Comprehensive Governance Structure Analysis for Blue Parcel Logistics

This report provides a detailed analysis of the governance structure for Blue Parcel Logistics, an international B2C logistics provider. The report begins with an executive summary and introduction, followed by a case study brief and the proposed business plan, which includes the implementation of a last-mile delivery system and order fulfillment services. The project's aim is to design a governance structure, create a capability map, apply enterprise architecture knowledge, design an optimal application landscape, and present a business support matrix. The report then delves into the governance structure, highlighting key challenges faced by logistics companies, such as high fuel costs and customer service improvements, and the importance of customer relationships and rapid response. The report also includes the current value chain system and proposed improvements, such as e-commerce integration. The report concludes with a critical analysis of the proposed solutions and their potential impact on the business outcomes. Desklib provides this report and other resources to assist students with their studies.

Governance Structure
Executive Summary
The corporate governance guides the organization to work in the open and honest manner.
According to the Cadbury committee of U.K in 2002, “Corporate Governance provides the
guidelines through which companies are directed and controlled.” The corporate governance is
very important for the organizations as the essence of the corporate world depends upon the
clear depiction of the transparency and accountability to the expectations of the stakeholders
and customers. The effective management takes the responsibility and provides the transparent
management to reduce the risks and safeguard the rights of the stakeholders. Most importantly
corporate governance promotes the compliance of law not only in form of words but in the form
of spirit of implementation too with demonstration of the ethical norms associated with it.
Here, this paper will present the governance structure for the Blue Parcel logistics. It will
present an analytical study for providing the support to various components of the corporate
governance in the company then it will present the impact of these steps in attaining the long-
term objectives and on its financial structure too. Then it will present the capability map
covering and reflecting the functions of the Blue Parcel with integrating the concepts of the
enterprise architecture. Then the design of the optimal business application, business support
matrix and flow of business objects between the applications. At the end of report the potential
impact of these steps on the business outcome will be presented.
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Governance Structure
Table of Contents
Executive Summary.................................................................................................................2
1.0Introduction........................................................................................................................3
2.0 Brief of Case study........................................................................................................4
2.2 Proposed Business plan of the Blue Parcel International logistics.................................................5
3.0 Aim of the Project..............................................................................................................6
4.0 Governance Structure........................................................................................................7
5.0 Supply chain management system for the Blue parcel Logistics........................................15
6.0 Optimal business plan for Blue parcel Logistics- Adopting E-parcel delivery system..........18
7.0 Critical Analysis................................................................................................................19
8.0 Conclusion.......................................................................................................................21
9.0 Referencing.....................................................................................................................22
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Governance Structure
1.0Introduction
Every good organization adopts the strategic policies for effective management in their
organization and corporate governance is an integral step for obtaining the long-termgoals.
For any organization it is very important for developing effective value chain system that
can only be achieved by providing a clear and trust worthy work to the stakeholders.
Building the trust among the peoples is the formation for achieving the success for long
term. Most importantly in these days when corporate scams have become a regular news, it
is highly required to develop the trustworthy environment with standard approach can be
enabled. Most importantly in this world of globalization it is highly required to develop
world-class governance for every organization not only to excel but to sustain them-
selves(Bonoma 2004).
Fig 1: Corporate Governance elements: source- www.quotesgram.com
Corporate governance helps in promoting the corporate ethics, fairness, transparency
and accountability to the organization. A good corporate governance framework provides
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Governance Structure
the very significant contribution in achieving the goals of the organization. To provide the
governance framework for an organization it is required to develop set of processes,
customs, policies, laws and guidelines, the procedure for the way how the organization
should be directed and controlled. Along with this the relationship mapping between the
stakeholders is also required to develop (Khazmi&Khazmi 2008).
2.1 Current Value chain system of the Blue Parcel Logistics
The current value chain system of the company is as follows-
a. The shipments are received from the customers at the consolidated distribution centers
and these orders are delivered through trucks and organized by customers.
b. The invalid parcels are registered using the RFID and then checking for customer
compliance.
c. The sorting and consolidation of the parcel is done with respect to the destination
country.
d. The parcels of the International countries are done through airlines of respective
destination country and then handed to the postal department of the concerned country.
e. The parcels are then delivered through the postal dispatch system.
2.2 Proposed Business plan of the Blue Parcel International logistics.
As mentioned above that Currently Blue Parcel does not have a delivery network system, it takes
the help of the parcel distribution centers close to the customers place and it also take help from
the long-term logistic partners in dispatching the parcels. Understanding the impact of their
shortcoming on their business prospects the company is aiming to extend their services for the
customers through following purposed action plan-
a) Last-Mile Delivery- The Blue parcel logistics is planning to establish their own Last-
mile delivery in the certain countries by founding or acquiring the local mail companies.
