Supply Chain Management Assignment (Solved)

PROCUREMENT,
SUPPLY CHAIN
AND NEGOTIATION
REPORT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Market Outlook......................................................................................................................1
TASK 2............................................................................................................................................3
Procurement of Argan Oil from two countries.......................................................................3
TASK 3............................................................................................................................................4
Best Supplier, Port of Origin and Shipping Line...................................................................4
TASK 4............................................................................................................................................6
Customs Regulations..............................................................................................................6
TASK 5............................................................................................................................................6
Risk Management Plan...........................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
APPENDICES...............................................................................................................................11
Appendix-1...........................................................................................................................11
Appendix- 2..........................................................................................................................14

INTRODUCTION
Supply Chain refers to an overall systems of activities, people, information and
organisation as well as resources which are included in moving an offering of a company from
suppliers to customers (Christopher, 2016). On the other hand, negotiation refers to processes as
well as actions to reach a certain agreement through avoidance of disputes or arguments. The
following report is based on supply chain management of HF which is a beauty retail chains in
the UK. It covers Market outlook, channels as well as trends in hair care products as well as
procurement of hair care offering which is 30ml Argan oil from two countries. It also covers
research of the best supplier, customs regulations as well as a detailed risk management plan.
TASK 1
Market Outlook
Beauty and Health industry in the UK is experiencing a rise due to better products, higher
market demand and customer centric products. Within the industry, there are various factors such
as customer awareness and enhancement in technologies have encouraged beauty organisation to
develop products which are rich in skincare and environmental friendly (Monczka and et. al.,
2015).
The United Kingdom is the sixth-largest market dealing in beauty as well as personal care
products. Worth of this industry has been estimated more than £10bn in 2017. Moreover, in the
same year, per capita expenditure on personal care and beauty products in the country was higher
than £150, which is the fifth highest globally. This industry has four separate market categories,
which are personal care and beauty products, each of which is commanding 20% share of the
market, Salon and Spa services, commanding 30% share, barbershop and hairdressing services,
commanding 30% share of this market within the country. Estimated expenditure of customers
on salon, spa and beauty treatments have been more than £7.5bn in 2017 (What is the current
state of the UK beauty market? Key findings, 2018).
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Illustration 1: Market value of beauty and personal care in the United Kingdom (UK) from 2015
to 2020 (in million euros)
(Source: Market value of beauty and personal care in the United Kingdom (UK) from 2015 to
2020 (in million euros), 2019)
As per the above statistics, the market value of this industry has been forecasted to be
continuously rising in coming years. This market is female dominated and its customers are a
wide variety of women ranging from age of 16 to 54. Such a high range of customer
demographics are a strong reason for development of new trends within this industry.
As for haircare, the most important trend has been the rise in gluten-free and vegan
products. The development of vegan products has seen a significant rise from 6% to 20% within
a period of 2014-2018. in addition, gluten-free products have risen from 3% to 9% within a span
of two years in 2016-18 (Microbiome Skincare, Clean Makeup And Gluten-Free Haircare: The
Trends Driving Growth In The UK Beauty Market, 2019).
Another trend witnessed by this market is the rise of digital technology which has shaped
up the industry effectively. From development to its application, technological advancements
2