Supply Chain Management Strategies at Bunnings Limited: A Report

This report provides an in-depth analysis of the supply chain management practices of Bunnings Limited, a leading Australian retailer. It explores how Bunnings integrates supply chain management (SCM) with customer relationship management (CRM) to enhance its operations. The report examines key aspects such as product flow, information flow, and the development of strong supplier partnerships. It highlights how Bunnings utilizes data and technology to optimize its supply chain, reduce costs, and improve customer satisfaction. The analysis also covers the importance of electronic trading and the company's commitment to ethical sourcing and environmental responsibility. Furthermore, the report emphasizes the role of e-commerce in managing supply chains and improving efficiency, concluding with recommendations for further improvements and integration of SCM and CRM to drive business growth.

Supply Chain Management 1
SUPPLY CHAIN MANAGEMENT OF BUNNINGS LIMITED
Name
Course
Tutor
University
City/State
Date

Supply Chain Management 2
Introduction
Bunnings is one of Australia's leading retailers of home improvement and outdoor living
products and also the major supplier to the project builders, people in the commercial trade and
housing industry. The company has more than 40,000 team members working in the
organization for customer support services and other companies operations. It focuses on
maintaining a positive safety performance trends and continues to grow the business and increase
more networks and employs more people. The company also strives to support locally based
products where possible, through their wide range of network stores and source for some
products globally to meet the requirements of their customers.
Bunnings strives to sustain its operations by making them socially responsible,
economically viable and environmentally sensitive. It also creates awareness of tenable living
options in the wider community and helping customers take practical actions at low-cost or no-
cost to save energy (Wiggins 2013, p. 69). For example, use less water or take environmentally
friendly actions. It also increases the community involvement in the sincere, meaningful and
localized manner by maintaining good internal and the communities' needs and providing
support to the community.
Supply chain management strategies assist companies in ensuring the business has the
financial resources, information, and materials the company needs to produce quality products
and services at any given time (Christopher 2016).The supply chain team ensures this by
coordination the general flow of work from vendors to manufacturers, from distributors to
retailers (Ascarza et al. 2017, p. 348). An effective supply technique reduces inventories and
ensures products are available to customers when needed.

Supply Chain Management 3
Customer relationship management defines how the business of an organization interacts
with the customers. It ensures products; services and support reach the customers when needed
after a complete sales process. Both the supply chain management and customer relation
management maximizes on the operations of the company and record improvements in the
financial performance.
How supplies support customer relationship management
Customer relation management of Bunnings gathers technological data from the habits of
its customers and uses the information to determine the needs and wants of their clientele. CRM
analyzes the data and develops a strategy to retain the existing customers by meeting their needs
and also attract new prospects for the business. The information is also used to enhance the
experience of the customer by providing better services and support. The information is also
what the customer relation management team uses to meet the needs of the current customers
enabling them to ensure customer satisfaction. The customer service team usually gets a clear
understanding of the products the customer's needs to make them satisfied and loyal to the stores.
Bunnings recognizes the effectiveness of integrating the customer relation with the
supply chain management; from the suppliers to the end product users. Understanding the
customers' final requirements helps develop a logistic strategy and shows how the logistic
strategies affect the customers and different products (Lambert, 2014, p. 22). The strategy helps
identify the loopholes in the systems and enables the company to improve the service and
support to maximize profits.

Supply Chain Management 4
Product Flow
The supply chain management main function is to ensure that the movement of
resources/products from suppliers to manufacturing occurs smoothly and promptly for the
customer relationship management to transmit orders and ensures that the products returns and
customer needs are taken care of (Christopher 2016). The supply chain management of Bunning
conducts safety tests on their products from the suppliers to confirm safety standards and to meet
the customer expectations and needs. Its' procurement team has to visit suppliers and attend trade
fairs in Australia and across the globe to identify the most innovative and inspirational product
for the market. For instance, suppliers participate in Bunning's wood procurement policy to
ensure that timber-based products are acquired legally and in an environmentally responsible
manner. Bunnings has an online supplier representative who provides a vendor in-store support
services to the stores and can track when a refill of a product is required.
Information Flow
Bunnings provides training for their supply chain management team to use data generated
from software applications to ensure that their suppliers provide the required products and
services. Accurate analysis and interpretation of data allow them to improve the stocking
schedules of different products, reduce costs, eliminate the bottlenecks and helps plan for future
work (Hartley 2014, p. 4.). Customer relationship management in the company requires access to
data regarding availability of products to support the customers, solve problems, and get new
products. And advice the supply chain on the products out of stock.
A strong partnership with suppliers

