Boohoo's Supply Chain and Logistics Operations: Challenges, Benefits, and Sustainable Business Strategy

This report provides insights into Boohoo's supply chain and logistics operations, including challenges and benefits, RFID technology, and sustainable business strategy. It also covers the largest fashion retailer's market outlook and background.

Research on BooHoo's
supply chain and
logistics operations

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background and market outlook for Boohoo...............................................................................3
Identifying and analysing the supply chain and logistics management system also highlighting
its challenges and benefits...........................................................................................................4
Explaining how RFID technology increases the means of enhancing productivity....................6
Reviewing Boohoo current sustainable business strategy...........................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Supply chain logistics is mainly defined as the process used for coordination all the goods
and storing the product of the company as for fostering and adequately supplying all the products
and service to the consumers. Its is mainly described as the network used for controlling
inventory which includes warehousing and distribution of various goods and services. This
project report provide detail about the Boohoo company the largest fashion retailer serving large
number of consumers. The company is mainly leading and working with vision for leading e-
commerce global market by Selling own fashion brand clothes. This report provide details about
the background of the company and its market outlook. Also it is explaining about the supply
chain management system by highlighting various changes and benefits for implementing the
system. Further, using the RFID technology aids in enchaining the productivity, efficiency and
cost reduction. Lastly defining about the sustainable business strategy and critically analysing
effectiveness of goals by 2030 for achieving better sustainable growth.
MAIN BODY
Background and market outlook for Boohoo
Boohoo company is mainly serving large consumers as it is recognized for providing the
fashion clothes with various brands and serving by targeting styles and serving large number of
quality conscious consumers. The company is mainly serving fashion apparels with focusing on
the establishing the consumer preposition at great prices and combining the services by
satisfying the consumers. For growing in the dynamic market the company is acquiring various
brads and big fashion retailers aids in serving various branded apparels to large number of
consumer in the market. Working 24/7 for serving with online platform the company is listed in
the LSE and achieving success by listing and Selling its shares and stock to various others . The
company as producing various new styles of clothings and marketing its products by using the
supply chain for achieving the success. The main vision of the company as for serving
consumers with using e-commerce platform and delivering its products by managing the
customers service with offering prices products for attracting large consumers for purchases.
The company sales grown around 14% around 1.98 billion in year 2019-20. This aids in
defining the Higher number of sales during the year 19-20. also the company earned profit
around the 750 million in the year 18-19 and 20.4 million in 19-20. Further the company share
prices recorded recently around the 99p till march 2022. The company is selling around 9000

clothing lines by primarily focusing the demographics as of the youth and above youth age is
around 15 – 25 years old. Also, the company is using various marketing strategies as for
marketing its products by making use of social media apps and websites for encouraging various
consumers by attracting for purchases.
Source: (The story of Boohoo, 2022)
Identifying and analysing the supply chain and logistics management system also highlighting its
challenges and benefits
Supply chain management is mainly defining about the system which is used for
adequately flowing of products and services with processing of goods from raw material to
finished products. This system helps in achieving objective of the business by aligning its
strategies treated to the manufacturing processes and helps in reducing the risk and improving
the quality of goods for establishing the loyal and retaining the consumer base as for serving the
large consumers for purchasing the fashion products (Cham Casella, Bigliardi and Bottani,
2022). Boohoo establishing the supply chain managing as for tracing all the step as of processing
and manufacturing the products and distributing to the range of large number of consumers in the

dynamic market. With adopting this system helps in lowering the inventory costings and helps in
ever-increasing better productivity and achieving to higher profits for the company. As applying
the supply chain for bringing and processing products more quickly. Adopting this management
system helps in creating efficient supply of various products (Wang and et.al., 2020). By strongly
focusing with the supply chain aids in responding to all the customer preferences and helps in
fulfilling all the latest trends with serving the latest fashion styles and various branded products
by the Boohoo. Logistics management for the company is mainly adopting the processes for
properly following of various goods and services by integrating the packaging, transporting and
handling all the material as for supplying the ultimate products with operating the e-commerce
online business.
Challenges faced by the company while implementing systems
 The company faced challenges by addressing the allegation made as of paying lower to
all the employees. This aids in hindering and improving the working conditions in the
supply chain as for serving large number of consumers with the fashion relating and
different styles products.
 Scarcity of material is the challenges faced as due to pandemic and crises conditions
company faces scarcity for processing and manufacturing the fashion products and
hinders in distributing to large number of consumers. With the lack of availability of
various raw material and other processing of the good hinders the growth and serving the
large number of consumers ion the dynamic market.
 Increasing in cost of distribution hinders arise challenge for the Boohoo as for serving the
large consumer with the increasing of fuel and other prices as of raw material and
obtaining processing material result in reducing the revenues for the company.
 Facing difficulty in forecasting the demand and serving during the crises and pandemic
hinders the company operation.
 Various trade disputes, economic crises and the disputes related to trade creates pressure
on the company as for carefully coordinating the supply chain and aids in good decision-
making.
Benefits

