Logistics and impact on Australian Business

We have all heard of the expression ‘it’s a logistical nightmare!’ It can be so true, and is fraught with all sorts of complexity, risk and expense. Inherently, it refers to any endeavour which is exceptionally difficult to establish by management of resources, processes or activities.

Successful logistics management is vital to the success of Australia’s important export business and a key aspect to businesses being competitive in Australia and around the world.

‘Logistics’ refers to activities required for the movement and handling of goods and materials, including the inputs through production to consumers to waste disposal. It establishes the flow of business from the factory to the end user via transport, storage, procurement, inventory management and packaging.

The different types of logistic services can be generally grouped into the following activities:

• Production process (including managing its flow, all inventory, packaging, ordering and forecasting demand)
• Materials/other inputs (including their procurement and management)
• Transportation and storage
• Product support (parts, services, etc.)
• Reverse flows and disposal (recycling, hard waste, product/equipment returns, etc.)

Logistic services depend on the flow of accurate data and information in relation to sales, delivery, inputs/outputs (materials, order placement, etc.), export and import documentation (particularly relating to overseas dispersion, customs and quarantine).

The use of logistic services to best facilitate the functioning of a business depends on a number of factors such as sales volumes, the number of participants, supply lines, number of buyers, and other factors all of which need to be coordinated and managed to optimise performance.

The more coordinated the less likelihood of things going wrong and excess costs being incurred,

Contracting these services to professional third-party providers will likely save costs in the long run and improve the business ability to deliver the products or services to its customers

It is also essential to meet overseas laws and regulations regarding the import and exportation of products

Technology has over the last decade helped to increase of capacity, speed and interactivity of the information systems impacting logistical concerns assisting business to be more efficient and to lower costs

Many businesses move from a small business operation handling logistics internally to engaging third party logistic specialists as their business need grow and expand into different jurisdictions and this includes warehousing and inventory management

This sector includes contractors/specialists, brokers/agents, multi-service logistics operators and integrated logistics providers 3PL warehousing and many of the larger companies now offer a wider range of services.

Logistics and the Law
Distribution, Licensing and supply contracts involving the import and export of products is complex and involves many commercial agreements and risks. You need to seek specialist legal advice from lawyers who are experienced in this area.

At Sanicki Lawyers we act for clients in the manufacturing sector and also in many other business sectors where we review their terms and conditions and third party contracts and assess risks and liability issues for clients including freight contracts, terms of trade, warehousing agreements.

We can also assist our clients in all aspects of their business support from IP protection, corporate structuring, shareholder and contractor agreements.

A specialist logistics lawyer can also provide advice in relation to insurance and risk management and dispute resolution strategies before things get litigious.

By getting the right advice before committing to any agreement seek legal advice and that may help to reduce risk and a  ‘logistical nightmare’ which may adversely impact on your business.