Retail Distribution Logistics: A Comparative Analysis of UK E-Commerce

This report provides a comprehensive analysis of retail distribution logistics, specifically focusing on the e-commerce strategies employed by Asos and Next, two prominent businesses in the United Kingdom. The report begins with an executive summary and introduction to the concept of e-commerce and outbound logistics, highlighting the significance of these factors in the modern business landscape. It delves into the operations of Asos Plc, examining its outbound logistics, including its omni-channel strategy, use of technology, warehousing, customer relationship management, customer deliveries, returns, and CSR considerations. The report then explores Next's outbound logistics, followed by a comparison of the two companies' approaches. Finally, it offers recommendations for Fung Fashion, a Chinese company looking to enter the UK e-commerce retail fashion market. The report emphasizes the importance of outbound logistics, including storage and transportation, in the success of e-commerce businesses, and the role of technology and customer-centric strategies. The report concludes with a summary of findings and a list of references used.

Running head: RETIAL DISTRIBUTION LOGISTICS
Retail Distribution Logistics
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
This report will discuss about the concept of e-commerce and the various key facilities
provided by them which have enabled them to capture the business market in the present
times. This report “will take into consideration the business organizations of Asos and Next”
which are operational in the United Kingdom. The report will discuss about the various key
features as well as strategies used by these companies which has enabled them to become one
of the leading e-commerce business organizations of the “nation of the United Kingdom” and
more particularly the outbound logistics used by the two business organizations. Finally, “the
report will provide some recommendations for the Chinese company Fung Fashion” which
intends to enter the e-commerce retail fashion business industry of the United Kingdom.

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Table of Contents
Introduction................................................................................................................................3
Asos Plc......................................................................................................................................4
Outbound Logistics....................................................................................................................5
“Single, multi- and omni-channel strategy”...........................................................................6
Technology.............................................................................................................................7
Warehousing..........................................................................................................................8
“Customer behavior, loyalty and relationship management”................................................9
“Customer deliveries (store and/or home)”..........................................................................10
“Returns and reverse logistics”............................................................................................11
“CSR considerations”...........................................................................................................11
Next..........................................................................................................................................12
Differences between the outbound logistics systems used by Asos and Next.........................14
“Recommendations for Fung Fashion”....................................................................................14
Conclusion................................................................................................................................16
References................................................................................................................................18

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Introduction
The “advent of globalization as well as the recent developments in the fields of
technology and innovations has much transformed the way the various business organizations
transact their business in the present times” (Laudon and Traver 2013). It is “a reflection of
this that the various business organizations in the present times in addition to the normal
services provided by them also provides various kinds of online services to the customers”
(Laudon and Traver 2013). It is “significant to note that in the present times the concept of e-
commerce has gained much prominence” and the various customers often like the take the
help of the online services provided by the various business organizations (Barnes and Hunt
2013). It is a “reflection of this that the various business organizations” take into
consideration this particular requirement of the customers and provide online services to the
customers (Barnes and Hunt 2013). This trend is generally seen as the result of the changing
technological environment of the world and the willingness of the customers to take the help
of the various kinds of recent technologies for the dispensation of day-to-day activities.
Furthermore, the various e-commerce business organizations not only provide online and
easy services to the customers but often provide home delivery to the customers (Barnes and
Hunt 2013). This particular policy enables the customers to get the things which they need at
their doorstep and they do not have to leave the comfort of their home. The concept of
outbound logistics plays a significant role in the success attained by these organizations and it
is generally seen that the effectiveness of the outbound logistics system by these
organizations depends on the context in which they are being used. Furthermore, most of
these e-commerce business organizations also provide the customers with the various kinds
of offers like “payment on delivery” and others (Laudon and Traver 2013).