This will help in providing the better delivery quality and can also extend their value
chain system. It will also help in improving the customer relationship and order dispatch
system of their parcels.
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Governance Structure
b) Order Fulfillment-Along with above mentioned activity the Blue parcel is also aiming
to take the use of e-commerce facility to support the small customers in fulfilling their
parcel dispatching requirements. As e-commerce has become a trend and lot of customers
are using these kinds of services so the Blue Parcel logistics is also aiming to take the
advantage of this service in boosting their own business. To achieve this objective the
company is renting a warehouse so that customers can store their goods. Whenever any
good is received from the customers, the detail will be forwarded electronically to the
center office of the Blue Parcel logistics. Then according to the details provided by the
customers the parcels are packed and labeled and then transported to thedestination place
as mentioned by the customer.
3.0 Aim of the Project
This purposed project aims to perform the following key activities-
 To design and justify a governance structure to direct and control the overall change in
the program within the organization overall system for governance of the IT system.
 To create a capability map of two levels for covering and reflecting all aspects of the
function in the Blue parcel logistics.
 To apply the knowledge of enterprise architecture in developing the purposed business
architecture for the Blue Parcel logistics system.
 To design and justify an optimal application landscape for the Blue parcel logistics
system.
 To present the business support matrix and flow of business objects between the business
components.
 To present the critical analysis and comparison of various application procedures –
options and presenting the potential impact on the business.
4.0 Governance Structure
According to the Council of the Logistic Management – “Logistic is the process of planning,
implementing and controlling of the efficient, effective flow and storage of goods, services
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Governance Structure
and related information from the point of origin to the point of consumption for the
purpose of evaluating the customer requirement.”
This definition clearly points out that the inherent nature of the logistics and it is concerned
with getting the products and services where they are needed whenever they are desired.
Implementing the best practice of the logistics is the most challenging operational are especially
in the public sector (Khazmi&Khazmi 2008)
For any Logistics company to implement the best practice in their working area, they
should focus on following areas-
 Focusing on improving the customer relationship
It is highly required for the logistics company to focus on improving the customer relationship;
this can be achieved by developing the efficient warehousing, quick and economic transportation
and maintaining the optimal level of the inventory system. Most importantly it is highly required
to deliver the customer goods on time to maintain a good relationship.
 Providing the rapid response to the customers
The rapid response in terms of the logistics supply is satisfying the customer service requirement
in the timely basis. With the help of the advanced information technology tools the response to
the customer service can be achieved easily. In order to achieve this more innovative methods for
delivering the goods and focusing on the low-down aspects of the delivery system so that
optimal results could be achieved.
 Reducing the total distribution cost
In order to get the maximization in the profit it is required to minimize the cost of the physical
distribution of the products. This is very important as distribution cycle consists of many
elements such as maintaining the ware house, transportation cost, inventory management and
other aspects are also involved in it, so the proper mechanism is required to develop to reduce the
cost and maximizing the usage of the resources so that the profit ratio.
 Promoting the services with additional benefits for customers to increase the
revenue
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Governance Structure
To increase the profitability, it is also highly required to promote the additional facilities and
benefits to the customers along with their hired services. This will help in attracting more
customers to take the services from the company for their parcel deliveries. Along with this
reducing the cost of the logistics for parcels will also attract the more customers to take the
services from the company.
 Focusing on improved transportation services
Along with this the logistic company’s area also required to focus on using the improved
transportation services so that the delivery of the products can be done on time. It is highly
required to take the use of faster transportation mode in delivering the parcels to the customers.
 Focusing on improving the quality of the services
It is also highly required to focus on improving the services and making the consistent practice
on providing the services to the customer. It is highly required to develop strong policies to
provide the overall quality management to the overall working of the organization.
 Taking the Support of the Life –Cycle system
It is highly required to develop the approach following the concepts of the Life cycle for the
logistics so that a standard and understandable approach in this respect can be developed.
Fig 2: Logistic model source–www.Techmahindra .com
The Life cycle approach also guides the procedure how to return the parcels to the concerned
person and how properly managed working for the logistic can be performed in the cost-effective
manner.
4.1 Key challenges faced by the Logistic companies-
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Governance Structure
According to the study conducted in various research papers and white papers
published by the logistic companies are as follows-
 High Fuel cost
One of the biggest challenges the logistics companies face is of the high fuel prices and changing
rates,these changes in the price of the fuel puts the deep impact on the processing of the parcels
at the destination.
