Falcon Logistics

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Falcon Logistics

Table of Contents

Executive Summary....................................................................................................................1

Chapter 1: Falcon Logistics al Overview..................................................................................1

Scope of Company.................................................................................................................2

Organizational Structure........................................................................................................3

Growth of the Company.........................................................................................................3

Growth Options for Company................................................................................................6

Chapter 2 - Role of logistics in the Falcon Logistics and SC practices in the Falcon Logistics
...................................................................................................................................................8

Role of logistics in the Falcon Logistics................................................................................8

SC Practices in the Falcon Logistics....................................................................................13

Chapter 3 – Department Analysis and IT support in the Falcon Logistics.............................15

Departmental Analysis.........................................................................................................15

Chapter 4 – SWOT Analysis of the Company..........................................................................18

Chapter 5 – Problem Identification and solution....................................................................20

Accidental Redundancy.......................................................................................................20

Solution................................................................................................................................21

Messy Warehouse Layout....................................................................................................21

Solution................................................................................................................................21

Bad Inventory Management.................................................................................................22

Solution................................................................................................................................22

Poor Preparedness for Seasonal Demands...........................................................................22

Solution................................................................................................................................23

Unsatisfactory Order Management......................................................................................23

Solution................................................................................................................................23
Poor Damage Control...........................................................................................................23

Solution................................................................................................................................24

Conclusion...............................................................................................................................24

Bibliography............................................................................................................................25

List of Figures
Figure 1 Logistic Industry Growth............................................................................................6
Figure 2 Digital Logistic Market...............................................................................................8
Figure 3 Logistic Cycle............................................................................................................11
Figure 4 Third Party Logistics................................................................................................14
Figure 5 Supply Chain Cycle...................................................................................................16
Figure 6 Warehouse Management...........................................................................................19
Figure 7 SWOT Analysis..........................................................................................................20
Figure 8 WMS..........................................................................................................................24
Executive Summary
Falcon Logistics is a fast-growing company around the globe that provides transport services
such as packages. Oman's second-largest logistics provider and the fourth largest market
capitalization. Its main aim is to be the first technology company to provide solutions. In the
United States of America, the freight industry has been the dependent Company in delivering
packages. The freight industry was connected to the Falcon Logistics route. In 2018, the
Falcon Logistics company's revenue increased by seventy-two billion dollars from thirty
billion dollars in 2000. The delivery of packages is held by e-commerce which relies on the
fast delivery of the commodities. Due to the worldwide delivery of packages, it has made its
high expectations in increasing profits. Its main aim is to satisfy the customers' needs to
increase its shares. The Company's goal is to ensure that the proper shipment is chosen to
deliver the packages to achieve adequate timing and space. The issue with routing shipment
is that it leads to time wastage in loading and unloading. The use of vehicles for shipment
results in time wastage; hence the use of vehicles is restricted at the hubs. However, vehicles
in the shipment are discouraged in the urban areas since real estate is expensive. In addition,
the hubs are small and with few loading and unloading docks. Lastly, vehicles cannot be
dependent on transporting all packages due to the limitation of transportation of goods.

Chapter 1: Falcon Logistics al Overview


Falcon Logistics is an Oman logistic company that was developed to transport packages
around the globe. The Company is well managed since every package has its carrier and the
latest time for arrival. The Falcon Logistics operates so that the courier takes the package
from the customer, and the rider delivers it to the hub. The Falcon Logistics is connected to
the hub, which is the package's destination. The Company is well organized so that the
destination of the package is known. The vehicle to transport the package is prepared, and the
cost for transport. The Company ensures that the goods are loaded, and after the arrival at the
destination, they are unloaded. They ensure that they satisfy the operating restrictions from
the hub. The means of transport was later on transformed into the use of flights. This is to
allow the navigation of packages from one country to another. This led to a good partnership
between countries such as India, America, and other countries around the globe. This service
network design problem ensures that the arcs of loading, transport, waiting, and unloading are
done appropriately. For this to be achieved, the Company uses three algorithms: an IP-based
heuristic, a met heuristic, and a hybrid mat heuristic. The hybrid mat heuristics produce a
high-quality solution in a reasonable amount of time. The introduction of technology has
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empowered people to use technology and provide customers with an intelligent and
integrated supply chain. The Company extended its business to meet the needs of different
market segments. It has been defined as an intelligent logistics operator with solid
management in all the global networks (Altman, 2020).

Scope of Company
The research objective is on a company responsible for transporting packages from one
location to another. It focuses on the network for delivery of goods and the convenient time
for the arrival. Its objective is to highlight the criteria they use to ensure the time is well
managed. Mat heuristic is one of the best algorithms to give a high-quality solution. Falcon
Logistics aims to ensure a same-day and instant delivery of the packages to the customers.
Falcon Logistics has achieved the same-day delivery of packages in Oman in the recent two
years (Bhakoo & Choi, 2013). The scope of the research focuses on the improvements done
to Falcon Logistics in recent years and the economic developments resulting from Falcon
Logistics. The Falcon Logistics scope has improved businesses and has led to the opening of
direct flights to India. The New Shenzhen-New Delhi route and Cargo airline of Falcon
Logistics expanded the businesses in India and connected it to the international level. The
focus of the research is on how Falcon Logistics will develop businesses internationally in the
coming years.

