Supply Chain Management in Debenhams

This report discusses the supply chain management in Debenhams, a British multinational retailing company. It covers topics such as customer service, inventory management, transportation, and competitive advantages. It also explores critical issues emerging in Debenhams and suggests ways to respond to them.

SUPPLY CHAIN
MANAGEMENT
1

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................4
Supply Chain Management In Debenhams .....................................................................................4
Customer’s service and inventory ..............................................................................................4
Transportation and LSPs.............................................................................................................5
Strategy and competitive advantages. ........................................................................................7
Critical issues emerging in Debenhams......................................................................................9
Way to respond to emerging issues.............................................................................................9
Finding and suggestions............................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................12
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INTRODUCTION
Supply chain management is refers to the flow of goods and services and has been
associated with the all procedure which is undertaken to convert raw material into final goods. It
has been includes the streamlining and organizing activities related to the supply of products and
services in order to maximize the customer’s value and gain the competitive advantage at market
place for the higher profit and sustainability(Behl, and Dutta 2019). This is a major area of
operations in the organisation that has a aim to transfer th finished goods to the final customer in
a way that has been generates higher revenue for company. A manager of the supply chain
management has the core responsibility to coordinate all logistics of the supply chain which
involves strategic planning, sources of raw material, manufacturing and the delivering of the
finished goods. This report is based on the Debenhams company which is a British based
multinational retailing company that is operating departmental stores in UK and Denmark with
headquarter in Oxford street, London. It has been operating with the franchise stores and in 170
locations across the globe. The below report has been includes the analysis of hoe logistics and
supply chain management is conceived, supported, deliver and developed within the
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organisation. Furthermore it has been also includes the concept and models for the supply chain
management and relevant management.
MAIN BODY
Supply Chain Management In Debenhams
Customer’s service and inventory
The term customers is define as as the act through company has been provide support to
both potential and existing customers. This has been associated with the face to face or
telephonic conversation directly with the customers in order to provides them support by their
representatives on behalf of organisation(Brinch, 2018). Customer service is the key factor
which is used for satisfy company's potential buyers as this is the way through which queries of
customer's can be solved along with this, it is the mechanism through which through which
feedbacks are gathered and on the basis of this product and services improved in order to
provide satisfaction and engage them for the longer period of time. As this includes providing
assistance to the people which have been buy product and services from company and fulfil their
demand. In order to provides better customers they so that they will stay longer period of time
and for good reputation at market place it is necessary for the company to strengthen its
customers service department with optimum usage of various strategies and approaches so that
their needs can be fulfil to the fullest(Lamba, and Singh 2018). Some of the company has been
consist of the separate department which have the responsibility to solve customer queries along
with the maintain a positive relationship with them.
Inventory management is refers to the systematic approach which has been undertaken to
ordering, storing and utilising this inventory for the better product and services. This has been
associated with the management of raw materials and components along with the finished goods,
as well as warehousing and processing of the items. The inventory of the company is one of the
valuable assets as company's inputs and finished goods are the core to its business for the better
performance at market place(Luthra,and Mangla 2018). Meeting customer needs and
requirements is the basic and core mission of the company for this it is necessary for the
company to balance product availability against anticipated market demand. For the Debenhams
company has been using various strategies or methods for managing product availability some of
them is describe below:
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Sales and operations planning: This is refers the corporations and synchronized
planning between company planning among disciplines that is associated with the supplying
right products at the right pace along with the right quantity so that company can be meet its
revenue and cost objectives.
Gain control: Lack of information is the main cause through which company loose their
control over system that produce and deliver a product. In this debenhma company has been
conduct research, collect information which help in to control the system and make it reliable for
the generation of high revenue.
Inventory management is define as the step in the supply chain in which inventor and
stock of the company has been tracked in and out of the warehouse. Its is essential for the
company to manage its inventory effectively for the smooth functioning of supply chain which is
key factor through which company has been successfully make access of products and service to
the final customers(Mehdikhani, and Valmohammadi2019). There are various methods or
techniques used by companies for managing inventory and some of them are discussed below in
context to debenhams.
Economic order quantity: EOQ is refers to the formula which is used by the company
for the ideal order quantity that a company need to purchase for its inventory while keeping in
mind the set of variables such as total cost of production, demand rate at market place and other
factor which has been associated with the conversion of raw material into finished goods and its
access to the the final customers(Meherishi, Narayana, and Ranjani 2019). With such formula
Debenhams company for minimizing related cost as this help into identify the greatest number of
product units to order to minimize buying.
Minimum order quantity: This is refers to the smallest amount of the set stock which is
going to be sell by the manufacture to retailer and if retailer is unable to purchase the MOQ of
product then it will not sell to them.
Transportation and LSPs
Transportation is refers to the mode of delivery which is used by the company in order to
transfer the goods from manufacturing place to market place for sale. This is only through
company delivers it offering to the potential buyer which help in to generate higher profit. There
are various methods which has been used by the companies for transferring their products and
some of them are discussed below in context to Debenhams company.