 Business process improvement
Another biggest challenge faced by the Logistics Company is to get updated according to the
available latest technologies. Lots of new technologies are coming and in this era of
globalization adapting new technology is highly required. While adopting a new technology lots
of conversion based on inclined technology is required to be performed. Most importantly hiring
skilled peoples who can use this new technology is also a challenging task.
 Providing improved customer service
Another challenge is providing the improved customer service as for logistic company; the
customers want complete transparency of the dispatch system of their parcels. But it has become
more challenging in this globalization when the expectations of the customer have become very
high and fulfilling these requirements is very tedious task.
 Economy
Like other industries the variation in economy and laws put the deep impact on
the processing of the logistic department work. The deprecation of economy also
puts adverse effect on the logistics.
 International laws and regulation
Companies performing the logistics in the international countries face lot of
challenges while shipping the parcels in other countries. It is required to follow the
rules of the country in which the parcel has to be dispatched. So, it is mandatory for
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Governance Structure
the logistics company to be updated with the laws and regulations so that processing
of the parcel in particular country can be forwarded without hassle.
 Environmental Issues
Another biggest challenge the logistics company face are environmental issues, bad weather
conditions put adverse impact on the processing of the tasks. Even each country has its own
geographical conditions so dispatching the parcels in that region requires arranging the
transportation system according to its conditions.
 Technological Issues
Along with this another biggest challenge is adopting the latest technology in so many
technologies available in the market. The standardization of the technologies is also a major
problem. Most importantly determining which technologies are going to be helpful in which
domain, the cost and return parameters are also challenging to decide.
4.2 Governance structure for Blue Parcel Logistics
According to our conducted extensive research on various published research papers and white
papers published through the various prominent Logistics companies we purpose the following
structure for the company-
Key Responsible persons and their responsibilities
A. The CEO of the company will be responsible in monitoring the following Functions-
 The CEO will monitor the overall Board services.
 Will take organizational decisions based on the corporate first choice.
 Will monitor the corporate legal matters.
 Will be the overall head of the corporate offices.
 Will develop the corporate policies along with board of directors.
 Will guide the corporate executives in performing the organizational related
activities.
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Governance Structure
 Will also monitor the issues related to the corporate heritage and Industry
associations in the strategic manner.
 Will also develop corporate communication policies and will delegate the
responsibilities.
 The CEO of the company will also be responsible for the regulation management.
B. The Financial head of the organization will be responsible for monitoring the
following functions-
 To handle the issues related to the corporate accounting and controlling.
 Monitoring the issues related to the corporate finance.
 To monitor the financial issue related to the global business services related to the
procurement, real estate (purchasing the land for developing the warehouse),
Finance operations and Legal services.
 Monitoring and handling the issues related to the Investors relations.
 Will also be responsible for handling the issues related to the Corporate Audit and
security matters.
 Will be responsible for handling the issues related to the taxes of the organization.
C. The head of Human resource department will be responsible for monitoring the
following functions-
 Will be responsible in monitoring the overall functions of the Human resource
department.
 Will be responsible in developing the corporate HR standards and programs.
 Will be responsible for monitoring the International HR issues in the strategic manner.
 Will be responsible in handling the issues related to the HR functions with respect of the
HR post, HR –Parcel and HR-e commerce.
 Will handle the express service HR issues.
 Will be responsible in monitoring the HR policies for the Global freight fort the parcels.
 To handle the issues related to the HR department of the Supply chain.
 To monitor the overall functions of the Finance, GBS, CSI and CC(Thomas’s 2009).
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Governance Structure
The main divisions of the company and their work areas
i. Post and E-commerce parcel department
This department will be responsiblethrough its designed centers for sorting of the parcel
is been performed and dispatching at their respective addresses through various concerned
departments is done. The shipments are received from the customers at the consolidated
distribution centers and these orders are delivered through trucks and organized by
customers. The invalid parcels are registered using the RFID and then checking for customer
compliance.
ii. International services
This department will handle the issues related to the international business processing of the
parcel dispatching.The parcels of the International countries are done through airlines of
respective destination country and then handed to the postal department of the concerned
country.
iii. Supply chain department
This department will handle the overall structure of the supply chain system of the
organization.
The purposed guidelines for managing these key departments is
as follows-
a) Ware house department management System
It is suggested to modernize the conventional ware houses by improving the
efficiency and productivity of the operations in the warehouse. This modern ware
house provides the automation services for the receiving, put away, picking and
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