Many customers depend on Falcon Logistics for the delivery of packages around the globe. It
has succumbed as one of the sources of income for the government in Oman. The income
generated by the Company shows that it is a source of revenue for the government. The
export and import fee is one of the main revenue for the government. The transport fee paid
by the Company to the government is also a source of revenue. The research will deal with
the type of growth brought by the Falcon Logistics Company. The research will check on
what is required for the Falcon Logistics Company to grow in the next five years. For it to
grow, it must consider the expectations of the customers regarding its services. Economic
growth of the Company is considered some criteria. It needs some principles for economic
growth. Trust with the customers is one of the principles that should be equipped. The
customers are assured of the delivery of their packages on time. Price is one of the logistics
tools that encourage purchase. Quality transportation of the packages helps the commodities
to arrive on time. These criteria help to overcome challenges that may face the Company
(Akkermans, Richardson, & Kraimer, 2020).
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Organizational Structure

Growth of the Company


One of the criteria that the Falcon Logistics Company will use for the development in the
next five years is the construction of the belt roads. This would lead to the navigation of the
means of transport from one country to another. Infrastructure is one of the factors for
business development. Due to the high skills in road construction, this would make road
construction easy in different countries. For the future development of the logistic company,
it is necessary that the government concentrate on upgrading the means of transport.
Developed transport, integration of export and import supply chain solutions, customs
clearance and warehousing and systems would lead to the growth of the Company (Direction,
2012). The construction of belt markets would lead to the growth of the market. For the
growth of the Falcon Logistics Company, there is a need to improve flight transport. This is
because air transport leads to the transport of packages from one country to another. Air
transport is one of the convenient transport methods because packages are delivered on time
and safe. Due to the use of air transport for the transport of goods, the Company has the
responsibility of making partnerships with other countries. This would lead to market growth
due to the transportation of goods in many countries (Ibn-Mohammed, et al., 2021).

3
Figure 1 Logistic Industry Growth

Falcon Logistics has the responsibility of improving the airline sector by connecting with
different airports in different countries. For growth in business in India, Falcon Logistics has
the responsibility of connecting New Delhi for ease of transport of packages. To improve
airline transport, the government has the responsibility of solving all the challenges facing
that sector. Some of the obstacles that hinder the improvement of the Falcon Logistics based
on air transport are Lack of core resources, large capital expenditure and unreasonable route
planning. These obstacles may hinder the growth of the Company. This is due to the use of
capital to sort out the issue, for time management in the transport of goods. This would
facilitate the transportation of goods within the shortest time possible. To eliminate the airline
transport issue, a logic regression model was created. The use of a logic regression model
would eliminate the issues facing the arrival of the packages (Hintzen, 2019).

The policymakers have to come up with a decision on how to increase the number of stations
in different countries. Insufficient airports will lead to backward growth of the Falcon
Logistics Company. On the other side, there may be sufficient aeroplane stations but no
reasonable aeroplane routes. Fewer aeroplane routes may be caused by cargoes. Large
cargoes cannot easily be transported. Hence it becomes a challenge. The team should
therefore come up with a better strategy to transport the large cargoes. They may employ the
use of ships to transport large cargoes. Another issue that would foster growth in the market
is the idling of a load of packages. It may lead to the lateness in the delivery of the packages,
and this may lead to a lack of trust in the customers. The Company also has the responsibility
of planning a good route to avoid wastage of resources and accidents. Climatic conditions

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hinder the transport of packages, mostly for aviation, due to fogs. The Company should
therefore come up with a good method for fast transport during such conditions. Vehicle
transport would be slow for transport and may cause lateness of the packages. When the
issues that arise in the aviation sector are solved, the transport sector will lead to the fast
economic growth of Falcon Logistics (Lloyd-Smith, et al., 2009).

Falcon Logistics has been involved in economic growth by the creation of six operational
centres in Oman, and it has opened many clearance ports in Oman. The operational centres
have created networking in the transport sector and have enhanced the construction of roads.
It has also led to the promotion of warehouses where goods are checked before being
delivered. The Company should also empower the technology system to improve business
accuracy and efficiency. There is a need for the Company to utilize big data analysis and
compute technology to provide services to the customers (Guan, Deng, & Zhou, 2020). The
Falcon Logistics Company can create an automated machine for the efficient performance of
the jobs. Improvement of the storage centres would increase job performance, and this would
lead to economic growth. The Company should come up with more express networks in the
world. The Company can create a great connection in the air network, land network and
information network. In the air networks, Falcon Logistics has created networks for the
transport of goods from one country to another. In terms of the information network, Falcon
Logistics has created an artificial intelligence that has helped in business decision-making.
For the economic growth of Falcon Logistics, the Company has a role of innovativeness. The
Company has the responsibility of encouraging workers and building them in their
performance of the jobs. For the growth of the Company, it needs to do the following:
recruitment of the employees, training empowerment, Business research, mentor assistance
and project review and approval (Oldekop, Horner, Hulme, Adhikari, & Agarwal, 2020).

