Effective Logistics and Supply Chain Management in the Clipper Group

This report provides an in-depth analysis of the Clipper Group's logistics and supply chain management practices. It begins with an overview of the company and its operations, specifically focusing on the relationship between supply chain and logistics management. The report then delves into the sig...Read More

Running head: LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Logistics and Supply Chain Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Brief overview of the chosen company.......................................................................................2
The relationship between Supply chain management and logistics management of the chosen
company.......................................................................................................................................3
Significance of an effective logistics management functions in achieving customer
satisfaction. (LO1).......................................................................................................................4
Concept of ERP (LO2)................................................................................................................5
How an ERP can help Clipper to improve its customer satisfaction...........................................5
Logistic management and cost reduction....................................................................................7
Conclusion.......................................................................................................................................9
References........................................................................................................................................9

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Introduction
The supply chain refers to the network of people, organizations, activities and resources
on involved in manufacture and product sale. It starts from the material delivery by the suppliers
and ends until the final delivery to the ultimate user. This supply chain known as channel of
distribution is from the manufacturer to the consumer.
The management of supply chain is the control of supply chain activities to enhance the
customer’s value and achieve a sustainable competitiveness. It represents the efforts by the firms
of supply chain to run supply chain in the cost effective and efficient manner (Christopher 2016).
It is the process of overseeing the information, materials, and finance as they transfer from
manufacturer to wholesaler to supplier and to the final consumer.
Logistic management is small portion of management of supply chain that contracts with
the efficient management of goods. It is the teachnique of integrating the maintenance and
transport of goods in and out the organization(Jacobs, Chase and Lummus 2014). The ultimate
objective is to provide maximum consumer satisfaction by providing the correct product with the
exact quality at the accurate time and the exact location at the reasonable price to the final
consumers.
Discussion
Brief overview of the chosen company
The chosen company to be analyzed is the group of clipper that is a worldwide shipping
enterprise. It was instituted in the year 1991 by Torben Gülnar Jensen, after a divide of Armada
Shipping, which was started in 1972 together with Jørgen Dannesboe. The company primarily

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focuses on transportation large sized bulky goods. It also invests into ferries and dry bulk
vessels. The head quarter of Clipper Group is in Copenhagen, Nassau and Bahamas. More than
200 workforces work on shore and deal with extra 1400 seafarers.
The relationship between Supply chain management and logistics management of the
chosen company
There are various views regarding the relationship between the SCM and the logistic. In
the chosen company of Clipper Group, four conceptual perspectives reguarding the relationship
between the two can be identified. The logistic is a part of supply chain management. Although,
previously it was considered as non-separable. The logistics management revolves around the
logistic (Stadtler 2015). The clipper has a sound and successful logistic that enhances the value
of the organization. The logistic management of clipper involves number of activities including
transportation, inventory and warehousing. There is sound planning, coordination and control of
the goods within the countries. The company also takes care of the packaging of the material and
forecasting.
In order to keep the retail curve ahead. Clipper specializes in the retail logistic. They are
the market leader. They collaborate closely with the clients and make continuous innovation in
this. The clipper believes in giving its customers confidence in and seeks for new opportunities.
Of late, due to global competitions, the companies are impelled to provide lower cost,
higher quality and endurable products. In this context, various programs techniques and
technology related to logistics are imposed on the companies. The clipper became aware of the
importance and benefits of the cooperative relationships with the suppliers and clients. The
supply chain management creates a framework inside which all the logistic activities and

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operations take place. For example, the SCM have a direct impact on the in house inventory of
the clients that has to be transported with the help of sound logistic management. The supply
chain deals with the goods and logistic deals with the transportation of the good. Therefore, it
can be said that the objective of supply chain is to maximize the sakes and the objective of a
sound logistic management is to provide a sound customer satisfaction by delivering the goods in
shorter lead-time.
Significance of an effective logistics management functions in achieving customer
satisfaction. (LO1)
Consumer satisfaction measures the expectation degree of a consumer concerning a
commodity provided by an enterprise. Although concept is abstract, it implicates factors such as
product quality, service quality and the price of the commodity.
As a logistic manager of Clipper group, it can be said that logistic management consist all
parties including manufacturer, marketers, suppliers, transporter, and warehouses. The parties are
directly or indirectly involved in fulfilling the customer needs (Stadtler 2015). The primary
objective of the logistic are to improve the overall performance if the organization and provide
ultimate consumer satisfaction by improving the products and delivery of the commodities.
Many indicators show the relation between the consumer satisfaction and the logistics
management. The most important indicator is the cost and the product. As a logistic manager, it
should be aimed that the cost of the supply to the final consumer is minimized. Taking into
consideration the quality and time, which is the two major indicator of consumer satisfaction, the
logistic manger must make sure that the finished goods are transported with the cheapest method
and the goods are handled carefully to minimize the loss. The safe handling of goods that are to

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be transported is another important indicator that can affect the consumer satisfaction. Therefore,
the channel of distribution and the management of logistic are to be done in such a way that the
consumers can get the maximum satisfaction.
Concept of ERP (LO2)
ERP stands for enterprise resource planning. The core integrated business process
consists of a business management software that helps in storing, managing and interpreting data
from the business activities. It refers to the suite of integrated applications, which uses the
databases that are common and is maintained by data base management to track organizational
recourses like raw materials, cash and capacity of production (Leon 2014). The ERP facilitates
the information flow between all functions of the business and links with the outsider. The
system helps in getting error free transactions and production, thereby increasing efficiency of
the entity. It runs on several computer hardware and configuration networks using a database as
an repository of information.
How an ERP can help Clipper to improve its customer satisfaction
The enterprise Resource planning software which is known as ERP is a part of e
commerce that involves in management of resources that are available in the business
organization. The ERP has the best capability in reporting that help to analyze the company. In
the given organization Clipper, the ERP is enlisted with the consumer system of management. It
helps in storing all the previous correspondence with the consumers so that the manager can
easily go through the records whenever he wants. Various aspects in the organization help in
improving the level of consumer satisfaction.

