Individual Report: Logistics and Supply Chain Management Analysis

This report provides a comprehensive analysis of the logistics and supply chain management of a selected enterprise, likely Costco, examining its history, market operations, and scope. It delves into the characteristics of the organization's supply chain and logistical activities, supported by descriptive narratives and diagrams. The report identifies and evaluates three key activities the organization employs to ensure supply chain sustainability, along with its influence on sustainable practices across its supply chain. Furthermore, it explores the collaboration strategies with suppliers and logistics partners to enhance end-customer satisfaction. The analysis covers aspects such as cost management, inventory control, employee engagement, and the incorporation of technology for improved communication and customer service, ultimately aiming to provide recommendations for further improvements.

Running head: Logistics and Supply chain management
Logistics and Supply chain management
Name of the student
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1Logistics and Supply chain management
Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
1. What is the history of the enterprise?.....................................................................................3
2. In what markets does the organisation operate and what is the scope of its operations?......4
3. Using both a descriptive narrative and a supporting diagram to illustrate your answer,.......5
4. What are three (3) activities that the organisation is using to ensure its supply chain is.......6
5. How does the organisation collaborate with its suppliers and logistics partners to ensure
end-customer satisfaction with its products or services?...........................................................6
Conclusion..................................................................................................................................7
Recommendation........................................................................................................................7
Reference list..............................................................................................................................8

2Logistics and Supply chain management
Executive Summary
The company grew an amount of $3 billion in sales in less than six years from amount
0. One of the main reason behind the success of the company is that they keep 4000 stock
keeping units compared to 30000 units that are followed by supermarkets. All the three things
that has been mentioned is important for any company to grow because of the fact that
through the improved level of resource utilisation, the company will be able to provide better
level of environment for the employees. By improving the level of environment, the company
will be able to improve the development of company.

3Logistics and Supply chain management
Introduction
The implementation of logistics and operational management is an important concept
that will bring in a better quality of resources in the business. Through the development of
better quality of resources, the company will be able to counter the competition that will
indulge better variety of business activities. Supply chain management is mainly going to
identify the resources and raw materials that will bring in high quality of production. On the
other hand, using a better quality of business communication is mainly helpful for the
development of supply chain management and involvement of advanced technologies.
Discussion
1. What is the history of the enterprise?
The history of the company lies back in the year 1976 with the name of Price Club
name. However, initially the company was operating as a small business, and in the year
1983, the company decided to open the warehouse store. Now the company is dealing with
the selling of goods that are mostly required by the company. The company grew an amount
of $3 billion in sales in less than six years from amount 0. The company is now having the
resources to increase the selling of household products and other essential things
(Brandenburg, 2014). Far to indulge the development of funds into various sectors of
economic activities has helped the company in developing their business. They are aiming to
expand their business outside Washington. One of the main reason behind the success of the
company is that they keep 4000 stock keeping units compared to 30000 units that are
followed by supermarkets (costco.com, 2019). The company is giving its members high
values and high privileges in the supply of a variety of wholesale products. The company is
also providing lucrative benefits to the employees in terms of wage and incentives so that
employee turnover rate can be minimised.

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5Logistics and Supply chain management
2. In what markets does the organisation operate and what is the scope of its
operations?
Organisation is operating in the wholesale market, and the company is having a high
scope of improvement in the operation. The company is aiming to increase the overall supply
of resource that will help in the development of global business communication. The
company is introducing the high quality of resources and through the provision of
membership privilege that will help the company in gaining an increased base of customer
and it will enhance profitability. The company is mainly doing business, and through special
events, the company is giving discounts to its customers and also they have segregated goods
for non-members and members (Yazdani et al. 2017). Even they are providing benefits in the
form of a special discount to the grilling items and utensils.
Through the incorporation of online business, the company is aiming to increase the
development of a basic level of strategy. Use of a better level of communication, the
company is dealing mainly with the implementation of an operation. Through the
involvement of FDI in the business, the company will give the economy number of numbers
and the company will be able to provide a wide variety of products. Through the indulgence
of better website design, the company aimed in provision of better services.

6Logistics and Supply chain management
3. Using both a descriptive narrative and a supporting diagram to illustrate your
answer,
What are the characteristics of the organisation’s supply chain and logistical
operational
activity?
Figure 1: Capital expenditure of the company
(Source: marketrealist.com, 2019)
One of the primary strategy that the company has taken is that the company is selling
massive volume of the goods to the customers at a competitive price. The company is also
aimed at maintaining limited stock in their warehouses. Now, this is mainly done to reduce
the cost of the inventory that helped the company in dealing up with a better level of
economic activities and organisational activities. In almost all fiscal year, the company has
improved its supply chain by bringing products based on the consumer demand for the

7Logistics and Supply chain management
economy (Saenz et al. 2015). The company needs to establish a relationship with the
stakeholders, and through the development of efficient supply, the company will be able to
minimise the concept of operating costs that will increase the profit. Responding based on the
demand of the customer the company is inducing the supply of high class of goods.
Figure 2: Costco dividend history
(Source: marketrealist.com, 2019)
One of the important characteristics of the logistics suppliers is that they will allow
the economic activities to flourish so that most of their products are not being wasted. Now in
the long run, the company is planning to bring automation in warehouse management (Wang
et al. 2016).
4. What are three (3) activities that the organisation is using to ensure its supply chain is
sustainable and in what ways is the organisation influencing all elements of its supply
chain to adopt sustainable practices?