 Various benefits for implementing the supply chain management in the company it helps
in attaining better quality of products in packaging and working as for achieving the
desired standards by delivering goods on time to all the consumers.
 This management also helps introducing the cost by managing the inventory and helps in
forecasting the future inventory and products needs which helps in optimizing the level of
inventory and products outsourcing in the company.
 A well managed supply chain helps in tracking all the products and allowing the
company fir managing and optimizing its transportation and the routes of distributing all
the products to the ultimate consumers of the fashion retailer.
 It helps the company in choosing and adopting the proper designings and various material
for processing and manufacturing the company own brand products as it mainly helps in
directing the process of supply chain and carrying products to the ultimate consumers.
Explaining how RFID technology increases the means of enhancing productivity
RFID technology is very useful for the Boohoo Group as this technology allows the firm
to track the entire supply chain so that any kind of missing goods might be identified easily.
Also, it will allow the firm to identify all the bad products parts or components through tracking
facility so that efficiency and productivity might be ensured at completion of the finished
goods. Furthermore, for Boohoo it can be said that this technology is very helpful as all the
individuals items that are available in the store will help in improving the access to that data thus
making it easier to find the item (Škiljo and et.al., 2020). Moreover, with the use of RFID
technology the firm would be able to improve the customer services through better identification
of various products. Also, it can be said that use of the RFID will significantly change the
business processes of the company as it will allow the firm to know how the various goods that
are sold by the company move in the warehouses' so that excessive time involvement and
problems faced might be easily identified and then after certain changes than might be made
accordingly.
Furthermore, through getting the real time insights Boohoo would be able to reduce the
number of labours within the workplace and enhance the data accuracy which will ultimately
increase the supply chain process and ensure faster delivery to its targets customers. Also, RFID
technology avoid demerits from use of the earlier bar code scanning method where it would only
scan one item at the time (Xiao and et.al., 2018). Hence, with use of this technology Boohoo

would be able to detect multiple RFID tags and would be able to read data remotely and
simultaneously at the same time thus increasing the overall productivity and efficiency in short
period. Also, through the immediate tracking the firm would be able to improve the customer
experience and increased sales of the business in most effective manner. Furthermore, through
such type of tracking Boohoo Group would be able to employ the best manufacturing
equipments and ensure proper inventory assets management. This technology helps and support
Boohoo in controlling the inventory a by tagging all the stock of the company and location its
garments in the proper stock. This aids in forecasting all the products which is mainly required
for managing the proper inventory. It also helps inn controlling and supporting the warehousing
for the company and managing all the processes required for the supply chain.
This system also helps in reducing cost by improving the working and attaining the
efficiency. This aids in utilizing all the processes in the boohoo company by optimal utilizing of
the available resources for serving consumer with the best quality of fashion products (Leitz,
Weinhard, and Mendling, 2018). This technology aids in reducing the cost by optimizing the
available Laboureur workings and automating the processes used for efficiently working the
supply chain process for the boohoo company. This mainly helps boohoo in managing inventory
and aids in enchaining the customer experience by Selling thee products quickly (Wen, Choi and
Chung, 2019). This assist in enhancing the company by saving time and data of processing .
Further more producing various goods to large number of consumer with better controlling the
productions and aids in ever-increasing revenues for the company which results in improving
performance And sustaining and serviving for longer run by serving large number of consumers.
Reviewing Boohoo current sustainable business strategy
Sustainable business strategy is one that allows the firm to increase working of the
business through using methods and conduct of activities that are taken to improve the impact on
community and environment. Also, for Boohoo group there are various sustainable business
strategies that are adopted by the firm so that better impact might be created on the environment.
Moreover, being the fashion retailer company all the goods that are manufactured are based on
the current needs, demands and trends among various customer and target market so that
maximum sales might be generated. Hence, in current era most of the people are concern in
protecting the environment and are conscious in using only those products that are environmental
friendly and cause less damage to the planet resources. Also, to sustain in market for longer time

