Marketing Channels and Logistics - Coursework Example

Marketing Channels and Logistics Introduction Global business environment is becoming highly competitive as several leading organizations within a similar industry are trying to implement unique strategies in the business operation process in order to achieve potential competitive advantages and develop an effective global client base. Several leading multinational organizations are trying to capitalize on the potential business opportunities that have been developed due to globalization and technological advancement. Leading multinational organizations are trying to implement customer and employee centric business operation processes in order to maintain good relationship with several stakeholders and entire community. Supply chain management is an important business operation function that helps an organization to maintain efficiency in the resource allocation, manufacturing, processing, procurement, logistics, delivery and returning (Rushton, Oxley and Croucher, 2010, p.34). Overall business performance of an organization highly depends upon the effectiveness and efficiency of the supply chain network of an organization. Recently, the global organizations are trying to maintain sustainability in their supply chain management process. Implementation of green strategy in the supply chain management process helps an organization to maintain sustainability in the business operation process and offer products and services according to the market demand and needs of target customers. The study will consider the supply chain management process of Tesco Plc. Tesco is one of the leading UK based multinational retail chain that has strong presence in several emerging global market places. The organization is considered as one of the leading players within the global; retail chain industry due to profitability and high employment generation. Tesco implemented several green and sustainable operational strategies in the supply chain management process in order to maintain its leading position in the market place. The study will analyze the principles of environmental and social sustainability that are adopted by Tesco in its business operation process. Supply Chain Activities of Tesco Tesco is the most prestigious organization among the stakeholders, employees, government of the country and customers or several business clients as the organization always tries to follow and maintain corporate values in several business operations. It is true that Tesco is one of the leading organizations within the global retail chai9n industry. Major objective of the organization is to maximize business profit by ensuring the sustainability of entire community and society. It is highly important for an organization to maintain effective sustainability in the supply chain management system as the governments of several countries have introduced various strict policies and regulations for the organizations. Tesco highly believes in centralized distribution process (Emmett and Sood, 2010, p.95). This centralized distribution process helps the organization to keep entire control of overall supply chain management performances. In addition to this, strong discipline and maintenance of high supply chain value helps the management of Tesco to ensure the sustainability in entire supply chain management process. The organization heavily relies on the innovation and core value of customers in the supply chain management. This sustainable business operation processes and high efficiency across the entire supply chain network in this world helped the organization to attain 100 percent efficiency level. The above figure is the overall sustainability performance of several leading global retail chains. It is clear from the above mentioned figure that the Tesco Plc. can be considered as one of the leading organizations in terms of business sustainability. The management of the organization highly relies on the value of stakeholders, employees and customers (Levinson, 2010, p.54). Therefore, effective community engagement in the overall business processes helped the organization to maintain its competitive position within global retail chain industry. The above figure is all about the sustainable performances of the leading retail chain organizations in the supply chain management process. It is clear from above figure that Tesco Plc. maintained its strong position within this segment. Following discussions and facts will help the readers to determine that the organization is strongly focusing on environmental and social sustainability by implementing green strategies in its supply chain management process. Recycling Centre for Carbon Footprint Being one of the leading organizations within the global retail chain industry it is the responsibility of the organization to create some value for society and community in return of high business returns. However, the organization fulfilled its commitments by introducing several recycling centres and sustainable supply chai8n hubs in order to reduce the level of high carbon emission. The organization always tries to reduce the consumption level of natural resources through the implementation of recycling strategies. In addition to this, the organization maintains zero solid waste in business operation process to ensure high corporate social responsibility (Measham and Lockie, 2012, p.49). These recycling processes help Tesco to minimize the threat of several legal issues. Tesco has a strong international presence. In addition to this, the organization has numerous stores across the global market place. It is important for a retail chain organization to ensure efficiency of entire supply chain management process. Water recycling is one of the best examples of sustainable supply chain management process. Governments of several operational countries help and support