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Asos Plc.
The company Asos Plc is the “United Kingdom’s largest online-only fashion retailer
which has profited at the expense of store-based rivals” (Chambers 2018). It is significant to
note that this particular business organization was founded keeping in view the changing
buying patterns as well as the requirements of the customers and also their growing insistence
to opt for the “online services provided by the various e-commerce business” organizations.
The business of the concerned business organization has seen a considerable amount of rise
“in the present times and it is a reflection of this that the company rose 23 percent to 300.9
million pounds ($429 million) in the four months ended Dec. 31” (Chambers 2018).
Furthermore, the shares of the organisation saw an increase of 1.3% because of which the
company was able to cover up the earlier losses faced by it in the previous year (Chambers
2018). The opinion of “Laith Khalaf, senior analyst at Hargreaves Lansdown” is significant
to note in this particular context when he said that “ASOS is enjoying the kind of sales
growth that traditional retailers would give their eye teeth for” (Chambers 2018). This
comment of Laith Khalaf is a pertinent reflection of the changing buying pattern of the
customers and also their urge to take the help of the various kinds of e-commerce business
organisations. The main focus of the company Asos is on the customer base which belongs to
the age group of twenty years who are not only fashion conscious but at the same time
technologically savvy (Chambers 2018). It is significant to note that the style of conducting
business of this particular business organisation has considerably affected the business of the
other business organisations which do not provide e-commerce facilities to the customers.
Furthermore, the cost of conducting business has considerably increased in the present times
on the score of various factors and therefore the business organisations which do not provide
online services to the customers are finding it very hard to sustain themselves in the business
market in the present times (Gangeshwer 2013). However, the business organisations like

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Asos are capitalising on the changing pattern of the customer buying behaviour to further
enhance their prospects in the business world. Furthermore, another significant reason for the
rapid growth of the concerned enterprise is the effective outbound logistic system which the
enterprise uses not only for the storage of the goods but at the same time for the delivery of
the finished products to the end users. One of the major reasons for the recent success
attained by this particular business enterprise is the effective use of the concept of outbound
logistics by means of which it is not only able to procure the goods or the products that are
much in public demand but at the same time helps it to deliver these goods or products
ordered by the customers at their doorsteps.
Outbound Logistics
The process of outbound logistics primarily concerns itself with two processes,
namely, storage and transportation. These two processes are generally considered to be of
paramount importance considering the fact that almost all the business enterprises take the
help of these two concepts. The process of storage is associated storage of the products or the
goods which are offered by the enterprise to the customers. There are various factors which
the enterprises need to take into consideration for the process of the storage of the products or
the goods. Thus it becomes imperative for the various enterprises to procure and store goods
by analyzing their own past sale records and also the customer demand at the current
moment. The concept of transportation, on the other hand, enables the various enterprises to
not only procure goods or products offered by them to the customers but at the same time to
deliver at the door steps of the customers. The enterprise Asos Plc takes the help of the
concept of outbound logistics for the processes of storage as well as the transportation of the
goods. The various strategies used by the enterprise like “omni-channel business strategy”,
warehousing, use of recent technology for the process of their business and others are in

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synchronisation with the concept of outbound logistics that is being followed by the
enterprise for the process of their business. Therefore, it would be apt to say that the effective
use of the concept of outbound logistics has helped the concerned enterprise in a significant
manner as regards the recent success which it had achieved.
“Single, multi- and omni-channel strategy”
The concept of Omni-channel strategy is a very recent one and “it is seen that in the
present times the various business organizations are increasingly taking the help of this
particular strategy to gain a sustainable amount of competitive advantage over their rival
business organizations operational in the same field of business” (Savrul, Incekara and Sener
2014). The concept of omni-channel strategy can be defined as “an approach to sales and
marketing that provides customers with a fully-integrated shopping experience by uniting
user experiences from brick-and-mortar to mobile-browsing and everything in between”
(Savrul, Incekara and Sener 2014). It is “significant to note that the business organization
under consideration here is a leader in the nation of the United Kingdom” in the online retail
sector. In the opinion of many people “one of the primary reasons for the success attained by
the concerned business organization is its omni-channel strategy” by dint of which it provides
online services to the customers (Chaffey 2015). It is precisely the use of this particular
strategy which has enabled the organization to become the leader in the retail online fashion
industry of the nation (Chaffey 2015). Furthermore, the business organization under
consideration here is also known for “taking into effective consideration the various needs as
well as the requirements of the customers in the most effective manner and offering the
various products and the services to the customers which best suits their needs” (Savrul,
Incekara and Sener 2014). Moreover, the business organization under consideration here
takes into effective consideration the technological requirements of the customers as well as