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In clipper, the aspects of ERP system that improves the consumer satisfaction level can be jotted
down as follows:
 Accurate Provision of Delivery Dates: The ERP allows building a strong relationship
with the existing and new customers. It helps Clipper to complete accurate provision for
delivery dates. It also gives delivery services at the customer’s doorstep. In addition to it ,
it allows to E- shop to build a sound relationship with the customers with the help of new
innovative features of technology.
 Accurate provision of Order Dates: The system of ERP also allows the Clipper to
manage the dates of deals between business and the customers. It also helps to acquire
complete information of the transaction dates with proven automated reports. When the
customers reserve the order it automatically reminds the management to take an action on
the behalf of the requirements of the order. This is as per the predefined authorities rights
within the soft ware.
 Returns/Repairs Tracking: At times when there is return of products to the business,
the clipper needs to be able to change or repair the product. This is a very effective way
to manage all the activities regarding the problems of the customers.
 Accurate Provision for Discount:
ERP system allows deducting refund and discount of its commodities. If the customers
purchase the product and there is a need for have offering discount for the commodities,
the system also allows detecting the discount automatically and can measure the
percentage of the rebate as defined in the backend system (Database). It is very effective
for the customer’s satisfaction. This is because the consumers in general feels delighted

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with the discount and low prices and it motivates them (Jacobs, Chaseand and Lummus
2014).
 Issued Invoice:
As it is known, a sound system of ERP has many structures for its customers. The
primary role of ERP is to issue invoice for its clients as per their requirements. It slows to
mange allows to manage its activities with complete satisfaction of clients and customers.
 Time Saving: The system of ERP saves a lot of time for the customers by by taking
instant action. There are complete ranges of actions that the ERP takes to allow its
customer save time.
ERP System save much time for the customers it allows Customers to save their time and
takes action instant. It gives the company a complete range of action.
Logistic management and cost reduction
Poor logistic decision-making and planning may result in excess of expenses. Miss of
deadlines of delivery (Fernie and Sparks 2014) and damage of goods can lead to great loss. It
should be kept in top priority that there should be efficient reduction of the logistic cost for the
business, so that the company can carry on with the shipping and remain financially viable
(Schönsleben 2016).
Given the demands of the consumer and the fluctuation of the global business climate,
the company must smartly practice the logistic management. Clipper implements its time and

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resources to minimize the cost related to logistic managements. The factors that affect the
logistic cost in the business are as follows:
 Cost of fuel
 High transportation fees
 Delay in arrival at the ports
 Complex government regulations
 Increase in expenses of the warehouse.
The ways that can help in the minimization of the logistic cost are as follows:
 Consolidated shipments: The shipping of in full container load (FCL) is
preferable to less than a container load (LCL); The FCL is safer and more cost
effective. For the transportation of small freight, it a good way to reduce logistic
cost (Fernie and Sparks 2014). It also involves a combination of various small
ships from multiple suppliers sharing the same destination into one consolidated
shipment.
 Insurance of cargo:
Sound logistic planning deals with the insurance of the cargo. The insurance must
cover fully the products value to prevent from unpleasant circumstances. The
costs saving strategies will not mean much if insurance is not done.
 Using a single-integrated platform: The chain of supply should always be
assimilated in a single platform there are accessible to the involved party. The
duplication of activities can be avoided across operations in this way. The
duplicated efforts are time consuming, can impair the efficiency and can leave
room for errors.

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 Optimized use of resources: At times, if situation takes place that the company
assets are being insufficiently used like underutilization of fleet vehicles, facilities
or inventories. In such case, the revenues are directly affected. By optimum use of
assets, there can be improvement in the clippers business efficiency. Through
rearrangement of the delivery schedule of goods, the entire fleet of vehicles can
be kept active throughout the day.
 Time planning: a well planning of time and operations is important to reduce the
cost of logistics. The operations include schedule of production shipping routes
and time for transit. If the management takes hasty decisions and last minute
choices, it will result in delay and miss of deadlines. This may result badly on
both the company finances and image.
Conclusion
Previously, there has been confusion regarding disagreement among the business and
operational professionals about the relationship between logistic and supply chain management.
Various definitions have been offered regarding this. This can be concluded that logistic is a part
of the supply chain management and both are interrelated. In the above discussion the SCM and
logistic of the chosen company has been analyzed and a better method of management has been
proposed.

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References
Aguirre, G.C. and Goudge, D., 2014. LOGISTICS AND SUPPLY CHAIN
MANAGEMENT. Patrick D. Fountain, p.57.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Jacobs, F.R., Chase, R.B. and Lummus, R.R., 2014. Operations and supply chain
management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Leon, A., 2014. Enterprise resource planning. McGraw-Hill Education.
Schönsleben, P., 2016. Integral logistics management: operations and supply chain management
within and across companies. CRC Press.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and
advanced planning (pp. 3-28). Springer, Berlin, Heidelberg.
Sustainment, A., 2014. Enterprise Resource Planning.