Logistics Management - John Lewis Partnership - Case Study Example

Logistics Management Name Tutor Course Date Course Table of Contents Table of Contents 2 Executive Summary 3 Introduction 4 Discussion 4 Recommendations 11 Conclusion 12 Works Cited 13 Executive Summary The fundamental reason for the success of the company is its efficient and effective logistics management system. However, the company may also face challenges in future due to changes in the demand pattern. The company should embrace the use of iBOT technology for the purposes of handling the demands of the customers while at the same time reducing the number of the bins. SANDC is not flexible enough to meet the demands of the customers in terms of the home shopping due to the high demand. The company should therefore embrace continuous improvement in order to solve the problem. It is also important for the company to run a separate inventory for the home shopping in order to meet the demands of the customers. Tesco is one of the successful companies in the United Kingdom that also has good logistics management strategies while Woolworths is a company that was unsuccessful due to it poor logistics management strategies. The sustainability and environmental strategies of the company have also played an important role in enhancing the competitive advantage of the company. Other companies can be successful incase thy embrace the success formula of the company. It is recommended that the company should continuously embrace the concepts of technology and introduce new technological equipment in order to increase its efficiency and effectiveness. Introduction John Lewis partnership is one of the top retail companies in the United Kingdom. The company is considered successful and it has been in operation for the last 75 years. The success of the company is due to the strategies that it has put in place. The company has a huge workforce of 70,000 permanent employees. The permanent members of staff of the company are also partners in the business and this has played a significant role in the growth and development of the company. The strategies of a company in terms of its logistics play an essential role in ensuring that the goods can be managed in the store (Maloni, Craig & Lutz, 88). This is considering that the company has about 350,000 product lines. The success of a retail store is dependant on its logistics management. Successful companies like Tesco have an efficient logistic management system. This enables them to carry out their operations effectively. John Lewis has also recognized the importance of the changing trends in the market and it has therefore put in place measures to ensure that it is successful in its operations. It is important to note that the success of a retail store is dependant on its ability to handle the goods in its stores. This is considering that poor logistics management may lead to poor management of the goods and hence impacting negatively on the entire logistics process. The paper thus discusses the concepts of logistics management in relation to the achievements of John Lewis partnership. Discussion The demand pattern is changing and fewer bins are required at the picking station while the number of goods is also on the increase. This means that the company will be required to change its strategy in order to meet the high demands at the picking station. The company has a total of 33 picking stations with a total of 12 tote bins on the lower level. Since the demand at the pick stations is set to increase and the number of bins is set to be reduced, the use of technology will be important at the picking stations. It is important for a company to ensure that technology is used effectively in order to ensure that the process is carried out effectively (Waters, 19). This also means that the company must increase its capacity at the picking stations while at the same time reducing the number of bins. The exact details of when the picking will be carried out has to be updates for the purposes of ensuring that the goods are picked immediately they are required and hence ensuring that it is able to cope with the high number of goods. On the other hand, the current technology that is being used by the company which involves pick-to-light system should be enhanced in order to ensure that it is able to respond accurately to a lower number of picking and a higher number of goods. The success of the company in reducing the number of bins will therefore be dependant on the use of technology. The fundamental reason for the success of the company has been due to its effective logistics management system. The storage system of the company is effective in terms of ensuring that different types of goods can be handled at the same time. Technology has also been enhanced in the logistic system of the company. The order picking system of the company is effective due to the use of technology that controls the process and hence leading to efficiency. Different concepts have also been put in place by the company for the purposes of ensuring that the machinery at the warehouse are able to operate on a continuous basis. The shifts with in the company are well organized for the purposes of accommodating different number of employees at the same time. A warehouse management system is also in place which plays an essential role in managing the movements within the warehouse and also managing the supplier. The reasons behind the success of the company can be compared to that of Tesco which is a leading retailer in the United Kingdom. Tesco utilizes technology throughout its logistic management process and this has impacted positively on its operations and hence making it the top retailer in the United Kingdom (Ellinger, et al, 43). The business strategy that the company utilizes is also similar to that of Tesco and hence the success that it enjoys. The companies with poor strategies in terms of logistics have been unsuccessful. Woolworths is one of the unsuccessful retail companies in the United Kingdom and this is due to its poor strategies. The strategies of the company were not good and hence contributing to its failures. In order to reduce the number of bins at the picking stations and to reduce the number of machinery, the company should also consider equipping the store with automated trolleys for the purposes of handling the light goods. This will be useful in reducing the number of bins while at the same time improving on the efficiency of the company. The company should also consider switching to the use of automated Goods-to-person system which is also referred to as the perfect pick. Through the use of the system, the operations will be automated and it will also increase the degree of accuracy and reliability and hence improving o the operations. The system is based on iBOT technology which is an intelligent wireless vehicle that has 100% to the inventory within a single aisle. The system has the potential of traveling within the storage rack at an industry rate (Pienaar & John, 18). It does not rely on lifts or conveyors unlike the other systems and hence increasing its efficiency. The system is capable of delivering the totes at both ends o the aisle and hence increasing on its operations. The use of the system will thus be useful to the company in terms of enabling it to reduce the number of bins. Top companies like Tesco have utilized the system and it had improved on its efficiency at the picking stations and hence contributing to the success of the company. The system can be easily introduced or removed and hence its efficiency. The semi automated National distribution centre of the company is for the purposes of handling small sized items at an effective and accurate rate. It is designed to operate two shifts per day and hence improving on the efficiency of handling the small sized goods. It reduces the back of store facility and hence reducing costs. However, it has its own weaknesses as it requires frequent maintenance for the purposes of ensuring that it operates effectively. The home shopping should not continue to have its own areas within the SANDC as the volume of the home shopping is on the increase. It is also important to note that the home shopping requires a lot of space due to the high number of customers. The demand for the home shopping is high and hence the need of separating it. Home shopping is also has a high number of customers as most of the items are required on a daily basis. Since frequent maintenance is required by SANDC, it may end up causing inconveniences to the customers. It is therefore important for the company to ensure that it meets the needs of the customers who require the some shopping by putting in place measures to ensure efficiency. The high volume of the customers for the home shopping may require the increase in the number of shifts with regards to SANDC which translates to an addition in the costs that are involved in the maintenance process. The current market trends also indicate that the home shopping is set to increase in future (Myerson, 13). `SANDC may not be flexible enough in terms of dealing with the changes in home shopping as the trends indicate that home shopping is set to increase. This means that a separate inventory should be put in place for the purpose of ensuring efficiency is maintained. A separate inventory will also be useful in ensuring that the changes in the home shopping can be dealt with in a short period of time. Order storage retrieval should also be put in place for the home shopping in order to respond to any changes. The key implementation issue that should be considered is the efficiency and the ability of the system to respond to any changes in the home shopping. Different companies have put in place measures to respond to the changes in terms of home shopping. However, it is important to note that most of the successful companies like Tesco have a separate inventory for the home shopping which has been useful in improving its operations and meting the demand of the customers. Inventory management requires the needs of the customers to be considered (Hazen, Casey &Hanna, 375). Considering the needs of the customers together with the issues of flexibility is important in ensuring that the customers are satisfied. It is also important to note that the main goal of inventory management systems is to ensure that the customers are satisfied and the products are able to reach them at their convenient time. The concepts of operational changes should also be considered when designing the inventory for the home shopping. Competitive advantage is an important concept for any business as it is useful in gaining a large market share. John Lewis has gained a competitive advantage in the market due to its ability to satisfy the needs of the customers. The logistics of the company is effective and hence enabling it to respond to the needs of the customers on time. This has played an essential role in enabling the company to attract more customers and hence increasing its competitive advantage. The use of technology is also a factor that has enabled the company to gain competitive advantage. The company uses technology in the logistics management and hence improving on the outcome of its operations. This is also a factor that had enabled it to gain competitive advantage. On the other hand, the company also uses its websites for the purposes of carrying out its business activities and hence the competitive advantage that it enjoys in the market. The brand image of the company is an important factor that determines the ability of the company to gain competitive advantage in the market (Tokar, 93). The brand image of the company is good which has played an important role in increasing the popularity of the company. Tesco is popular in the United Kingdom which has played an important role in improving its competitive advantage. The success of the company can also be attributed to the commitments of the employees as they are part of the company. Continuous improvement is important in terms of ensuring that it is able to meet its goals and objectives. This is considering that changes are also taking place on a continuous basis. Continuous improvements is also required in all the operations of the company for the purposes of ensuring that it is effective. This can be achieved through the continuous upgrading of the system for the purposes of ensuring that it meets the changing demands. The present SANDC requires improvements in order to meet the demands of the company. This can be achieved through the utilization of modern technological equipment (Carter & Liane, 52). The utilization of modern technological equipment is important in ensuring that the SANDC is able to handle more goods and hence ensuring that it is able to meet the demands of the customers. It is also important for the software that is being used to be changed in order to increase the efficiency of the operations. The use of new technology will play an important role in ensuring that the operations are carried out at a fast rate. Any heavy machinery should also be reduced through the use of technology in order to ensure that the SANDC is effective. This is considering that the heavy equipment has a negative impact on the operations at the SANDC as it reduces the amount of space. Light equipment should also be introduced for the purposes of carrying out different tasks as it will also be useful in increasing the efficiency of the operations. The costs at the SANDC may end up increasing over time due to various factors such as labor materials and energy. The increase may be attributed to the increase in the demands of the customers or the increase in the number of customers. Controlling the costs should therefore be an important concept at the SANDC for the purposes of increasing efficiency. Utilization of the capacity is also an important aspect that can be embraced for the purposes of increasing efficiency. This will ensure that it has the ability of handling the changes in the