ARS2033

LOGISTICS AND SUPPLY CHAIN

MANAGEMENT
SEMESTER SEPTEMBER
SESSION 2018/2019

CASE STUDY

NAME OF LECTURER (TUTORIAL): MADAM AIMI NADIA BINTI

IBRAHIM@ZAKARIA / MS ROSMAIZURA MOHD ZAIN
NAME OF STUDENT: NURUL FATIHAH BINTI ABDUL KADIR
MATRIC NO. : A17A0564
LECTURE & TUTORIAL GROUP: L1T1
 1. Why logistics is important for retail industry

Logistics is generally a detailed organization and implementation of complex operations.

In the general business sense, logistics is the management of the flow of things between the
original point and the point of use to meet the needs of the customer or corporate. Resources
managed in logistics can include physical goods such as food, materials, animals, equipment, and
liquids; as well as intangible items, such as time and information. Logistics of physical goods
usually involves the integration of information flow, material handling, production, packaging,
inventory, transportation, warehousing, and often security. In military science, logistics is
concerned with maintaining military supply lines temporarily disturbing the enemy, since an
unarmed armed force and helpless transport. Military logistics has been practiced in the ancient
world and as modern troops have significant requirements for logistics solutions, advanced
execution has been developed. In military logistics, logistics officers manage how and when
transferring resources to the required place.

Logistics management is part of the supply chain management that plans, executes, and
aligns the goods, services, and information relevant to the flow of effective, effective and
flowing and storing between the original point and point of use to meet customer requirements.
Logistical complexity can be modeled, analyzed, visualized, and optimized by dedicated
simulation software. Reducing resource use is the same motivation in all areas of logistics.
Professional work in logistics management is called logistics. While many small businesses
focus on the design and production of their products and services to meet the needs of the best
customers, if the product can not reach customers, the business will fail. That is the main role
played by logistics. But logistics also affects other aspects of the business as well. More efficient
raw materials can be bought, transported, and stored up to use, increasingly profitable for
business. Sourcing resources to enable timely delivery and use of materials can create or break
companies. And on the customer side, if the product can not be produced and delivered on time,
customer satisfaction may decline, also negatively affecting company profits and long-term
competitiveness.
 Logistics and management there play a key role in, and have a significant impact on the
well being of the company and the economy of a country. The logistics objective is to
consistently supply the correct quantity of the right product to the customer, in the right
conditions and in the required place, time and price. The effectiveness and efficiency of which
the company and its logistics functions achieve this have a significant impact on the
competitiveness and success of the company. The importance of the logistics system lies in the
fact that it leads to the completion of contractual contracts. The buyer is not interested in the
seller's promise that he can supply the goods at competitive prices but in fact he does.
Transmission by contract is important to meet commercial and legal requirements. If it does not
comply with the prescribed supply period, the seller will not only get its sales amount, but also
subject to legal action, if the sales contract is determined. There is no doubt that a better delivery
schedule is a good promotion strategy when buyers are reluctant to invest in warehousing and
keep inventory higher. Likewise, better or timely deliveries assist in repeating orders through the
creation of goodwill for suppliers.

Thus, as an effective logistics system contributes to the achievement of business

objectives and robust marketing. It creates the time and place of utilities in the product and thus
helps maximize value satisfaction to consumers. By ensuring fast delivery in time and at a
minimal cost, it will make it easier for customers to store excess inventory. It also reduces the
cost of inventory, materials handling, transportation and other distribution-related activities. In
short, an efficient physical distribution or logistics system has the greatest potential for
improving customer service and reducing costs.