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Shipping containers: This a type of metal box structure that can be easily moved with
trucks. Railcars, ocean going vessels and with other transportation. Debenham has bvene used
this for its product as this makes easy to load, unload and managed(Morais, and Silvestre, 2018).
It increase the security and protects goods along with improve the efficiency while ensuring
faster movement.
Trucks: These are the workhorses in the national and international supply chain along
with the railways, this is also one of the main ans effective way to move goods across land in a
adequate manner as railway can not move to the all destinations and air freight for every time is
expensive that can impact both cost and price for the company.
LPS: Logistic service provider is also known as 3PL that is third party logistic providers
that is refers to the outsources companies shippers leverage to manage warehousing of the
company along with the distribution and transportation of the goods to the final customers. With
the perspective of Debenhams company, DHL supply chain is in the talk with its long term
customer that is debenhams. DHL supply chain has been competitive in the automotive sector
along with its lead logistics provider service which is shifted and operating its businesses in
china India and Mexico. The two business have worked together for the in order to expand their
business and generate higher profit.
It is necessary for the company to manage its transportation effectively as it has been
ensures that shipping, delivery and supply chain management work effectively as possible which
help in increase sales and provide support in to the higher customers base(Panigrahi, Bahinipati
and Jain2019). In relation to the debehams company, it have been focus on the various areas that
are important for the higher effectiveness of transportation in supply chain. Such as it have been
focus on order-to-delivery lead time and then team has planned accordingly along with company
also evaluate and refined standards for operating procedure.
Warehouse and capacity
Warehousing is refers to the place at which company has been kept its raw materials and
finished goods as storage with the high security and protection after production for the purpose
of future sale. Companies might be having their own warehouse and can also be store in the
other's warehouses by providing them rent. Warehousing and inventory storage have a impact
over everything from sourcing of materials and managing inventory efficiently to delivering of
product to the customer in given period of time(Rebs, Brandenburg,and Seuring2019).
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Warehouse is necessary for the company as this safely and securely store the products in
organised way in order to tracked that where items has been located, when they have arrived,
how long they have been there and current quantity in hand, there are various advantages which
are facilitated by warehousing.
 With help of this debenhas company will get a central location for storage which has
been provides support into reducing production gap. This reflects that company can
receive, store, distribute and ship product in more easy way that save both cost and time.
 Warehousing support Debenhams company will enhance its order processing, which has
been means that products are available for the shipping whenever customer place their
order.
 With the better storage management company has been also ensure and monitor to the
production quality as warehousing is also used to track and raw materials and finished
goods.
Capacity management is refers to the act through which company has been ensures
business maximizes its activities and operations along with the production output. The capacity
of the business has been measures that how much companies can achieve, produce or sell its
offering within the given period of time.
Strategy and competitive advantages.
Competitive advantage is refers to the aspect that has been makes customers to choose
the particular company over its competitors(Sarkar, Omair, and Kim 2020). This provides a
chance of getting more then the entities which has been working on the same level and at same
market. It provides, high revenue, strong brand image, higher market share along with higher
customers base etc. companies has been utilised VRIO analysis in order to analyse internal
resource that provide support in to enhance performance and build strong competitive advantage.
VRIO analysis for Debenhams is explained below as:
Resources Valuable Rare Imitable Organisation Competitive
Advantage
Leadership √ √ X √ High
Competitive
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advantage
Brand
Awareness
√ √ X √ High
Competitive
advantage
Customer
rating
√ √ X √ High
Competitive
advantage
Human
Resource
√ X √ √ Sustainable
Competitive
advantage
Leadership: This is refers to the quality of individual to inspire, direct and direct employees or
team towards accomplishment of organisational gaol.
In debenhams, it leaderships quality is valued by the company as it is rare and can not be
imitated by the other company, this has been presents the high competitive advantage for the
company
Brand awareness: This is define as the image of company in customer's eye
debenham is the multinational brand and this is most valuable for the company that can
not be copied by other company, therefore, this stand as the strong competitive advantage.
customers rating: It reflect customer's opinion for the product and company
the rating for the Debenhams company receives is the much valuable along with this it is
in the organised form. It is rare as well, because it is a personal opinion of customer for the
particular company that can not be copied by any other firm. Thus, provides competitive
advantage.
human resource: It is the define as the workforce working within the company to achieve
common goal.
Human resource of Debenhams are well organised and valuable for the company as they
have worked for the obtaining organisational goals. But they are not rare and imitable as it can be
copied by rivals, thus it stand as sustainable competitive advantage.
