Strategic Purchasing and Logistics: Report and Analysis

This report provides a comprehensive analysis of strategic purchasing and logistics, focusing on warehousing and manufacturing strategies. It examines warehousing strategies such as switching capacity, networking by hub, and outsourcing, along with the use of simulation and analytical models for warehouse design. The report also delves into manufacturing strategies, emphasizing the importance of process flow, Kanban, Just-in-sequence, and Just-in-time manufacturing. Furthermore, it highlights the significance of quality improvement and global compliance, along with the implementation of SAP Fashion Management by companies like Giorgio Armani and Luxottica. Finally, the report identifies key supply chain risk factors, such as delivery and shipment accuracy, and provides relevant references.

Running head: STRATEGIC PURCHASING AND LOGISTICS
strategic purchasing and logistics
[Document subtitle]

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STRATEGIC PURCHASING AND LOGISTICS
Warehousing Strategy
Network of warehousing plays a significant role in distributing the goods at locations. Many
large firms For example Giorgio Armani of Milan, Italy, implement and adopt various strategies
for warehousing like switching of capacity, networking by hub, outsourcing and cobbling. Both
the simulation and analytic models are projected to improve the practices of designing
warehouses. Analytical model are design oriented as they explore a lot of alternatives to find the
solution. While Simulations models are oriented towards analysis. They assess the design which
is given, but it usually have capability that is limited to explore the space for design.
Manufacturing Strategy
Manufacturing is defined as the process to transform raw material into finished goods.
The configuration for physical structure, Facilitating the procedures and system, Interface with
key functions, relationship with agencies which are external, dynamics for continuous
improvement are the main significant factors for manufacturing strategy.
The warehousing strategy impacts the decision regarding manufacturing strategy
The excellence in manufacturing of products by Giorgio Armani can be achieved by properly
maintaining the flow between processes of manufacturing operations, warehouse and production.
By using the techniques like Kanban, Just-in-sequence and Just-in-time manufacturing, the
finished goods, production and raw material inventory can be synchronized ("Warehouse
Management for Manufacturers | Apriso", 2017). By lowering the buffers for work in progress
and idle inventory helps to improve the cycle time and also support the strategies for production
which are demand driven. The quality improvement and global compliance is also enabled
through latest methods of genealogy and traceability, smart sampling and integrated inspection.
However, Luxottica, Giorgio Armani and Adidas implement the SAP Fashion Management

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STRATEGIC PURCHASING AND LOGISTICS
which is the latest application that is designed to merge the operations of a retailer and
wholesaler which may result in sharing of global processes and inventory, master data across the
corporation (Fiorletta, 2017).
The Most Significant Supply Chain Risk Factors Which Impacts Warehousing
The most important supply chain risk factors which impact warehousing are Delivery and
shipment accuracy. The supplier should ensure the delivery of supplies on time and with
consistency and should provide the necessary details like transportation mode, time of shipment
and procedures to reroute in case of natural disasters to reduce the risk (Blanchard, 2017).

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STRATEGIC PURCHASING AND LOGISTICS
REFERENCES
Blanchard, D. (2017). Top Five Supply Chain Risk Factors. Industryweek.com. Retrieved 21
February 2017, from http://www.industryweek.com/environment/top-five-supply-chain-risk-
factors
Fiorletta, A. (2017). Giorgio Armani And Luxottica Implement SAP Fashion Management App.
Retailtouchpoints.com. Retrieved 21 February 2017, from
http://www.retailtouchpoints.com/features/news-briefs/giorgio-armani-and-luxottica-implement-
sap-fashion-management-app
Warehouse Management for Manufacturers | Apriso. (2017). Apriso.com. Retrieved 21 February
2017, from http://www.apriso.com/solutions/warehouse_for_manufacturers.php