Role Of Logistics In Supply Chain Management IT Essay

Logistic is defined as an enterprise planning platform for the management of materials, service, information and capital moves. It entails the management of complex information stream, communication, distribution, and control systems that are needed in today's business environment. It really is "a route of the supply chain that adds value of your energy and place energy".

The role of logistics is to control the total amount that is between the little details and the key components that are involved in something. Looking within my chosen organizations, below are a few of the best information gathered

HMV Group operates syndication centers that play a essential role in the supply chain and the delivery of stock to stores and customers using their company suppliers. The role of logistics at HMV is especially important in its goal to convert from a one-dimensional retailer to a broader entertainment brand. HMV's management has embarked in a three-year transformational strategy to restructure their source chain to accomplish efficiencies that could bring about improvement in their operating earnings. One of their key initiatives in the fiscal season of 2009 is the execution of new centralized circulation center because of its Waterstone's business which dished up as a center to accomplish the delivery and syndication with their goods. This led to substantial reduction in suppliers' transportation requirements, and added efficiency with their supply chain procedure.

GlaxoSmithKline handles their supply chain with a global logistics team. Their core mandate is to allow source and demand over the nodes in the string, while simplifying this technique through the implementation of standardization to accomplish the global IT systems. The role of logistics at GSK also involved the provision of warehousing and transport as well as the management of pack and component portfolios. One major effort of GSK this year 2010 is its relationship with Couzens Storage Solution for the installation of computer-controlled vertical life storage area systems in its new facility in Harlow, Essex. This system helps increase floor and cube space by providing fast access to storage with the help of technology. The technology put in place here instructs the picker to check on and automatically revise stock information with the internal system and add monitoring features. These will essentially help GSK to keep an eye on their inventory and keep track of shipments to ensure well-timed delivery to the customers.

BT Group

The role of logistics in BT's supply string management is aimed to drive the business of BT, in particularly in customer support delivery and cost transformation. BT certainty comprehends the role of logistics, and the value to regulate costs with maximum efficiency in any supply chain operation. BT actually offers the BT Field Pressure Automation which is essentially a tailored BT product to improve customer service, minimize overheads and increase productively. They also offer another product called the BT Auto-ID that allows their customers to trail investments with RFID (radio rate of recurrence Identification) technology to get more awareness throughout the source chain.

Extend research to Procurement procedures in chosen organizations

Procurement plays an essential part in the delivery of goods and services for organizations. This is the process of obtaining goods and services from the planning stage to the endorsement of the invoice for payment.

HMV Group

Initiated the integration from it and again office functions, and centralized procurement of non-sale goods that could cause potential cost savings of over 40m on a yearly basis. That is known as posting services to attain better economies of scale by merging several small procurement agents into one centralized system.

Joint collaboration with Unipart to make a new 'booklet hub' to serve stores and its website as a centralize location because of its distribution functions.

Product section in HMV's hq is responsible in facilitating product discussions to get the best offers for his or her customers, and the maintenance of the latest range of products both instore and online.

Employ the use of pub coding and tags to recognize items and help the just-in-time system of timing the acquisitions using their company suppliers to keep inventory costs low.

Engage in renewable community procurement practice such as its Automated Meter Reading (AMR) and electricity procurement to boost billing, monitoring and reporting capabilities.


Operates a shared service through its centralized Global creation and offer (GMS) network that works its procurement procedure with respect to GSK to purchase supplies for his or her business needs.

Has an in-house procurement/purchasing team that manages GSK buys on particular categories, its facilitation of e-bid events/auctions, project management, supplier condition and negotiations and stakeholder proposal.

Leverage technology with the use of computer-controlled vertical life storage systems that inspections, automatically changes stock record with internal system and tracking features to help them take care of their just-in-time system for timing acquisitions.

BT Group

Invested in automation with electronic digital interfaces to liaise to supplier straight from CRM.

Integrated core Supplier using its customer order system through a centralized B2B gateway system, where its suppliers can interface.

Implemented ORACLE Financials as BT's primary Enterprise Resource Planning (ERP) software that offers tools such as ORACLE eBusiness suite and iProcurement to control their outgoing requests to suppliers.