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Critical issues emerging in Debenhams
A critical issue which has been emerging in Debenhams is the lack of coordination and
collaboration which has been reflects the ineffectiveness in the selection of suppliers and channel
through it will transfer it goods to the final customers. Moreover the main reason reason behind
this is the issue with suppliers with create problem in developing customers relationship that ahs
been impact the demand for the product in market(Zaid, , Jaaron, and Bon 2018). Supply chain
coordination is refers to the phenomenon that is undertaken to improve performance and output
of the supply chain. Collaboration has been associated with the partners that are performing
under the non-core proficiency function in order to achieve synergy. In relation to this,
Debenhams company has been responsible to identify various customers segments and manage
them properly. In addition to this, Debenhams adopt the out of market strategy for its supply
chain in order to get best used of its offering but this has been only serving to the local demand
along with the high density value in product.
Way to respond to emerging issues.
Transferring goods and services to the customers is the key factor for the success of nay
organisation. Manager in the organisation is responsible for managing activities and function of
it department so that a better outcome can be received. Supply chain manager of debenham
company has been adopt and formulate the strategies through which it can resolve such issues for
the higher productivity.
Aligning company structure and its supply chain: This strategy state that it is necessary
to align to supply chain policies with the organisational structure for the smooth running of
organisational operations along with departments(Wang, and Dai2018). As if these both the
things are not same then it can hinder and impact on the company's performance.
Push based based strategy: This the strategy in which a company has been focusing on
maintaining customers relation in proper way along with this having the strong collaboration
with the partners so that operations can be done smoothly. In this company has been indentigy
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the customer's need in order to plan and design the better product that provides optimum level of
satisfaction
Finding and suggestions
As per the above analysis it has been measured that emerging issues and problems has
been blocking the success and effectiveness for achieving the competitive advantages. There are
some suggestions which has been addressed for improving supply chain of Debenhams
company. Manager of the company should monitor and evaluate the departmental activities so
that action can be taken on timely basis if some improvement is need so that better outcome can
be obtain. Along with this, manager should maintain coordination with the employees and
functions I order to accomplish the objectives through bringing value to supply chain for better
customer experience. It is essential for the company to done this as absence of coordination does
not create link between all related function which did not allow company to perform higher and
in attain sustainable competitive advantage.
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CONCLUSION
As per the above report it has been concluded that supply chain is define as the core for
any organisation which serve as backbone for managing effective customers relationship. Th is is
associated with the streamlining and organizing activities that are related to the supply of
products and service for maximizing the customer's value and build strong competitive
advantage at market place for the higher sales and revenue. This is an regular process which has
been never end throughout the working of the company. Supply chain has been consist of the
various functions such as customer services, transportation of the products to the point where
sales take place, warehousing of goods, managing inventory and obtain competitive advantage in
the industry. It is also concluded that is there is any problem occurs in the supply chain it is
necessary for the company take initiative with the application of strategies so that company can
achieve its goals and objectives in effective and appropriate manner.
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REFERENCES
Books and Journals
Behl, A. and Dutta, P., 2019. Humanitarian supply chain management: a thematic literature
review and future directions of research. Annals of Operations Research, 283(1),
pp.1001-1044.
Brinch, M., 2018. Understanding the value of big data in supply chain management and its
business processes. International Journal of Operations & Production Management.
Lamba, K. and Singh, S.P., 2018. Modeling big data enablers for operations and supply chain
management. The International Journal of Logistics Management.]
Luthra, S. and Mangla, S.K., 2018. When strategies matter: Adoption of sustainable supply
chain management practices in an emerging economy’s context. Resources,
Conservation and Recycling, 138, pp.194-206.
Mehdikhani, R. and Valmohammadi, C., 2019. Strategic collaboration and sustainable supply
chain management. Journal of Enterprise Information Management.
Meherishi, L., Narayana, S.A. and Ranjani, K.S., 2019. Sustainable packaging for supply chain
management in the circular economy: A review. Journal of cleaner production, 237,
p.117582.
Morais, D.O. and Silvestre, B.S., 2018. Advancing social sustainability in supply chain
management: Lessons from multiple case studies in an emerging economy. Journal of
Cleaner Production, 199, pp.222-235.
Panigrahi, S.S., Bahinipati, B. and Jain, V., 2019. Sustainable supply chain management: a
review of literature and implications for future research. Management of Environmental
Quality: An International Journal.
Rebs, T., Brandenburg, M. and Seuring, S., 2019. System dynamics modeling for sustainable
supply chain management: A literature review and systems thinking approach. Journal
of cleaner production, 208, pp.1265-1280.
Sarkar, B., Omair, M. and Kim, N., 2020. A cooperative advertising collaboration policy in
supply chain management under uncertain conditions. Applied Soft Computing, 88,
p.105948.
Wang, J. and Dai, J., 2018. Sustainable supply chain management practices and
performance. Industrial Management & Data Systems.
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Zaid, A.A., Jaaron, A.A. and Bon, A.T., 2018. The impact of green human resource management
and green supply chain management practices on sustainable performance: An
empirical study. Journal of cleaner production, 204, pp.965-979.
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