Retail logistics

Running head: Retail logistics
Retail logistics
Table of Contents
Introduction.................................................................................................................................................3
Task 1..........................................................................................................................................................4
Three key challenges in retail logistics and supply chain management.......................................................4
Task 2..........................................................................................................................................................6
Possible solutions to tackle these challenges...............................................................................................6
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

Retail logistics
Introduction
Supply chain management is an essential and significant part of the business. No company can
grow its business operations in the market without maintaining a dynamic supply chain and
logistics management. B&Q Company has been selected in the task. B&Q is a multinational DIY
and home improvement organization. Here is the discussion about the retail and supply chain
management issues that directly affect the image of the firm adversely. Along with this, the
paper explains that how the retailers reduce and tackle these supply chain and logistics
management issues. A strong and dynamic supply chain management system is used by the B&Q
to supply the products and services to the customers. More detail of the task has been stated
below.
B&Q plc is a British multinational DIY and home improvement retailing corporation,
headquartered in Eastleigh United Kingdom. It is wholly owned subsidiary of Kingfisher Plc.
There are approx 25,000 employees employed in the firm. Block and Quayle is the retail chain
renders more than 40,000 products across 300 stores and online. The firm has outlets in Ireland.
The firm is increasing and expanding its business activities and operations globally day by day.
In this way, the company has been able to make a good image in the marketplace (Christopher,
2016).
It shall be noted that supply chain management plays a significant role in each and every
organization. Thus, supply chain management is also used by B&Q Company to maximize
profitability in the market (Fernie and Sparks, 2014). Supply chain management is the
management of the flow of goods, and services that includes movement and storage of raw
materials, work in progress and finished goods from point of origin to point of consumption
(Mangan, Lalwani and Lalwani, 2016). Boosting and enhancing customer service is one of the
significant benefits of the supply chain management that helps to generate more revenue and
returns. Along with this, it improves financial position of the firm and reduces operating cost of
the firm (Hugos, 2018).
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Retail logistics
Task 1
Three key challenges in retail logistics and supply chain management
In today’s modern world, there are enormous challenges and issues faced by the retailers while
conducting business activities and operating globally. Retailers are faced unprecedented
challenges and issues in the organization (Rushton, Croucher and Baker, 2014). The logistics and
supply chain management issues and challenges that retailer face has been detailed below.
Operational inefficiency, managing complexity and rapid change: Some of the major issues
in supply chain management include operational inefficiency, rapid change and managing
complexity that affect the growth and success of the firm. Rapid change and managing
complexity is probable the most significant and complex issue for a retailer to do, yet it is
essential if they want to maintain an effective and efficient operation (Stadtler, 2015). Lack of
collaboration, coordination, communication and consistency across the world are hampered and
hindered by the silos of information and facts. All these factors influence the sustainability and
profitability of the firm as well as retailers. Due to lack of operation efficiency, B&Q Company
has not been able to beat the competitors in the global market (Carter and Liane Easton, 2011). It
also affects the revenue and returns of retailers widely. It shall be noted that retailers are not able
to maintain a sufficient profit margin due to rapid change in technology and strategy. In this way,
all these factors have direct impact on the goodwill of the organization. Moreover, the retailers
are not able to maintain proper communication with customers. As a result, retailers are unable
to provide right and suitable products and services to the customers around the world.
Operational inefficiency issue is emerging in logistics and supply chain management that could
influence the progress of the firm. Further, customers want full transparency into where their
delivery is at all times. But due to lack of packaging and social network, the retailers are not able
to fulfill the expectations of the consumers (Water and Rinsler, 2014).
Trend responsiveness: The consumers are demanding higher quality of the products and
services at cheaper prices in the marketplace. They want social responsible products and services
at appropriate prices globally. It is observed that shopper and retailers are focused on the
convenience and driving the demand to attract more consumers widely (Fernie, Fernie and
Moore, 2015). Therefore, the consumers want that retailer provide unique and effective products
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