Retail and Supply Chain Characteristics: Optus Melbourne

This report provides an in-depth analysis of Optus' retail and supply chain operations in Melbourne, Australia. It examines the company's logistics strategies, including its approach to customer service, supply chain management, and operational efficiency. The report explores how Optus leverages resources, manages quality through value chain management, and integrates ICT and business management systems. Key areas of focus include the company's people management strategy, retail logistics and supply chain management, and the impact of technology on service delivery. The report also discusses the company's competitive market position, customer satisfaction strategies, and cost reduction measures. The analysis highlights Optus' efforts to adapt to market changes, improve customer experience, and achieve operational excellence within the telecommunications industry. The report also touches upon Optus' sustainability efforts and the role of quality control in maintaining its competitive edge.

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LOGISTICS AND SUPPLY CHAIN
CHARACTERISTICS
RETAIL SERVICE MELBOURNE
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Executive Summary
Optus is one of the largest telecommunication brands in Australia. The company has several
subsidiaries in mobile technology, network services and ICT. Its wide range of services include
broadband Satellite, 4G Mobile and broadband services. The success of such complex business
entities depends on the retail and service logistics use of effective processes. Serving both residential
and commercial settings, the brand makes use of the internet and its retail outlets for business. Using
franchised branches the brand has customers for the cable TV, leased lines, data transmission,
internet, and mobile telephone as well as VoIP services and others. Its subsidiaries are Alphawest,
Uecomm, SIMplus and Virgin Australia Mobile. The company has an intertwined retail and
logistics system that requires an efficient management strategy suitable for its multilevel structure,
supply chain and business model. As a service retail, it exhibits direct participation of customers,
perishability, simultaneous production plus consumption and intangibility of its internet services. In
order to reduce on costs, the company participates in outsourcing functions such as customer service
and professional services. It also invests in contemporary marketing and communication strategies.

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Contents
1. Introduction..................................................................................................................................5
1.1 Redefined operational functions................................................................................................5
2. Leveraging Logistics and other Resources..................................................................................6
2.1 Company analysis.................................................................................................................6
2.2 Efficiency and customer satisfaction....................................................................................7
2.3 Optus people management strategy......................................................................................8
3. Retail Logistics and Supply Chain Management.........................................................................9
2.4 Managing quality through value chain management..........................................................10
2.5 Product quality....................................................................................................................12
2.6 Cost of retail.......................................................................................................................12
2.7 Expenses and cost reduction...............................................................................................13
2.8 Service distribution strategy...............................................................................................14
4. ICT and business Management (Enterprise Systems)................................................................14
5. Conclusion.................................................................................................................................15

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1. Introduction
The international business sphere provides a platform for large and small businesses to thrive.
Retail and service providers continue to reap from the benefits of internationalization. Globalization
of logistics enables retail and service outlets to do business on location and through global stores
(Dyckhoff, et al., 2013). Regional, national and global retailers are dealers in a variety of goods and
services. This business model facilitates for the creation and management of a complex business
relationships. In order to succeed in planning, offering quality services and control, efficiency is
necessary. The retail and service logistics is about the management of processes and procedures
within the organizational plan, design and systems. Traditional services considered location and
layout among important factors. However, modern retail services incorporate e-commerce and
technology in the service management. The Optus Melboourne, a branch of Optus Australia has
both online and location services designed to reach the target group. Its heterogeneity shows
complex relationships with customers and suppliers (Fitzsimmons, 2014). This report discusses
these processes within the Optus Melbourne branch. This is a global brand with a retail shop in
Melbourne Australia, and a supply chain that incorporates both the products, and services. Its
segments include the online store for better business opportunities.
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1.1 Redefined Operational Functions
The Optus service strategy deals with customer relationships and this retail company
invests in service delivery through trained staff. Unlike the product-based business, the service
industry involves human services and training the staff is crucial. Market trends have changed the
way managers operate. The implementation of technology and the use of strategic decision
processes improves the shipping, warehouse and courier service delivery and transport services.
Strategic management through the integration of functions is for best practice and adaptation to

