Importance of Logistics in Small Company

This report discusses the importance of logistics or supply chain in a small retail company, Made.com. It explores how logistics contributes to customer service, competitive advantage, profit, and brand image. The report emphasizes the need for effective logistics management in achieving business objectives.

Importance of Logistics in
Small Company

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Importance of Logistics...............................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Logistics or supply chain plays very great role in an organisation. Top-level management
within each business or company should use productive strategies to run their logistics activities.
without proper logistics or supply chain, a company can’t achieve its business objectives in
decided time period. For running logistics task in systematic manner, each business has required
to use favourable and appropriate way of transportation, like; road, air and sea transportation.
This report discusses importance of logistics or supply chain in Made.com. It is a small retail
company, headquartered in London, United Kingdom. This company mainly sells designable
homewares and furniture through its online site www.made.com and 8 showrooms.
Concept of Logistics: Logistics is a distribution chain management aspect which is used by
businesses or companies for meeting customers’ demands.
Rationale: To deeply understand the actual value of logistics in the organisational growth is the
main reason behind selecting this topic.
MAIN BODY
Importance of Logistics
According to Škerlič and Muha (2016) currently logistics and supply chain is very
important to the Made.com, because company is able to supply various raw-material, designable
homewares and furniture from one place to another in productive manner. The company has
never faced shortage of any product in its both selling mode called online (site) and offline
(stores), because of proper logistics management. Currently company is continuously gaining
new customers, so in this situation it is major task to top-level management of company that
always fulfil demand of customers on time.
As illustrated by Zhao (2018) customers never like those companies which always says
“sorry currently that product is not available which you want to buy”. It means, they not like to
visit such stores which always suffers from shortage of products and services. In this situation,
existing management of made.com completely understand the impact of product shortage, that’s
why it has hired some skilled and talented employees in its logistics department who always

effectively runs all activities of logistics and supply chain. Each business or company should
properly manage their logistics in proper manner to gain positive results in the market. Logistics
gives opportunity to company for removing issue of product shortage from business
environment. Some major importance of logistics has been discussed below;
On the basis of Kain and Verma (2018) logistics or supply chain plays too effective role
in the Made.com for increasing levels of customer service. Reason is, currently each business or
company are investing huge fund for increasing their levels of customer service. In this situation,
effective logistics management is one of the best key for businesses to increase customer
services, because proper logistics always helps to companies for providing products and services
to customers one time. Currently made.com providing their designable furniture and homewares
through both online and offline modes, in which top-level management has highly required to
systematically manage their logistics aspect. It is necessary task to the management, because
proper logistics management very important key to this company which gives opportunity to
increase or improve levels of customer service. The management of company believes, when a
company provides products and services to customers on time, then customers get fully satisfied
with that company. There are systematic logistics management gives opportunity to company for
saving its lots of time precious time. That’s why logistics or supply chain is too important to this
company in increasing levels of customer service.
Then Kain and Verma (2018) also said that, currently the made.com is able to gain huge
competitive advantage with the support of its proper logistics management. Existing logistics
department of company is too active in its job role, because it has highly succeeded in delivering
various innovative homewares and furniture to customers on time. This feature of company is
highly contributing in gaining huge competitive advantage in retail industry. The company has
gained large customer base through its effective logistics management. Currently most people in
the United Kingdom are giving high priority to only those brands which provides high customer
services, in which made.com is also responsible to provide excellent customer service to gain
huge competitive advantage. There is effective logistics management enables to company for
satisfying customers in the market. According to business terms, when a company has succeeded
in make satisfied their customers, then it will able to give very tough competition to their

competitors. Literally, there is logistics or supply chain plays very great role in gaining very high
competitive advantage in the market.
According to Es, Hamzacebi and Firat (2018) when any company has proper logistics
management, in which that company’s profit ratio will automatically increase or improve.
Basically, increase profit in the final target of each venture or business, so currently logistics
aspect is giving great contribution in the made.com for increasing it profit in retail industry.
Currently company is easily able to transfer their products or goods from manufacturing plant to
authorised distributors and stores with the support of its extra-ordinary logistics or supply chain
management. Nowadays this company is gaining very high profit because of its effective
logistics management. There is existing management within each business or company should
make effective supply chain for generating very huge revenue in their respective market
segment. Currently different businesses or companies taking various steps towards increasing
their profit ratio, in which these all businesses need to consider logistics also in their steps.
Reason is, a company can easily fulfil all demands and wants of customers through effective
logistics management. In this situation, when a company fulfils all demands and wants of
customers on time, then it can easily gain huge profit in different market segments.
As illustrated by Large (2017) logistics promotes effective communication as well,
because effective communication is one the prime needs for a company to run their all operation
of logistics in proper channel. For example; a truck of made.com has loaded designable
homewares and furniture from manufacturing plant to transfer in company’s authorised stores. In
this situation, strong communication has highly required to the company for transfer their
products or goods to stores. Firstly, stores manager of company always need to communicate
with its upper management for informing about availability of different products in store. Then it
need to order those products which are available minimum quantity. In this situation, upper
management is responsible to note down order of store manager. Then upper management
communicate with logistics or supply chain management for transferring those products to which
are available in minimum quantity in that store. This is the proper channel to run logistics
activities in systematic manner. without effective communication, made.com never make its
logistics aspect too much productive. That’s why logistics or supply chain always promotes
effective communication within company.