Employs the SEBEL software, a person romantic relationship management system, to keep an eye on customer information and details while also measuring consumer satisfaction and choices.

Discuss the factors thought to improve logistics/procurement practices

Procurement, which is the procedure of obtaining goods and services from the planning stage through to the authorization of the invoice for repayment, is also called sourcing, and some of the normal procurement practices require

Purchasing Planning

Standards Determination

Specifications Development

Research and Supplier Selection

Value Analysis

Financing and Price Negotiations

Inventory Control and Stores

Using these known theoretical factors, one can apply these to enhance the logistics and procurement practice at NewG.

Application of methods to NewG

From the aforementioned research in section 5. 1 and 5. 2, NewG Furniture can simply pull from the expertise of these established organizations and use these methods to apply with their own business businesses. NewG can apply these routines

Operation of your NewG centralized syndication middle: A centralized circulation centre like a one B2B gateway provides about significant cost benefits in transportation and also allow NewG to lessen their carbon footprint in facilitating the delivery process with their stores and customers.

Share services by appointing a special NewG purchasing/procurement unit that manages NewG's acquisitions on particular categories, its facilitation of e-bid happenings/auctions, project management, supplier condition and negotiations and stakeholder proposal.

Leverage technology in warehousing to maximum the real estate of NewG's facilities and optimize the area in their warehouses.

Employ ERP software such as ORACLE Financials to utilize the various tools like iProcurement to manage NewG's just-in-time supply chain management. These would also be the infrastructure to support buyer-supplier communication, and include the real time messages (i. e status, delivery, etc) in a way that anyone in the resource chain can discover accurate information.

Engage in BT Field Push Automation to improve NewG's customer support, cut over head and boosts productively. Similarly, use BT Auto-ID offer to allow NewG to trail resources with RFID technology to gain more presence throughout the source chain


NewG Furniture - Supply Chain Strategy, 2011 and beyond

NewG Furniture's strategy is to ensure full integration to be performed using their suppliers in order to provide the best experience for both your interior and exterior customers. By using technology, there will be a noticeable improvement in the flexibility to collaborate with a broad breath of NewG suppliers to meet NewG's needs for its annual expenditure on goods. The 2011 and beyond strategy is to incorporate the latest form of technology open to optimize the supply chain management process and NewG's market competitiveness.

"The four phases to implement this Supply String Strategy are

Phase 1 Improvement Analysis and Analysis

Define opportunities predicated on operations strategy and performance shortfalls

Define goals, quantify gain and prioritise

Phase 2 Review supply string and processes

Modeling the existing supply string flows

Measuring service and financial performance.

Phase 3 Design Improvement

Run simulations on model source chain

Generate ideas through improvement teams

Align supply chain, process and information

Define process change and technology deployment

Phase 4 Detailed Planning and Implementation

Develop comprehensive designs and plans

Define business case

Manage change"

The strategy proposes to offer a range of electronic digital trading options, that suppliers can select from, to meet their different requirements. These will be relayed back again to the suppliers where they perform their evaluation of which would best suit their requirements and boost their return on investment (ROI). Next, NewG Furniture should enforce a typical protocol of experiencing single trade arrangement and one invoicing layout for suppliers, to standardize ventures during the placing your order processes, by giving

A single portal interface used for "on-line" ordering

Comprehensive supply string network (intelligent order acknowledgement, invoice, position bank checks, receipts, etc)

Most affordable supply string by using centralized syndication centers

Accurate allocation of expenditure

NewG Furniture should work at automation with electric interfaces to suppliers with the release of EDI. From 2011 onwards, management should seek to automate as many processes as you can within the supply chain. One of the ways to do this is to put into action Customer Relationship Management (CRM), Planning and Bid Support applications to permit a direct interface to suppliers. These systems can help capture data and purchases from NewG's customers and present them additional information in the procurement process.