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their fashion requirements tries to offer their services in the like manner (Savrul, Incekara and
Sener 2014).
The formulation as well as the use of the “omni-channel business strategy” requires
the use of a sound and effective outbound logistic system which is likely to help the
concerned enterprise not only to store the required products at their warehouses but at the
same time helps them in the speedy delivery of these products once they have been ordered
by the customers. The effective implementation of the “omni-channel business strategy”
depends on the effective use of both the concepts of storage and transportation which are the
key attributes of the process of outbound logistics. It is a reflection of this particular fact that
the enterprise under discussion here takes the help of various kinds of warehouses for the
storage of the diverse kinds of goods that it offers to the customers and it is also seen that it
has developed its own delivery system which not only helps in the delivery of the ordered
goods or the products by the customers but at the same time helps it to procure the goods or
products which are in customer demand. Furthermore, for the procurement of these goods or
products the enterprise takes the help of various kinds of market studies and also its past
invoices that gives it an overview of the products or the goods which are preferred by the
customers. Therefore, it would be apt to say that an effective logistics system is an important
necessity of this particular strategy.
Technology
The entire services offered by the concerned business organization depend on the
various platforms offered by technology (Veit et al. 2014). Therefore, it would be apt to say
that the various platforms offered by technology form an “integral part of the business of the
business organization” (Veit et al. 2014). It is “significant to note that the business
organization under consideration here not only uses the various platforms offered by
technology for the purposes of promotion but also for other important activities of their

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business as well” (Veit et al. 2014). For example, the “business organization under
consideration takes the help of the various kinds of technology to convey the information
about the products as well as the services offered by them to the customers, to help the
customers to book their orders and also to deliver the products ordered by the customers to
them” (Veit et al. 2014). Therefore, the various platforms offered by technology are an
indispensible part of the business of the concerned business organization. Furthermore, the
use of the recent technology is not only likely to help customers who are associated with the
concerned enterprise to order the products of their choices without having to leave the
comfort of their homes but at the same time it is likely to help the enterprise as well to
procure the products and at the same time to deliver them at the doorsteps of the customers in
a manner that would be not only effective for the enterprise but also the customers as well.
The various platforms of technology are even used by the concerned business enterprise for
the process of outbound logistics as well. The enterprise takes the help of the recent
technologies to effective study the needs of the customers and also to analyze the past
invoices of the sales made by them for the process of the procurement of goods or products.
In addition to these, the use of recent technology for the process of transportation has much
improved the system of outbound logistics used by the concerned enterprise.
Warehousing
The concept of warehousing can be defined as “the building up of a holding of shares
in a company by buying numerous small lots of shares in the names of nominees, in order to
make a takeover bid while remaining anonymous” (Li, Wu and Lai 2013). It is “significant to
note that the business organization under consideration takes the help of this particular
concept to further their interests in the business market of the United Kingdom” (Li, Wu and
Lai 2013). Therefore, “it is seen that the business organization under consideration here has
numerous nominees in the business market of the United Kingdom who buy the shares of the

