Logistic and Supply Chain Management

This report provides an overview of supply chain management and logistic activity in the context of Bunning Warehouse. It discusses the characteristics of the company's supply chain, sustainable practices, and collaboration with suppliers and partners. The report concludes with recommendations for online presence and employee relations.

Logistic and Supply
Chain Management

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Executive Summary
The main aim of this report is to understand the supply chain management. In this report, the
Bunning Warehouse has been taken into consideration to analyse the supply chain
management. There are many characteristics of supply chain of the company which helps it
to operate smoothly in the market. The company provide the opportunities to the suppliers
and partners in order to satisfy the consumers. The company develop the map of supply chain
due to which the supply chain is effective. It has been recommended that the company has to
maintain the relationship with the employees as well and also show their presence on online
website to attracts the large number of customer. It has been concluded that the company will
achieve the success in the near future with the effective supply chain.

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Contents
Introduction................................................................................................................................3
History of Company...................................................................................................................3
Market and Scope of Operation.................................................................................................3
Characteristics of supply chain and Logistic activity................................................................4
Sustainable Practices..................................................................................................................6
Collaboration of supplier and partner........................................................................................6
Conclusion..................................................................................................................................6
Recommendations......................................................................................................................7
References..................................................................................................................................7
Appendix....................................................................................................................................8

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Introduction
Supply chain management is the management of flow of goods and services which involves
the movement and storage of raw materials, work in progress, finished goods from one place
to another. It can be defined as design, planning, execution, and control of the supply chain
activities (Christopher, 2016). This report will talk about the supply chain management and
there practices in the organisation. Bunning Warehouse Company has been taken into
consideration to control the activities of supply chain management. In the beginning of the
report, market and scope of Operation Company will be discussed. After that, Characteristics
of supply chain management and the sustainable practices will be analysed. In the end of the
report, the collaboration of suppliers and partners will be discussed.
History of Company
Bunning warehouse is an international household hardware chain. Bunning Warehouse was
established in 1887 in Perth, Western Australian. The company was founded by two brother
who had emigrated from England. The chain of the company is owned by the Wesfarmers
and stores in Australian and New Zealand. Earlier, the company focused on Sawmilling to
operate but after that it became a public company in 1952. The company achieve the rapid
growth from which it expanded the business into the retail sector by purchasing the several
hardware stores. Currently, the chain has 295 stores in the different places with the help of
30000 employees (Bunning Warehouse, 2019a).
Market and Scope of Operation
The company operates in a network of large warehouse stores, smaller format stores, trade
centres, truss sites and frame. The company operates in Hardware industry with the different
activities to earn the profit. Bunning caters for consumer and commercial customers so that

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the large number of customers and brands attract towards the services of the company. As per
the financial report, the company earned $12.5 billion in the year of 2018. Bunning has strong
network of locations to cater which is beneficial factor for the company to expand the
business in the new market. The company perform the different activities which reflect that it
has high scope to expand their business in the opening of new stores and more digital
engagement (Bunning Warehouse, 2019b).
Characteristics of supply chain and Logistic activity
The main purpose of the company is to store and deliver the goods and services in the
different sectors. It is necessary for the company to have the strong supply chain network due
to which it can operate smoothly in the market. There are many characteristics of supply
chain of the company. The distribution channel of Landscape and Hardware has grown
rapidly with the increasing rate. Bunning has become the Greenlife “Category Killer” in retail
and has similar intentions for the landscape channels. The company can capture the premium
sector of the market which is currently underway (Bunning Warehouse, 2019b).
Smaller wholesaler and retailers of the company have less understanding of cost drivers or
value drivers of transport services. It is a negative factor for the company just because of
increasing the cost throughout the chain. Warehouse management is also a part of supply
chain which is also necessary to be effective. It is observed that the company manage their
warehouse very effectively. The company has fully control on the movement and storage of
materials within a warehouse (Hugos, 2018).
It has been seen that the company operates in many sectors by providing the different
services very smoothly. It is necessary for the company to have the effective location for the

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warehouse to store the material. It is observed that the company has the effective storage
location due to which it can effectively operate in the market.
(Source: Bunning Warehouse, 2019b)
Bunning Warehouse is an international household hardware chain which reflects that it is a
well-known company. The company has large number of tours to deliver the services to the
consumers. The company has routing and sequencing of order picking tours due to which the
distribution channels work effectively (Bunning Warehouse, 2019b).