Boohoo group had focused on all its departmental efforts to create more sustainable
fashion ,materials (Pal and Gander, 2018.). Moreover, company had adopted the strategy of
recycling waste clothes materials and unused items so that greater sustainability in the business
might be ensured. Furthermore, the group is establishing strong communications with other
sustainable fashion partners and links that helps the business to become more efficient and
sustainable in the best possible manner through identifying the best manufacturing process and
methods in fashion industry.
Moreover, it can be said Boohoo by the end of 2025 is focusing sustainable design in the
business is one where more vintage fabrics would be used that would not only improve the
durability of clothes but will bring the old clothes into the trend that will never go out of fashion.
Also, quoted company is focused in using the dispatching bags that are having the 80%
recyclable content that might be recycled in the future easily (Thorisdottir and Johannsdottir,
2019). Thus, through using such type of strategies the company would be able to fulfil the part of
corporate social responsibility and would be easily increased the market share in the future. Also,
in certain reports it was stated that company major focus is on sustainability in the materials,
textile waste and packaging. Furthermore, company is well aware that to become fully
sustainable it is very important that other important issues such as chemicals, use of the water
resources, protection of the biodiversity etc. need to be taken into consideration so that firm is
able to prove themselves the best sustainable business strategy against its competitors. However,
it can be said that firm is planning to announce the goals relating to all these matters in 2023 and
is constantly working in memberships with various firm such as Microfibre Consortium,
Sustainable Apparel Coalition and Textiles 2030 so that these matters might be address in the
best manner and the best sustainable strategy might be developed for the growth of the business.
Moreover, the company is working with the UK suppliers that will help the company in making
sure that all the textile waste directly goes into the landfills by the end of 2025.
Thus, it can be said that any sustainability program that is developed by the firm need to
be implemented and continued for longer time period so that maximum returns might be derived
in the future (Claxton and Kent, 2020.). Also, it is long process and hence Boohoo need to have
availability of enough funds and resources to make it as success. Furthermore, to become the
market leader in the sustainable business and to enhance the efficiency it is required for Boohoo
to conduct detailed market research and incorporate diverse leadership within the workplace so

that employees remain motivated to wok together with managers in suggesting the best business
solutions and methods of innovation to improve the efficiency in selling and manufacturing of
fashionable business products.
CONCLUSION
From the above report it can be concluded that the supply chain logistics mainly help the
company in storing and distributing products to the ultimate consumers. Boohoo company
serving large number of consumers as recognized the largest retail in the fashion sector serving
its own brand products. Supply chain management helps the company in sourcing and
maintaining the inventory by warehousing its products and services distribution to large number
of consumers. Also, the various challenges and benefits faced by the company in applying the
supply chain in the company. Further, with the use RFID technology used helps in achieving the
productivity, efficiency and reducing cost of operation. Further the company sustainable strategy
helps in reducing the impact on environment and reducing the waste till 2025. Various
challenges faced by the company by applying the supply chain and logistics management as it
aids in providing best services and result in ever-increasing cost. Also, the challenges faced by
the company as of the fuel charge rise of various distribution expenses results in impacting the
company operations. moreover, using the technology helps in ever-increasing the supply chain
by managing the inventory for the company as for manufacturing various products and serving's
to large number of consumers in the dynamic market.

REFERENCES
Books and Journal
Cham.Casella, G., Bigliardi, B. and Bottani, E., 2022. The evolution of RFID technology in the
logistics field: a review. Procedia Computer Science. 200. pp.1582-1592.
Claxton, S. and Kent, A., 2020. The management of sustainable fashion design strategies: An
analysis of the designer’s role. Journal of Cleaner Production. 268. p.122112.
Leitz, R., Solti, A., Weinhard, A. and Mendling, J., 2018. Adoption of RFID technology: the case
of Adler—a European fashion retail company. In Business process management
cases (pp. 449-461)
McMaster, M., Nettleton, C., Tom, C., Xu, B., Cao, C. and Qiao, P., 2020. Risk management:
Rethinking fashion supply chain management for multinational corporations in light of
the COVID-19 outbreak. Journal of Risk and Financial Management.13(8). p.173.
Pal, R. and Gander, J., 2018. Modelling environmental value: An examination of sustainable
business models within the fashion industry. Journal of Cleaner Production. 184.
pp.251-263.
Škiljo, M. and et.al., 2020. Analysis of passive RFID applicability in a retail store: What can we
expect?. Sensors. 20(7). p.2038.
Thorisdottir, T.S. and Johannsdottir, L., 2019. Sustainability within fashion business models: A
systematic literature review. Sustainability. 11(8). p.2233.
Wang, B., and et.al., 2020. Blockchain-enabled circular supply chain management: A system
architecture for fast fashion. Computers in Industry. 123. p.103324.
Wen, X., Choi, T.M. and Chung, S .H., 2019. Fashion retail supply chain management: A review
of operational models. International Journal of Production Economics.207. pp.34-55.
Xiao, G. and et.al., 2018. Printed UHF RFID reader antennas for potential retail
applications. IEEE Journal of Radio Frequency Identification. 2(1). pp.31-37.
Online
The story of Boohoo. 2022. [Online]. Available through: < https://freetrade.io/news/the-story-of-
boohoo>
[Online]. Available through: <>