Business Environment Strategic Management

By Author: shubham mishra
Total Articles: 1
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Introduction
Logistics management is the process to effective planning, implementing, controlling and improving different information, goods and services in a manner which can lead to increased customer satisfaction in the organisation. This process helps in making the organisational activities cost effective and customer centric which helps in increasing the customer loyalty and demands. The process of logistics management starts from purchase of raw material to delivering goods to the final stage. This process also helps in the effective adoption of industry standards in the company which leads the organisation to achieve the organisational goals in effective manner(Zhang, 2013). This project report is a detailed study of logistic management and its strategies which are using by different organisations to ensure effective execution of activities. We will analyse the case study of centralised distribution at Nike which is based on the concept that “centralised and specialised but not standardised”. This report will explain the issue in the case study and will analyse those logistic strategies which can be used by ...
... the company to resolve that issue.
About Case Study: Centralised Distribution at Nike
A centralised customer service centre of Nike is located in Belgium which is a distribution centre of the company. This centre of the company is providing its products to more than 45000 customers in Europe, Middle East and Africa. Supplier factories provide products to the centre which is send to all around the world for distribution. In the initial season the staff of the company stands at 2300 which is reduced as in reduction in the demand in other seasons to 1350 staff members. Deliveries of the centre are complex and time consuming which is due to the decisions of the centre to adopt centralised receiving, storage and shipment to the customers. The distribution centre is centralised and this is helping in the low inventory and consolidation of inbound shipment but it is not totally standardised for all the logistics management operations. In this case study we can analyse that the approach of the service centre of Nike is based on the approach of centralisation in its logistic operations but it also defines that there is centralisation and specialisation but there is not only standardisation as in there are various logistic operations are customer based and customised(Vikulov & Butrin, 2014).
By analysing and studying this case study we have evaluated the issues which are involved in the service centre’s operations which are centralised and creating a problem for not gaining effective results by its operations. Nike has adopted approach of diversified distribution centre as in the Belgium deal with the footwear, apparels and equipment which are providing its services to EMEA.There is lack in the logistics management of the distribution centre of the company which is leading it to ineffective results. Retailers are important in the chain of the distribution as in they directly meet the customers and can identify their requirements and can convey it to the company. This centralised process of the customer service centre is making all the logistic operations more complex as in centralised form of working is making the supply chain management of the distribution centre also ineffective. The season based orders production and operations are conducted which is increasing uncertainty in the company. The information, goods and services are not appropriately stored, managed and controlledand this is leading to ineffective customer satisfaction which can be increased due to inefficiency in delivery in one day. The order process is also complex for the retailers and their role is limited due to this centralised system. The issue in the business of the company is that there is ineffective selection of strategy of logistic management without the analyses of different aspects of business or organisation. This report will define what are the improvements and changes which can be done in the company’s customer service centre(Tyagi & G.Agarwal, 2016).
About Logistic Management
Organisations adopt supply chain management which is the process to control the process from the procurement, manufacturing, storage, distribution to disposal of products. This is a strategic management approach in which strategic decisions are taken. Logistics management is also a tool of supply management which covers all the aspects like planning, controlling, implementing and storing of information, goods and services from its emergence to its destination. Customers are effectively satisfied with this approach of management and lead to positive results in the company. Management of logistics can be defined as the effective governance of functions of supply chain management and efficiently supports the process and improve the productivity and profitability of the company by providing customer satisfaction by fulfilling their needs and demands.