5
Figure 2 Digital Logistic Market

Growth Options for Company


Some of the growth options that would lead to economic growth for Falcon Logistics are the
transport of the packages, application of technology in the business and empowerment of the
workers. Transport is one of the most crucial parts of the Falcon Logistics Company, and it
has led to economic growth. Chinese airline Company has resulted in the fast-growing
growth of the Company. Despite the airline companies being scarce, the team has ensured
that the packages arrive at the customer on time. The reason why the transport sector is the
major cause of economic growth is due to its performance of the jobs. Without the transport
sector in the Falcon Logistics company (Guan, et al., 2020). Goods cannot reach their
destination as expected. With the development of the urban sector, transport has become vital
in the conduct of business. Express delivery of goods from one location to another has been
encouraged. The express network is navigated by the creation of the direct network routes.
The transport sector is one of the successful parts of Falcon Logistics, and the express route
should find an optimization-based tool to support its planning and operations. The Company
has come up with shipment services that will ensure that packages arrive on time (Conteh,
Engels, & Molyneux, 2010).

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The increase in technology will enhance the increase of the express shipment networks,
which are airports and ground hubs. The delivery in the small-packaged markets, the use of a
novel direct shipment is an effective way. The transport sector is the source of revenue for the
Company. This is because the express shipment revenue depends on the origin and
destination, size, and service class. The express network functions in a way that the route will
maximize its profit. To design a service network, the following are considered: demand to
serve, the route and purchase on a commercial flight. Based on the airline network, demand
may be adjusted according to historical data but can be adjusted according to the pricing
policy (Mitra & Basfirinci, 2015). Transport promotes economic growth in the following
ways: The transport fee charged by the company is the source of revenue. This has led to an
increase in income for the Company. The shipment of the goods from one location to another
has led to growth. This is because the charges for the shipment are based on the distance and
the size of the package. The team should therefore improve the transport sector for the
increase in revenue. The use of an airline for the transport of goods is an effective means
since it's fast and delivers the package on time. The Falcon Logistics team came up with
some technologies to develop the transport sector and explore their commercial applications.
Falcon Logistics employs courier technology to minimize cost (Hudecheck, Siren, Grichnik,
& Wincent, 2020).

The Company uses drones to deliver services in the rural sector. The delivery of packages
using drones is fast, according to the research conducted. This has helped to minimize the
labour cost and to ensure that the parcel is delivered on time. Ways in which technology has
promoted economic growth are as follows: Customers are able to submit their orders
electronically by use of mobile phones (Hintzen, 2019). The customers can make payments
by use of phones. Falcon Logistics has created an application in which the customers can
interact and make orders as soon as they wish. This has been made easier as compared to
earlier when one had to make the call for arrangements on the pickup. Falcon Logistics has
developed an easier way to make payments by use of a mobile payment tool (Bai & Sarkis,
2013). The Company chooses this as the best mode of payment because it is easier and fast.
By use of the mobile application, the customers can track their packages. This ensures the
safety of the package and leads to trust in the business. The technology sectors should make
some improvements to ensure economic growth. Some of the ways to improve the technology
sector are the use of GPS chips in their portable receipt printer, provide a real a real-time
location track service for the customer to know the time for delivery of the packages and
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building up the communication between the customers and the delivery workers and this lead
to the development of customized services (Ma, Wang, & Chan, 2020).

Falcon Logistics has the goal of supporting and creating platforms for the people to achieve
their ideals. The Company has some principles for its workers, which are: equality, respect,
innovation, and inclusiveness. The Company also ensures employees' satisfaction so that they
can practice integrity in their work. They ensure employee satisfaction by training
empowerment, promotion development and Falcon Logistics al atmosphere building. The
employee care done by the Company has led to a good performance of the employees. For
instance, in 2021, the Company invested one hundred and three million in the care of the
employees. The Company listens to the feedback of the employees, and this provides
employees with a fast, reliable and intelligent logistic service. Employees are significant in
ensuring that there is economic growth in a company. Quick delivery and provision of
services by the employees have led to economic growth. Employee's services attract more
customers since they provide better services to its client (Mitra & Basfirinci, 2015).

Chapter 2 - Role of logistics in the Falcon Logistics and SC practices in the Falcon
Logistics
Role of logistics in the Falcon Logistics
As part of supply chain management, logistics management is responsible for ensuring that
items are delivered to consumers promptly and stored safely and securely. Logistics is an
integral part of the economy. In two ways, logistics are critical to the economy. Firstly,
logistics is one of the most significant corporate expenses, affecting and influencing other
economic activities. This might result in higher pricing for customers or worse profit margins
for firms if logistical costs are high (Guan, Deng, & Zhou, 2020).