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(Source: Bunning Warehouse, 2019b).
Sustainable Practices
The three activities which are adopted by the company in order to sustain the supply chain
and these are given below:
Mapping the Supply Chain
It has been seen that the company develop the map of supply chain in order to deliver the
effective services. The company work as per the mapped supply chain management so that
the process of supply chain would be effective. It is a first activity which is adopted by the
company to sustainable their supply chain. It is necessary for the company to adopt this
activity to sustain their supply chain (Bunning Warehouse, 2019c).
Key performance indicator

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The company adopt the key indicator of performance in order to determine the performance
of an employee. The company has the opportunity to deliver the quality of services to the
customer due to which it is necessary to evaluate the performance. The company adopt the
key performance indicator to evaluate the performance.
Evaluation
The company adopts the activity to evaluate the implementation stages of sustainable of
supply chain management. The company evaluate the different measurement techniques so
that there supply chain is sustained (Fredendall, and Hill, 2016).
Ways adopted by Bunning warehouse to influence all elements of its supply chain
Reduce Wastage
The company reduce the wastage to keep the environment sustain in the market. The
company store the material in the warehouses and deliver the finished goods from one place
to another. The company less use the fuel and diesels in order to supply the products from
one place to another due to which the pollution is reduces.
Quality
The company maintain the quality of the goods and services so that the environment will not
be affected after their consumption. It is observed that the company use the paper bags in
order to reduce the pollution (Logistics Bureau, 2018).

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Collaboration of supplier and partner
Maintaining strong relationship
It has been seen that the company build the strong relations with their partners and suppliers.
Maintaining the strong relationship encourage them to support the company in satisfying the
customer. The support of suppliers and partners helps the company to expand the business in
the new market with the high investment so that it can reach at the large number of customer
(Roy Morgan, 2018).
Opportunities
It has been analysed that the company wants to introduce the new products opportunities and
innovations. It is a beneficial factor for the suppliers to have a consistent and well trusted
platform to deliver the product in the market. The suppliers have the opportunities to earn the
huge amount by delivering the quality of services to the company for the new product. The
new innovative product satisfies the customer and their wants as per their requirements
(Bunning Warehouse, 2019d).
Support the suppliers and partners
The company committed to support the local based suppliers and partners in order to satisfy
their demands so that they can stay for long time. Bunning starts import the world leading
brands to ensure the continued product innovation and best value of their customer. The
continue innovation encourage their partners to grab the high market share by satisfying the
customer needs and wants (Roy Morgan, 2018).
Vendor Managed Inventory
It has been seen that the company also adopt the vendor managed inventory practices so that
the suppliers aware about their services and delivery of goods. The company satisfy the

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consumer demand by delivering the services as per the requirement and it can be possible by
maintaining the inventory.
Conclusion
From the above analysis, it has been concluded that the company has high goodwill value in
retail sector. The company operates in different sector by performing the different function
which helps to achieve the success. It is observed that the company has an effective supply
chain due to which it operates smoothly in the market. The company develops the innovative
products which attracts the partners and suppliers to ensure the customer satisfaction. It has
been concluded that the company will achieve the success in future with this supply chain
management.
Recommendations
Online presence
It has been seen that the brand face the issue of lack of communication due to less online
presence. The company has high value of goodwill which attracts the customer but
nowadays, people buy the products through online which affect the sale of the company. It is
recommended that the company has to increase their presence through online so that the large
number of brand attracts toward the services of the company (Bunning Warehouse, 2019e).
Employee relation
It is necessary for the company to have the effective supply chain as per the nature of work of
brand. Although, the company has good relation with the suppliers and partners but it also
required to maintain the healthy relation with the employees so that the performance will

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maintain. It is necessary to encourage the employees by providing rewards and appreciation
so that they can give their best towards the duties and customer contains the quality of
services (Monczka, Handfield, Giunipero, and Patterson, 2015).

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References
Bunning Warehouse. (2019a) History. [online] Available from:
https://www.bunnings.com.au/about-us/history [Accessed 8/1/19].
Bunning Warehouse. (2019b) About Us. [online] Available from:
https://www.bunnings.com.au/about-us [Accessed 8/1/19].
Bunning Warehouse. (2019c) Bunnings Australia & New Zealand Community Report Card.
[online] Available from:
https://www.bunningscareers.com.au/files/2016_Community_Report_Card.pdf [Accessed
8/1/19].
Bunning Warehouse. (2019d) For Our Suppliers. [online] Available from:
https://www.bunnings.co.nz/about-us/for-our-suppliers [Accessed 8/1/19].
Bunning Warehouse. (2019e) MY Bunnings’ Loyalty Card Program. [online] Available from:
https://francesguasta.files.wordpress.com/2018/04/my-bunnings-loyalty-program.pdf
[Accessed 8/1/19].
Christopher, M. (2016) Logistics & supply chain management. Pearson UK.
Fredendall, L.D. and Hill, E. (2016) Basics of supply chain management. CRC Press.
Hugos, M.H. (2018) Essentials of supply chain management. John Wiley & Sons.
Logistics Bureau. (2018) Outsourcing Consultants. [online] Available from:
https://www.logisticsbureau.com/outsourcing-supply-chain-logistics/ [Accessed 8/1/19].
Logistics Bureau. (2018) Supply Chain Strategy Development. [online] Available from:
https://www.logisticsbureau.com/supply-chain-strategy-development/ [Accessed 8/1/19].
Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L. (2015) Purchasing and
supply chain management. Cengage Learning.

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Roy Morgan. (2018) Bunnings satisfies most customers. [online] Available from:
http://www.roymorgan.com/findings/7659-bunnings-satisfies-most-customers-201807130537
[Accessed 8/1/19].

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Appendix
(Source: Logistics Bureau, 2018)
(Source: Bunning Warehouse, 2019).