A Comprehensive Report on WHSmith PLC: Supply Chain and Challenges

This report provides a comprehensive analysis of WHSmith PLC, a prominent UK-based retail company. It delves into the company's supply chain management system, highlighting its importance in achieving business streamlining and competitive advantage. The report examines WHSmith's logistics practices, including shipper associations, transportation management systems, advanced tracking, and warehousing, emphasizing how these strategies contribute to cost reduction and improved customer service. It also addresses the challenges WHSmith faces, such as expensive real estate, store management difficulties, transportation management issues, and intense competition. The report identifies key competitors like Amazon and Waterstones, and discusses challenges related to inventory management. Overall, the report offers valuable insights into WHSmith's operational strategies, competitive landscape, and the challenges it navigates within the retail industry.

REPORT, WHSmith
PLC
Table of Contents
INTRODUCTION...........................................................................................................................3
THE LOGISTIC AND BUSINESS ENVIRONMENT OF WHSMITH PLC................................3
Explanation of WHSmith supply chain..................................................................................3

WH Smith’s Range of Logistic Practices...............................................................................4
The challenges of WHSmith organisation..............................................................................6
Competitors of WHSmith organisation..................................................................................7
Identification of outsourcing of logistics of WHSmith organisation.....................................8
Unique selling point of WHSmith organisation...................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
WHSmith is considered as one of the well-known retail company in UK, which offers
variety of retail products and services in its various attractive retail stores. The assignment will
be discussing about explanation of supply chain management system of WHSmith organisation.
Beside from it, the report will define about how logistics can make a competitive advantage of
WHSmith organisation and some key challenges facing by the company in industry. Apart from
it, the report will be discussed about unique selling point of WHSmith firm by which they can
generate effective revenue for the business.
THE LOGISTIC AND BUSINESS ENVIRONMENT OF WHSMITH PLC
Explanation of WHSmith supply chain
WHSmith Plc. is well known British retail organisation, its headquarter is located in
Swindon, Wiltshire, which running a chain of high street, railway station, airport, port, hospital
and motorway services station shops selling books, stationary, magazines, newspaper,
entertainment products and services (Wu and Pagell, 2011). The company was focused by Henry
Walton Smith and Anna in the year 1792. During the year 1970s, cite firm began to diversify
into other markets. At the initial stage, there were physical stores in which the products were sold
but with time they made use of technology like online platform and this was helpful enough for
the business to make sure that they reach out customers in appropriate manner. In accordance
with the type of structure followed is functions. This is a structure in which Supply chain
management is most necessary part for WHSmith organisation in order to achieving streamlining
of their business. A well-executed Supply chain management helps firm to increasing its
customer value and gain competitive advantage in the marketplace. Supply chain management
covers all aspects related to the merchandising of products from design, development and
production to asset management, inventory control and to the information systems needed to
direct these undertakings. WHSmith has implemented new supply chain optimisation technology
for travel based stores with focus of raising proper management of waste by developing stock
forecasting and replenishment. The company operates in 750 stores across the UK, is rolling out
retail software in order to ensuring about availability of stock and also increasing visibility of
product along the supply chain management. Numbers of retail products are delivering by the
firm by using the fastest supply chain management system within firm's operational activities
(Wu and Pagell, 2011). WHSmith invests and with proper planning they utilise technological

