Eddie Stobart: A Supply Chain and Logistics Case Study

Desklib provides past papers and solved assignments. This report analyzes Eddie Stobart's business strategies and IT use.

Managing Information and Technology

Contents
Introduction......................................................................................................................................3
Introduction of Eddie Stobart..........................................................................................................4
Business Strategy of the Eddie Stobart:...........................................................................................4
PEST Analysis.................................................................................................................................6
Porters -5 factors analysis..............................................................................................................10
The two primary activities that support the activities in Porter’s -5 forces...................................11
Strengths and weakness of the Eddie Stobart................................................................................11
Use of IT system within Eddie Stobart..........................................................................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

Introduction
In this report, we are going to research on the Eddie Stobart organization. In this we discussed
about the Eddie Stobart organization as well as its weakness and strengths and the importance of
the Information technology will also going to discuss in this organization.

Introduction of Eddie Stobart
Eddie Stobart is supply chain and leading logistics organization is in the UK. The business was
started in the 1970 and the founder of the organization is Edward Stobart from that time to still
today it is one of the best companies in the UK in the sector of chain supply. This is recognized
for the high services level & benefits which it gets from the significant base of the long term the
relationships with the blue-chip customers (Badiru,1991). The companies headquarter is in the
Warrington and from there 2,200 vehicles, 24 distribution center and 3,800 trailers that are
situated in the through in Europe and the UK. The Eddie Stobart not only gives its services to the
national customer but it also provides its services to the international customers. Some of the
policies that make Eddie Stobart’s different is that pay-as-you-go, shared user network, scale
enabled, it also provides a cost-effective supply chain. The flexibility of the organization
together with the IT network planning that helps the company to decrease the empty vehicles
miles with this is used to improve the utilization level that is above the 86% as compared to the
other industry with the average of 71%. As it passes into the current ownership in April 2014, it
has been making its focused on the business growing balance portfolio that is across the core
sectors like Manufacturing, Retail, Manufacturing, and E-commerce.
Figure 1: Image
Business Strategy of the Eddie Stobart:
The key to the success of the organization is their strategies that used to bring the profit as well
as customer satisfaction (Escalas,2004). The company used to invest a high amount of attention
for the customer relationships for ensuring the customer gets their solution. Some of the
strategies are discussed below:
a. Double-digit growth: The Company used to develop the new customer as well as they
create a long relationship with them and they also take care of there existing customers.

They also focused on the growth of their sectors like E-commerce & MIB that for
delivering the growth and asset the utilization (Monios,2015).
b. Maintained our market that is for leading customer services position: This strategy
used to stay close to the customers and they used to ensure the high customer's
satisfaction with this they used to get aware about the issue and they used to provide the
solutions to that problem.
c. Operational Performance: For delivering the growth the operation team of the company
continually review network and make sure that the high level of the services to the
customers demand.
d. Software & technology: The role of technology and software play a modern role in the
supply chain. In 2007 the company made further investments in the technical capability
that is across the operational and back-office.

PEST Analysis
The Eddie Stobart the PEST analysis is the strategic tool that for the analyze macro environment
of Eddies Stobart organization and the PEST stands for the political, economic, social and
technological factors that create the impact on the macro environment of the Eddie Stobart
(Rumelt,1998).
Plan of the Eddies Stobart: The plan of the of the Eddie Stobart is to develop the wider sectors.
The company focused on the skills and the capabilities that are required for delivering the best
services to their clients (Rumelt, 1998). They used to offer a wide range of services and offers
for attracting more and more customer to the company. They plan in deep for the recruitment of
their employees and they provide the training to the employees and they developed their skills
and our company also provide the apprenticeship program they provide the opportunity to
1. ff f 1. Technological rate diffu- diffusion.
2. Chain structure of the industial sector
impacts.
Leisure interests
Attitudes
culture (Gender, social)
Structure in society
Economic growth of the rate.
Interest rates
Unemployement rates.
Level of education and st an -ndared in the
Eddie Stoba a -art.
Risk of the military invasion.
Mandatory benefits of the employees.
industrial regualtion of the safety.
Political Factors Economics
Factors
TechnologicalSocial Facors

develop the skill in some of the areas like team leading, sales, management and business
administration.
Services of Eddie Stobart: It has the majority of the vehicles they able to transport the loads
from the very large range of customers. The services that are provided by the Eddie Stobart they
are like Road transport, contract Logistics and warehousing, Rail transport and the Container
logistics.
Figure 2: Road Transport
Figure 3: Contract logistics and warehousing
Figure 4: Container Logistics
Figure 5: Rail Transport

