Analysis of ICT Implementation in Primark's Supply Chain Process

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Added on  2021/05/31

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This report examines Primark's implementation of Information and Communication Technology (ICT) within its supply chain processes. The analysis highlights Primark's adoption of Enterprise Resource Planning (ERP) technology for managing inbound logistics, optimizing warehouse operations, and monitoring product demand. The report also discusses Primark's use of Radio Frequency Identification (RFID) trackers to enhance outbound logistics and provide real-time updates on product transportation. Furthermore, it underscores the role of ICT in improving customer satisfaction through effective marketing and sales strategies, including the use of new media for broader customer communication and business expansion. The report references key academic sources to support its findings and provides a comprehensive overview of Primark's ICT-driven supply chain management.
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Running head: BUSINESS MANAGEMENT
Business Management
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Usage of ICT on the supply chain process of Primark
Christopher (2016) opined that Information and communication technology is the most
effective way of handling intelligent building management system from one specific interface.
Supply chain is primarily constituted with several areas such as inbound logistic, outbound
logistic and operation process and shipping. Primark is one of the most recognizable retail
supermarkets occupying a predominant place in the multinational countries. Headquartered in
Dublin, Ireland this specific organization has maintained an effective supply chain method with
the help of information and communication technology.
In order to manage around 785 distribution centers Primark has decided to implement
ICT within business process with the help of which they can control the entire process of
business by sitting at the own workplace (Primark.com 2018). In order to control inbound
logistic method the business experts of Primark tends to implement ERP technology. The
primary role of enterprise resource planning is to amalgamate streamline and integrate the
operations and information flows (Gonzálvez-Gallego et al. 2015). After stocking the retail
products within Primark warehouse the supply chain distributors have to keep constant control
between the demand and supply of the products. ERP is the most effective ICT process with the
help of which the business experts can keep a constant track which products are getting released
from the warehouse, which product is getting out of stock very frequently. The performance
measurement of human resources is also evaluated with the help of ERP method. As a result, the
supply chain managers do not have to invest large number of labor force for the maintenance of
inbound products. As a result, Primark can reduce their operation cost very easily which creates
a major positive impact on the overall success of business. In addition, ERP method is very fast
and systematic with the help of which the organization like Primark has maintained a
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chronological data about the sales volume of products, overall stock of products and demand and
supply chain.
Primark in quest of maintaining their outbound logistic method intends to implement
RFID tracker in order to keep a constant update about the transport. Supply chain managers
have to give an update to the customer service department of Primark on how the products are
yet to reach proper destination. With the help of RFID tracker the supply chain managers can get
an overview about the transportation system and their way of journey. Based on that track the
organization like Primark can give an effective feedback to the customers about the delivery of
products (Caridi et al. 2014). ICT has left major positive influence on the overall customer
satisfaction rate of Primark. Marketing and sales is one of the most significant parts of value
chain process. While using effective marketing process Primark tends to use new media as their
most prominent vehicle. With the help of new media tool the business experts of Primark has
communicated with the customers of various geographical boundaries. As a result, the scope of
business expansion procedure is very much flexible after the emergence of ICT on Primark.
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Reference List:
Caridi, M., Moretto, A., Perego, A. and Tumino, A., 2014. The benefits of supply chain
visibility: A value assessment model. International Journal of Production Economics, 151, pp.1-
19.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Gonzálvez-Gallego, N., Molina-Castillo, F.J., Soto-Acosta, P., Varajao, J. and Trigo, A., 2015.
Using integrated information systems in supply chain management. Enterprise Information
Systems, 9(2), pp.210-232.
Primark.com 2018. https://www.primark.com/en-us/homepage. available at
https://www.primark.com/en-us/homepage
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