solution for their stock management system, which enables its professionals to making decision
to increase its operational efficiently within its supply chain management scheme. Company is
utilising the best approaches to delivering its products and services to their end customers in
effective way. It has established its stores most of the travelling locations that has wide range of
demand for supplying their products. At the locations, the company is using various types of
technological software which allocate essential information about availability of the stock in
their stores. IT department is helping its business operational functionality to communicate each
stock at online platform and according to them, they can roll out new retail services at quick
manner (Tokar, 2010). Food products has threats to wasting it requires to replenishment on the
basis of time to time. So its new approaches of supply chain management enables the company
to supply its products and services from production to distribution level within the firm. Hence,
RELEX solution is the best forefront strategy to delivering fresh foods and other retail products
at the stores within speed to delivery. This is a type of solution that is used by retailers to
improve their competitiveness with the help of localized assortment and making profitable use of
retail space.
WH Smith’s Range of Logistic Practices
Logistics is a management approach which is being used by its professionals in order to
efficient development of business in industry. The competitive advantage is gaining by
WHSmith organisation by furnishing its better customer services for greater value and lower
pricing or greater benefits for the customers and organisation as well. There are many other
companies that deliver their customers with similar type of products and services. In order to be
better, it is important for cited firm to make sure that they have supply chain and merchandising
so that they are able to meet their requirements in appropriate manner. apart from this, cost plays
vital role, when any type of services are delivered by the firm is low, then rate of customers who
make use of the services will be high. In today's global economy world. It is necessary for being
flexible and adoptive in order to sustain in competitive retail industry. Below given are different
type of logistic practices that are made use by WHSmith:
Shipper association: Being a part of shippers association can give benefits to the
company in industry for lowering cost of transportation rates due to competitive negotiation. In
case of maintaining economy of scale, the firm's professionals need to negotiation within its

transaction of goods from one region to another region, which can lead to decrease the rate of
costing while transferring goods and services to another regions and countries in respective form.
With the assistance of this logistics approach, WHSmith organisation can increase the sales of its
variety of retail products and services in industry (Tayur, Ganeshan and Magazine, eds., 2012).
So they must follow this strategy of outsourcing if its various logistics products.
Transportation management system: TMS allows WHSmith business to managing of
data information about goods and services of the form through transportation efficiently and
enable company to reviewing about costing and performance of the business during
transportation services is being used by enterprise (Szuster, 2010). The company can use of
transportation management system at the workplace in order to examination of its costing upon
various goods transferring from its production plants to stores of the firm. So it allows company
to identify the over costing sections of business transactions, and according to its approach can
reduce costing of transportation expenses. WHSmith can use of this strategy for outsourcing of
its logistics products and services at safe manner, so they will be able to introduce their unique
retail products and services at various level in industry.
Advanced tracking: In case of serving home delivery of its retails services within the
business. Its professionals can implement of advance tracking alternative options to its customers
to track its orders and goods which has been ordered by them (Stojanović, 2012). Advanced
tracking options enables the business professionals to increase customer conventions and
satisfaction level as well. WHSmith also need to utilisation of advanced tracking technique in
order to safely outsourcing of its various types of products and services in different-different
countries across the world. So it can raise its productivity and profitability of the business within
the industry.
Warehousing: Variety of logistic services are being served by its various retail stores in
industry. Variety of transportation-al facilities being utilised by its supply chain department to
developing such areas where the department ensure that, right shares in the right place at the
right time. The team works with the entire WHSmith Group across its complete retail operation.
Various transportation channels is being utilised by its professionals which is, distribution
administration, assistant merchandiser, senior display planer, senior merchandiser etc. all these
assist business management to warehousing and transporting facilities of the firm. These are the
best alternative options which can be used by WHSmith organisation in order to add up advances

features within its products and services at progress level. So they will be able to increase their
productivity and profitability by gaining efficient competitive advantages within the business
environment. Hence, it can be said that, WHSmith business has several types of logistic
strategies by which they can minimise over costing of its transportation of goods to its retail
stores. It will generate competitive advantages for the business.
The challenges of WHSmith organisation
Retail organisation face many adverse challenges within their business environment
(Stadtler, 2015). WHSmith is facing various challenges within its business industry at various
level in market which is arising difficulties of operating of its business functionality.
Expensive real estate: This is one of the common issues which is facing by each retail
organisation in UK. Retail stores are needed to be opened at those areas where the greatest
amount of food traffics and in crowd areas as well. So it is necessary for WHSmith organisation
to establish their retail stores at those sectors where customers base of the company is high rate.
So its professionals need to identify those areas, where they can set up their new stores in better
way. Expensive rate of real estate can lead to raise up expenses for the business to leasing store
spaces in market. So this is one of the big challenge which is being faced by company in
industry.
Difficulties to manager stores: This is also one of the key challenges which is being
faced by WHSmith organisation in retail industry of UK. Retail stores are needed to be managed
by its management department in appropriate manner (Schönsleben, 2016). So its professionals
need to learn the latest approaches to faster serving their multiple retail products and services at
retail stores in better manner. Logistic products is needed to keep manage by its professionals in
the stores time to time in order to building a consistent customer experience across all of their
stores in market. Numbers of retail and stationary or entertainment products and services
provided by the company in its retail stores. So numerous difficulties are being faced by business
in order to maintain all goods and services within its retail stores.
Transportation management challenges: Multiple numbers of retail products are being
served by company through its various retail; stores located in different-different countries. So it
is needed for the company to making use new approaches of transportation management system.
So they will be able to reduce the costing of transferring goods and services to its retail stores. So
it increases its expenses for the business to getting goods to its all retail stores. Due to various

