Supply Chain Management: Issues and Strategies for ASOS

Supply chain
management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Customer service and inventory management........................................................................3
Transportation of ASOS.........................................................................................................4
Warehousing and capacity management................................................................................5
Competitive advantage...........................................................................................................5
Critical issues and problems emerging with ASOS...............................................................7
Ways to respond to emerging issues......................................................................................8
Findings and suggestion.........................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
For the successful business it is necessary for the company to ensure that customers are
getting the offering of company at right time, right place and in the right quantity. In this process
supply chain management of organisation is play vital role, as this is refers to the management
of flow of goods and services while including all the processes which has been sued for
transforming raw material into finished goods (Khan, Haleem and Khan, 2018). This is
associated with the activities of supply chain which are properly organised and streamline in
order to maximize the customer’s satisfaction along with gain competitive advantage within
market place. Through managing supply chain effectively company able to cut the execs cost and
make product and service available to the customers faster. Moreover, this is done by keeping
strong control over internal inventories, internal production, distribution, sales and the inventory
of vendors. This report is based on ASOS plc. Which a British based multinational online
fashion and cosmetic retailing company is with headquartered in London, England. This website
has been sells over 850 brands as well as its own range of range of clothing and accessories and
provides to all 196 countries. The below report is consist of analysis of how logistics and supply
chain management is conceived, supported and delivered within the company as by addressing
customer service, warehousing, competitive advantage and transportation. Furthermore all the
issues and its solution is examined that is processed by organisation to attain better ending.
MAIN BODY
Customer service and inventory management
Customer service is defined as the one-on-one interaction between company and the consumer
making a purchase. This is crucial factor for company as it ensures buyer’s satisfaction to the
fullest and encourage repeated business though which sales has been increased rapidly. An
individual who has been interact with the customers are the representative of the organisation in
which customer’s perception for product and brand are shaped by providing them great
experience (Alawneh and Zhang, 2018). Good customers service is crucial and critical to the
business success as this help in enhance customer’s loyalty for brand along with the strong
competitive advantage. This has been generally used for providing assistance to customers along
with getting feedbacks from them so that product and services can be improved as per the needs
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and requirement of them for maximizing customer’s services. In relation to ASOS company,
they have been handle customers care enquiries through live chat through which they have
resolve the queries very quickly but they don’t have call centre in which they don’t have high set
up for telephonic call. Along with this customers care team of the company are working hard
with their full potential to support customer when they need them most.
Inventory management is defines as the systematic approach which has been undertaken for
sourcing, storing and selling of inventory that includes both raw material and finished goods. It is
also refer to the right stock at right place, at right time along with the right quantity (Queiroz,
M.M., Telles, R. and Bonilla, S.H., 2019). There are various methods which are used by the
companies in order to manage inventory so that products can be reach at customers at right time
and in right that provides support in to enhance their satisfaction. Along with this methods for
managing inventory also help in to reduce cost for the company. Some of the methods are
discussed below in context to ASOS Company:
EOQ: This stands for economic order quantity which is a formula for quantity which
accompany need to purchase for inventory with the set of variables such as total cost, demand
rate etc. It is applied as to reduce operating cost over continuous basis and as by managing
ordering, receiving and holding inventory consumptions.
Minimum order quantity: This is defined as the smallest amount for the stock which a
company need to sell to retailers. Moreover, company did not sell to the retailer is they are not
ready to purchase smallest fixed amount of stock (Tiwari, S., Daryanto, Y. and Wee, H.M.,
2018). This help in to maintaining the cost of the inventor in effective manner. It is perceived as
by making sustained understanding towards maintenance of production under which goods are
produced on the basis of requirement and availability of resources.
Transportation of ASOS
Transportation is refers to the movement of products and services from manufacturing
place to end customer. It is also define as the mode of delivery which is utilised by every
organisation to shift their goods produced in factory to market for purpose of sale. This is the
only source through which company deliver it offering to the potential customers which help
company in to generating higher revenue (Xu, S. and et. al., 2020). The cost of transportation is
also involved in the price of products that are required to pay by customers in return. There is
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