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Supply Chain Logistics

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anna hunt

on 1 May 2014

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Transcript of Supply Chain Logistics

Supply Chain Logistics
3rd Party vs Internal

What solutions have been picked & Why?
3rd Party Logistics
Internal Logistics
Consumer demand is pressurizing the distribution sector of the Supply Chain for large multichannel retailers.

What are they demanding ?

Faster mailing
Accurate delivery windows
Availability of products
Consistent customer service
Large Network of Resources

Saves Time & Money
-Economies of scale

Provides Expertise and Knowledge

Allows the business to focus on core competencies

Scalability & Flexibility
- Seasonal demand
- Expansion

Continuous Optimization

of solutions

Use a 3rd party Logistics Company
Create Internal Logistics
Very expensive set up

Slower delivery times

Large risk

Not the companies core competency

Costs time and money in knowledge procurement

Extra costs applied in other areas
Improved Efficiency
Transportation costs
Economies of scale
Tracking system
Potential for expansion
Reduce overall costs
Improved supply chain co-ordination
Company dependency on logistics companies

Distribution network configuration (No of suppliers, communication etc.)


Environmental impact.

Inventory Management (WIP- work in progress)

- October 2013, 26% of UK consumer goods purchased online
- Next 12 months 41% of products will be bought online
- Online retail market will be worth £64bn in 2016 from £40bn in 2012
- "Want it, need it, wear it in just 90 minutes!" Oasis, (2014).
Able to Manage every step of the process

Better stock control and Communications

More control

Added Customer Service

Helps keep brand identity

Last Christmas 40% of all shoppers used a collection service.
Thank you
for listening.

Any Questions?
The Problem

1. The operations and hardware are the same

2. They both have similar premises, equipment and software

3. Both equally affected by changes in the macro environment

1. 3PL provide logistic services to more than one company whereas in house only
provide services to one.

2. Internal logistics control their own costs.

3. In the long term internal is a better investment for companies.


How is this pressure affecting retailers?
By Alix Rogers, Anna Hunt,
Elizabeth Doyle, Lydia Westwood, Rhona Dalglish and Rosaleen Hayward
Third Party is more plausible for most companies

An internal logistics system is more beneficial in the long term

Anonymous. 2014. [online] Available at: http://info.plslogistics.com/Blog/bid/144557/Why-Do-Companies-Use-Third-Party-Logistics-Providers [Accessed: 14 Mar 2014].

Articlesbase.com. 2014. Connecting Site.... [online] Available at: http://www.articlesbase.com/outsourcing-articles/advantages-and-disadvantages-of-third-party-logistics-4366445.html [Accessed: 14 Mar 2014].

Chole Rigby. (2013) Asos launches real-time parcel tracking with 15 minute delivery slots.
Available at: http://internetretailing.net/2013/06/asos-launches-real-time-parcel-tracking-with-15-minute-delivery-slots/(Accessed 07 March 2014)

Derbyllc.com. 2014. 5 Reasons to Use a 3PL Provider. [online] Available at: http://www.derbyllc.com/2011/08/23/5-reasons-to-use-a-3pl-provider/#.UyMo_flVKih [Accessed: 14 Mar 2014].

DHL (2014) How will supply chains change in 2014 [Online] Available at: https://www.dhlsupplychainmatters.dhl.com/insights/article/318/how-will-supply-chains-change-in-2014(Accessed 11th March 2014)

eHow UK. 2014. Disadvantages of third-party logistics | eHow UK. [online] Available at: http://www.ehow.co.uk/info_8161315_disadvantages-thirdparty-logistics.html [Accessed: 14 Mar 2014].

Inboundlogistics.com. 2014. Top 100 Third Party Logistics (3PL) Providers - Inbound Logistics. [online] Available at: http://www.inboundlogistics.com/cms/top-100-3pls/ [Accessed: 14 Mar 2014].

Internet Retailing Magazine – March 2014, Volume 8, Issue 3 [online] Accessed at: http://viewer.zmags.co.uk/publication/f8b5d6eb#/f8b5d6eb/8 (accessed: 7 March 2014)

Logisticslist.com. 2014. 5 Reasons to use a 3PL Provider. [online] Available at: http://www.logisticslist.com/why-3pl.html [Accessed: 14 Mar 2014].

Michael Ross. (2014) Key competencies for online success. Available at: http://www.ecommera.com/news-events/commerce-sense/key-competencies-online-success (Accessed 07 March 2014)

Retail Week. (2014) Delivering faster fashion – UK – January 2014. [Online] Available at: http://www.emapproduction.com//rw/2014/supps/sc0214/html5/index.html?page=1
(Accessed: 07 March 2014).

Retail Week.(2012) Is your supply chain process fit for purpose? [Online] Available at: http://www.retail-week.com/topics/supply-chain/is-your-supply-chain-process-fit-for-purpose/5033869.article (Accessed 12 March 2014)

Retail Week (July, 2013) House of Fraser move throws down delivery gauntlet. [online] Available at: http://www.retail-week.com/comment/comment-house-of-fraser-move-throws-down-delivery-gauntlet/5051081.article (accessed: 14 March 2014)

Retail Week (October, 2013) Analysis: How are etailers investing and innovating to rip down barriers to online shopping? Available at: http://www.retail-week.com/events/christmas/analysis-how-are-etailers-investing-and-innovating-to-rip-down-barriers-to-online-shopping/5054318.article (accessed: 14 March 2014)

Staff, M. 2014. More Companies Using Third-Party Logistics Providers | Archive content from Material Handling & Logistics. [online] Available at: http://mhlnews.com/archive/more-companies-using-third-party-logistics-providers [Accessed: 14 Mar 2014].

Supplychainbrain.com. 2014. Top 25 Third-Party Logistics Providers Extend Their Global Reach. [online] Available at: http://www.supplychainbrain.com/content/sponsored-channels/kenco-logistic-services-third-party-logistics/single-article-page/article/top-25-third-party-logistics-providers-extend-their-global-reach/ [Accessed: 14 Mar 2014].

New technology investment
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