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change (David, 2011). The formulation of strategy takes into consideration the organizational
goals and the industry analytics. Operational Management (OM) or Business Process
Management (BPM) is a broader perspective of workflow management (Van Der A, 2013). The
use of technology systems such as Customer Relationship Management (CRM) enhances
efficiency at Optus. Its retail service also includes management of the transport from air transport
to road transport. The management of production of goods and services at Optus covers the
planning, organizing as well as coordination and control of resources. Research indicates that
online retail continues to show an increase in revenue over the years. This growth comes with
market changes to encourage efficiency and best practices. Retail and service logistics consists of
value added services, technology and e-commerce, supply chain management, and marketing
tactics, which acknowledge challenges in the business environment. In response to consumer
needs, Optus has both online and on location services for customers in the telecommunication
industry.
2. Leveraging Logistics and other Resources
The telecom industry is a high profit yet highly volatile industry. Large brands like Optus face
threats from the new entrants, which offer consumers low cost products and services. However,
lowering the costs may not always work for Optus. As a result, the brand may adopt other
strategies such as diversification, wholesale services and reinventing. Optus logistics plan features
this wide range products and services in order to gain an advantage in the market share.
2.1 Company analysis
Optus logistics plan is clear on waste management, land management and sustainability efforts
(Optus, 2017). Telecommunication services have grown over the year across the globe. Optus

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Melbourne enjoys a market share of 27.7% but it receives a challenge from Telstra and Vodafone
(Roy Morgan Research, 2017). Its communication services include local, business network services
and personal services. Trade logistics in Melbourne represent a reflection of the global market in
which performance indicators such as efficiency, quality and sustainability feature on a largescale.
Figure 1: Optus competitive market in Melbourne and other cities of Australia (Roy Morgan
Research, 2017)
2.2 Efficiency and Customer satisfaction
Speed and convenience are some factors influencing the choice of technology (Farfan,
2017). Creating effective international businesses with an effective trade system requires quality
international relationships. Optus Melbourne provides mobile network services across Melbourne
using word of mouth, personal experience and meeting expected needs (Fitzsimmons &
Fitzsimmons, 2011). Its efficient operations use the lean process to tackle industry challenges
such as market changes in price and business model. Improved optimizations starts with the
reduction of costs, and wastage of resources. This leads to operational excellence that curbs

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overproduction of mobile devices, and pile up at the inventory (Talwar, 2011). Optus Melbourne
as a company provides communication and internet broadband services; it also sells mobile
phone devices. Optus understands its customer needs and it targets a wide range of customer
needs. In an industry where innovation is constant, the reduction of benchmarking costs is
necessary.
Efficiency is also important for the high level of integration at Optus. The brand provides
technology solutions through B2B and B2C models (Optus Business, 2017). The business
solutions are in line with the workplace changes such as systems installations. Service response
providers include the agents and Optus channels, branches as well as retailers. Coordination units
need a competitive response to deal with competition, stakeholder needs and customer delivery.
This prevents keeping clients in the waiting line through a reliable capacity management
(Bilodeau & Rigby, 2013). The major logistic issues of concern in this case are time, labour,
equipment and the facilities. Optus has an elaborate system that schedules pricing for online
subscriptions to the cable and broadband services. Digital subscriptions are convenient because of
the use of mobile technology. Efficient management also considers the location of the service
provider, website links and the blueprint of Optus physical and virtual presence.
2.3 Optus people management strategy
Having the right people is important because it contributes to the success of the company.
Optus is an information and telecommunication brand. Logistics in its HR department covers the
planning, optimization, implementation of performance and maintenance of effective strategy.
Organizing functions through motivation for performance is a boost for Optus whose focus on
shaping the right attitude (Bilodeau & Rigby, 2013). The company has a plan for its number of
employees in different sections. Outsourcing provides a cheaper alternative for Optus Melbourne’s
customer service although it exposes the company data. This connects people to the right jobs at

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the right time through the best procedure. Employees connect with the customers and key
suppliers in sourcing processes. Leveraging the knowledge and expert skills is a business logistics
plan to reduce the collateral damage by capitalizing on the company’s synergies for flexible job
contracts. An effective model for its operation calls for outsourcing and using market approaches
that support the brand’s abilities. Optus constant improvements gears towards offering a better
customer experience. Its Head of Supply Chain notes that Optus seeks to achieve operational
excellence through a customer centric innovation spread across its supply chain (Jalilzadeh, 2017).
Reinventing includes the empowerment of employees through job specialization and increased
incentives to enhance the effectiveness of the workers.
3. Retail Logistics and Supply Chain Management
The flow in the demand chain is crucial for Optus because its customers and suppliers are
part of the process. Efficiency and value added services include consideration for cost reduction
and the non-tangible value factor in a service dominant approach (Lusch, 2011). Based on the
complexity of the large supply chain systems such as Optus, the use of the lean logistics, Six
Sigma and Quality approaches become necessary (Fitzsimmons & Fitzsimmons, 2011). The
Optus service delivery defines its value creation through competent skills in its professionals.
Services involve processes that factors in the costs of installations across Melbourne region.
Optus spends more on customer delivery because it is a service-oriented business. Optus’ strategy
of continuous improvement captures a restructured business model that has economically viable
processes (Pagell & Wu, 2011). The customer benefits from its value by interacting with the
service hence the need for effective service response logistics.