On the basis of Arsova (2020) proper logistics management gives opportunity to
made.com for improving brand image in the market. Currently company is able to provide their
innovative and exclusive homewares and furniture to customers on time. This is only possible for
this company because of its effective logistics or supply chain team. Many successful
businessmen say, when a company provide their products and services to customers on time,
means without wasting precious time of customers. In this situation, customers feel valued by the
company, and they start to appreciate services of that company. These factors are enough to a
company for increasing its brand image and goodwill in respective market segments. If any
business has succeeded in improving its logistics management, then improved version of
logistics management will contribute on that business for gaining very high goodwill different
markets. Top-level management of made.com should highly consider this importance of logistics
in their business environment to improve its brand image in retail industry of the United
Kingdom.
According to Akoudad and Jawab (2018) Made.com is mainly famous for its exclusive
range of homewares and furniture. The company has always required to use quality raw-material
to produce such products, in which logistics plays very effective role in the company for using
raw-material in manufacturing processes. Logistics management of made.com is only
responsible to provide required raw-material to its production department. It means, this
company is capable to boost its production processes also with the support of effective supply
chain. Existing logistics manager of company always provides required raw-material to company
in very systematic manner, because it uses some specific vehicles to transfer raw-material
without any defect. Proper logistics management gives opportunity to this company for
protecting their products relating to homewares and furniture from dust, water and fire etc.
These all are some major importance of logistics or supply chain. Currently made.com is
taking huge advantages from its effective logistics management. Top-level management within
each company or business should properly manage logistics aspect in their business environment
to achieve positive results.
Recommendation

Top-level management if Made.com is highly required to understand the actual value of
logistics, because this give opportunity to a business for achieving effective results in the market.
The management at Mande.com should properly plan, implement and control the logistics
functions to generate excellent revenue.
CONCLUSION
It can be concluded that currently logistics management has given opportunity to
made.com for increasing its levels of customer service. Proper logistics or supply chain activities
are highly contributing in gaining very profit in the market. Made.com can’t achieve its decided
business objectives in decided time period without effective logistics management. Existing
supply chain strategies of company are good, but not much effective. In this situation top-level
management of company should take productive decisions towards improving their logistics and
supply chain strategies. The company is able gain very huge competitive advantage in retail
industry of the United Kingdom through effective logistics management. Properly run functions
of logistics is not a small task to a company, because company always has required to deal with
challenges which generally comes within logistics functions. In this situation, top-level
management of Made.com need to develop some appropriate tactics for systematically dealing
various challenges of logistics functions.

REFERENCES
Books & Journals
Akoudad, K. and Jawab, F., 2018. Evaluating Total Logistics Costs at Macro and Micro Level:
Literature Review. Int. J. Eng. Res. Technol.. 7. pp.319-325.
Arsova, M., 2020. The importance of location in transport-logistics companies. Journal of
Economics. 5(1). pp.31-38.
Es, H. A., Hamzacebi, C. and Firat, S. U. O., 2018. Assessing the logistics activities aspect of
economic and social development. International Journal of Logistics Systems and
Management. 29(1). pp.1-16.
Kain, R. and Verma, A., 2018. Logistics management in supply chain–an overview. Materials
today: proceedings. 5(2). pp.3811-3816.
Large, R. O., 2017, January. Who buys logistics services? Organisational and occupational
issues. In Supply Chain Forum: An International Journal. (Vol. 18, No. 1, pp. 7-12).
Taylor & Francis.
Škerlič, S. and Muha, R., 2016. The importance of systems for controlling logistics costs in the
supply chain: a case study from the Slovenian automotive industry. Promet-
Traffic&Transportation. 28(3). pp.299-310.
Zhao, Y., 2018, April. Problems and Countermeasures of logistics management in small and
medium enterprises. In Modern Management Forum. (Vol. 2, No. 2).