Business Logistics and Negotiations: A Case Study of Boohoo Group plc

This report discusses the importance of business logistics and negotiations in the fashion industry, with a focus on Boohoo Group plc. It covers the background information and market outlook for the company, the benefits and challenges of its supply chain and logistics management system, the role of RFID technology, and evaluation of its sustainable business strategy. The report provides recommendations to overcome supply chain challenges and improve productivity.

Business logistics and
negotiations

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Background information and market outlook for Boohoo Group plc....................................1
Boohoo’s Supply Chain and Logistics Management System with benefits and challenges. .2
Role of RFID Technology in Supply Chain Management system........................................4
Importance of RFID in supply chain management system....................................................5
Evaluation of Sustainable Business Strategy.........................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Managing business logistics is considered to be very important for the company as it helps in
flowing the point of origin for the purpose to met the needs of the customers and the corporations
of requirements. In addition to that various resources requires proper management which
comprises of different physical items such as liquids, food items and the also non tangible items
such as information. In context to logistics management, it is basically associated with the supply
chain management which support fulfilling the demand of the consumers with the help of
effective planning of the effective movement and storage of the data in relation to the services or
goods from point of origin to destination.
The present report is based on the organisation “Boohoo Group plc” which is a British based
online fashion retailer. The company was founded in the year 2006 and is known for selling
fashion clothing. The present report involves the background information and the market
outlook for the Boohoo Group PLC. In addition to that, it comprises of the analysis of the
company’s supply chain and logistics management system which further involves the various
benefits and challenges of implementing such system. The report further involves the RFID
technology and how it helps in enhancing the efficiency, productivity and cost reduction.
Moreover, the report comprises of the Organisation’s present sustainable business strategy and
analysis of the effectiveness of the goals by 2030 (Vargas-Hernández, Cervantes-Guzmán and
Vázquez-Ávila, 2020).
MAIN BODY
Background information and market outlook for Boohoo Group plc
Boohoo Group PLC is basically an online fashion retailer and the organisation offers a wide
range of apparel and clothing which comprises of swim wear, dresses, heels, sneakers, tops,
socks, body suits, sunglasses, lingerie, scarves, cosmetics, tight and much more. The organisation
basically serves customers based in the United Kingdom.
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Market Outlook is basically a core component of the market analysis. In reference to market
outlook of the Boohoo Plc, it basically projects the characteristics, numbers and trends in the
target market. With the help of standard analysis, it helps in projecting the division of the
potential consumers into segments. In context to Boohoo Group Plc, up 16% at the 91.14 pence.
The company depicts that the fourth quarter net sales grew annually by 7% and 48% on a two
year basis. In reference to the organisation, the current ratio is 1.6906, the price to book value is
2.2533, the net margin is 0.052 and the earnings yield is 5.42% (Rottenburger, 2019).
Boohoo’s Supply Chain and Logistics Management System with benefits and challenges
The supply chain and logistics management is basically the process of the maintenance and
integration which usually depicts the storage and flow of goods in the company. In reference to
supply chain management, it is the management and coordination of the movement in the
company (Helmold and et.al, 2020). In context to organisation, the company has put more focus
on the objective to create a effective and efficient supply chain that supports the organisation in
bringing clothes from catwalk to the closet in just a period of time. The organisation’s supply
chain helps in responding to the speedy changes keeping in mind the preferences of the
consumers. In reference to the organisation, the supply chain management of the organisation
covers a variety of activities which involves facilities and labor management, planning, materials
and their sourcing, producing and delivery of the services and goods and much more. In
reference to Logistics, it basically pay much emphasis on the cost effective delivery and
efficient delivery of the products to the consumers. In context to organisation, the supply chain
and logistics management helps in providing various benefits such as:
Quality Control: In context to organisation, when both the suppliers and the company works with
the same standards, it helps in identifying the various problems and threats in advance. With the
help of supply chain management system, it helps in ensuring that the goods are prepared
keeping in mind the best quality.
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Enhanced Collaboration with the suppliers: In context to suppliers, it is very important to have
deeper understanding of the objectives and costs constraints which plays a important for the
companies having tight margins (Terry and Helmold, 2020).
Reduced overhead costs and inventory:
With the help of efficient supply chain, it helps in reducing the requirement of the inventory
resulting in cutting overhead costs in relation to the security and storage. \
Stronger cash flow: In context to organisation, running a efficient and successful supply chain is
basically the stock control, good supplier relationship and maintaining a strict quality. For the
supply chain managers, it is very important to keep a check on the prices and costs which helps
in providing various benefits to the organisation for the purpose to improve the cash flow.
