Analyzing SIMARCO's Logistics: COVID-19 Impact, Value & Circularity

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This report provides a critical review of SIMARCO's global logistics operations, examining inbound and outbound networks, the impact of the COVID-19 pandemic, and strategies for managing supply chain vulnerabilities. It analyzes value co-creation, waste reduction techniques, and the potential for improving the marketing channel network through technology. The report also investigates aligning circular economy and Industry 4.0 principles with logistics operations to enhance supply chain dimensions and recommends operational decisions for embedding sustainability through innovation-led lean approaches. The analysis includes performance objectives, supply chain dimensions, and the role of intermediaries in optimizing costs and adding value.
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Critical Review of Global Logistics
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Table of Contents
Introduction......................................................................................................................................1
MAIN BODY...................................................................................................................................1
1(a).Identify the firm’s inbound and outbound logistics networks. Provide appropriate
explanation of the logistics operations........................................................................................1
(b).(i)Analyse the impact of the Coronavirus (COVID-19) pandemicon the firm’s global
logistics operations......................................................................................................................3
(ii) Linking the relevant performance objectives and supply chain dimensions, describe how
the firm managed the impact of the Corona virus pandemic and made their logistics network
less vulnerable.............................................................................................................................4
2(a).Using appropriate evidence, examine how the global manufacturer, along with their
intermediaries, effectively co-creates and adds value to their logistics operations and
simultaneously optimises costs. To elucidate the value co-creation operations in their
supply chains, consider relevant ‘waste’ reduction techniques and ‘glocalisation’
operation of the firm..................................................................................................................5
(b).(i)Analyse how the firm’s marketing channel network can be improved through the
use of appropriate technologies for communicating and sharing information with the
rest part of the network.............................................................................................................6
(ii)Considering the firm’s marketing channel network, explain the key lessons learnt as a
result of the Corona virus (COVID-19) pandemic....................................................................7
3(a).Investigate and argue how the firm can align “circular economy “and “Industry 4.0”
with their current logistics operations for improving their supply chain dimensions in
their inbound and outbound channels.....................................................................................8
(b).Recommend a set of operational decisions to be undertaken by the global
manufacturer if they wish to embed “sustainability”, through innovation-led lean
approaches, in their logistics operations...............................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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Introduction
Logistics is one of the crucial and important function of business that should be correctly
and accurately performed that business in order to successfully and effectively conducting
business practices. Global logistics can be describe as the process which is related to the
managing of the flow of goods effectively with the consideration of supply chain as well as
placing them in appropriate manner so that it is able to consumer is able to consume it in time
(Bahri, Ariffin and Mohtar, 2019).
This report is based on SIMARCO worldwide logistics company. This is one of the leading
logistics and freight firms with extensive experiences all over the industry sectors. They
performs worldwide as well as may facilitated a full range of services within United Kingdom,
across Europe, and globally across all trade routes. This report includes different inbound and
outbound logistics network of the firm. In this impact of the Corona virus as well as relevant
performance objectives and supply chain dimensions has been determined.
MAIN BODY
Background of the company
SIMARCO is undertaken as one of the leading logistics and freight firms with extensive
experiences all over the industry sectors. They perform worldwide as well as may facilitate a full
range of services within United Kingdom, across Europe, and globally across all trade routes.
Additionally, they understand the international trade and industry markets are ongoing changing
and exploring towards meeting the requirements of consumers. In addition to this, it is a
developed, award winning facilitator of global logistics, road haulage & distribution,
warehousing and air/ocean freight forwarding services. This is so their logistics, air, ocean
freights forwarding, road haulage & distribution, as well as warehousing solutions that are not
only flexible but are tailored for meeting the customer’s individuals and ever- changing needs
(Simarco worldwide logistics. 2021).
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1(a).Identify the firm’s inbound and outbound logistics networks. Provide appropriate
explanation of the logistics operations.
SIMARCO, which is leading logistics and freight firms with extensive experiences all over
the industry sectors and using appropriate inbound and outbound logistic network to complete
their value chain propositions in an effective and appropriate world. It is effective and helpful for
managing different conceptual data that can related to inbound and outbound logistic network
data. Inbound logistic activities the company include some network which are related to:
Sourcing and procurement: It is related to identifying the potential suppliers of the
SIMARCO. The one who are procuring price effective strategy, negotiating and
managing suppliers in more effective ways.
Material transportation: Deciding which vehicle to use in the company for moving
goods from one place to another. It is basically used by SIMARCO to work effectively
and manage the data in more effective and appropriate ways.
Warehousing and distributing: Managing material before manufacturing or reaching to
customer is one of the effective ways. It further helps in managing different components
to work effectively and manage responsible for make sure to achieve logistic locations
which are needed to be met in more effective and appropriate manner.