Between the buyer and seller, as well as any other parties involved in the transaction, the
product or service transferred has gained value as a consequence of the procedure. Short-term
traders may benefit from this value, while long-term contracts may help. To ensure that all
participants in the transaction or agreement benefit from the new value created by the
transaction tool, it's important to remember that the additional value belongs to everyone
involved. As a result, customer service is a procedure for delivering considerable value-added
advantages to the supply chain cost-effectively (Qui, Chen, & Shi, 2020). Customer service
distinction may provide Falcon Logistics with a leg up on the market at a period of fierce
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rivalry when many Falcon Logistics offer identical items, both in terms of pricing and
features and quality. Service to customers is both a product of the logistics system and an
essential part of Falcon Logistics' marketing strategy. The effectiveness of the logistics
system in generating time and place utility with a focus on external customers is measured by
its customer service performance. How successfully marketing and production can
communicate and engage with logistics daily will be determined by the quality of service
offered to these departments by Falcon Logistics, which impacts their capacity to meet client
demands (Ma, Wang, & Chan, 2020).

Figure 3 Logistic Cycle

Falcon Logistics' ability to retrain current customers and attract new ones depends on the
quality of customer service it provides. Every business, from computers to apparel to
automobiles, has a vast range of options for clients. A Falcon logistics firm can't have
dissatisfied clients. Falcon Logistics' quality of customer care directly affects its clients.
Falcon Logistics' market share, total logistics costs, and overall profitability are directly
influenced by the customer service it delivers. An example of this is the importance of
attracting and retaining clients (Sundarakani, Abdul Razzak, & Manikandan, 2018).

For many manufacturers, distributors, and retailers, inventory is the most significant
investment in their assets. Over 20% of manufacturers' total assets and over 50% of
wholesalers' and retailers' total assets are invested in inventory. A plethora of goods has
resulted in the last two decades from enterprises trying to meet the varying wants and
requirements of various market groups. High levels of product availability have become the
norm for customers. Inventory levels have gone up for many businesses as a consequence of

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this. As just-in-time production, shorter product life cycles, and time-based competition
become more prevalent, companies with extensive inventories have come under fire. In the
end, inventory serves a valuable role (Ho & Leung, 2010).

It's expensive, though, to have excessive goods on hand. Falcon Logistics sometimes fails to
account for the various expenses connected with keeping merchandise in its possession.
Inventory management is critical due to the high out-of-pocket expenditures of inventory
keeping and the need to compete with other investment options accessible to the company.
Logistics system design and customer service standards can only be implemented with a
complete understanding of inventory carrying costs. Number and location of distribution
locations; inventory levels; transportation options; production schedules and minimum
production runs; and modes of storage and forms in which inventories will be held
(Direction, 2012).

Reduced inventory costs may be achieved by ordering in smaller amounts more often, but the
ordering expenses and shipping costs may rise. To assess if purchasing in lower amounts
would be profitable, it is required to weigh the savings in inventory carrying costs against the
higher expenses of ordering and shipping. In addition to determining inventory carrying
costs, the appraisal of new products and price deals/discounts also need this information. To
purchase or not to buy? Profitability reports A company's inventory carrying expenses must
thus be precisely measured. Logistics has always relied on computer and information
technologies. In the early 1980s, microcomputers sparked a boom in the field. Information
technology is expected to be one of the most critical influences on logistics' future growth.
The logistics system's brain is the order processing system. The logistics process begins when
a client orders something from the company. The speed and quality of information flow
directly influence cost and efficiency. A lack of consistent and timely communication may
result in lost customers, high transportation, inventory, and warehousing expenses, and
probable manufacturing inefficiencies due to frequent production line modifications
(Sundarakani, Abdul Razzak, & Manikandan, 2018).

The logistics and corporate management information systems are built on top of the order
processing and information system, which serves as the basis. In this sector, there is a lot of
room for improvement in terms of efficiency (Ibn-Mohammed, et al., 2021). Companies of
different kinds use computers to assist their logistics operations, including Falcon Logistics.
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Regarding the "leading edge," this is particularly true for organisations that have been dubbed
"leaders." These companies heavily computerised processes for order input, order processing,
finished products inventory management, performance assessment, freight audit payment,
and warehousing. It has been shown that logistics information systems are critical to a
company's ability to compete in today's global marketplace. Decision support systems (DSSs)
go beyond transaction processing and monitoring and assist the executive decision-making
process computer based (Qui, Chen, & Shi, 2020).

Decision support systems (DSS) are a collection of interconnected subsystems designed to


provide decision-makers with better information to make better decisions. When it comes to
time-based rivalry, Falcon Logistics is turning to information technology to gain an edge over
the competition. It's all about combining a variety of information-based technologies to
minimise order cycle times and expedite responsiveness, as well as reduce supply chain
inventories. Information technology is also being utilised to aid logistical decision-making by
using more complex applications like decision support systems, artificial intelligence, and
expert systems. Falcon Logistics' distribution network and the broader supply chain rely on
effective communication for their operations to run smoothly. Excellent internal
communication may be an essential source of competitive advantage (Zhang, Zhao, & Qian,
2017).