In context to organisation, despite having various benefits, the organisations had to face a lot of
supply chain challenges (Collier and Lambert, 2020).
Scarcity of Material
Since the situation of pandemic has began, the insufficient inputs are the major reason for the
concern. In context to suppliers and organisations, these are struggling for the purpose to meet
the demand of the consumers.
Change in customer’s attitude and preferences: The behaviours and the consumer attitude have
change in different forms which results in increasing demand for better customer experience and
delivery times.
Digital Transformation: In context to organisation, the IOT and digital transformation are a
mixed blessing. In context to organisations, various technologies helps in enhancing the method
which comprises of the drones, artificial intelligence, on demand delivery, electric vehicles and
robots. With the help of ecommerce processes making the systems and services more cost
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effective and efficient in the longer run, the major challenge still lies in supply chain
implementation.
Recommendations to overcome these challenges
Working with a freight forwarder
In context to organisation and its supply chain managers, it is very important to have a good
partnership with the freight forwarder for the purpose to track and manage the goods and their
shipment. With the support of freight forwarding organisation who are basically responsible for
the transfer of products from one place to another, they can also manage the process of the
shippers and can help in negotiating the best costs.
Improve demand forecasting: In order to avoid any kind of failure, the best and the most suitable
method is to improve the forecasting with the support of automations for the purpose to calculate
these metrics. In context to ecommerce sellers, they are always looking for a balance among the
warehousing costs, inventory levels and demand from the customers for the purpose to avoid any
kind of inventory shortages and preventing stockouts.
Role of RFID Technology in Supply Chain Management system
In context to RFID Technology, it basically stands for the Radio Frequency Identification
(RFID) which is basically a wireless system that involves majorly two components readers and
tags. In reference to the Technology, it basically uses the electromagnetic fields for the purpose
to track tags which are basically attached to the objects and automatically identify. The system of
RFID, basically comprises of the transmitter and radio receiver. In context to organisation, the
RFID plays a very important role in using radio frequency for the objective to identify, search,
communicate and track with the people and items. In relation to the RFID tags, these are
basically the small labels which can store a range of data such as pages of data, serial numbers
and short description.
In context to organisation, the RFID technology allows the organisation to track the supply chain
workflow which helps in providing more usable data with company process, manufacturing
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equipment, management of assests and inventory. In reference to organisation, when the
technology is implemented in a effective manner, the generated data could help the company to
streamline the supply chain areas with the help of automation. In context to organisation, the
RFID technology allows the organisations to track their supply chain workflow which further
helps in providing useful data with the company processes, inventory, asset management and
much more. In reference to organisation, the RFID can be integrated into different supply chain
tasks for the purpose to streamline things. With the help of RFID integration, it allows in more
efficient decision making which results in boosting the supply chain management efforts.
Importance of RFID in supply chain management system
Improves Productivity: In context to organisations, the RFID technology helps in improving the
productivity of the supply chain management. With the help of RFID, it helps in eliminating the
use of radio frequency and also supports in reducing the time required for the purpose to track
and locate products.
Provides real time inventory tracking : In context to organisation, one of the major benefits of the
usage of RFID technology is to increase the visibility and helps in showing the most accurate
inventory levels.
Higher Accuracy: With the use of RFID in the storage systems and warehousing, it supports in
improving the product picking. With the help of RFID, it helps the organisation in increasing its
inventory accuracy which further helps in increased sales. In context to organisations, the supply
chain are evolving and continues to make waves for the purpose to solve supply chain issues and
problems and also focusing on improving efficiency. With the support of RFID, it helps in
improving the visibility through generating useful data and information.
In addition to that, RFID tagging also supports the company with the inventory control through
keeping track of movement of products which involves important products such as automobiles,
computers and televisions. In context to Fashion organisation such as RFID, the RFID has
becoming the fast growing trend among the retailers involved in garments as the improvement in
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technology and the cost of tags comes down. In context to organisation, the RFID tags enables
the staff of the stores to identify the clothing items on the racks and shelves with the use of a
RFID reader.