On the other hand, when it comes to outbound logistic then it lead to demand side of supply
and demand equation within the company (Bhattacharya, Nand and Castka, 2019). This step
generally include the process for fulfilment of the order, packing, shipping and other delivery
process of the company in more effective ways. Some of the network are related to:
Inventory management: Company provide spend too much on this as it is basically
related to managing budget on shipping. In order to cut the cost, company negotiate the
preferred rates and provide wide range of applicability’s in more effective and
appropriate ways. It is related to manage and provide growth in reducing time and
money.
Transportation: These are related to work and manage basic activities in more effective
and appropriate ways. In which condition and by which vehicle, company is able to
decide for the safety of products in more effective and appropriate ways. It further helps
in managing the time and work efficiently into the market and gain high efficiency in the
company.
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Delivery: It is used and manage one of the effective services to their customers.
SIMARCO deliver the correct order at right time and quantities to their customers. That
will helps in managing the company and provide wide range of applicability’s in more
effective ways (Guide to Inbound and Outbound Logistics, 2021).
Logistic operations: They are refers to the process of moving goods to one place to another,
it further including the process of manufacturing the distribution centre and then reach to the end
users. The entire process include the way of managing inventory, fulfil the order demand and
shipping the product availability to their end users (Boukoberine, 2019). The key roles of the
process within the SIMARCO are to manage inventory, warehousing facilities and order
fulfilment. These are effective and helpful for the company to work and achieve higher
efficiency into the manufacturing process of the company.
(b).(i)Analyse the impact of the Coronavirus (COVID-19) pandemicon the firm’s global logistics
operations.
It has been determined that COVID 19 will lead to have major impact over SIMARCO
company and it will lead to influence over global logistic operations. Due to covid 19 respective
company is not able to conduct its practices and task in significant manner. This will lead to have
major influence over sales as well as profitability of business. SIMARCO is one of the largest
company and it is providing its products and services in large market manner. due to covid 19
scenario respective company is not able to perform its practices in proper manner. Logistics
firms, which are engaged with the development, stockpiling, and stream of merchandise, have
been straightforwardly impacted by the COVID-19 pandemic (Cheng and Hackett, 2021). As an
indispensable piece of significant worth chains, both inside and across global boundaries,
logistics firms work with exchange and trade and assist businesses with getting their products to
customers. COVID 19 will lead to have impact over sales of respective business and its is not
able to provide its products or services to large market area. due to this customers are not able to
buy products of SIMARCO company and it lead to decrease in sales as well as profitability of
business. Supply chain interruptions to the area brought about by the pandemic could, along
these lines, sway competitiveness, economic growth, and job creation.
Most businesses would be shocked by how much stock sits in their worth chains and should
assess its amount, including spare parts and re - made stock, is accessible.
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An emergency might increment or lessening demand for specific products, making the
assessment of sensible last customer demand more earnestly and more significant. Businesses
should address whether demand signals they are getting from their nearby customers, both short
and medium term, are sensible and reflect fundamental vulnerabilities in the forecast.
(ii) Linking the relevant performance objectives and supply chain dimensions, describe how the
firm managed the impact of the Corona virus pandemic and made their logistics network
less vulnerable.
Performance objectives are considered as the specific end outcomes which contributes
towards success of firms as well as that staff is anticipated to attain that. In respect of Simarco,
there are various performance objectives to logistic management that are:
Reduce manufacturing cost: Logistic management may have direct affects upon
manufacturing cost of Simarco. For instance, they delay into raw material delivery or
pick up may outcomes in delay in production. Also this enhances production costs
(Hammad, Elgazzar and Sternad, 2021)
Efficient flow of operations: Logistical management allows a smooth flow of
manufacturing procedures. Additionally, this assures that on time delivery and optimal
utilisation of raw material. For attaining it, business required optimal communications
with other departments. In addition to this, logistic management enables a clear flow of
information from one department to others. It is performed with solid planning as well as
constant review of plans. Also, the smoother process flow develops the whole operations
in effective and efficient way.
Supply chains have mainly had three dimensions that are vertical, horizontal and horizontal
position of focal firm into end point (Hu, 2019). All three dimensions of supply chain in respect
of Simarco are described below:
Horizontal structure: This is undertaken as the number of tiers all over the supply chain.
Herein the supply chain may be long, with various tiers or short with some tiers such as
the network structure for bulk clothing is relatively short. Also, the raw materials are
taken from various other substitutes that are utilised top developed effective cloths.