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Figure 2: Service response logistics model (Karl & Frank, 1992)
2.4 Managing Quality through Value Chain Management
Optus has a plan to achieve a competitive edge through its primary and secondary activities.
Through service quality dimensions like reliability, responsiveness and assurance, it provides
tangibles and intangibles (Fitzsimmons, 2014). The SERVQUAL model allows Optus to merge
customer expectations with its quality. By identifying its process of producing services and
technology products the brand is able to manage its value chain effectively. Connecting the product
design or development process to the customer care or marketing unit helps to improve on the
quality of its products. Optus e-commerce process strives to match the traditional location based
stores through its web stores. Support services such as the procurement and firm infrastructure
adopt plans that accommodate these approaches (Katherine, 2015). Optus inbound logistics,
operations, outbound, marketing and service logistics ensure the reduction of server errors. Optus
includes ICT services as part of additional activities that boost the performance of its mobile
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devices and broadband services. Its support activities work together with the primary functions in
procurement, technology, HR and infrastructure. The brand invests in improvements in its logistics
in order to target value chains, company goals and strategies. The brand involves stakeholders for
meaningful and easy to understand procedures as service guarantee. Optus has a customer
membership log in to facilitate for easier communication with the individual users and business
owners (Optus, 2017).
Optus creates change in the community through its sustainability plan. Noting that sustainability is
important in driving efficiency (Waters, 2013). In its agenda is environmental conservation.
Retail and service logistics feature marketing or selling services to the customers through value
creation. Optus’ use of sustainable logistics adds value to its value creation efforts. Its inbound
plans currently serve more than 131,300 customers within the 1800 services. These make calls
using a simplified approach and they access the internet services. Optus’ online and SMS contact
include the local and international services. Sustainability comes in to compliment the present
and future plans of offering quality and reliable mobile services, fixed and satellite networks. A
sustainable supply chain has economic benefits and it is a performance indicator (Hassini, et al.,
2012).
2.5 Product quality
Optus practices quality controls in the management of product and service quality. The
telecoms industry is highly competitive and Optus needs quality processes in order to stay in
business (Kumar, et al., 2012). The company makes decisions that complement its existence in
Melbourne and in accordance to the state government laws of quality. This is important for
consumer satisfaction as well as risk management. This attribute connects to the value
perspective and Optus adopts different pricing strategies in an attempt to meet quality. It also

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takes other dimensions such as added benefits for the broadband network customers, reliability
for the cable and satellite services. Within its functions, Optus has product functions that enhance
performance. Profitability strategies conform to quality productions and service delivery. Planned
upgrades in its network services is a risk management plan for unexpected occurrences such as
broadband and mobile network failure. Service logistics include proper connectivity, optimal
delivery and assured services. Quality customer service serves as a marketing strategy and it
prevents nonconformance to legal standards. Therefore, if customers expect complete telephone
and internet services, Optus has no excuse to provide incomplete or nonfunctional services. The
Melbourne consumer is searching for reliable and convenient service delivery, as promised by the
company, within the ACMA standardization (ACMA, 2017).
2.6 Cost of Retail
Optus makes use of its website to provide online sales services (Optus, 2017). In order to
avoid losses from sales logistics, the brand has to ensure that the customer gets the right product.
Its franchising opportunity allows entrepreneurs to share in the brand success at a lower cost
(Optus, 2014). The cost of retail is expensive but shared costs for store based and non-stores
provides alternative. Optus planning process combines the management inventory and its
industrial management for both its products and services. Inventory takes into account the
internet sales and client activities for expiry subscriptions and business services (Tang & Musa,
2011). It also accounts for partnerships in the supply chain, order fulfilment and integrated
services. Managing the inventory at Optus incorporates vendor relationships within the supply
chains for a balanced supply verses demand system. Sales, procurements, manufacturing and
marketing are management functions used to manage sales and operations. An effective plan
directs the decisions made for timely outflows and inflows (Sheffi, 2012). Prompt response to