SWOT Analysis of Eddie Stobart: The SWOT analysis of Eddie Stobart methodological
approach that is for analyze the Strengths and the weaknesses of the Eddie Stobart and it also
helps the organization find the opportunities and the threats of the organization that used to faces
and this is because of the competitive & the macroeconomic (Rumelt, 1998). The SWOT
analysis used to provide both types of factors like internal and external that is used to create an
impact on the organization.
Strengths of the Eddie Stobart: Strengths of the organization is there resources and the
capabilities that are used for the development, sustain and design of the competitive advantage
that is in the marketplace.
1. New product mix success: The Eddie Stobart used to provide the comprehensive
product mix the options to their customers. It is used to helps the company in catering to
the various types of customers of the segments of the Business services of the industry.
2. Wide geographic presence: The Eddie Stobart has very much widespread network
dealer and network associates which is not only used to help in the delivering the best and
efficient services to the organizations customers and this also helps the organization to
manage the competitive challenges that are in the business services industry.
3. Talent Management: The Eddie Stobart used to develop the skill of the employees and
the human resources of the Eddie Stobart used to manage the training and the
development programs for their newly joined employees so that the company could
expect the good quality of the product from the employee.
4. Strong Brand: The Eddie Stobart has strong brand recognition that is in the business
services industry. This brand value used to give big competition to its competitors in their
business ((Rumelt, 1998)).
The weakness of the Edie Stobart: The weaknesses of the Eddie Stobart it is could be because
of the absence of the strengths of the resources and capabilities that are needed to be present but
that does not exist.
1. Loyalty among the suppliers: The loyalty among the suppliers is low.
2. Declines the market shares: The company increased its revenues and their business
services industry is growing much faster that is then the company. In this type of
scenario, they are required to analyze the different trends that are taking place inside the
services sector and find the ways that how to increase the future growth of the company.
3. High turnover of the employees: The higher salaries are given to the employees to
maintain their talent within the organization.
Opportunities of the Eddie Stobart: It is the potential areas where the identification of the
potential for the growth, market shares, and profits.
1. The rapid expansion of the economy: As it well knows that the economy of the US is
improving faster so because of this the Eddie Stobart could be able to expand its business
in the UK area.

2. Increase government rules and regulation: It will increase the opportunities to increase
the base of the customers.
Threats of the Eddie Stobart: It is nothing but a potential that is dangerous for the businesses.
1. Changing in the political environments: As it is well known that the for the different
country there is different rules and regulation for trades so it is used to make the effect on
the businesses of the Eddie Stobart.
2. Shortage of skilled environments: The shortages of the skilled could also become the
problems for the Eddie Stobart.

Porters -5 factors analysis
It is the strategic management tool is used for analyzing and understanding the industry the
reason behind this analysis to create the ways for profitability in the industry. The porter’s
factors used to provide the understanding that what types of factors that are influence the
development and profitability of the Eddie Stobart. This force is given below:
Figure 6: Porters - 5 forces
1. Threats of the new entrants: The new entrants in the organization goods and services
used to bring the new ways for doing the things and this is used to creates the pressure on
the Eddie Stobart to reduce the costs and give the new values to the customers.
2. Bargaining the power of the suppliers: Every industry used to purchase its raw
materials from the suppliers. The suppliers are at the dominant position they can decrease
the margins of the Eddie Stobart so that they could be able to earn from the market.
3. Bargaining the power of the Buyers: The buyers also used to demand lots. The buyer’s
mentality is to buy the best things by investing less money. So, the Eddie Stobart need to
provide great offers so that the customer could be attracted towards the products and they
could be able to increase their profits.
4. Threats of the Substitutes: In this, the customer used to get attracted towards the similar
types of product and the services that are provided from the other companies who provide
the same product and services like the Eddie Stobart. To example, this one of the
examples is the Dropbox and the google drive is the substitution of the hard drive that is
used for the storage.
5. Rivalry among exist competitors: If there is rivalry among the existing industry then
there will be great competition among the companies and they try to decrease the