transportation company in UK, the company has opportunity to make negotiation with them
about convincing to reduction of costing of transportation services of the business.
Competition: In terms of retail sector, multiple numbers of companies are operating in
this sector in UK. So it generated high level of competition in industry. WHSmith has identified
that, they are facing key challenges about competition level in logistic industry, many companies
in UK is delivering foods, entertainment and stationary products and services. So it being
difficulties for the firm to compete its competitors in industry at high level (Sarkis, Zhu and Lai,
2011). So reduction in price level of its each products can attract customers more to buying retail
products from WHSmith's retail stores. So it makes negative impact on revenue and profitability
of the firm. Thus, high competition level is the biggest challenges which is facing by WHSmith
firm in industry at wide range. Main Competitors of WHSmith are Amazon, Waterstones, etc.
Due to the strategies that are implemented by the business has caused serious issue for cited firm.
However, WHSmith innovated and has made the business to attain their set of goals in
appropriate manner.
Inventory management: This is also one of the key challenges which is faced by each
organisation within the industry. WHSmith organisation are delivering variety of retail products
and services from their retail stores in respective from (Bosona and Gebresenbet, 2013). So it
becomes difficult for the business to meet demand of customers as their requirements. There are
support from IT in order to monitor their product turnover but still there are issues faced in this
area. To variety of products needed more place to displaying it within the store. So its
professionals need to use various technological tools and approaches to inventory management at
retail stores, which assist them to managing all materials at workplace in perfect form.
Competitors of WHSmith organisation
From the analysis, it was identified that, numbers of retail companies are operating in the
UK's retail industry, which is building wide range of competition level in retail marketplace
(Myerson, 2012). So following are the key competitors of WHSmith organization which as
below:
 Blackwell UK Limited
 HMV group Plc.
 Amazon.co.uk Ltd.
 John Lewis Partnership

 Mark& Spencer
 Aldi
 Arcadia Group etc.
All these are major key competitors of the company which is offering variety of retail products
and services in industry at cheaper rate. Which is most difficulties for WHSmith business in
order to raising their productivity and profitability within the industry. Apart from it, it is also
examined that, different types of technological tools and mechanisms are being used by its
competitors in case of increment in its sales of products in market. Each of the companies that
are mentioned above have inverse impact on WHSmith as they all deliver similar type of
products and services. For example, in this modern world the use of online purchases have raised
tremendously. This has provided an effective place for Amazon to deliver their book online. On
the other hand when talking about WHSmith, it is facing serious issue in its growth. However,
cited firm is able to make their market at airport as the competition is low. Similarly, each of the
companies make use of strategies so that they are able to develop strong customer base. In order
to overcome such issues, it is important for cited firm to understand need and requirement of
customers and changes are made on regular basis.
Identification of outsourcing of logistics of WHSmith organisation
It is being essential for the company to recognising those sections of the business where
WHSmith organisation can outsourcing its logistic products and services. Logistics facilities are
very crucial for each business in order to making involvement in the transportation of goods and
services from one point to another point.
Enhance customer satisfaction: Outsourcing of logistics things of WHSmith
organisation's retail products and services can lead to penance customer satisfaction level of its
business environment. Its professionals require figuring out the suitable domain of the company
at various location which can increase the sales rate of its multiple products and services. So its
professionals need to come up in the market by introducing new products and services by
establishing new attractive stores in marketplace (McCarthy, Silvestre and Kietzmann, 2013). So
these activities attract its customers more in industry in case of generating high level of
profitability. So after recognising the best suitable domain at different location, its professionals