There are several facets to materials handling, including the transfer of raw materials and
finished commodities inside a factory or warehouse. Because every time an item travels or is
handled, Falcon Logistics incurs expenses without providing value, a fundamental goal of
materials management is to reduce handling wherever feasible. Reduced transit distances,
bottlenecks, inventory levels, and losses due to waste, pilferage and damage are all part of
this (Kamar, Nasir, & Jaafar, 2018). Because of this, Falcon Logistics may save a significant
amount of money by carefully examining material flow patterns. After-sale service is another
aspect of logistics' remit, moving raw materials, work-in-progress, and finished items. This
includes delivering repair components to dealers, storing appropriate spares, picking up
damaged or malfunctioning items from consumers, and reacting rapidly to requests for
repairs. Maintenance outages may be exceedingly expensive for businesses that are forced to
halt or postpone production while they wait for repairs (Mitra & Basfirinci, 2015).

11
Figure 4 Third Party Logistics

As a marketing and logistical tool, packing may serve as a means of promoting products
while protecting them from damage. Packaging may be used to communicate essential
information to the buyer. Aesthetically appealing packaging may also pique the interest of the
buyer. Protective packaging is helpful for both storage and transportation. This is particularly
true for lengthy distances covered by various vehicle types, such as international shipping.
Material handling equipment and warehouse layout must be considered while designing
packaging. Falcon Logistics' facilities and warehouses are strategically located, and this
choice impacts not just the prices of getting raw materials in and finished items out but also
the quality of customer service and the speed with which responses are provided. The
location of consumers is an important consideration. It's all about balancing supply and
demand, finding qualified workers, finding transportation, and so on (Smith, Thomas,
Snoswell, Haydon, & Mehrotra, 2020).

Warehouses play a critical role in any logistics system. Worldwide, the number of
warehouses is estimated at 750,000. Professionally run warehouses are also included. Falcon
logistics firm warehouses, garages, self-storage facilities and garden sheds are included in
this category. For a company to achieve high customer satisfaction at the lowest possible
overall cost, warehousing is critical. The producer-to-customer supply chain relies heavily on
warehousing operations. Regarding logistics, storage has gone from being a minor

12
component to an essential one. The Falcon Logistics procurement division is taking on
greater responsibility for procuring products and services. Falcon Logistics' manufacturing,
marketing, sales, and logistics are all supported by procurement, which is the process of
obtaining products and services from sources outside the company. It's also known as
procurement, buying, supply management, and many more. Supplier selection, negotiation of
price, conditions, and quantities, and supplier quality evaluation are all part of the
procurement process. Procurement has grown in relevance and value to Falcon Logistics as
the company has established long-term partnerships with fewer key suppliers (Oldekop,
Horner, Hulme, Adhikari, & Agarwal, 2020).

SC Practices in the Falcon Logistics


Managing networks that provide products and services to consumers is essential to logistics
and supply chain management. The process is labour-intensive and requires the warehousing
and transportation of unprocessed materials and finished products (Horner, 2020). To
establish net value, build an aggressive infrastructure, leverage an all-inclusive logistics
system, strike a balance between supply and demand, and quantify the global performance of
manufactured goods, logistics and supply chain management requires the formulation of
policies, the scheduling of activities, the implementation of those policies, the monitoring of
those activities, and the scrutiny of those activities. Logistics management is intricately
intertwined with oversight of operations, procurement, and the exchange of information.
Falcon Logistics takes advantage of it to maintain its lead in a crowded market.
Communication is essential for the management of logistics and supply chains. Control of
one's relationships with one's customers is necessary (Direction, 2012).

Studies show that managers must shift from administering individual jobs to integrating
necessary acts into critical supply chain operations to succeed. Falcon Logistics's
procurement department should order depending on significance, for example. To satisfy
consumer expectations, the marketing department will speak with various stakeholders.
According to this information, process integration is integral to customer relationship
management (Ibn-Mohammed, et al., 2021). Falcon Logistics, computerization, and
harmonisation of sales, advertising, consumer service, and industrial support need the use of
technology to meet customers' expectations. As a result of this information, Falcon Logistics'
business efficiency is increased since the Falcon logistics firm always responds to client
requests on time. As a result, customers are more satisfied with the service they get.
13
Customer relationship management (CRM) helps Falcon Logistics enhance revenue. In
supply chain management, customer satisfaction data is often used since it enables market
analysis (Lloyd-Smith, et al., 2009).

Figure 5 Supply Chain Cycle

To meet clients' needs in a worldwide market, Falcon Logistics encounters several problems.
Logistics and supply chain management companies experience a wide range of difficulties,
including those connected to customer service, cost control, planning and risk management.
Since Falcon Logistics' performance may be affected, providing excellent customer service is
a crucial responsibility for every management to overcome. This means that the number of
items given must be accurate. The consumer should receive the essential documentation at
the appropriate time and at pricing. Logistics and supply chain management may be improved
by employing the supply chain operations reference model, which provides a framework and
knowledge of supply and performance circumstances in the market (Pan & Zhang, 2020).