Supply Chain Management 5
To strengthen sourcing practices, Bunnings has to continue to work closely with its
suppliers through the supply chain management and customer relation management. The
development of partnership is instrumental in the development of customer-oriented products
(Baker &Jayaraman 2012, p. 1668). It screens its suppliers through Ethical sourcing program
and continues to engage with the suppliers to ensure standards are upheld. Customer relationship
management can present to the customers quality products that meet the standards of the
customers. For example, it offers a competitive package on building materials, which allows
customers to build and showcase the best of their end product to prospective customers. Good
customer relationship is critical to Bunnings.
Maintaining a strong supplying chain process
The company also ensures it maintains a strong supplying process to ensure that product
sourcing not only meets and exceeds the requirement of local, but also the global standards. The
supply chain management ensures that it trade electronically through e-commerce and all
products purchases are fully bar-coded as supported by Jayaraman (2014, p. 1679). All suppliers
also participate in the Wood Procurement Policy of the company to ensure that all timber-based
products are sourced legally and in an environmentally responsible manner and do not cause
objections from customers. It helps the customer management team in handling some of the
objections presented to them by customers who might think they are violating the environmental
resources. Bunnings Internet Trading System as the transport medium used to facilitate the
sending and receiving of electronic documents between the company and its suppliers to reduce
the cost of trading with each other (Hartley 2014, p. 7).

Supply Chain Management 6
Conclusion
Customer relationship management focuses on building and maintaining long-term
profitable customer relationships. It is supplying your customers with what they need based on
their requirements. An existing customer relation system usually contains a database of customer
information and has a purpose-built tool to get more information about what the customers want,
dislike and prefer in the future or at the moment. Customer relation system collects useful data
to show which group of customers requires what kind of products and services making it easy for
the supply chain to purchase the required products in the right quantities. It helps the supply
chain team to connect with the marketplace.
Integrated supply chain management and customer relationship management ensures
target market is identified, future deliveries done on time to the right customer and needs met. It
is also recommendable for Bunnings to use an e-commerce system in better managing its supply
chains and to better manage individuals in the company. The e-commerce system is also
recommended for the suppliers too as it helps keep track of the movement of the different
products. The integration of customer relationship management and supply chain management is
key to the growth and development of the company as both are responsible for creating new
businesses and maintaining the existing customers

Supply Chain Management 7
List of References
Ascarza, E, Ebbes, P, Netzer, O, & Danielson, M 2017, 'Beyond the Target Customer: Social
Effects of Customer Relationship Management Campaigns', Journal of Marketing Research
(JMR), vol. 54, no. 3, pp. 347-363.
Baker, T, &Jayaraman, V 2012, 'Managing information and supplies inventory operations in a
manufacturing environment. Part 1: An action research study', International Journal of
Production Research, vol. 50, no. 6, pp. 1666-1681. Available from:
10.1080/00207543.2010.550697. [18 March 2018].
Christopher, M 2016, Logistics & Supply Chain Management, New York: FT Publishing
International, eBook Collection (EBSCOhost), EBSCOhost, viewed 18 March 2018.
Hartley, S 2014, 'Trucking Around: A Little Look At Linfox Logistics', Busidate, 22, 1, pp. 2-14,
Academic Search Premier, EBSCOhost, viewed 18 March 2018.
Jayaraman, V 2014, ' Supplies inventory operations in a manufacturing environment. Part 2: An
action research study', International Journal of Production Research, vol. 50, no. 6, pp. 1666-
1681. Available from: 10.1080/00207543.2010.550697. [18 March 2018].
Lambert, D. (2014). Developing a Customer‐focused Logistics Strategy. International Journal of
Physical Distribution & Logistics Management, 22(6), pp.12-19.
Wiggins, J. 2013, ‘Cleaner air, healthier truckers top Linfox list’, Financial Review, November
6, pp. 24-29, accessed 1 February 2014.