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company” in a bid to keep further the interests of the business of the concerned organization
(Li, Wu and Lai 2013). Furthermore, “the business organization under consideration here
takes the help of various kinds of warehouses” to store the products procured by them in
these warehouses and offer them to the customers when they place the orders (Li, Wu and Lai
2013). The process of warehousing forms a key component of the system of outbund logistics
used by the enterprise under discussion here. Moreover, it is generally seen that the various
enterprises are in a dilemma as regards the kind of products which they need to store at their
warehouses. Thus, it is generally seen that the enterprise Asos takes the help of the past
invoices as well as the data of the sale of the products made by them in the past few months
to procure as well as store the kinds of products that are in demand among the customers.
“Customer behavior, loyalty and relationship management”
The customer behavior has changed significantly in the recent times keeping in view
the changes not only in the amount of options available to them but also the “recent changes
in the technological fields and also the advent of globalization” (Turban et al. 2017). It is a
reflection of this that the buying pattern of the customers has significantly changed in the
present times and the customers in the present times feel more comfortable to opt for the
services provided by the various e-commerce business organizations rather than the ones
offered by the traditional business organizations which did not offer online services to the
customers (Turban et al. 2017). This is generally seen as a reflection of the various online
facilities provided by these business organizations like home delivery, “payment on delivery”
and others (Turban et al. 2017). It is significant to note that the company Asos takes the help
of precisely these features “to cater to the changing needs as well as the requirements of the
customers in the best possible manner” (Laudon and Laudon 2015). Furthermore, these
features not only help the concerned business organization to deliver effective services to the
customers from the diverse parts of the nation of the United Kingdom but also have enabled it

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to earn the loyalty of the customers in the best possible (Laudon and Laudon 2015). It is
significant to note that the concept customer loyalty plays a significant role in the present
times as it enabled the concerned business organization to retain a particular set of customers
who would always opt for the services provided by it. The concept of relationship
management is another factor which has played a significant role in the “tremendous growth
of the concerned business organization in the recent times” (Laudon and Laudon 2015). It is
“significant to note that the business organization under consideration here provides help as
well as support to the various customers not only at the time of the sale or the delivery of the
products to the customers” but also helps them even after the sale has been made and the
product has been delivered to the customers. It is “a reflection of this particular fact that the
business organization under consideration here has been able to not only earn the loyalty of
the customers but has also been able to achieve a considerable amount of success in the
recent times” (Laudon and Laudon 2015).
“Customer deliveries (store and/or home)”
The feature of home delivery is one of the major reasons which have lead to the
success of the various e-commerce business organizations in the recent times. It is significant
to note that the lives of the individuals in the present times have become much busy in the
recent times and therefore they do not get the adequate amount of time to visit the various
stores and purchase the products (Chiu et al. 2014). Therefore, in this particular context the
home delivery “offered by the various business organizations in the present times is one of
the major reasons for the success attained by the various e-commerce business organizations
in the present times” (Chiu et al. 2014). It is “significant to note that the business organization
under consideration” here takes the help of this particular feature “to cater to the needs as
well as the requirements of the customers in the most effective manner” and this particular
feature has contributed towards the success of the organization in the present times in a

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significant manner (Cavusgil et al. 2014). This particular process forms one of the core
components of the system of outbound logistics which is being used by the concerned
enterprise. This particular aspect belongs to the category of the outbound logistics of the
concerned enterprise and it is seen that the enterprise under discussion here takes the help of
multiple supplier systems to ensure that it gets not only the supply of raw materials on time
but at the same time is able to deliver the products ordered by the customers through their
online services to the doorsteps within the stipulated timeframe prescribed by them.
“Returns and reverse logistics”
The business organization under consideration also provides the option to the
customers to return the products which they have ordered from the organization through
online means if they do not like the product or if there is any problem with the product
offered by the organization (Colla and Lapoule 2012). It is “significant to note that this
particular feature has significantly affected the prospects of the business organization in a
significant manner and has enabled it to earn the trust of the customers in the most effective
manner” (Colla and Lapoule 2012). Furthermore, the added advantage of this reverse
logistics feature provided by the concerned enterprise is the fact that the customers do not
have to pay anything to the concerned enterprise to return the products purchased by them in
case they are defective or if they do not like the quality of the delivered products.
“CSR considerations”
In the present times it is seen that the customers have become more conscious about
the products which they are buying and thus the concept of ethical consumerism has gained
prominence (Cavusgil et al. 2014). Therefore, “the business organization under consideration
here takes the help of this factor” to further the interests of its business. Furthermore, the
business organization under consideration here takes the help of various kinds of CSR
activities to create a positive brand image for themselves as it is generally seen that the