social coherence and environmental
protection are related and draw picture of long-term aims. Those objectives are
prioritised into six main policy areas like climate change and clean energy,
public health, social exclusion, demography and migration. Followed by,
management of natural resources, sustainable transport and finally global
poverty and development challenges.
When it comes to sustainable transport, SDS goals focus on shifting road
transportation to rail or water in terms of cargo and promoting public passenger
transport, walking and cycling as well as separating transportation growth from
GDP growth. Which ideally will reduce congestion and other negative
side-effects, for example, carbon emissions.
Another finding is by Waters and Rinsler (2014), declaring
that 24-hours transport is damaging the environment on reduced levels as fuel
consumption is more efficient due to minor congestion in opposition to, Just-In-Time
(JIT) operations. JIT uses smaller-size lorries that consume more fuel per
tonne of goods moved then larger-size vehicles. In addition, Mangan and Lalwani
(2016), also talk about JIT strategy as inefficient transport utilisation. The JIT
method became a trend in reducing stock levels by managing production more
carefully, but this increases the transport services within supply chain.
On the plus side, in opposition to previously mentioned
JIT, the combined transport options, which may be, container using road and
rail links are improving environmental impact, where fuel consumption is in decrease.
Furthermore, to minimise environmental impact logistics
companies need to reduce empty running and increase pooling and sharing capacity,
improve vehicle plan routing. Increase vehicle payload capacity, for example
double deck or higher trailers as well as enhancing vehicles operating
efficiency (Waters and Rinsler, 2014). But not only this, also, exchange of
information through interoperable Information and Communication Technology (ICT)
systems and monitoring performance of operation, administration and infrastructure
also, by introducing ‘green corridors’.
Corridors and Green Logistics
Back in 2007 the European Union introduced the concept
of ‘Green Corridors’. The idea that is aiming to develop integrated, efficient and
environmentally friendly transportation of freight between major hubs and by
relatively long distance. ………….
On the other hand, Green Logistics is defined as green
transport, green storage, green packaging followed by, green circulation
processing, green recovery, etc. This type of logistics goal is to reduce resource
consumption and negative environmental effect. Which can be done by, obtaining and
restructuring new distribution channels with the reverse logistics increasing