Vertical structure: this is considered as the number of suppliers or clients represented into
every tier. Moreover, the firm may have narrow vertical structure with some entities at all
tier level or board vertical structure with various suppliers or clients at each stage.
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The firm’s horizontal position into supply chain: Herein, firm may be positioned at or
near beginning source of supply, be at or near to ultimate consumer or be somewhere
among these end points of supply chain.
During the Corona virus pandemic, Simarco business logistic operation impacted largely so
for managing it they can utilise the autonomous supply chain such as robots in warehouses and
stores, driverless trucks, drones delivery and totally automated planning. However, simply using
digital technologies do not equate to develop a digitalised supply chain (Ibn-Mohammed, 2021).
In addition to this, it also requires to be connected with supply chain technologies across
planning, procurement, production and logistic which perform beside the firm’s four walls.
2(a).Using appropriate evidence, examine how the global manufacturer, along with their
intermediaries, effectively co-creates and adds value to their logistics operations and
simultaneously optimises costs. To elucidate the value co-creation operations in their
supply chains, consider relevant ‘waste’ reduction techniques and ‘glocalisation’
operation of the firm.
Waste minimisation is considered as the set of procedures as well as activities that intent to
minimise the wastage produced amount. Additionally, through minimising or obviating the
generations of harmful as well as persistent wastes, waste minimisation supports for promoting
the much sustainable society. Glocalisation is regarded as the products or services which has
been formulated for meeting the both international as well as local requirements of indented
customers. The process of manufacturing requires various intermediaries and all of them have
important role. There is need to understand that all the people involved in the value chain are
important for the company and help to achieve successful (Ishizaka, 2019). In relation to
SIMARCO they understand the importance of their management so that they are able to provide
best to the customers. All the intermediaries operate with each other in order to provide the
goods to the customers at right time. The suppliers, middlemen as well as retailers all create
contact with each other so that the end user is satisfied with the product offered by the company.
The positive relation among them help the company to achieve the benefit of economics of scale.
It is seen that SIMARCO is famous for establishing brand in the market. The company works in
such a manner that all intermediaries are ready to work and build relations with them that in turn
helps them to optimise the cost (Kain and Verma, 2018). The management of the company
works at global level and are working in such a manner that all the logistics are managed
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properly and they are able to satisfy the end users in a proper and effective manner. The
organisations working at global level have to take more care and assured that value is provided to
their intermediaries and they are able to work effectively.
The company follows waste management technique so that they are able to complete the
work effectively. The company must understand that they have to take proper care of
environment. For that reason, SIMARCO is conscious about waste reduction. The company
works in such a manner that they are able to make best use of resources and minimise the
wastage. By following the principle of total quality management companies able to provide best
quality to the customers. It is analysed at all the intermediaries are told about the standards of
products that they offer to the customers. It is necessary to note that their goal is to minimise the
waste so that they are able to achieve economy of scale and provide the products to the customer
at low cost (Tien,Anh and Thuc, 2019). Using the resources in an optimum manna health the
company to cause no harm to environment and get support of society at the same time. It has
SIMARCO to achieve their goals and objectives in a better manner.
SIMARCO it is a developed, award winning facilitator of global logistics, road haulage
& distribution, warehousing and air/ocean freight forwarding services. This is so their logistics,
air, ocean freights forwarding, road haulage & distribution, as well as warehousing solutions that
are not only flexible but are tailored for meeting the customer’s individuals and ever- changing
needs and works at global level and for that reason they follow glocalisation. It is the process of
adopting global and international products into the local context they are being sold. It is a way
to you at the global market with local products so that the company is able to expand their
business. The interest of customers is being identified and then the product is served to
customers so that the company is able to enhance its sales.
(b).(i)Analyse how the firm’s marketing channel network can be improved through the use
of appropriate technologies for communicating and sharing information with the rest
part of the network.
Marketing channel includes individuals, firms and activities essential for transferring the
ownership of products from manufacturing point to consumption point. Moreover, the way the
goods obtain to end user, the clients is called as distribution channel (Ivanov, 2020). As at
present time, technology has enhanced and plays vital role into all lives from the way they
communicate to shop something. Additionally, it improved the quality of marketing outputs as
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well as ultimately assists them to generate more leads. So, in respect of Simarco, the various
technologies can be used by them to improve their marketing channel network which would
helps them in communicating as well as sharing information are discussed below:
Search engine optimisation (SEO)
Search engine optimisation (SEO) is tied in with remaining apparent on web index results
pages. It seems like a little known craftsmanship in some cases since Google is perpetually
changing its calculations. Keeping steady over these progressions is adequately hard yet having
the option to adjust your SEO to these progressions and remain in front of contenders is the
genuine test (Kain and Verma, 2018). Additionally, this may be utilised as Moz is an
extraordinary wagered for proceeded with SEO achievement. In addition to the fact that it offers
valuable instructive assets to keep on top of SEO best practice, yet the Moz across the board
SEO toolset gives the full scope of capacities that you really want. It tracks work area and
versatile catchphrase positioning, permitting clients to effortlessly monitor all dynamic
watchwords. This clever catchphrase examination is upheld by different elements like third party
referencing and openings, site reviews, search deceivability score and page experiences.