One of the important the logistics to the retail industry is it can helps businesses create
value.Providing value to customers does not only refer to quality or quantity. It also refers to
availability. As better logistics makes your products more available to an increasing group of
people, wise business leaders consider it a very important tool in creating value for customers.
Logistics also creates and increases the value businesses offer by improving merchandise, and
ensuring the availability of products. In order to provide more value, businesses either work on
improving their own logistic activities or rely on professionals.
 Besides,logistics can helps delivering the product at the right place timely.Logistics is
firmly and clearly defined within a supply chain. However, due to differing customer demands, it
has to be constantly evolving in order to provide better results. Customers nowadays are more
likely to impulse shop using a smartphone, and be equally as impatient about receiving their
order.With professionally organized logistics, businesses are able to answer short-time
requirements. By choosing an experienced team of professionals, business entrepreneurs can
ensure quick and safe shipping, warehousing and delivery of their products to customers. They
can incorporate these services in a way that adds value to their offers, and ensure their products
get to the right place on time.

Furthermore,it also can helps in reducing costs and improves efficiency.With global trade
growing more popular, logistics has become the heart of supply chains. Business leaders have
realized they can reduce their costs by establishing partnerships with other businesses which
offer transportation and warehousing.When businesses start using such services to outsource
transport and warehousing, they improve their overall business efficiency, sometimes
dramatically. If they let these partners take charge of shipping their goods to end customers, this
results in a better reputation and a stronger brand.By working with highly professional and
reliable logistics companies such as A&A, many businesses have improved their efficiency by
providing faster delivery of product. This leads to an improved customer experience and higher
working efficiency in general.

Lastly,the logistic also can keep your customers satisfied, rely on experienced logistic
professionals.Satisfied customers are the most precious asset for any business. They are the main
drive for the supply chains in each of the three phases: manufacturing, marketing and logistics.
For this reason, it is a priority for each business owner to clearly understand customer needs,
preferences and demands, and then work relentlessly to meet them.When successful business
leaders acknowledge the needs and requirements of their existing and potential customers, they
develop a strategy.Whether the business is small, middle-sized or large, strategies rely on
effective logistics.
 2. Describe the key benefits of Supply Chain Management for the retail industry

The first benefit of supply chain management is higher efficiency rate.When the business
is able to incorporate supply chains, integrated logistics, and product innovation strategies, it will
be in a great position to not only predict demand as well as to act accordingly. And this is,
without any doubt, one of the main supply chain management benefits.It is because,when the
business implements supply chain management systems, it will be able to adjust more
dynamically to the fluctuating economies, emergency markets, and shorter product life-
cycles.After that,supply chain management also can decrease cost effects.One of the advantages
of supply chain management is the costs decrease in different areas. The most important ones are
improves the inventory system,adjusts the storage space for finished goods which eliminates
damage resources,improves the system's responsiveness to the actual customer's requirements
and improves the relationship with both distributors and vendor.

The next benefit is mitigate the risks.As a business owner, you face risks everyday.
Managing risk is a key role for any business leader, and there are several supply chain
management systems that can help you to identify critical risk factors in your industry. Whether
you’re concerned about product compliance or quality, putting your energy towards a supply
chain management system will only help you to mitigate these risks moving
forward.Furthermore,supply chain management also can eliminate waste.Business owners across
the country are becoming more and more concerned with the amount of waste they produce.
They are looking for new ways to reduce or eliminate the amount of waste their company makes
on a daily basis. When it comes to supply chain management, there are lean practices that can
help you to identify areas of waste improvement.

Besides,the supply chain management also can boost cooperation level.When we're
talking about the most successful businesses right now, one of the things they all have in
common is the communication. In fact, when there is a lack of communication,a vendors and
distributors have no idea about what's going on. So, this is definitely one of the main advantages
of supply chain management. The next benefit of supply chain management is stay on top of
demand.With the help of supply chain strategies, integrated logistics, and product innovation
strategies, business owners can predict the demand for their product accordingly. Today’s supply
chain must be able to accomodate shorter product life cycles, fluctuating economies, and
emerging markets. To ensure your business is adequately responding to changes of demand,
supply chain management is key.Next,no more delays in processes.One of the main benefits of
supply chain management is the fact that through communication, you can actually lower any
delays in processes. Since everyone is aware of what they're doing as well as what others are
doing, this will mitigate any late shipments from vendors, logistical errors in distribution
channels, and hold-ups on production lines.

