LSCM5027: Logistics and Supply Chain Management Report on Parcelforce

This report analyzes the logistics and supply chain management of Parcelforce Worldwide, examining the relationship between supply chain and logistics, and the significance of effective logistics in achieving long-term organizational success. It explores the role of Enterprise Resource Planning (ERP) in improving customer satisfaction and reducing costs, with a focus on e-commerce. The report also suggests and analyzes best practices for Parcelforce to reduce its logistics costs, including automation, updated technology, and effective shipping strategies. The analysis covers various aspects of logistics, including transportation, warehouse management, and customer relationship management, emphasizing the importance of strategic planning and implementation for long-term sustainability and success in the courier and logistics industry.

Logistics and Supply Chain Management Report on Parcelforce
worldwide
By
Yaya Soro

Contents
Analyze the relationship between Supply chain management and logistics
management and assess the significance of effective logistics management in
achieving long term organizational success..............................................................2
Introduction...............................................................................................................2
Understanding of ERP and how it can help Parcelforce to improve its customer
satisfaction, while reducing its cost, with a focus on e-commerce?..........................3
Introduction...............................................................................................................3
Introduction...............................................................................................................5
Conclusion.................................................................................................................7
Reference...................................................................................................................8

Analyze the relationship between Supply chain management and
logistics management and assess the significance of effective logistics
management in achieving long term organizational success.
Introduction
In this task the relationship between supply chain management and logistics management will be
analyzed of Parcel force worldwide. Parcel worldwide provide the services as it is essential for
the effective logistics management. For achieving the long term organizational goals and success
company has implemented the effective strategies.
In the United Kingdom, Parcel force worldwide is a courier company whose trading name is
Royal Mail Group Ltd which was established in 1985. The company deals in delivering the
parcels to various international destinations by using the network partner of international. Their
strategic direction is to be the most trusted worldwide express carrier in the UK. As they import
and export 35,000 per day to almost 240 countries. It requires effective logistics and supply
chain management as it helps the organization in planning and controlling the activities of
courier services in exporting and importing parcels. They ensure to deliver the right products to
the right customers at the right time at the right prices. It is necessary for the Parcel force
worldwide to manage the logistics and supply chain management effectively (Mentzer, et al.,
2001).
Logistics is to deliver the products and services where they are required and needed. It is
impossible for an organization to do marketing or manufacturing without logistical support. The
components of logistics are information, transportation, and warehousing, packaging and
handling material (Christopher, 2016). Supply chain management requires the activities to be
performed to plan, control, and execute a flow of goods and services which involves the
movement and also the storage of raw materials, WIP inventory and finished goods from point of
origin of consumption.
Logistics management is a small part of SCM. It has a narrow scope than SCM. Logistics
involves the activities which are performed from the departure point of the product to the arrival
of the product at the final point. SCM involves all the activities for bringing the product in the

market. Its goal is to make the product available to customers. SCM helps in lowering the cost as
the process will be improved for delivering the products faster and cheaper (Buurman, 2002).
Logistics include the activities which are performed within the boundaries of an organization and
supply chain includes the activities which are performed by the number of companies who work
together and coordinate with each other to deliver the product in the market.
It is important for an organization to manage and implement the strategies for long term success.
it is essential to plan for the future with short term and long-term goals. To sustain in the market
for the long term and achieve success, an organization has to satisfy the customer and employee
with the products and services (Mentzer, et al., 2001). Efficient SCM helps the department in
delivering the products and services on time as it will help an organization to achieve future
success and long-term sustainability.
Understanding of ERP and how it can help Parcelforce to improve its
customer satisfaction, while reducing its cost, with a focus on e-commerce?
Enterprise Resource Planning
Introduction
In this task, enterprise resource planning will be discussed and it is useful in improving the
satisfaction of customers and it will be analyzed that how it reduce the cost in parcel force
worldwide. It will be analysed that how ERP helps in delivering the products on time to
customers and it is beneficial for the company to implement the system for the growth and
development.
ERP is used by the companies for managing and integrating the important part of doing business.
It is software that is designed for integrating the functional areas of a business. The system helps
in tracking the resources of business-like cash, raw materials, and production capacity and also
used to manage the other internal and external resources.
An ERP system in an organization is made up of tools for helping the various areas of business
for effective communication. It integrates all the information of business at one place for analysis
and converts it into one comprehensive information system. It helps in collecting and storing

data into one centralized place (Umble, et al., 2003). ERP helps in increasing productivity and
increasing efficiencies and decreasing the costs. ERP implementation includes the 3 phases:
discovery, implementation, and results. ERP helps in reducing administrative and operations
costs. It helps in managing the process of manufacturing by managing the operation proactively,
and disruptions and delays can be prevented. Implementation of ERP involves the huge
investment but after the implementation, its benefits in business in many ways. The cost will be
managed effectively by tracking the revenue cost and profits at all levels of an organization. ERP
systems help in improving the level of customer satisfaction as it helps in delivering the products
and services on time and it builds a strong relationship with the new and existing customers
(Lambert, et al., 2008). With ERP, an organization can manage the returns and replacements of
products on time and it will satisfy and solve the problems of customers. ERP systems help in
saving the time of customers and make it easy to take the action instantly. ERP system helps an
organization in understanding the needs and preferences of customers. Companies can also
implement customer relationship management systems for handling clients (Chou and Chang,
2008). It helps an organization in saving the capital in the short term and long term. ERP system
helps in creating an interaction with other departments also as it gives an understanding of
customers' needs and preferences. The quality of product development can be improved, and the
process of service delivery can also be improved. ERP systems help in retaining high-value
customers as it enhances profits and revenues. It makes easy for an organization to re-run the
information of the customer again and again. The information of customers can be accessed by
employees in real-time (Fugate, et al., 2010). It gives information about the customers what they
need exactly in products and services. ERP can help in accessing the customer's information life
shipments, financials of customers, order history, payments, pricing, and their returns.
Transparency about the customers can be achieved easily by the employee for solving any type
of problem faced by the customers. ERP also helps in maintaining the right price and quality of
delivery for satisfying the customers. Furthermore, it is important for an organization to
implement the ERP effectively for understanding the customers’ needs and satisfying their
wants. It is necessary to understand and identify the preferences of customers' communication as
it will help in understanding their preferences of customers for satisfaction (Li, et al., 2006).
In parcel force worldwide, as it provides logistics and courier services to customers, it is
necessary for them to deliver the courier on time to customers and ERP helps them in