Logistics and supply chain management may be effectively used to ensure the success of
other departments, such as manufacturing and operations. Monitoring the flow of industrial
processes, for example, plays a crucial role in logistics and supply chain management.
Logistics and supply chain management is critical to the success of the industrial unit. The
industrialised cycles are decreased due to logistical procedures in production, increasing

14
responsiveness and efficiency in meeting consumer expectations. Factors that impact logistics
costs and significance include scheduling, forecasting manufacturing operations, for example,
handling and shipping; time phasing of equipment; and record-keeping (Sundarakani, Abdul
Razzak, & Manikandan, 2018).

An adequate supply chain management strategy is needed to meet market demand and do so
profitably. Customers will be drawn to Falcon Logistics products and services because of the
company's supply chain management, which ensures the most excellent value for their
money. Because of improved information exchange across supply chain networks, inventory
levels may be lowered, expenses cut, and a more efficient supply chain can be created. There
will be a long-term connection between the supply chain and the supplier due to efficient
supply chain management. Furthermore, the inclusion and collaborative inter-Falcon
Logistics al interaction necessitate exchanging information. The synergy of intra- and inter-
company integration and management will be easier to capture with a long-term connection
(Hintzen, 2019).

Bullwhip effects such as excessive inventory investment, poor customer service, incorrect
capacity allocation, reduced income, and missing output are all caused by a lack of
knowledge across the supply chain. The Bullwhip effect may be controlled, and the supply
chain's relationship and performance can be improved by planning along the supply chain and
coordinating information. The sharing of information is critical to coordinating efforts. The
lead time of information like orders, demand and capacity projections, and point-of-sale data
may be decreased if members of the supply chain have access to free flow information.
Benefits and drivers of sales information sharing have been highlighted. Falcon When
demand is strong and the lead time is lengthy, logistics that have a long-term connection with
the supplier will be able to secure a more significant inventory or a cost reduction. In the long
run, customers will benefit from faster delivery of a higher-quality, more affordable product
(Direction, 2012).

Chapter 3 – Department Analysis and IT support in the Falcon Logistics


Departmental Analysis
However, working as an intern at a smaller firm with a limited number of employees allowed
me to get experience in various areas, such as learning how to obtain rates from large box
carriers and freighters. I learned how air freight rates are computed and how product
15
dimensions factor in. As a result, I better understood how items are kept and handled and how
to negotiate lower prices with customers. I was also able to determine the cost and profit of
each order. It was a short internship since I began towards the end of the year and had hoped
to continue for a few months longer. My company was forced to go online at the start of the
pandemic because of a lockdown procedure that took place after about six months and caused
a slew of problems for everyone involved. A few months later, as the crisis deepened, the
company sought to relocate its Oman branch to the UAE, where labour costs were lower.
Overall, working for a logistics start-up gave me an excellent introduction to the industry
(Ma, Wang, & Chan, 2020).

A warehouse is where commodities and resources may be stored in an organised and


effective manner. Wholesalers, manufacturers, exporters, and importers are just a few
businesses that employ warehouses. Warehouses are needed by a wide range of enterprises,
including transportation and customs, to name a few. Storage space for equipment,
merchandise, or other objects is the principal use of a warehouse. It provides businesses with
suitable storage options for their items while they aren't being sold (Neumeyer & Hevia,
2020). As a result, the stock is kept in better condition, and waste is reduced. Goods may be
stored until they are used or consumed, even if they have not yet been produced or purchased.
Goods stored in a warehouse are safeguarded against the elements such as heat, wind, dust,
and moisture, which might lead to theft, loss, or damage. Depending on the product, a
warehouse may customise its layout to meet the needs of that product. The company may
employ security personnel to guard against theft, set up a cold storage facility for perishable
items, apply pesticides to preserve them, and put in place firefighting equipment to keep the
building safe from fires. With careful consideration of these scenarios, a warehouse may
considerably reduce losses due to rotting and waste during storage. Another of the
warehouse's many duties is financing. A financial institution makes a loan to a manufacturer,
business, or processor as a kind of inventory finance. In this situation, the loan is secured by
items, inventories, or commodities stored in a warehouse (Qui, Chen, & Shi, 2020).

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Figure 6 Warehouse Management

The depositor receives a receipt when items are moved to a warehouse, which serves as proof
of the deposit. The warehouse may issue a "Warehouse-warrant" keeper in favour of the
items' owner. The title may be transferred by signing and delivering this paperwork. Using
this warrant as collateral for a loan from a bank or other financial institution, the owner may
get funds while the assets are in storage. In some instances, depositors may get money
advances from warehouses for a limited period, if they keep their products as collateral.
Warehouse finance offers a wide range of advantages to borrowers (Kamar, Nasir, & Jaafar,
2018). As a significant benefit of warehouse finance, borrowers may utilise their raw
materials, commodities, and other assets as collateral. Regarding finance, warehouse
financing is frequently a better alternative for borrowers than unsecured loans or short-term
working capital loans. Small firms and manufacturers may utilise warehouse finance since
the conditions are flexible and often favourable to the borrower. Because it's a secured loan,
it's usually less expensive than other forms of financing. Warehouses maintain track of the
items and materials that are delivered to, stored, and shipped from the facility. Also included
is a record of any other information about the warehouse. These data help determine stock
availability, processing, and replenishment needs for warehouse managers and other relevant
staff members (Yin & Ran, 2021).

