BUS3001: Supply Chain Management of Estore Logistics - Report

This report provides a comprehensive analysis of Estore Logistics' supply chain management. It begins with an executive summary and introduction, outlining the importance of logistics in supply chain operations. The report delves into the company profile, detailing Estore's warehousing facilities, e-commerce services, and customer base. It examines the supply chain structure, including distribution channels and warehousing techniques, with a focus on their warehouse management system inspired by Manhattan Associates. The report also explores material sourcing, transportation, and warehousing systems, highlighting the company's reduced freight costs and cross-docking services. Furthermore, it discusses demand management and inventory management systems, including the steps involved in order fulfillment and the use of third-party logistics agreements with companies like Amazon and eBay. The report concludes by emphasizing the company's commitment to customer satisfaction and its role in providing value-added services, along with key performance indicators like revenue and employee count.

Running head: SUPPLY CHAIN MANAGEMENT OF ESTORE LOGISTICS
SUPPLY CHAIN MANAGEMENT OF ESTORE LOGISTICS
Name of Student
Name of the University
Author Note

1SUPPLY CHAIN MANAGEMENT OF ESTORE LOGISTICS
Executive Summary
The aim of the study is to highlight the importance of logistics in the supply chain
management. The term logistics not only means transportation of the goods but also includes
storage and various other facilities. The Estore logistics company is engaged in this function
to deliver the goods at the fastest speed and at the lowest possible cost. The study discussed
about the company profile, its distribution chain, its material sourcing, transportation
facilities and warehousing facilities.

2SUPPLY CHAIN MANAGEMENT OF ESTORE LOGISTICS
Table of Contents
Introduction................................................................................................................................3
Company profile.........................................................................................................................4
Discuss the supply chain structure of the chosen company.......................................................5
Sourcing materials and services; producing goods/services......................................................8
Transportation and warehousing system involved to serve the major customer.......................9
Discuss demand management and inventory management system involved...........................11
Conclusion................................................................................................................................12

3SUPPLY CHAIN MANAGEMENT OF ESTORE LOGISTICS
Introduction
Supply chain management means the movement of the goods from, one point to
another and includes their storage in form of raw material, work-in-progress and finished
goods (Christopher, 2016). An effective supply chain management comprises of robust
distribution system and help in transferring the goods in the most cost effective way. Supply
chain management includes the flow of goods through various interconnected networks and
various other channels for reaching the customers in reduced time (Mangan, Lalwani &
Lalwani, 2016). It includes designing, planning according to the requirements of the
customers, control of the logistics activities, execution of the plan for the purpose of
providing value to the customers, providing logistics activities globally and identifying and
removing the gap between the demand and supply. The major concerns for the supply chain
management in the present situation are that of risk management and sustainability.
Sustainability is the ability to achieve a balance in a dynamic environment through various
practices of the organization and by considering the society as an important part of the
organization (Grant, Trautrims & Wong, 2017). Estore is a logistics company from
Melbourne that is aimed at reducing the cost of delivering the goods and delivering the best
logistics transportation facilities through its low cost freight facilities. The company has a
proper network of warehouses in Melbourne and Sydney for delivering goods at a faster rate.
It also helps in fulfillment of orders through e-commerce services. The company is the
provides the largest warehousing facility in Melbourne and they provide specialized servicing
in the online retail business. The company provides service to about 45000 customers in
Melbourne and Australia using the technology of state of art. Estore provides services to
some of the biggest retailers of Melbourne and Australia (eStore Logistics, 2019). The aim of
the study is to have an understanding of the supply chain management of the EStore logistics

4SUPPLY CHAIN MANAGEMENT OF ESTORE LOGISTICS
Melbourne, to understand the structure of supply chain management, to understand the
distribution technique of the company and demand management and inventory system.
Company profile
Estore logistics aims at providing the best warehousing facilities to companies,
provides for order fulfillment through e-commerce services (eStore Logistics, 2019). They
are engaged in providing services to the companies through reduced freight costs offered by
the Melbourne warehouse and the ones in Sydney in order to provide the customers with
accurate and fast delivery of goods. The cost of freights provided by the company is at a
reduced amount since they are working in connection with many carriers of freight
(McKinnon, 2016). The company believes in providing warehouse facilities that is secure and
with a proper networking. It provides its services at prices which are competitive as
compared to other companies in the same business. The company understands the importance
of maintaining customer satisfaction and feedback so the company aims at providing
immediate responses to the customers and there is a special team for this purpose called the
team of customer service. Some of the services of the company is that of warehousing,
reducing the cost of delivery through reduced freight charges and improved warehousing
facilities (Kłodawski et al., 2017). It provides for full filling large orders of the customers and
for delivering goods to physical store of retail. It provides cross-docking services for
companies that maintains a minimum amount of inventory purchases goods from the
suppliers only when the customers place orders. Returns for e-commerce is an important for
the customers so Estore logistics has a number of reversal techniques for returning the goods.
The company believes in providing value added services to its customers besides logistics
and warehousing facilities. The company also provides the work of moving and packing of
goods. Some of the major happy customers of the company are Essendon football club is