understanding the customers’ needs and preferences. ERP helps them in responding to
customers on time and gives the facility to customers in their products. They had implemented
the new ERP system in tracking and reporting for tracking the information through the website.
It provides services to all its customers and it helps in improving the customer experience. They
had partnered with Capgemini for creating a new tracking and reporting dashboard to provide
unique and transparent insight to customers. Customers of Parcel force worldwide can raise their
queries on the portal and can download the data of parcel for analysis and invoicing purposes.
They provide fast delivery services and information to customers. It helps in keeping the greater
visibility and enhances the accuracy for the customers. It has reduced the cost also for an
organization and has greater control over the services which are provided to customers. They had
implemented the new tracking system for the information collection and aggregating it (Branch,
2008).
Parcelforce wants to reduce its logistics cost, suggest and analyze different
best practices, which can help Parcelforce to achieve its objective of cost
reduction
Introduction
This task reflects on the best practices which can be adopted by the Parcel force worldwide for
reducing the logistics cost. In order to achieve the objective of cost reduction, the suggestions are
provided to parcel force worldwide.
The best practice which can be adopted by the Parcel force worldwide can automate the logistics
at it will also help in reducing the costs. Logistics planning can be done by the company by using
the flowchart and updated version of software in supply chain process. It is recommended to
check the new carriers which are available in the market periodically. It is the best practice in
reducing logistics costs (Croxton, et al., 2001). It is necessary to do the market rate check
regularly as it will help in reducing costs. The new carrier provider can provide better and cheap
services than the existing carrier for safety purposes also. Parcel worldwide can adopt the
strategy for customer satisfaction by delivering the goods on time.

It is recommended to use to update technology in the delivery of products as it will help in
reducing the manpower and staff requirements. Warehouse management, transport management,
inventory management and in order to manage the customer relationship, an organization can
manage and use the updated technology in recording and analyzing the information of customers.
they can provide better services to customers by using advanced technology. Costs are involved
in managing the different activities of the business and it is necessary to use the cost-effective for
the betterment of business (Mentzer, et al., 2008). Parcel force worldwide can adopt the effective
shipping practice as improved shipping and the process of receiving will help in substantial
saving of money. They can adopt the streamline shipping for saving the cost of transportation. In
the courier and logistics industry, transportation is the main factor for the delivery of courier
around the world. They must choose the best mode of transportation which is cheap for them to
deliver the goods at different places in domestic and internationally (Umble, et al., 2003).
In order to manage the logistics activities, the inbound and outbound management of
transportation will help in reducing the cost. In order to achieve the objective of reducing the
costs, management can adopt effective strategies for customer service, sourcing, packaging, and
assembling. It must be managed at all levels of an organization. Parcel force worldwide
expresses can use the updated software for recording and maintaining the details of
consignments for keeping the correct track (Tan, 2002). They must focus on the main
departments in organizations like warehouse management, planning of supply chain,
transportation management. The updated software will help in reducing the cost by managing the
details effectively without taking must time. There must be a collaborative logistics planning
during the transit of services. During the process of the supply chain, there must be a
consolidation of goods as it will reduce the costs and helps in increasing the responsiveness
(Lambert and Cooper, 2000). It will be beneficial for the company to collaborate with the small
logistics companies in different countries as it will be cost-effective. It is necessary for logistics
companies to have a good storing place for keeping the goods of customers safely; an
organization must search for the place for warehousing which could be cost-effective for them
and safe also. The cost can be reduced by exploring the opportunities to consolidate shipments as
the less-than-truckloads shipments will be convenient for the small weights. It will be efficient if
the consignments are managed according to the different products for the customers into one

shipment, it will help in saving money by using the practice of full-truckload shipping of goods
(Frazelle, 2002).
Conclusion
Supply chain and logistics management is the most important part of parcel force worldwide
express. It is one of the largest express and logistics networks. In order to deliver the products on
time and satisfying the customer, they have to implement effective strategies and must manage
the logistics costs to increase the revenues and profits in the future. They have to implement the
best practices to manage the supply chain and logistics management. It is recommended to
enhance the project of the smart and full-load truck as this project will help the company in
delivering the consignments faster and cuts the cost in the usage of fuel. ERP systems are used in
an organization to manage and track the information of goods and services which help in keeping
the record of information of customers. ERP system helps in creating an interaction with other
departments also as it gives an understanding of customers' needs and preferences.

Reference
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