Single B2B Gateway

NewG Furniture could accomplish its customer order systems by introducing a single B2B gateway through which suppliers can interface. This includes the most advanced technology available and permit suppliers to send and receive messages through a consistent and steady platform. The machine will automatically send real-time posts to inform on the position, time dispatched, delivery, etc, such that NewG Furniture will always be alert to the progress should their customers inquire. Additionally, NewG Furniture also needs to encourage their suppliers to accept new technologies and further collaborate by "sharing information and integrating inter-company processes to improve source of information usage".

On-line Ordering

The next proposed step is ideal for NewG Furniture to purchase ERM software that provides tools such as iProcurement/iBuy to pave the way for on-line purchasing. Requests through these online programs should automatically churn out approve purchase requisition, which in turn should generate a purchase order (PO) to the dealer. NewG should also follow the "NO PO NO PAY" plan, whereby distributor are guide to only proceed until a formal purchase order is received.

Multiple Buying and Invoicing Options

Such functionally should be available to manage the relationship with suppliers by provision of different alternatives for ordering and invoicing.

Centralized Circulation and "SMART" facilities

NewG Furniture should start a centralized distribution facility to bring about significant cost benefits in transport and also allow NewG to reduce their carbon footprint in facilitating the delivery process with their stores and customers. They could also bring in high-tech systems in their facilities to provide fast usage of storage and maximize the real house of these facilities.

Embedded chips

NewG Furniture can utilize the proprietary offering from BT called the BT Auto-ID that will allow NewG to trail their possessions with the RFID (radio consistency Identification) technology to get more presence throughout the resource chain.

Supply Chain Improvement Strategy and Benefits

Analyzing the inputs of the resource chain improvement strategy, one can determine the beneficial impact by the next

Single portal / Single B2B Gateway

Suppliers can interface, allow NewG to reap the benefits of better manage their supplier relations.

Allow companies in cooperation to talk about information and incorporate the inter-company techniques and improve source of information utilization.

Online Ordering

Facilitate the automation process of ordering, where purchases will automatically churn out the necessary follow ups and documents to send to counterparties.

Provide an additional program for NewG Furniture to create sales and thus increasing their sales characters.

Opens their marketplace to a global audience which would bring a proclaimed improvement in overall sales.

Centralized Circulation and "SMART" facilities

Reduce their overall carbon footprint and vehicles costs to truly have a centralized unit aid the delivery process.

Cost savings made can be re-directed to purchase product development or acquiring strategic assets.

Embedded Chips

Allow NewG to micro-manage their belongings in the delivery process and provide customers with more visibility to accomplish higher customer satisfaction.

Barriers to get over in an organization in this implementation

No doubt, the implementation of a supply chain improvement strategy will come together with a number of barriers to overcome. To be able to design a thorough strategy, these issues should be identified by the management and dealt with without delay. Firstly, the primary barrier in the execution process is obtaining the sufficient capital and resources. The execution of the aforementioned "2011 and outside of, Resource China Strategy" requires large investment in the necessary solutions. Without sufficient capital, NewG Furniture will see it difficult to totally exploit the new technological innovations that are used in the marketplace today and would not have the ability to successful put their execution doing his thing.

The next barrier would be to address the level of resistance to change in the business. Corresponding to behavioral research studies, it is common intelligence that "it is a simple tenet of individual behavior to resist change". This includes the more dramatic changes like major restructuring to the modest changes like putting into action a new procedure. Thus, it is paramount for management to foresee and plan strategies to tackle this level of resistance. This execution should be initiated with an launch of the change with regular follow-through and regular monitoring on the long-term.

The last hurdle to be conquer to guarantee the successful implementation of the Supply Chain improvement strategy would be to address the technological competencies of the employees at NewG Furniture. It might be suitable for employees to undergo training and equip them with the necessary skills to effectively operate the new systems and software that are installed.


Following this strategy, NewG will be able to achieve overall business performance in especially in four key areas in process, measurement, information management and technology. This might straight lead to benefits associated with increased competitiveness and profitability, and position NewG Furniture to fully capitalize on investment opportunities and develop its market share. The new technology would cause improvements in the supply string process and permit rapid feedback as well as the ability to manage supplier marriage.

NewG Furniture could also realize benefits of improved customer service, greater efficiency and lower inventory costs with shorter routine and lead times, and a more simple supply string.

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