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Chapter 4 – SWOT Analysis of the Company

Figure 7 SWOT Analysis

Strengths
 For new projects, Falcon Logistics has had some success and generated decent returns
on investment by creating new revenue streams.

 They incorporated complementary business with great success through mergers &
acquisitions. Many technology companies have been integrated into the company's
operations and supply chain over the past few years (Darom, Hishamuddin, Ramli, &
Nopiah, 2018).

 It has achieved high customer satisfaction among current customers and good brand
equity among potential customers, thanks to the company's dedicated customer
relationship management department.

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 Falcon Logistics has been able to scale up and down in response to market demand by
automating activities and ensuring consistency of quality.

Weaknesses
 Products offered by the firm do not cover all of its needs. This lack of selection might
open the door for a new player to enter the market.

 Employee turnover is significant at Falcon Logistics, which necessitates more training


and development costs for the company than it does for its rivals.

 There was a lot of room for improvement in marketing the items. Because its
positioning and USP aren't well defined, the product is vulnerable to assault from
rivals in this market despite its sales success.

 There is a lack of appropriate and effective financial planning in the workplace. This
is based on the current and liquid asset ratios, which indicate that the corporation can
utilise its cash more effectively than it currently does (Kamar, Nasir, & Jaafar, 2018).

Opportunities
 The core capabilities of the organisation are applicable across several sectors. In
comparison, GE's study into healthcare led to improvements in oil drilling equipment.

 the adoption of new technological standards and government free trade agreements
has given Falcon Logistics a chance to access a newly developing market.

 In recent years, a significant amount of funding has been allocated to the internet
platform. The investment made by Falcon Logistics made it possible to access a new
sales channel. In the future, the corporation may leverage big data analytics to
understand the requirements of its customers better (Wu, Tseng, Chiu, & Lim, 2017).

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Threats

 Since profits have remained steady, the industry's number of participants has grown,
which has placed downward pressure on both profits and sales.

 Rising raw material costs may jeopardise Falcon Logistics' profitability.

 Legal action may be taken against the corporation in numerous areas because of the
wide variety of regulations and constantly changing product standards in those
countries.

 Falcon Logistics’ product is also threatened by imitating counterfeit and low-quality


products, particularly in developing countries and low-income regions (Ma, Wang, &
Chan, 2020).

Chapter 5 – Problem Identification and solution


Warehouse activity or the whole chain of procedures that are related to it might suffer from
warehouse difficulties. These problems are usually discovered after the process or even after
it has finished. It's typically too late to avoid the mistake, and it may even be too late to lessen
the amount of harm. Understanding possible problems that might arise in your warehouse
operation can help you foresee them and prevent them from escalating (Hintzen, 2019).

Accidental Redundancy
Each item stored in the corporate warehouses is responsible for various functions connected
to the production processes. This is avoided by having a well-organized operation. If not,
give it another go. These redundant tasks drive up the cost of labour and demand more time
to fix. This is more common in big warehouses since they often have more room and
inventory. Order picking shows redundancy while choosing products from a warehouse's
shelves to fulfil a customer's order. There is less opportunity for ordering mistakes for
facilities with a smaller footprint. A large warehouse needs a crew to execute a single charge.
When the order is handed around to several people, there is a high probability of duplication
(Neumeyer & Hevia, 2020).

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Solution
If company stores duplicate in a warehouse, the company should invest in an intelligent
warehouse execution system (WES). Barcode technology may scan the items that have been
ordered to check for duplicates.

Messy Warehouse Layout


To reduce the amount of money spent on storage, warehouse managers need to use their
space better. As of 2018, manufacturers only used 68 per cent of the storage capacity
available; hence, this strategy is not always feasible. The amount of inventory stored in a
warehouse is restricted by inefficient space use. A suitable warehousing strategy might solve
this issue. They are maximising the amount of space on the floor and ceiling while allowing
unrestricted staff movement around the warehouse. This strategy includes using technology
and equipment to reduce the amount of labour required and the expenses associated with that
labour, increasing the accessibility of warehouse items, systematically classifying inventory,
and assuring inventory safety (Laing, 2020).

Solution
When organising the configuration of the WMS, you should give some thought to warehouse
management systems and other technologies. Many WMSs may use measurements and
inventory information to generate a 3D model of the most efficient layout for a warehouse.
The organisation could also decide to install an automated storage and retrieval system
(AS/RS), which helps speed up the process of putting away items and taking them out again.
An AS/RS may increase the speed and efficiency of the corporation as well as free up floor
space in the warehouse. If a company isn't prepared for the most recent technological
advancement, it could begin with the fundamentals. The firm's inventory and sales
management system determines which products are moving off the shelves the quickest.
Ensure that the firm stores things like these in the most accessible locations possible so that
they may be gathered and stashed away as fast as possible (Hintzen, 2019).

