BUSI 601 LIBERTY UNIVERSITY Implementation of a Logistics System Discussion _2025.pdf

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Implementation of a Logistics System: Discussion

Adeyinka Aremu

School of Business, Liberty University

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Implementation of a Logistics System

Key Concept Explanation

A logistic system is an essential tool in managing, tracking, and monitoring the

movement of goods from suppliers to consumers or from sellers to buyers. Due to globalization,

manufacturing companies have adopted new policies that support a friendly environment for

production. As a result, the manufacturing process has provided organizations with a sustainable

approach in the competitive industry. According to Waqas et al. (2019), implementing a logistics

system aids in two ways. First, it facilitates product recovery, which is essential in reducing the

loss of products while in transit. Second, implementing a logistics system helps zero-waste

supply in the supply chain, promoting streamlined traceability of the goods. However, the

authors explore barriers that can hinder the successful implementation of a logistic system. Most

organizations tend to focus on forwarding logistics and completely ignore the significance of

reverse logistics. For a company to succeed in the logistics industry, paying attention to both

processes and providing necessary support is crucial. One of the dominant challenges identified

by the authors was the lack of skilled professionals to handle reverse logistics processes.

Although there is enough workforce with logistics skills, there is a gap between experience and

knowledge, which creates a vacuum in reverse logistics.

Comparison

Implementing a logistic system should consider how future projects will fit into the

existing business models. Thus, a forwarding logistics process should equally provide an

expansion room for reverse logistics to ensure the company benefits from both processes. Waqas

et al. (2019) connote that the challenges that hinder the implementation of a logistics system can

be addressed in advance to ensure the logistics system’s efficiency. Apart from the lack of a

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skilled workforce, the authors observe that the lack of environmental laws that create awareness

of the logistic process interferes with the smooth implementation of the system. For example,

due to a lack of governing laws, companies do not have compliance criteria to use as a guide for

developing and implementing reverse logistic systems. Another hindrance is the lack of

government support regarding the provision of necessary resources in the logistics industry. For

instance, implementing an integrated logistics system cannot be attained with utmost efficiency

due to a lack of support infrastructure and technology. Considering the growth of population

across different continents coupled with booming advancements in technology, the production

process in most companies has increased. As the demand for goods increases, it has become

necessary for companies to develop strategies to support seamless supply chain management.

Thus, any company needs to address the issue of recovery and collection of products to cut costs

and remain competitive. In another study by Rybakov (2018), companies should develop a

business model that optimizes forwarding and reverse logistics. For instance, the Supply Chain

Operations Reference (SCOR) model can support business functions and ensure collaboration

among departments. By disintegrating the functions of the logistics system, businesses can

overcome improve the logistics process. Pulansari 2019 indicates that critical drivers of reverse

logistics systems influence 52 percent of the total transportation costs hence the need to address

all associated aspects for a better overall outcome.

Article Summary

The article emphasizes the importance of adapting reverse logistics practices to reduce

environmental pollution. One approach advocated by the article is reducing the burden of load,

especially on the end-of-life on the environment. Some of the barriers noted that effectively

hinder the implementation of the reverse logistics system include a lack of equipped workforce,

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lack of government support, and high costs of transportation and warehousing. These barriers

differ based on the kind of firm and the industry of operation. However, there are common

factors such as lack of infrastructure that bar implementation of the reverse process. The article

provides recommendations that can be adapted to streamline the process. for instance, the

government and companies can work together to formulate environmental policies to regulate the

reverse logistics processes. Such policies should include waste management, primarily on

hazardous substances. A study has shown that 20 million tons of solid waste are generated

annually. Thus, companies can efficiently deal with waste products and make the environment

safe for current and future generations with an effective reverse logistics process in place. Since

the costs involved in reverse logistics are enormous, the government and other stakeholders

should provide mechanisms that ensure organizations gain access to financial support to

implement sustainable integrated logistics systems and remain competitive.

Application

One practical application of the article is attracting the foreign and domestic flow of

cargoes with readiness in infrastructure and capital. As noted, lack of infrastructure negatively

affects the implementation of a logistic system. As a result, this affects the volume of cargo

transported within and without the country. Lack of finances affects the overall growth and

turnover in any industry. Similarly, the logistics industry is affected by a lack of adequate

financial power to acquire necessary resources. Thus, the availability of finances and a robust tax

system can go a long way in promoting the implementation of an integrated logistics system.

