BSS051-6 GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT ASSIGNMENT SAMPLE
Module code and Title: BSS051-6 GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT ASSIGNMENT SAMPLE
INTRODUCTION
The concept ‘Global Supply Chain Management (GSCM)’ has been defined as proper science of planning, which has helped to ensure seamless distribution of products and services. It has also been made from manufacturer to customer (Min et. al. 2019). That is why GSCM has become the most important disciplinary measure in the 21st century.
In the field of GSCM, logistics has helped to boost effectiveness and efficiency by reducing costs. In this modern age of globalization, logistics has played a major role in SCM for meeting customer demands and satisfaction. In one word, logistics management has influenced product movement to fulfill customers’ demands as per their needs in the whole market segment.
The aim or purpose of this study is to explore global logistics and supply chain management practices of the chosen company, Best Buy, which has been considered an American-recognized consumer goods company in Canada. It also helps to determine the core importance and need of GSCM and logistics across modern business operations or functions with viable insights and outcomes.
In this study, relevant information about Best Buy has been discussed followed by an in-depth literature review. The current business performance of this organization has also been discussed along with succinct summary and concluding statements with feasible recommended solutions or actions.
RELEVANT CASE COMPANY INFORMATION
Best Buy is an American consumer goods organization, headquartered in Richfield, Minnesota. Since its establishment in 1966, Best Buy has been selling quality-standard consumer electronic goods. The key purpose of this company is “to enrich consumers’ lives through advanced innovation and technology”.
It has also become Canada’s largest consumer electronics retailer in the whole market segment. Key products have included Geek Squad, Best Buy Mobile Phones, Best Buy Business brands, and others (Bestbuy.ca, 2022). Around 160+ physical stores, coast-to-coast have been acquired by this company, which also helps around 80% of Canadians to avail their stores only in a span of 25 km.
In Best Buy, it has been explored that some issues and challenges regarding Transportation have been faced over time. By making a collaboration with Ensenada, a logistics organization, Best Buy has become able to develop a delivery carrier network of business throughout the US and Canada. It has also combined regional delivery services and carriers to form a profitable business channel after. Apart from that; it has also been identified that a digital imaging service named ImageLab has also been planned to expand by Best Buy with the support derived from Ensenada, its key logistics provider in the market.
In this way, valued customers of Best Buy have become able to interact with themselves by sharing pictures of their products bought from the same organization. It also helps Best Buy in terms of using and applying the most advanced image processing technology. In contrast to this matter, it has also been found that as major raw materials’ cost or price has been increasing fast, it becomes quite impossible to use the ImageLab facility across all of its manual stores in the whole marketplace (Koberg and Longoni, 2019).
That is why Best Buy Canada has also planned for inducing a voice-enabled facility, which also helps its valued customers with high levels of satisfaction and choice at the same time of business after all.
On the other hand, it has also been explored that Best Buy has employed around 12,000+ Canadians nationwide, whereas more than 1,200 workers have also been employed at their HQ in Burnaby, BC. Aside from its business supply chain, logistics, or transportation activities, the same business organization has also promoted flexible working approaches, remote working facilities, comprehensive advantages at the workplace, professional development program (PDP) for its workers, and many more valued aspects anticipating their career development opportunities at the right place (Tien et. al. 2019).
In the aspect of the business social impact, Best Buy has connected younger people with technological advancements, whereas its $2.2 million-based School Tech Grant initiative has also been highlighted in the same business context. More than 800 youth have got access to invest over $2.5 million.
LITERATURE REVIEW
Bruton (2021) defined transportation is the procedure of conveying materials, goods or products from the industry or warehouse to consumers or retailers. In addition, Villani (2021) asserts this is the movement of stock or inventory from one point to another in the supply chain cycle. Transportation is one of the essential factors and aspects of the overall operating cost of the supply chain.
Albertzeth et. al. (2020) mentions transportation strategy involves the functions that happen outside the walls of the manufacturing or distribution centre. In the context of the supply chain, transportation refers to the movement of products or goods from one location to another. this strategy holds crucial importance in the company because having the right approach can positively impact the service, cost and overall reputation.