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plays for the Australian leagues of football, kogan is a company that provides online services
and hair house warehouse provides all skin and hair care related products to its customers.
About 64 employees of the company are there on linkedin including the managing director
and founder Leigh Williams, The manager of project delivery Bojan Turk, the general
manager James Ellis and others. The company provides services to customers everyday with
at least 200 employees across different sites and locations. The company believes that the
human resource are the most important resource of the organization. The team is always
ready to help the customers and they are supported by robust processes and systems, their
teamwork helps in full filling orders on a priority basis. This shows that the company has a
democratic management style for dealing with its employees because the employees are
empowered. The company has been growing at a fast rate. The company earned a revenue of
$1,30,000 in the financial year 2011-2012 and earned a total revenue from projects worth
$3,400,000 in the same financial year. The company provides facilities of transportation and
distribution of goods at an affordable price due to low freight charges of the company, it
provides the facility of being the largest warehouse of Melbourne (Staudt et al., 2015). It
provides options for sending huge amounts of goods to the customers or to physical stores. It
provides the cross docking facility to its customers who have to store some amount of
inventory and they have to purchase from suppliers in case of orders from the customers.
They provide many other facilities of quality control of the stock, moving and packing and
returns in e-commerce.
Discussion on the supply chain structure of the chosen company
A supply chain structure comprises of all the channels of distribution used by a
company and also includes the warehousing facility used by the company (Ralston et al.,
2015). The channels of distribution basically comprises of the intermediaries involved in the

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prices of delivering the goods from the manufacturer to the customers and includes the
wholesaler, retailer (Carter, Rogers & Choi, 2015). It also includes the suppliers of the goods
who supply the material to the company. The company provides its goods to the customers
directly and also to retailers who are engaged in providing goods for lifestyle goods,
appliances and other goods. Warehouse facility is provided by the company in Sydney and
Melbourne over an area of 50000sqaure meters. The warehouse management technique helps
in delivering the goods faster to the customers of the company by reducing the cost of freight.
It is a third party logistic of Melbourne (Jacyna, Lewczuk & Kłodawski, 2015). The company
specializes in providing warehousing facility. Warehousing facility refers to the capability of
the company to store its goods so that it can be provided to its customers on time. The
warehouse may be a small location or one that is specially designed by the company. The
company provides for fulfillment of orders online retails as well as retail store businesses.
The company uses a system of warehouse management that is inspired by the tier one
warehouse management system(WMS) inspired by the Manhattan associates. It aims at
meeting the specific needs of the clients (Lyon & Furse, 2017). Estore logistics is able to
cater to the needs of the customers through a rapid solution that ensures that the best value is
provided to the customers and this process is ensured by Manhattan SCALE. The cubing
functionality of the products is provided by Manhattans Scale that helps in fulfilling all orders
of the customers. This facility provides for the minimum cost of packaging and shipping. The
customers can get the real-time information through the customers portal maintained by the
company. They can get information about the fulfilment of order status, inventory levels in
the warehouse and create inbound receipts through the use of Warehouse management system
(WMS). RF Scanning is used by the company to track the movement of the stock in the
warehousing system. This scanning is done through the use of the codes. The distribution
logistics system help to provide customized services to the customers such as the cross-

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docking facility provided by Estores logistics. Raw material, storage , transportation and
distribution (Richards, 2017). This process comprises of few steps from the time of receiving
the order to the time of its actual delivery. The first step is integration and setup. This step
involves placing order requirements’ by the customers and placing requirement for brand
packaging. It also involves connecting the channel of sales such as amazon or e-bay with the
estore logistics system. The second step is to receive the inventory from the suppliers to the
logistics. With the use of the Estores logistic systems, the clients need to mention the quantity
they are sending to the company. The third step includes receiving orders from the customers.
The orders are then packed with the personal brand packaging and the algorithm of the
logistic systems discusses about the best carrier for delivering the goods and then the
customers get a tracking mail from the company to track the status of their orders (Li et al.,
2017). The fourth step is that the customers receive the delivery of the goods fast and they
also get it at an effective cost. The last step allows the clients to use the web platform for
managing their business. These activities include- sales order, return, and inventory and
supplies delivery.
The third party logistics usually enter into contracts with various contracting parties to
– store the goods through proper warehousing and sell those goods but they do not take
ownership of the same (Li et al., 2015). Estore has recently entered into a third party
agreement with amazon and e-bay. Amazon enters into third party agreement to engage a
third party logistics company to carry out the pick, pack and deliver the goods of the
company to customers. By doing so, the company can reduce its cost of delivering due to low
cost of freight charges of Estore and since it is located near the ports and it also ensures fast
delivery of the goods to the customers (Zhang et al., 2017). Besides providing these
advantages, Estore helps the company in promoting their brand packaging and to provide
customized solutions to the company. It is also the fulfillment provider of E-bay. The

