The paper "Resource Management at Aldi" is a great example of a management case study. Aldi is an international retail chain that has operations in the UK. The has operations across Europe and the US, and it operates over 8000 stores. The adopted business model is that of a no-frills discount chain which makes it attractive to customers during periods of economic difficulties like the 2008 financial crisis (Wallop, 2008). In the past ten years, the chain has grown from being the UK’ s 10th largest store to being the fifth-largest grocer (Butler, 2017).
The logistics department plays a critical role in the functioning of Aldi and other retail stores because businesses and households need ready access to millions of goods and services that are sourced from around the globe. The manager of a logistics department at an Aldi store, therefore, plays a role in boosting the efficiency of the economy as a whole. According to Butler, Aldi UK launched an online shopping service in 2016 which complicates the work of logistics managers as the business has to compete with rivals like Amazon who have experience in online sales.
The logistics manager leads a team of 6 staff and has a range of physical, human and financial resources to meet the objective of moving, handling, and storing products from different supply chains. Task 1 An organisation is a social unit that exists to meet a shared goal or objective. In the given scenario, Aldi is an organisation that seeks to avail goods and services to consumers with maximum efficiency and at the lowest cost. The logistics manager requires human, physical, and financial resources to achieve the objective of sourcing products, transporting them, and storing them before they are availed to consumers. Human resources refer to the skills base that an organisation can utilise to achieve its objectives.
Examples of human resources are the 6 staff that are trained in handling the logistics function of the organisation and who will assist in ensuring that the store is properly stocked at all times. Financial resources concern the ability of an organisation to fund the activities needed in implementing its strategy to achieve the stated objectives (Singh & Gupta, 2016).
For example, Aldi requires working capital to purchase goods and transport them to its stores. Examples of financial resources include bank loans, leases, debentures, and retained earnings. A departmental manager will be given the right to exploit the available financial resources to achieve his/her objectives with the approval of the finance department. Physical resources define a wide range of tangible assets that assist in the transformation of resources into outputs (Singh & Gupta, 2016). Examples include the over 500 Aldi stores in the UK which provide a place where customers can view and purchase products.
Other physical resources include the different forms of transport used locally and internationally, the information technology systems, inventory, and distribution networks. As a departmental manager, the physical resources determine the inputs that a store can manage and will play a role in dictating the overall efficiency of sourcing, transportation, and storage of products. Task 2 Month Human Resources HR Costs Physical Resource Costs July 6 £ 19,750 £ 120 August 7 £ 19,750 £ 140 September 6 £ 19,750 £ 120 October 7 £ 19,750 £ 140 November 9 £ 23,050 £ 180 December 9 £ 23,050 £ 180 January 8 £ 21,400 £ 160 February 6 £ 19,750 £ 120 March 6 £ 19,750 £ 120 April 6 £ 19,750 £ 120 May 6 £ 19,750 £ 120 June 6 £ 19,750 £ 120 Total Cost £ 245,250 £ 1,640 The planning process comprises the creation of plans, implementation, review, and setting objectives for improvement. The scenario shows that Aldi has risen to become the fifth-largest retailer in the UK.
The plan is to increase logistical efficiency to cope with the increased demand from customers. The department employs six logistics assistants and a logistics manager. The average monthly payment for the logistics assistant is £ 2,750 while the logistics manager earns £ 3,250 (Glassdoor, 2017). Each of the employees will be entitled to 28-days paid annual leave which will be distributed across the months with normal demand. Two temporary logistics assistants will be hired in November and December with one remaining in January at a monthly salary of £ 1,650. Thereafter, the department will function with six staff with one being on leave from February to June.
The annual cost of human resources is projected to be £ 245,250. Much of the department’ s tasks will be accomplished in an office located in an Aldi Store. The physical resources needed will be office supplies, with the cost of other utilities covered by the store. An average cost of £ 20 per employee per month will be used for office supplies. The total costs will be approximately £ 246,890.