Effective transportation management can be considered the key competitor differentiation for the organization and must be included in the supply chain management strategy. Because of the significance of transportation, managers must examine the aspects of transformation within the supply chain. This is the reason that it is the only way to attain lower total cost. Aloui et. al. (2021) asserts that modern supply chain transportation managers deal with several threats and risks. Thus, eliminating and mitigating these risks is the key to keeping the whole supply chain moving with reduced delays.
Currently, the risks faced by the company and managing the transportation strategies are cyber-attacks, the shortages of drivers and the deteriorating infrastructure. Best Buy needs to stay up to speed with the latest technological advances to remain competitive.
Transportation is thus the metal link which holds the whole supply chain of best buy together. Every step of this process is linked through transportation because the product is moved to the end store using transportation. Therefore, an efficient strategy is required to reduce costs and enhance customer service. With thorough and defined plotting and planning, the company can save a lot of financial resources with an effective transportation strategy (Copacino, 2019).
Further, tightening up and managing the transportation line is also a method to ensure the shipments reach the desired customers in good condition and on time. Apart from this, the transportation management system is one software that enables the company to be efficient and have regular network tracking. this also helps the company achieve a great deal when it comes to making an informed decision. This is because the transportation management system makes it easy to track route planning, fuel costing, customer communication and fleet management.
Within best buy, numerous teams have been formulated to carry out an evaluation of some particular areas in making system recommendations. The focus has been on retail transactions, transportation and inventory management. The transportation team of the company remained under great pressure because Best Buy has quite a complex transportation network. It manages transportation centrally and works closely with the regional transportation managers at the distribution centre.
Transportation group employs home delivery carriers that help with special programs and manages a fleet of over 800 vehicles. Further, the transportation team works closely with the inventory and retail teams to monitor the fleet. These teams remain in contact to manage the scheduling along with the other needs that occur on a regular basis.
Further, best buy carrier partners help the company get the latest and advanced technology products to serve the customers efficiently and quickly. This offers the company the documentation and information which is required. Best buy is a company that expects its suppliers to implement efficient and best practices involving the code of conduct and the highest ethical standards in business operations.
The company looks for suppliers willing to collaborate with the company to develop proper working arrangements that can result in an efficient supply of high-quality products (Best Buy, 2022). A supplier is expected to become flexible while doing business. This also involves insurance requirements, payment terms or any other standard representations.
in addition to this, the transportation team of best buy needs, at a minimum, the carrier partners to be EDI capable and smart way certified. EDI, or electronic data interchange, enables the exchange of critical business documents between companies negating the requirement to email or fax the documents.
The development of transportation strategy plays a pivotal role in managing the whole operations of Best Buy and ensuring the best supply chain along with satisfying the customers. According to Aloui et. al. (2021), the first area of consideration that is required to be evaluated while developing the transportation strategy is to determine the priorities.
The company is required to assess and prioritize the products that are needed to be delivered in the first place and are important. These priorities will increase communication and visibility throughout the process and improve the deliveries and time pickups. Another consideration is to reduce the freight cost. The reduction in this cost comes up with investment in drafting a request for proposal, optimization software and implementing prices to negotiate rates with the clients.
As per Aloui et. al. (2021) Another area of focus is to establish a balance and efficient transportation strategy that allows for exceptional service along with maintaining the profit margin and contributes to the increased reputation.
Best Buy hence consider these crucial aspects to ensure the attainment of consumer satisfaction. In addition, some other ways that the company takes into account to manage transportation and improvising efficiency are measuring the fuel and emission performance along with organizing logistics incentive order program. Some companies reward their consumers for placing orders in such a quantity that can optimize the overall use of space on the transportation medium.
This reduces the overall number of deliveries and makes scheduling and loading and unloading of the material efficient. Such service-oriented and financial incentives are available to the clients and consumers that can meet a particular order as well as volume. This is also one of the key strategies to ensure sustainability during transportation.