Furthermore,it also can enhanced supply chain network.It's not easy to maintain a
sustainable supply chain management system. According to some of its advocators, one of the
best ways to do it is by using a combination of lean practices (like waste removal, for example)
with agile. By combining all the information gathered on the different sectors of your business
will allow you to have an enhanced supply chain network.Besides,it can optimal shipping
options.As E-Commerce businesses continue to grow, buyers have more options to purchase
products than ever before. If your company doesn’t have a solid shipping plan in place, you may
lose customers. Your business’ shipping options just meet the demands of the marketplace.
Whether you’re shipping small household goods are large automobile parts, shipping your
products in a quick and efficient fashion is key to the success of your business. Supply chain
management systems can help your company determine the best way to ship your products,
while also reducing your costs at the same time.Next,improve customer service.At the heart of
virtually any successful business, you’ll find stellar customer service. With the help of logistics
and supply chain technology, it is now easier than ever to put your products in the hands of your
customers. When you invest in supply chain management, you can track your shipments,
products, and materials on the supply side very easily.

Another major benefit of integrated supply chain management is reduce overhead

costs.Many new business owners lack the skills and knowledge needed to trim the fat from their
products without affecting the overall operation in a drastic manner. When you work with a
supply chain management company, you can cut costs in the production process without
changing the quality and price of the final product. A supply chain company will be able to help
you identify processes or operations that are unnecessary in order to help you save money on
your production costs. By doing this, you will be able to take the money you save and invest it
right back into the company.
Furthermore,the main benefits of Supply Chain Management for the retail industry are
access. Accessing access to key raw materials, components, supplies and services is a key benefit
of supply chain management. Instead of dealing with ad hoc based suppliers, companies
negotiate long-term supply links so they can be confident of getting the supplies they need to
carry out their operations. Accessing access is critical to critical components or rare raw
materials that have limited stocks.Furthermore,the cost is also one of the key benefit supply
chain management.Supply chain management can reduce the cost of getting supplies. By placing
a contract with supply chain members, companies eliminate the cost of finding a supplier,
negotiating terms and placing individual purchase orders. Long-term supply chain management
features also reduce the risk of price fluctuations over time, helping the company's budget
accurately for their cost of supply.

Another key benefit of supply chain management is quality.Supply chain members can
agree to align their quality standards, making it easier to ensure end product quality and reduce
quality control costs. By agreeing to work with recognized standards, such as ISO 9001 issued
by the International Organization for Standardization, members can provide products and
supplies with consistent quality. Other members do not have to check the incoming supply that
complies with standards, reduce costs and improve efficiency over the supply chain.In addition,
the response is also a major benefit of supply chain management to the retail industry.
Interpersonal communication is a feature of supply chain management. By ensuring that
suppliers are aware of changes in demand, key companies are able to ensure that they are getting
the right level of supply. Information on demand allows suppliers to increase or decrease their
capacity efficiently, eliminating residual risk or delays in dispatch.Last but not least of the key
benefit supply chain management is collaboration.The close working relationship within the
supply chain promotes collaboration to reduce costs, improve efficiency or enhance innovation.
Members may agree to collaborate with cost reduction training, for example, by changing the
delivery pattern or streamlining the booking process. They can also work on design projects,
tailor components design or raw material specifications to meet the needs of key companies.

As a conclusion,as you can see, there are many benefits for the business to adopt a supply
chain management system. However, it's a lot easier said than done. Nevertheless, when the
business business to grow, this is definitely something you should consider. AIMS' Institute of
Supply Chain Management help professionals to build and enhance their supply chain
management expertise. AIMS' well-known and career oriented programs includes logistics and
supply chain management courses and online mba supply chain management.