Management of Inventories and Assets in Clipper Logistics

OM 1
Operations Management

OM 2
Table of Contents
Introduction......................................................................................................................................3
Company Background:................................................................................................................4
Management of Inventories and Assets within the Selected Production System............................4
Detailed Illustration of Key Operations Involved in the Chosen Production System.....................6
Assessment of two points where the organization’s delivery system may fail...............................9
Discussion of lean approach in order to reducing the potential impact of failure.........................10
Identification of three key findings with relation to the lean approach for supporting in
production system..........................................................................................................................12
Conclusion and recommendations.................................................................................................14
References......................................................................................................................................15

OM 3
Introduction
This report is developed with the aim of creating understanding/ knowledge about different
concepts and terminologies related to production system. The production system that is selected
for analysis in this report is transport system. At the same time, company selected for this report
is Clipper Logistics. It will be evaluated that how well the inventories or assets are managed
within the selected production system. In addition to this, the report will focus on detailed
analysis of different operations that are involved in selected production system in logical
sequence or flow. Moreover, the report will focus on detecting two points, at which there is risk
of delivery system failure to align its operational performance measures. In contrast to this, the
report will focus on analyzing that how lean approach could be used in selected production for
purpose of minimizing the identified failure points. Final section of the report will emphasize on
discussing the extent to which lean approach can help to align the production system with
operational performance measures.

OM 4
Company Background:
Clipper Logistics is the company that is selected in this report as the production system. Clipper
Logistics deals in retail logistics and transportation business in UK and other European countries.
At present, the company is operating at more than 40 sites in UK. In addition to this, the number
of employees at this company is more than 3500 employees. Clipper Logistics has adopted the
consultative approach towards retail logistics business. Main focus of this company is on running
business efficiently and smoothly through innovation and collaborative processes. At present,
Clipper Logistics is providing its retail logistics transportation services to different companies
including Wilko, Asda, Asos, John Lewis Plc etc (Clipper Logistics, 2018). Clipper Logistics is
highly efficient in its business operations that help it to maximize customer satisfaction and
employee loyalty. The company has achieved different rewards for its range of multichannel
solutions in the business. Example of different rewards received by Clipper Logistics includes
Boomerang for its business of bespoke return service. The company is also highly specialized in
third party logistics business.
Management of Inventories and Assets within the Selected Production System
Clipper Logistics is the selected production system of this report. The inventory management
operations of Clipper Logistics are highly excellent. The company focuses on Just in Time
delivery approach in its business. Just in Time or JIT approach stands for the business model, in
which companies focus on procurement of different assets or inventories, where there is actual
need for these assets or products within the business. This type of approach is highly beneficial
for minimizing ware house or storage cost in business (Stevenson, 2009). In other words, the JIT
approach is helpful in maximizing profitability to the companies. Clipper Logistics deals in retail
logistics and transportation business. In this context, it is highly beneficial approach to maximize
its profitability and to minimize storage or warehouse cost in business.
In addition to this, due to approach of JIT inventory management and delivery of products, the
company is able to develop trust among business associates and customers. For example, if the
company will deliver products ordered by customers at right time, it will develop a trust and
loyalty towards the company. As a result of this, at the time of making next order with any
company, the customers will prefer delivery through Clipper Logistics, if they would be
provided choice for same. In contrast to this, with the timely delivery of products to end