Another opportunity to apply the article is the optimization of logistical operations at the

industrial level. For instance, through an integrated logistic system that supports both forwarding

and reverse processes, companies have a better chance of monitoring and evaluating the usage of

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resources. Companies can determine the quantity of raw material needed during the production

process in the manufacturing industry. Through collaboration facilitated by integrating

departmental roles, the company can streamline other processes, including transportation, reverse

engineering, and warehousing. As a result, this will enable the company to expand its market

base and command a better market share. Again, to deal with the increasing demand and shift in

customers’ demand, implementing an effective reverse logistics system increases the

organization’s competitiveness. Indeed, an intelligent logistic system can provide the company

with data regarding consumers’ preferences. Through a pattern recognition system, the company

can make rational decisions that are data-informed and reduce unnecessary costs. The issue of

business sustainability is rapidly dominating business activities. Thus, with an effective logistics

system, the company can address the issue of waste management and ensure proper recovery and

management of waste products, thus, creating a better business environment.

Annotated Bibliography

Morkovkin, D. E., Nikonorova, A. V., & Shumaev, V. A. (2018, August). Management of

innovative development and integrated logistics system in the Russian Federation. InB3rd

International Conference on Judicial, Administrative and Humanitarian Problems of

State Structures and Economic Subjects (JAHP 2018). AtlantisPress (Frence)B(pp. 239-

243).

Morkovkin et al. (2018) explored the conceptual direction in developing and managing

an integrated logistics system. Logistic systems are intended to enhance innovation and

improve the overall logistics process. The authors observe that implementing an

integrated logistics system can only be attained by unlocking barriers that affect the

logistics industry. In particular, the authors noted that the lack of an underlying

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supporting infrastructure reduces the potential of an organization to develop an integrated

logistics system. Thus, the authors recommend providing necessary resources to support

the loop completion through the implementation of necessary policies and cost reduction

to implement the integrated logistic system.

Pan, S., Zhong, R. Y., & Qu, T. (2019). Smart product-service systems in interoperable logistics:

Design and implementation prospects.BAdvanced Engineering Informatics,B42, 100996.

https://doi.org/10.1016/j.aei.2019.100996

Pan et al. (2019) note that exploring the complex nature of the logistics paradigm has

increased with the advancement in technology. In particular, the authors observe t

implementing an innovative product-service system (PSS) in the logistics industry can

directly impact the process. Implementing an intelligent PSS system depends on several

factors, including the availability of necessary resources to acquire necessary hardware.

However, implementing an intelligent PSS enhances the logistic process and helps the

company cut costs by making rational decisions. A smart PSS can generate big data

through a logistic paradigm known as physical internet (PI), informing logistical

decisions.

Pulansari, F. (2019, May). The Analysis of Cost Drivers to Successful Implementation of

Reverse Logistics System. InBIOP Conference Series: Materials Science and

EngineeringB(Vol. 505, No. 1, p. 012005). IOP Publishing

https://iopscience.iop.org/article/10.1088/1757-899X/505/1/012005/pdf

The cost of implementing an integrated logistic system is usually high and can negatively

impact the company’s operations if there are no adequate measures to oversee the

process. Pulansari et al. (2019) connote that the limited availability of natural resources

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affects the logistics process differently depending on the company’s size. The study

observes that for a company to effectively implement an effective reverse logistics

system, it is essential to track areas within the company that are highly dependent on the

logistics process. For example, reducing costs related to waste management can help the

business reduce its overall operational expenses.

Rybakov, D. S. (2018). A process model of a logistics system as a basis for optimisation

programme implementation.BInternational Journal of Logistics Research and

Applications,B21(1), 72-93 https://doi.org/10.1080/13675567.2017.1361910

Optimization is a term used to showcase effectiveness and efficiency in utilizing

available resources. According to the authors, developing a process model can effectively

optimize the functionalities of a logistics system. Different process models exist; thus,

selecting one that suits the company is essential. For example, Rybakov (2018) notes that

Supply Chain Operations Reference (SCOR) model provides critical metrics that can be

used to determine the efficiency of the logistics system. SCOR model is efficient in

evaluating the performance of the business but also provides insights on functional

boundaries that affect the overall logistics process to allow room for improvement.

Waqas, M., Dong, Q. L., Ahmad, N., Zhu, Y., & Nadeem, M. (2018). Critical barriers to

implementation of reverse logistics in the manufacturing industry: a case study of a

developing country.BSustainability,B10(11), 4202 Bhttps://doi.org/10.3390/su10114202

According to Waqas et al. (2018), implementing a logistics system is hindered by several

barriers in the external and internal environment. For example, a lack of a skilled

workforce with experience and knowledge makes it challenging to implement any system

at the organizational level. Similarly, the lack of government laws to regulate the logistics

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industry, especially in reverse logistics that deals with recovery and waste management,

hinders implementing an integrated logistics system. Another challenge is the lack of

necessary financial support for companies. Implementing an integrated logistics system is

costly and needs many concerning maintenances, which can be tasking for most

organizations.

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References