Globalisation of Logistics & SCM – Assignment Part B: Some initial guidance.
Where are we now? }
How did we get there? } Create a strategic position for the Welsh Government, i.e. a picture of what’s happening now (L.7). This can be the 1st part of an
Where are we heading? } answer.
• Current rail System is it in flux / chaos The high speed improvements are needed to attract more firms and keep the current firms? – From Lecture 7, use punctuated equilibrium / The risk of strategic drift (L7) and life cycle analysis (in trade theories – L3)
• Rail is arguably under-performing / under-capacity (i.e. not enough speed to move freight and people, hindering the ‘supply chain flow’ – supply chain definitions (L10 & L10a, plus L15)) explain / define capacity – use any Operations management text / journals, plus the ‘integrated logistics model.
• Current issues with the current rail system – where are we now? Perhaps use some of Prof. Stuarts Coles data to help you illustrate this?
o Rail systems out dated and needs updating – hence HS2 – Benchmark against the Chinese example on Bb
o Current system might show some constraints, delays or waiting time and poor SC flow?
? Integrated logistics model
• HS2 is already proposed to the Welsh Government as a solution to relieve the above mentioned constraints – See Prof. Stuart Cole’s lecture slides `
o Why might it be a short-term solution? Because rail is only just one part of the traditional transport and logistics networks in any region. HS2 might add more value if linked to some of the other modal options – e.g. road, sea (the ports) and air 9ports – (linked to a multi-modal / integrated transport solution?)
o So just a linear, one modal option approach (i.e. HS2 alone) might not be the best approach. Perhaps a wider solution would provide more value and sustainable solution? – use The Value chain / value system & Cost Benefit analysis / Distribution costs / Integrated logistics model to help exaplin and illustrate this point
o Possess sustainability / CSR issues impacting the ‘current position’ – i.e. what do the key stakeholders want / need?
? This is about the companies in the question – what might they want?
• E.g. FDI, regional economic and social growth (Key Stakeholder – Welsh Government) – the local multiplier effect
• E.G. Low barriers to entry into the region (5 Forces Model – Porter) – making access easier than now? (Key Stakeholder – UK and MNEs) – Use also stakeholder theory of the firm here to derive key stakeholders (Mendalow – “power / interest matrix”)
? Organisations want some of our ‘factor condition’ (land, labour, capital) in Wales, but only perhaps if there were easier access to these factor conditions in the region through rail and otrher transport modes?. These firms might locate here / trade here if this transport system / route were improved? – Use Trade Theories & Porter’s Diamond to conceptualise
o Create a ‘gap analysis’ that shows the Welsh Government Where they are now against where they might want to be?
The suggested theory areas outlined in Red above which link to the potential data that could explain the issues surrounding the current position regarding the current state of the rail systems in and out of the region (i.e. South Wales). These are just examples of what you can apply to the data to conceptualise and illustrate and provide academic meaning. N.B. Look for impacts and trade offs in the above scenario as ‘enablers and barriers’ to firms located and operating in Wales and / or those thinking of doing so, as the question is requesting. N.B. Use Prof. Stuart Cole’s Lecture on Bb for baseline data for the HS2 data.
This part would present a potential 1st part to an answer – i.e. – where are we now regarding rail into the region; how did we get there; Where do we want to be?
Part 2 (finish this part)
Perhaps the 2nd part of an answer could then focus on what you might actually suggest to the client, the Welsh Government? Focus on addressing: –
• Where do we want to be?} i.e. the Welsh Gov? Having outlined the current strategic position in the 1st part of an answer, the 2nd part could focus
on advising the
• How will we get there? } Welsh Government – how they could improve this situation to enable FDIs and other investment into the region
• Are we on course? } if the transport links / system operating were improved and how you as the consultant might improve them?
o Briefly critique the advantages and disadvantages of just an improved rail system, through HS2 Advantages and disadvantages of rail could be explored. Use the concept of value , Cost Benefit analysis / Distribution costs / Integrated logistics model – (All in the lecture materials)
o Recognise that some trade-offs might have to be made to address key impacts.
o Compare and contrast an improved stand-alone road solution (i.e.HS2) with the notion of an ‘integrated transport system’ comprising of road, rail connections, air and perhaps also sea ports (e.g. in Newport, Cardiff, Swansea, Pembroke Dock and Milford Haven), to elevate the constraints / bottlenecks identified in the 1st section and to suggest perhaps a longer-term and higher benefit / value solution, but at a higher cost.
? This integrated approach just builds upon the infrastructure already existing in South Wales, but not yet connected and integrated together?
• This ‘integrated transport approach’ can also be referred to as multi-model / inter-model choice (L13) and can be applied to freight movement, services and people/commuters. These together arguably gets beyond the bottleneck / constraint at Newport and therefore NOT so reliant on just road capacity.
o Explore again the advantages and disadvantages of all these transport modes (L13), but recognise the ‘impacts’ and ‘trade-offs’ of each, when linking all these into an integrated / multi-model transport system.
o Link back to the ‘integrated logistics model’ (L15), most especially the links between the relevant parts of the ‘primary logistics activities’ (I.E. the costs of – Transport, Facilities structure (or infrastructure), inventory, material handling & communication / information) and the ‘service response activities’ in that model (i.e. the costs associated with – waiting time, capacity and delivery / flow).
o Some of these trade-offs could be explained using Elkington (1994) – Triple bottom line and other sustainability concepts, plus distribution costs and trade-off analysis in the lecture slides.
Draw suitable conclusions for the Welsh Government, outlining clearly the current strategic position and the strategic options you will present for choices to be made by the Government, as a sustainable response for enablers and barriers to firms located and operating in Wales and / or those thinking doing so, as the question is requesting.
A summary structure
• The aim of the paper (i.e. the question)
o What are the key issues in the question for the client
• What will be the approach / methodology that you will take – use the key issues to shape and structure the answer
• 1st – Create a ‘current position’ for the Welsh Government’ regarding rail into the region an its impacts on firm – where are we now; how did we get there; where are we heading?
• 2nd – Based on the ‘current positions’ offer a sustainable solution for the Welsh Government. Is it just HS2 or does it include a wider integrated transport system linking improved high speed rail links with other modal options?
Draw suitable conclusions reflecting on the value for the Wels Government.
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