8Logistics and Supply chain management
The three activities that are mainly taken by the company to ensure sustainability of
the supply chain are employees, operation of the company, and resourcing of the raw
materials and supporting the community where the employees are working as well as living.
All the three things that has been mentioned is important for any company to grow because of
the fact that through the improved level of resource utilisation, the company will be able to
provide better level of environment for the employees. By improving the level of
environment, the company will be able to improve the development of company (Fernie and
Sparks, 2018).
Using techniques in the form of efficient level of training process for the employees
will be beneficial regarding the increase in the knowledge. Increase in the skills and
knowledge will help the company in bringing up better level of resource making abilities that
will automatically increase the quality of the products. Suitable practise that can be
implemented by the supply chain is to incorporate information technology within the supply
chain management (Govindan et al. 2015). This will help the company to bring in more
updated network of communication among the warehouse and supply operators. This will
help the Costco Pls to bring highly developed customer services.
5. How does the organisation collaborate with its suppliers and logistics partners to
ensure end-customer satisfaction with its products or services?
Convenient shipping of the products will be highly recommended for the managers to
make an effective level of communication. In order to improve the development of high
quality of products and bring them in the market, it is important for the company to minimise
the cost of operation (Chin et al. 2015). This will allow the overall development of the
customer satisfaction. The suppliers need to take continuous feedback from the customers
regarding the products and services they are purchasing. The company needs to identify the
gaps that are having within the employees and communication with the market.

9Logistics and Supply chain management
Conclusion
It has been seen that to develop the incorporation of better level of business, the
Costco Pls have done much better in terms of warehouse selling of the products. Even the
company is selling a wide range of products ranging from leather bags to grill ovens and they
are giving special benefits to its members and even for the purpose of Labour Day, they are
giving away discounts. They have taken strategies in the form of short operating hours and
using cross-docking system is helping them in the utilisation of shipping routes as the
products are directly shipped from manufacturing sector to the company warehouses.
Through the minimisation of operation costs, the company is mainly aimed in increasing the
profitability and also they are putting less pressure on the inventories and stocks.
Recommendation
It is important for the company to identify the development of resources that has been
highly beneficial for the company to increase its warehouse selling. Through the increased
level of utility maximization, the company will mainly increase their customer base and it is
important to identify the skills and potentiality of the employee. They should increase the
level of resources that will heavily increase the investments of the company in various
sections. Increasing the number of customer visit will really help the company.

10Logistics and Supply chain management
Reference list
Brandenburg, M., Govindan, K., Sarkis, J. and Seuring, S., 2014. Quantitative models for
sustainable supply chain management: Developments and directions. European journal of
operational research, 233(2), pp.299-312.
Chin, T.A., Tat, H.H. and Sulaiman, Z., 2015. Green supply chain management,
environmental collaboration and sustainability performance. Procedia Cirp, 26, pp.695-699.
costco.com (2019). [online] Available at: https://www.costco.com/about.html [Accessed 1
Sep. 2019].
costco.com (2019). [online] Costco US homepage. Available at: https://www.costco.com/
[Accessed 29 Aug. 2019].
Fernie, J. and Sparks, L. eds., 2018. Logistics and retail management: emerging issues and
new challenges in the retail supply chain. Kogan page publishers.
Govindan, K., Soleimani, H. and Kannan, D., 2015. Reverse logistics and closed-loop supply
chain: A comprehensive review to explore the future. European Journal of Operational
Research, 240(3), pp.603-626.
Hazen, B.T., Boone, C.A., Ezell, J.D. and Jones-Farmer, L.A., 2014. Data quality for data
science, predictive analytics, and big data in supply chain management: An introduction to
the problem and suggestions for research and applications. International Journal of
Production Economics, 154, pp.72-80.
marketrealist.com (2019). Costco’s Special Dividends Have Offered Superior Investor
Returns - Market Realist. [online] Marketrealist.com. Available at:
https://marketrealist.com/2016/01/costcos-special-dividends-source-superior-investor-returns/
[Accessed 1 Sep. 2019].

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Saenz, M.J., Koufteros, X., Touboulic, A. and Walker, H., 2015. Theories in sustainable
supply chain management: a structured literature review. International Journal of Physical
Distribution & Logistics Management.
Wang, G., Gunasekaran, A., Ngai, E.W. and Papadopoulos, T., 2016. Big data analytics in
logistics and supply chain management: Certain investigations for research and
applications. International Journal of Production Economics, 176, pp.98-110.
Yazdani, M., Zarate, P., Coulibaly, A. and Zavadskas, E.K., 2017. A group decision making
support system in logistics and supply chain management. Expert Systems with
Applications, 88, pp.376-392.
Yu, Y., Wang, X., Zhong, R.Y. and Huang, G.Q., 2016. E-commerce logistics in supply
chain management: Practice perspective. Procedia Cirp, 52, pp.179-185.