Research | Supply Chain Management - Lulu Group

RESEARCH

INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW................................................................................................................4
RESEARCH PROCESS..................................................................................................................8
RESOURCE ACCESS..................................................................................................................11
REFERENCES..............................................................................................................................12

 INTRODUCTION
System, people, resources, activities, information etc are the few components which are
essential for any company to transform their raw materials into final products so that it can be
consume by final customers (Ahi, and Searcy, 2015). Supply chain is an integral part of
manufacturing as well as retail industry as its main objective is to monitor goods or products in
the transforming products i.e., transformation of raw materials in to final products which is ready
to consume by consumers. On the other hand, logistics refers as a process of management of
flow of goods within as well as outside organisations so that product would be reach to its final
destination in right time and right place. Both the topics are inter related to each other as without
logistics, no company could attain its highest potential or efficiency and vice versa. For instance,
if company is able to procure raw materials in lowest price with highest quality but could not
deliver it to the production at the right time then it would not be of no use. In other example, if
company is able to transport their materials on right time and right place but the quality of
material is not up to company’s standard then at last, customer relationship with the company
will get distorted. So overall, supply chain and logistics is connected in a chain where one halt
will affect other components or steps in a negative way.
Lulu Group International is one of the largest hypermarket and supermarket retail chain
in United Arab Emirates and has been running their business since its inception in 2000 (Durach,
Kembro and Wieland, 2017). Overall, company has 188 outlets in different areas like GCC,
MENA, Africa, Europe and America and employees more than 57,000 people worldwide.
Different type of marketing schemes has been running in their stores which assist them to attract
customers from all around the world as company has partnered with Abu Dhabi Commercial
Bank in which on every AED spent in Lulu market, points are earned by customers which could
be transform into money in future. In terms of operations, company has divide UAE region into
three different parts i.e., Dubai, Al Ain, and Abu Dhabi and each part has their own specific
supply chain and logistics management.
Few issues which are faced by the industry is high cost of transportation as due to
different demand of products from different area, it becomes complex for them to manage their
expenses to it is limited so that high profit margin would be gained by them. Overall, network
configuration to maintain the price of transportation has become one of the issue which are
affecting companies in a negative way. High labour cost is also one of the issue as there are few

works which could not be conducted without human thus increasing overall operational cost.
Due to increase in environment concern, environmental issues like global warming, carbon
footprint are few problems which affects company image in the market. Other problems faced by
company is business process improvement on continuous basis, comply with government
regulations, technology strategy and implementations etc.
TITLE: “To determine key differences in supply chain management and logistics in light of
different theories": A study on Lulu group international
RESEARCH AIM: “To determine key differences in supply chain management and logistics in
light of different theories": A study on Lulu group international
RESEARCH OBJECTIVES
 To determine the concept and importance of supply chain management
 To identify the concept and importance of logistics
 To analyse difference among supply chain management and logistics in company
LITERATURE REVIEW
Concept and importance of supply chain management
As per article published at SCRC SME, 2O20, Supply Chain Management (SCM) is
defined as active management of different activities of supply chain in order to rise value for
consumers and achievement of competitive advantages in an effective and efficient manner
(
What is Supply Chain Management (SCM)?, 2020). This focus on presenting efforts
by enterprise involved in supply chains for running as well as developing supply chains in
efficient and efficient manner. SCM focus on covering each and every activity which includes
sourcing, development of product, logistics, production, information system that should be
coordinated with such activities. Concept of SCM is mainly focused on two aspects such as:
 The first aspect includes reaching of each and every products to final consumers that
denotes together assistance of multiple business which is known as supply chain
(Fahimnia, Sarkis and Davarzani, 2015).
 The second aspect includes that supply chains is surviving from long time where most of
business focus on happening of things around four walls of organisation. Only few focus
on managing activities of entire to deliver final products from business to end consumers.
Such resulted into ineffective supply chains.