CURRENT PERFORMANCE OF COMPANY
Key Challenges and Issues faced in Supply Chain Management (SCM) and Logistics
In the core business area of SCM and logistics, Best Buy had faced numerous challenges in the field of Transportation. First challenge has been identified, when it has been seen that the company has tried a lot to keep the cost of transportation and logistics lower, as the price has been increasing rapidly. As stated by Johnson and Haug, (2021), it has also been identified that as the demands and needs of consumers in the market have been changing gradually, the whole industry along with the organization has tried to fulfill their demands with enhanced levels of satisfaction along with the right choice of electronic goods in the market.
A dependable and consistent source of carrier capacity in business has made the whole business management environment difficult and complex to handle. That is why; Best Buy has needed to maintain an existing business awareness of the most advanced technological solutions and demands. Apart from that, overall business performance regarding on-time business collection and delivery in Best Buy has been maintained and controlled properly (Tannous and Yoon, 2018).
There must also be a need to keep up the right expectations of consumers for both customers and the industry better, faster, and cheaper accordingly. Unanticipated length of the holdup in business while transportation and logistics, Best Buy should have been needed to observe the most recent rules as well as regulations issued by the Canadian government at the same point of business.
In this way, it becomes also possible to access a human, when the whole business entity has been facing issues with transportation and logistics across key business operations or functions after.
On the other hand, it has also been realized that within the field of business SCM and logistics, Best Buy Canada has also faced some key operational challenges in business. Those have been explained and discussed as follows:
- Increased level of Digital Sales in Business: In this business aspect, Best Buy has faced key business challenges and issues related to integrated e-commerce into core business infrastructure. It also supports further means of business expansion. As mentioned by Agrawal and Narain, (2018), it has also been argued that though Best Buy has become able to expand its business segments digitally ensuring increased revenue earnings and net income, a long way to go to reach its full business potential.
- In the aspect of transport and SCM of Best Buy, key challenges have been faced in terms of expanding further across different business locations. According to Verhoeven al. (2018), in this context, some negative factors related to high competition in the market, saturated market, and others have become major constraints.
- Increased Level of Market Presence: In this aspect also, Best Buy has faced another business challenge as when one of its customers will avail product from its competitor in short range, its business functions will be affected at that time. As reported by Choi al. (2019), the company should have to increase its overall market presence by filling geographic gaps with more access across different business locations.
- Merger and Acquisitions (M&A): In this case also, as a strategic company, Best Buy has faced challenges to merging or acquiring with other companies in the market (Rejeb al. 2020).
Comparison or Contrast with key Competitors’ SCM Strategy in the market
In this specific segment of the current study, it has been identified that there are numerous competitors presented in the whole market segment on behalf of Best Buy Canada. Those have consisted of Amazon, Wal-Mart, New-Egg, Canadian Tire, and others. As indicated by Muessigmann et. al. (2020), it is important to say that if these companies’ SCM or logistics is more powerful than Best Buy, it has become difficult in terms of gaining competitive edge in the whole market segment.
On the other hand, it has also been stated that the main competitor of the company named Amazon has mainly embraced advanced innovation and technology. Additionally, countless automation and robotic solutions have also been used across stacking and stocking inventories within its SCM. Moreover, it can also be stated that the company’s supply chain has become quite critical to the success of its retail business segment (Kovács and Falagara Sigala, 2021).
That is why, the company has embraced high aspects of sustainability in business, which makes transportation partners successful with better means of logistics and transportation with a diverse range of positive outcomes and benefits after all.
From another point of view, it has also been explored that in New-Egg, the 3PL framework has been used and applied. It helps to induce seamless and hassle-free warehousing and processing orders shipment. In this way, it has also delivered innovative e-commerce fulfillment to every part of the globe embodied with cost-effectively management logistics thereafter (Kwon, 2020). Apart from that, Walmart has induced a seamless and productive supply chain with better approaches to inventory management. It helps to keep data flow based on inventory and stocks equipped with seamless operations.
Now, it is important to say that rather than its competitors in the whole Canadian market segment, Best Buy has been slightly lacking in the field of its supply chain management (SCM) process and logistics or transportation. Several business site visits along with uplifted modifications have tried to fulfill the business organization’s diversified technicians.
That is why, proper addition of power inverters, laptop stands, and other, shifted tool and product inventories have been managed with a diverse range of positive outcomes and benefits (Yu and Cruz, 2019). Apart from that; in this context also, Best Buy Canada has faced some key business challenges and issues at the same time. Branding adjustments have been needed with proper service offerings, whereas international business agreements and norms have also been developed.