need to outsourcing of its logistics services. So these activities can lead to enhance satisfaction
level and also make better relationship with existing customers of firm.
Reduction of expenses of the business: Most of the expenses of the business is taken into
account by logistic services' provider of the company. So the company professionals need to
examine such areas where they can reduce crucial expenses of the business which is incurring in
firm while functioning its various business activities. Insurance costs, transportation costs, fixed
warehouses costs, stores leasing costs etc. all these costs can be reduced by logistic service
provider of the firm.
Economies of scale: Third part of logistics service provider can help WHSmith company
to accomplishing economies of scale as they specials only in furnishing logistics services, by
which they can generate a circumstance where they can reduce the over costing of its various
products and services which is delivering by them (Chen, Chen and Hsu,2014). At the stage of
economy of scale of firm, they will be able to ramp down services within short time period.
Hence, at the stage of economy of scale, the organisation can outsourcing its logistics services
towards various region.
Efficient real time tracking: Some technological instrument could be used by its
professionals in terms of allowing for real-time tracking and visibility of loads. It provides
customer to tacking its shipments which is transferring for one point to another point in industry.
So professionals of WHSmith organisation can make major focusing on the other core areas of
the business environment (Carter and Liane Easton, 2011). Effective warehouse management
system can make sure to safety of its retail goods and products. So outsourcing of its various
logistic products can reduce the working load to its professionals by being used of advanced
tracking options in business.
Outsourcing: WHSmith organisation is also outsourcing of its final retail goods in
different-different countries from which is making direct impact on profitability and
competitiveness among numerous effect of the business sufficiently. Outsourcing of retail
production of WHSmith enable Company to better productivity, better results and analysing or
business intelligences to continual improved production process of its functionalities. So these
activities can leading the business profitability in industry effectively.

Unique selling point of WHSmith organisation
The company is being used of some effective selling points by which they can sell their
various types of products and services in respective manner. The company is being serving its
services by establishing its attractive retail stores at several major location of the UK country.
From the analysis, it can be examined that, company has unique selling point at operational
chains of high street, railway station, airport, port, hospital and motorway service station shops in
industry (Christopher, 2016). So it can reduce the competitive negative influences upon business
environment in relevant manner. Strong online services of the business is offering to delivering
of its products and services at unique level, so that its customer feel better customer services
from the organisation. Beside from it, the company has prominent brad name which encourage
its customers to buying of its products and services at high level (Gunasekaran and Irani, 2010).
The company is operating its multiple retail stores beyond UK, also Australia, South East Asia,
India etc. so the enterprise is being used store selling strategies for distribution of its various
retail products among numerous countries. Hence, it can be said that, the company has unique
selling point which is establishing retail stores at major place of the country, which leads to
selling to increment in the sales of business products and services at high level.
CONCLUSION
From the above analysis, it is concluded that taste and preferences of people changes on
regular basis and it is required by the firm to understand them and provide services accordingly.
Apart from it, its professionals utilising variety of supply chain management system in case of
generating high range of amount. Effective logistics approach has been utilised by organisation
operational department in order to conveying its various retail products at different-different
locations. In addition, the report also concludes about organisation challenges and its key
competitors which creating more competition in retail sector and utilising effective logistic
approaches and technological tools for outsourcing its various retail products. The firm also
using unique selling point by which its variety of production can be shifted from one location to
another location efficiently.

REFERENCES
Books and Journals
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Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
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supply chains.
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contexts through information asymmetry and capability fit. Production planning &
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Myerson, P., 2012. Lean supply chain and logistics management. New York: McGraw-Hill.
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Schönsleben, P., 2016. Integral logistics management: operations and supply chain
management within and across companies. CRC Press.
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