Evaluation of Sustainable Business Strategy
The sustainable business strategy is basically a set of various steps which are actionable which a
organisation takes into consideration for the purpose to improve the environment and influence
on the community. With the help of sustainable strategies, it can take time to implement but
when done in right manner it results in providing various benefits to the employees and the
company. In context to boohoo group, it is fast paced fashion organisation which have been
grown rapidly since the launch in the year 2006 and now the organisation is a leading online
retailer with almost 13 brands and offers a wide range of trendy and fashionable products to the
consumers. In reference to organisation, the company has made various changes with the use of
effective supply chains and improved standards and fulfilling commitments of the customers.
The organisation has developed their sustainability plan and are collaborating across the various
industries for the purpose to make the biggest impact on shared challenges and joining groups
such as Sustainable Apparel Coalition, Microfibre Consortium and Textiles 2030. Moreover, the
organisation has designed the plan for the purpose to tackle the issues which basically matters to
the one who are connected with the business. For the purpose to resolve these issues, we have
explored the fashion and its impact and also talking to the customers and colleagues about the
future they want. In context to organisation, they are focusing and putting more efforts where we
have the biggest influence on creation of the more sustainable fashion which comprises of
packaging, materials, waste and design and also focusing on finding ways to keep the clothes in
the use for longer duration (Hänninen, Muhos and Haapasalo, 2021).
Packaging: In context to organisation, we have made a lot of progress on various key types such
as labelling and packaging. In addition to that, the organisation is planning to despatch bags
which contains 80% recycled plastic( Sigurðardóttir, Hotait and Eichstädt, 2019). In addition to
that, the organisation is working with the suppliers for the purpose to ensure a consistent
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approach across the garments industry and their packaging and are exploring more into
packaging materials, sustainable and recyclable materials.
Future Focus: In context to organisation, the company is focusing on developing more dedicated
goals on the chemicals, water, microfibers, biodiversity and working with experts for the purpose
to understand the best role in order to address various issues. As an active member of WRAP’s
Textiles 2030 Initiative, the organisation will be working with various other industries for the
purpose to find solutions to the various problems.
Textile Waste: In context to organisation, while working we have done to divert textile waste in
the own operations from the landfill, we have extending this to our UK supply chain. We are
committed to developing various ways for the customer for the purpose to recycle their
investigating and garments resale platforms for the purpose to keep clothes in use for the longer
(Ali, 2019).
CONCLUSION
From the above report, it can be concluded that Business and Logistics and negotiations
plays a very important role in the organisations in the fashion retailer. With the help of above
report, it helps in deep understanding of the background information and the market outlook for
the company. In addition to that, it involves the analysis of the Supply Chain and logistics
management system which also involves the benefits and challenges of implementing the supply
chain system. Moreover, the use of RFID technology helps in increasing the cost reduction,
production enhancement and efficiency. In addition to that, it involves the current sustainable
business strategy and critical analysis of the effectiveness of the objectives by the year 2030.
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REFERENCES
Books and Journals
Ali, N.A., 2019. Building a Smart Deal for Nigeria in the AfCFTA Negotiations: Issues,
Processes and Policy Directions. In Trade Facilitation Capacity Needs (pp. 47-65). Palgrave
Pivot, Cham.
Collier, Z.A. and Lambert, J.H., 2020. Value of risk information in negotiations with evolving
preferences. Journal of Risk Research, 23(10), pp.1353-1369.
Hänninen, K., Muhos, M. and Haapasalo, H., 2021. How small enterprises manage unexpected
customer requests in B2B sales. International Journal of Entrepreneurship and Small
Business, 44(4), pp.452-469.
Helmold, M., Samara, W., Abusini, A. and Nelson, R., 2020. Negotiations in Arabic Countries
and the Middle East. In Successful International Negotiations (pp. 315-340). Springer, Cham.
Rottenburger, J.R., 2019. Dangerous deception? Advancing the knowledge on buyer-supplier
negotiations. In Supply Management Research (pp. 3-23). Springer Gabler, Wiesbaden.
Sigurðardóttir, A.G., Hotait, A. and Eichstädt, T., 2019. Buyer and Seller Differences in
Business‐to‐Business Negotiations. Negotiation journal, 35(2), pp.297-331.
Terry, B. and Helmold, M., 2020. 12 Outsourcing Negotiations. Successful International
Negotiations: A Practical Guide for Managing Transactions and Deals, p.183.
Vargas-Hernández, J.G., Cervantes-Guzmán, J.N. and Vázquez-Ávila, G., 2020. National and
Organizational Culture and Its Impacts on the Negotiations Between United States and Mexico in
the Case of USMC-TEMEC. In Examining Cultural Perspectives in a Globalized World (pp.
267-295). IGI Global.
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