Artificial intelligence
Artificial intelligence is among the huge advances behind brilliant aides and voice search.
Chatbots are likewise continuously getting speed and appearing on more sites. Artificial
intelligence and computerization are taking a portion of the difficult work out of advertising so
that organizations can zero in on methodologies that convey a superior client experience (Marra,
2020). With assistance of this respective organisation can provide large information and can
likewise permit advertisers to see more with regards to their clients, at last prompting more client
securing. Off late, it has been empowering hyper-personalization and versatile showcasing
correspondences.
(ii)Considering the firm’s marketing channel network, explain the key lessons learnt as a
result of the Corona virus (COVID-19) pandemic.
From the results of pandemic Corona virus (COVID-19) pandemic, some key lessons are
learnt that are discussed below:
Create a crisis team: Many departments are involved in the overall functioning of an
organization, including sales, human resources and more. A spokesperson from each
department should be part of a crisis team that agrees on a message that will be sent out.
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Connect with customers: As a business, SIMARCO can't afford to stay silent during a
crisis like COVID-19. SIMARCO consumers want to hear about new products and
services.
But don’t try to sell them stuff: This isn't the time for self-promotion. Business
communication during lockdown should focus on reassuring and empowering people,
appreciating suppliers and sharing useful information. By connecting with people,
SIMARCO is boosting the credibility of SIMARCO brand.
3(a).Investigate and argue how the firm can align “circular economy “and “Industry 4.0”
with their current logistics operations for improving their supply chain dimensions in
their inbound and outbound channels.
One of the most critical obstacles that manufacturing organizations confront today is the
enormous increase in the number of supply chain (SC) problems that must be solved.
Unfortunately, the standard planning technique is incapable of dealing with the variety of these
complicated situations. In supply chain and logistics, there is a significant opportunity to
leverage emerging technologies. Industry 4.0 aspires to connect smart operations and supply
chain design and processes in order to recover some of the supply chain's operational
deficiencies (Özbük and Coşkun, 2020). Industry 4.0 is projected to be driven by emerging
technological developments that will aid in the facilitation of a network of product and service
interaction with the interconnection of robotics and artificial intelligence. This technology is
gaining traction in practically every industry, particularly in manufacturing operations that
require product flow at both inbound and outbound activities. This study explains Industry 4.0
technologies and how they might help develop Supply Chain operations in manufacturing
environments. Great possibilities from trans-disciplinary, cross-sector digitalization: The
convergence of several innovative materials will result in the creation of an innovation system as
well as new potential for future developments (Pio, 2020). The Internet of Things (IoT) will
connect almost everything, while computer systems innovations that combine the physical and
virtual worlds – will enable smart creation, with intelligent systems talking with one another
autonomously and with little human interference.
SIMARCO aspires to be the industry leader in sustainable production and consumption,
providing our customers with the high-value, high-quality products or services they foresee from
us while going to respect our borders and the need for social inclusion (PRZEDSIĘBIORSTWA,
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PLATFORM and TRANSAKCYJNYCH, 2020). SIMARCO are committed to generating zero
waste from our businesses and infrastructure projects in the United Kingdom and the Republic of
Ireland. SIMARCO additionally work along our value chain to address important waste issues
like worn garments, green waste, plastics, and shopping bags. In addition to working across our
operations and reduce wastage, SIMARCO have begun the shift to a more circular model, with
the goal of keeping resources in use for as long as feasible. This is accomplished by increasing
the recyclability of our packaging and goods, as well as the usage of recycled materials and
product longevity (Sdoukopoulos and Boile, 2020). SIMARCO support the transition to a more
sustainable circular economy and will prioritise business model innovation as well as
collaboration with our many partners to implement circular ways of doing things. SIMARCO
believe that such a shift is critical: by properly managing our natural resources, SIMARCO can
continue to produce high-quality products and support communities all along our distribution
network while reducing our ecological consequences and dealing with climate change.
SIMARCO wish to assist our customers in reusing or recycling every product or piece of
packaging SIMARCO offer, but SIMARCO cannot do so on our own. For example, through
Shopping, SIMARCO are promoting the reuse and recycling of old clothing in collaboration with
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