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companies software of fulfillment integrates with that of e-bay that helps in the flow of
information related to orders, quickly and accurately. This makes sure that the orders are
fulfilled as soon as the order information is passed to the company. It provides the facilities
of storage through warehousing and then it is picked and packed. The company has
warehousing facility over 50000sqm area in Sydney and Melbourne (Raizer, 2017). The
customers get products that are properly branded and packed and that improve their
experience. The company provides information to the customers through their web platforms
such as it meets the requirements of the merchants of e-bay through quick setups, shopping
cart facility and system plugins. The customers can also get information about the delivery
status of the goods through the logistics information of real-time. Besides these, the company
helps in shipment of the goods, return processing activities and provide other arrangements as
well.
Figure 1: supply chain mapping
sourcingreceivingmaterialwarehousingdistributionreturnprocesses

9SUPPLY CHAIN MANAGEMENT OF ESTORE LOGISTICS
(Source: created by author)
The above diagram discuss about the 5 main elements in supply chain mapping process.
Estore does sourcing, manufacturing, warehousing, distribution and return.
Sourcing materials and services; producing goods/services
Sourcing comes prior to procurement of goods and services and it is a part of the
procurement function (Murphy & Knemeyer, 2018). Before procuring the goods, the
company is first needed to identify the suppliers and have a negotiation with them regarding
the process of the goods. This helps in procuring goods that are affordable and of good
quality. It is creating a balance between the quality of goods and affordability of the goods.
The company receives goods at its warehouse. It receives delivery of contains of full load,
wharf cartage is also received. Full container load are kept in storage after unloading. The
less than container load are put to storage after unloading the same. Cross docking and goods
kitting is done at the warehouse when goods are received. For storing the same storage of
pick bin is used, pallet storage is done (Savchenko & Kuzmenko). The orders are then
processed to proceed with the fulfillment options. There can be orders for ecommerce
fulfillment of orders, retail stores fulfillment of orders. The company then carries out its
distribution activity by providing the last mile delivery.
Transportation and warehousing system involved to serve the major
customer
The warehousing system of Estore logistics provides e-commerce solution and it
serve the retailers through omni-channel. They have 3 warehouses in Melbourne and Sydney
occupying about 45000sqm of the space for warehouse. The locations of the Estores
warehouses has been selected strategically so that these warehouses arte near the freight

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carries such that fast delivery can be supported and at an effective cost. The location also near
the locations where dense population of customers are there for fast delivery to these
customers. warehousing is a major concern for Omni-channel retailer’s. Estore logistics is
supported by Manhattan scale warehouse management system such that is the execution
system of the business. SCALE provides clarification of any queries of the customers
regarding the storage of material and for getting the updates of the storage through movement
in the warehouse. All the facilities of warehousing is secured through the use of bin storage,
pallet storage and freight of high value. Warehousing is done through skilled staff for looking
after the operation of the business. Warehousing and transportation or an effective
distribution system helps in delivering the products or services to the customers
professionally, accurately, fast and with the minimum delivery cost the online warehousing
facilities of the company are available in both the locations of Sydney and Melbourne.
INVENTORY
PICK LIST
BIN # LOCATION UNIT Q
TY
REORD
ER QTY COST INVENTOR
Y VALUE
T349 Row 1, slot 2 Each 7 10 $50.00 $350.00
T5789 Row 1, slot 1 Each 10 5 $5.00 $50.00
T5789 Row 1, slot 1 Each 10 5 $10.00 $100.00
T345 Row 2, slot 1 Each 12 10 $26.00 $312.00
T9875 Row 2, slot 2 Each 15 8 $60.00 $900.00
T345 Row 2, slot 1 Each 19 10 $3.00 $57.00
T098 Row 3, slot 1 Each 20 10 $30.00 $600.00

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T9876 Row 3, slot 2 Package
(5 ct) 20 30 $14.00 $280.00
T098 Each 25 15 $8.00 $200.00
T9876 Row 3, slot 2 Each 30 15 $40.00 $1,200.00
T5789 Row 1, slot 1 Box (10
ct) 40 10 $15.00 $600.00
Figure 1: Warehouse Management System
Source : (Created by author)
The company tries to deliver the goods to customers at the minimum possible cost
such that the clients get their goods with least freight charges and therefore the system
considers not only the freight costs but also the suitability. Estore logistics provides
fulfillment of the e-commerce orders of about 45000 orders in a day. The state of art
technology supports this by ensuring that the delivery is done with minimum cost, faster and
accurately. Packaging options are also available according to the clients budget. Estore also
provides facilities to retail stores’ and to those who want to deliver larger orders to the
customers. The company’s fulfillment capability helps it to meet all the order of the
customers and reach the destination faster with minimum cost. Estore is now providing its
facilities to the amazon’s clients. Amazon fulfillment involves providing goods to the
customers through shipping facilities. It involves packing, picking and providing delivery to
the customers. Estore helps Amazon in its fulfillment services through their logistics and also
helps in providing storage facilities to the company through its warehousing system
(Boussaid et al., 2017). These customers get their delivery of goods on the same day due to
the fast delivery system of the company and the option of using their own packaging and
branding is available. Amazon carries out third party fulfillment through the use of some
third party provider of logistics like Estore to pick the goods, pack it mad deliver the orders.
This technique helps to provide cost effective solution to the company and provides a sellers