Besides, by putting in a place with no such idling rule, Best Buy might ensure seamless and hassle-free fleet operations only in a single operating group (Vadakkepatt et. al. 2021). There must also be a need for maintaining fruitful relationships with key vendors, whereas safety and TCO should have also been needed to maintain at a systematic place. It has also embraced the current performance of the organization.
SUMMARY
It can be summarized that as a leading and recognized consumer electronics organization in Canada, Best Buy’s cutting-edge technology-based products have become popular in a wide market segment. A strong and feasible market position has also been established, whereas high business growth and the chances of international business expansion have been equally highlighted thereafter. It has also been indicated that the whole European market including Canada, the US, and Mexico have delivered prospective chances of doing business better.
Hence, cohesive and strategic business goals have helped to fulfill long-term corporate goals successfully. Apart from that; in the sense of business SCM and logistics or transportation also, essential elements of market penetration have played major roles in the field of strategic planning and management of business with key benefits and advantages. Economic viability with sound benefits of business has also played major roles across key business operations at the right time of business.
CONCLUSIONS
It can be concluded that as a global brand of consumer electronics, within Best Buy Canada, brand loyalty has played a vital role to gain competitive edge in the market. The company’s future business expansion plan has increased the levels of market saturation and penetration for its goods and services delivered. In a national market, rapidly changing business environments and client expectations have also been highlighted the most.
Besides, it has also been found that in Best Buy, the need for and importance of global marketing have also been justified, whereas systematic marketing plans, consistent feedback derived from valued consumers, and others have helped to forecast future demands of its products available in the market. In one word, for realizing customers’ demands and expectations, proper business research and marketing must be needed.
On the other hand, as most business approaches are less adaptable, unusual business plans have been accepted the most. After making business and financial decisions for a company, marketing, and promotional initiatives should be conducted systematically. However, in Best Buy Canada, its transportation or SCM challenges have caused lack of flexibility and reactivity. As per expected outcome, instability cannot be handled due to such cautious and traditional business approaches.
RECOMMENDATIONS
In this final segment of the current study, there have been demonstrated some recommended actions or solutions on behalf of Best Buy. In a specific manner, key roles and responsibilities have been needed to justify. In this way, informational and analytical business inputs have been highlighted the most. As stressed by Ge et. al. (2019), to induce effective and efficient current and operational business planning and measures in Best Buy, a diverse range of international marketing operations along with evaluation of results have been highlighted the most.
On the other hand, for Best Buy Canada, key business programs have been recommended. Amongst them, it has also been justified that with the help derived from Total Quality Control (TCC) and measures or principles, the company can streamline key business operations embodied with improved aspects of customer service (Zhang et. al. 2020). It has also enabled employees’ proper training and development (T&D) initiatives. In simple words, it is essential to say that the focus of this specific business aspect is to improve the quality of the company’s outputs, whereas continual improvements of internal business practices have been highly emphasized.
From another viewpoint, it has also been suggested to conduct customer satisfaction surveys systematically. In this way, Best Buy in Canada has become able to induce a productive supply chain that means its key competitors in the market can be handled. It has also induced positive impacts on overall business profitability and productivity. It has also been stated that by having high-performing operations across major business operations, it has been able to meet customer expectations based on seamless and successful delivery of key products and services thereafter (Cai and Choi, 2020).
Just like this matter of business, regular means of Customer Feedback Input have also played an equal role with crucial elements of business, which let manufacturers know if supply schedules have adhered to any kind of possible hitches in the field of company SCM infrastructure and logistics. In addition to this, such proactive business information or data has also enabled CPG companies to take the right actions towards successful optimization and streamlined level of supply chains achieving greater and more efficient costs with operational effectiveness at the same time (Tarei et. al. 2020).
In final words, it has also been proposed that Best Buy Canada must induce feasible and fruitful relationships with its key suppliers and vendors, through which a cost-effective business environment can be built (Oelze et. al. 2020). Revenue earnings and net income generation have also been fostered in this core business environment.
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