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Figure 8 WMS

Bad Inventory Management


Finding a product at a different location than where the company expected it to be. Assuming
the company have enough stock to complete a request, only to discover later that you do not.
As a result, the company order's lead time has been dramatically increased by the need to
place a backorder. A refusal to complete an order after presuming you don't have enough
inventory to do so, only to discover that the company do (Direction, 2012).

Solution
Bringing the warehouse into the modern era could help with these issues. There is software
designed specifically for warehouse management that includes real-time inventory
management and specialised inventory management systems. A barcode scanner is used in
most cases where inventory data is being captured; following the compilation of data, the
software manages your inventory catalogues and maintains a record of each item
(Hudecheck, Siren, Grichnik, & Wincent, 2020).

Poor Preparedness for Seasonal Demands


Certain items are in high demand all year long, while others are more popular at certain
seasons of the year. If a spike catches a company off guard in demand, the warehouse may be
ill-equipped to handle the orders. Having insufficient inventory or not knowing where to keep
things at such short notice might cause this. Be informed of the current market trends and

22
changes in demand for the items the company deal with so that company may manage
company stock levels.

Solution
Keep in touch with suppliers, distributors, retailers, transporters, and any other sources you
have in your business. In this approach, the whole supply chain will be able to react to
demand changes in a coordinated manner. The company may also employ demand
forecasting tools to determine what items you'll need for the season. Assemble and arrange
merchandise to facilitate the speedier distribution of your seasonal offerings to the public.
Company warehouses should be organised to make it easy to locate and retrieve items for
customers' orders. Consider pallet flow rack systems, forklift trucks, and automated storage
and retrieval systems (AS/RS) to improve the efficiency and speed of warehouse operations
(Smith, Thomas, Snoswell, Haydon, & Mehrotra, 2020).

Unsatisfactory Order Management


As crucial as order management is in a warehouse, it is also the most error-prone activity. A
company's order management operations include everything from receiving an order through
packaging, delivering, tracking, and reimbursing the correct items to the right customers and
managing any necessary post-sale procedures like refunds and returns. In the event of a
mistake in any of these phases, the whole workflow must be restarted from scratch. Company
customer's purchases will arrive later than intended due to this loss of time and money (El-
deen, Hasan, & Fawzy, 2016).

Solution
Many companies utilise an order management system to keep things going smoothly when
placing orders. Depending on the company solution, the company may be able to manage
inventories as part of your entire order management and fulfilment procedures. The company
may save time and money by increasing company order fulfilment accuracy. AMR Research
shows that businesses with 80% or higher-order rates are three times more profitable than
those with 60% or lower-order rates (Baveja, Kapoor, & Melamed, 2020).

Poor Damage Control


A significant problem in warehouses, particularly those with a lot of merchandise and heavy
machinery, is damage. While it's impossible to prevent harm, you may always work on
23
strategies to minimise the effects of your actions. Using pallet rack protectors, such as
netting, guard railing and anti-skid tape, low clearance warning bars, and accumulation
conveyor systems may help prevent injuries and accidents. Keep your walkways well-lit and
large enough to accommodate merchandise without stumbling. These safety precautions will
benefit your staff, equipment, and inventory (Horner, 2020).

Solution
Frequently inspect the warehouse for any damage to the equipment, storage, or vehicles there.
Check for damaged shelves and pallets, overcrowding, and fractures in the shelves. Inspect
the area for any signs of water damage or bugs that might potentially create difficulties.

Conclusion
The emergence of the Falcon Logistics Company was important in the globe. The delivery of
packages to customers in different countries it has emerged as one of the best logistics
companies. For economic growth, the Company has a mandate of ensuring a stable transport
system. The Company has to ensure that the employees are satisfied so that they are capable
of the emergence of the Falcon Logistics Company was important in the globe. The delivery
of packages to customers in different countries it has emerged as one of the best logistics
companies. For economic growth, the Company has a mandate of ensuring a stable transport
system. Falcon Logistics has warehouses all around the world. This has helped to facilitate
networking and the localization of services. If they had enough warehouse space, Falcon
Logistics could take off. Warehouses evaluate the commodities, unload them, address any
damage that may have occurred, repack the goods, examine and weigh them, and then sell
them. Adequate storage may stimulate industrial expansion. Distribution, logistics, data
processing, and service centres are all rolled into one in today's modern warehouses. Falcon
Logistics provides help to warehouses to improve the shopping experience, customer flow,
brand values, and overall competitiveness of the warehouses. The distribution of packages to
customers is made more accessible by warehouses. It is recommended that Falcon Logistics
construct AI-powered warehouses. Customers get high-quality service from contemporary
warehouses that are run by experienced personnel. A rapid increase in supply might be
achieved by increasing the number of shipments in each country. This would lead to the
development of operations worldwide. Falcon Logistics needs a solution that can manage and
regulate warehouse operations. Falcon Logistics assists with decision-making as well as

24
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