popularity as well as the profitability of the company. Eddies Stobart is one of the biggest
competitive organization services and the goods industry (Saaty,1995).
The two primary activities that support the activities in Porter’s -5 forces
The primary activity that supports the activities in Porter’s forces that are explained below:
1. The threats of the new entrants:
 By innovating the new products & services: when a new product gets launched then it
used to bring the new customers and it also creates a new reason to buy the product
from the Eddie Stobart products.
 It used to build economies of the scales so it could low the fixed cost per unit.
 For building the new capacities & spending the money on the research and the
development (Saaty,1995).
2. Bargaining power of the suppliers:
 It is used to build an efficient supply of the chain with the multiple suppliers.
 The experimenting the product with the product design by using the different
types of materials this could increase the price of the raw materials and it costs the
company used to shifts to other parts.
Strengths and weakness of the Eddie Stobart
Strengths of the Eddie Stobart: The strengths of the company are the capability that used to
brings the profit for the organization. Strengths of the Eddie Stobart: Strengths of the
organization is there resources and the capabilities that are used for the development, sustain and
design of the competitive advantage that is in the marketplace.
1. New product mix success: The Eddie Stobart used to provide the comprehensive
product mix the options to their customers. It is used to helps the company in catering to
the various types of customers of the segments of the Business services of the industry.
2. Wide geographic presence: The Eddie Stobart has very much widespread network
dealer and network associates which is not only used to help in the delivering the best and
efficient services to the organizations customers and this also helps the organization to
manage the competitive challenges that are in the business services industry.
3. Talent Management: The Eddie Stobart used to develop the skill of the employees and
the human resources of the Eddie Stobart used to manage the training and the
development programs for their newly joined employees so that the company could
expect the good quality of the product from the employee.
4. Strong Brand: The Eddie Stobart has strong brand recognition that is in the business
services industry. This brand value used to give big competition to its competitors in their
business.
The weakness of the Edie Stobart: The weaknesses of the Eddie Stobart it is could be because
of the absence of the strengths of the resources and capabilities that are needed to be present but
that does not exist.

1. Loyalty among the suppliers: The loyalty among the suppliers is low.
2. Declines the market shares: The company increased its revenues and their business
services industry is growing much faster that is then the company. In this type of
scenario, they are required to analyze the different trends that are taking place inside the
services sector and find the ways that how to increase the future growth of the company.
3. High turnover of the employees: The higher salaries are given to the employees to
maintain their talent within the organization.
4. Low investment in customer-oriented services of the Eddie Stobart: The lack in this
field helps the competitors to take the advantages over this weakness of the Eddie
Stobart. The Eddie Stobart required to increase the investments of the in the field of
research & development within the customer services.
5. Reducing the per unit revenue: The competitive company used to find ways to reduce
the profits of the company. So, the Eddie Stobart need to maintain their name the market
by supplying the quality products.
Use of IT system within Eddie Stobart
As per the above research it is found that there are some of the field where the Eddie Stobart
Company lacks. They required taking the help of Information technology and this IT technology
helps in changing the working style of the company. This information technology plays a vital
role in the growth of Eddie Stobart. It is used to help the company to keep the report of the real-
time planning, and it allows tracking the data processing and it used to provide the clear view of
loads to the customer as well as to the company, speed, and location of the carrier could be
tracked. Some of the advantages of the IT within the Eddie Stobart are explained below:
a. Operation IT system: The company developing with GST it means general transport
systems that are for meeting the specific operational requirements.
b. Cab communication: GST is integration means that every time the company used to
allocate the vehicles for the work and instructions is also transmitted through the
communication system.
c. Satellite Tracking: The whole vehicles of the Eddie Stobart are get tracked with the
satellites. Very powerful business intelligence is work in the back of this system.
d. WMS System: This feature is used for the stock management & for the product
segregation and it is used to provide the hourly or daily reports. This system used to
handle warehouse operations.
Improvement required in the Eddie Stobart:
1. Investments on the research and development: It is required to do the great investment
of the research and development process. If a company going to introduce the new
product then they required to do the best research after that the new product could be
launched.
2. Human Resource: The human resource of Eddie Stobart’s required to focus on the
training and the development of the employee. The company needs to organize some of