demands of the customers. Utilization of the capacity will also be useful in enable the company to cope with changes in demand. Continuous improvements is also important in ensuring that the SANDC is flexible and hence its ability to handle the needs to the customers. Low tolerance for errors is also a concept that should be attained by the organization for the purposes of increasing the efficiency of the SANDC. The company will also be able to improve on its quality by embracing the concepts of continuous improvements. Improvement in quality is important in ensuring that the customers are satisfied. Continuous improvements in the logistics operations will be useful in ensuring that the company is able to increase its competitive advantage and hence impacting positively on its ability to attract more customers. The continuous improvements plays an important role in ensuring that the company is able to save on costs and hence increasing on its efficiency (Busse & Carl Marcus, 201) The formula of success for John Lewis can be suitable for other companies. This is because the strategies addresses different aspects that are useful to an organization. The success formula is useful in ensuring that the company is able to deal with different challenges in terms of logistics. Competitive advantage can also be gained an organization that uses the success formula of John Lewis. It is also important to note that the issues of environment and sustainability are important in the modern day organizations (Benton, 17). John Lewis has put in place environmental and sustainability measures that can also be used successfully by the other organizations. The company has put in place solar panels that are useful for generating electricity directly from the sun and hence sustainability. This form of energy is renewable and it cannot be exhausted and hence leading to sustainability. The storm water is also collected by the company which is important in ensuring that water can be managed and conserved. The warehouse of the company is also environmentally friendly bas it has 15% of roof lights. The automatic lighting control system is also in place for the purposes of ensuring that energy is saved. The measures and strategies that have been put in place by the company have greatly contributed to its success. Organizations that embrace success formula of the company is also likely to end up being successful and hence improving its competitive advantage. It is also important to note that the utilization of technology is useful in enabling an organization to increase its efficiency. Recommendations The company is successful and this has impacted positively on the operations of the company. However, it is recommended that the company should embrace the concepts of continuous improvements for the purposes of increasing its competitive advantage. Continuous improvements will also play an important role in enabling the company to identify its weaknesses and in terms of the logistics and make improvements. It is also recommended that the company should consider opening a new inventory for the purposes of dealing with home shopping. It is also recommended that the concepts of continuous improvements should be carried out at the SANDC for the purposes of ensuring that it is flexible and hence meeting all the demands of the customers. The environmental and sustainability measures that have been put in place by the company should also be maintained. This is for the purposes of enabling the company to gain competitive advantage and trust of the customers and stakeholders. It is also recommended that the company should consider embracing the use of technological equipment for the purposes of carrying out its operations. The use of technological equipment will be useful in reducing costs and ensuring that the customers can easily access the products of the company. It is recommended that the company should also consider expanding its stores for the purposes of ensuring that it can meet the future demands of the customers. It is also recommended that the company should consider using some of the concepts that are used by the competitors like Tesco. Conclusion In conclusion, it is evident that the performance of the company is good due to the logistics management strategies that have been put in place. It is also evident that the company has also embraced the technological concepts for the purposes of managing its operations. It is also evident that the demand of the customers is on the increase and some of the infrastructure of the company may not be in a position to effectively serve the customers. However, continuous improvements of the company can be useful in solving the challenges that the comp0any is experiencing. The company is also among the best in the United Kingdom and it has the potential of competing with the top companies like Tesco. Unsuccessful companies like Woolworths failed since it was unable to utilize technology and its logistics management was not effective. It is evident that the company has a competitive advantage due to the efficiency of its logistics management practices. The good brand image of the company has also contributed to the success of the company. It is also evident that the company is has a good sustainability plan which has also played and important role in increasing the competitive advantage of the company. Works Cited Maloni, Michael, Craig R. Carter, and Lutz Kaufmann. "Author affiliation in supply chain management and logistics journals: 2008-2010." International Journal of Physical Distribution & Logistics Management 42.1 (2012): 83-101. Ellinger, Alex, et al. "Taking a stand to eliminate coercive citation practices in supply chain management and business logistics research." International Journal of Physical Distribution & Logistics Management 42.5 (2012). Waters, Donald, ed. Global logistics: New directions in supply chain management. Kogan Page Publishers, 2010. Pienaar, Wessel J., and John J. Vogt. Business Logistics Management: A Value Chain Perspective. Oxford University Press, 2012. Myerson, Paul. Lean supply chain and logistics management. McGraw-Hill, 2012. Hazen, Benjamin T., Casey Cegielski, and Joe B. Hanna. "Diffusion of green supply chain management: examining perceived quality of green reverse logistics." International Journal of Logistics Management, The 22.3 (2011): 373-389. Tokar, Travis. "Behavioural research in logistics and supply chain management." International Journal of Logistics Management, The 21.1 (2010): 89-103. Carter, Craig R., and P. Liane Easton. "Sustainable supply chain management: evolution and future directions." International Journal of Physical Distribution & Logistics Management 41.1 (2011): 46-62. Busse, Christian, and Carl Marcus Wallenburg. "Innovation management of logistics service providers: Foundations, review, and research agenda." International Journal of Physical Distribution & Logistics Management 41.2 (2011): 187-218. Benton, W. C. "Purchasing and supply chain management." (2010). Read More