this organization due to these reasons. It is true that the level of natural resources’ existence is reducing gradually due to growing impact of global warming. Low rainfall and drought are the major consequences of this global warming. The organization took the initiative to recycle the used water source and re-use it in the business operation processes. It helped the organization attain good reputation among customers, stakeholders and several governmental bodies. Green Warehousing and Inventory Management Manufacturing and warehousing are the major components of supply chain management process. Tesco is considered as one of the leading and popular organizations among the people as the organization used to provide differentiated quality products in economic price level. However, the organization used to implement several unique green strategies in the manufacturing and warehousing in order to ensure environmental sustainability (Christopher, 2010, p.19). It is discussed earlier that the organization developed several sustainable supply chain hubs across the globe to maintain the sustainability and reduce the level of carbon emission. It is important for leading retail chain organization to maintain low carbon emission level in the transpiration of goods from suppliers to warehouse and from warehouse to retail outlets. The organization is trying hard to introduce eco-friendly buildings for ware houses. Tesco is the first retail chain that implemented online strategy in the business operation process. High automation and implementation of advanced technology in the global supply chain management helped the organization to keep low account for carbon footprint (Ayers, 2002, p.86). It is true that an organization requires huge energy source to run a warehouse. Tesco adopted several unique strategies to reduce the consumption level of oil and gas energy sources. Tesco adopted and implemented several advanced technological processes to collect rain water and create energy from the gather rainwater. In addition to this, it is mentioned earlier that the organization used to recycle water that are utilized in the business operation processes. However, the organization uses advanced technological equipments in order to create the source of energy. This unique green business operation process helps the organization to reduce the level of oil and gas consumption as the sources of energy. In addition to this, the organization effectively use advanced information technology software application in the inventory management system. It helps the organization in several ways. First of all, it minimizes the requirement level of manual process. The organization implemented advanced PDA software application in order to track the stocks and minimize the inventory. However, this automation helped the organization to reduce several manual warehousing activities that requires high energy resources. Implementation of advanced technology in warehousing and inventory management system helped the organization to reduce the percentage of carbon emission (Agarwal, 2005, p.37). Green Logistics Logistics management is an important part of entire supply chain management process. An effective logistics management activity helps an organization to distribute the products from the warehouses to the end customers. It is important for the organizations to maintain high efficiency in the logistics management processes to enhance effective supply chain management activities (Shah, 2009, p.77). Global business environment has become highly saturated and competitive due to market demand for differentiated products and services, and intense market competition within an industry. Global retail chain industry is also facing these challenges. Therefore, the organizations within the retail chain industry is trying to adapt sustainable business operation strategies in order to maintain effective relationship with the customers, government, several business clients and valuable external or internal stakeholders. Tesco always implements unique strategies in its logistics management processes. It is discussed earlier that the organization tries to innovation and sustainability in each and every business operation process in order to maintain significant competitive advantages over its existing rivals. The organization believes is integration forward and backward integration in supply chain management process. Integration of effective upstream and downstream supply chain model in the logistics management helps the organization maintain effective social sustainability (Sadler, 2007, p.23). As the organization is considered as one of the leading retail chains within the global retail industry, therefore it is the responsibility of the management of the organization to maintain strong relationship with the suppliers in order to source green raw materials (Plunkett, 2007, p.61). Tesco always motivates the suppliers to follow the developed business ethics and corporate values so that the organization can fulfil their commitment that was made to community and social responsibility. Transpiration and shipments of goods are considered as important activities in the logistics management. Therefore, it is important for the organization like Tesco to transport goods from the warehouses to retail stores quite effectively and with high efficiency. It is known to all that several organizations use fossil fuel as energy resources for logistics vehicles in the supply chain management process. It is known to all that high consumption and burning of fossil fuel result high level of carbon emission. It is true that high level of carbon emission causes air pollution and several critical diseases as the growing threat of global warming is the major consequences of high consumption of fossil fuel and high carbon emission level. It is true that several leading organizations around the globe are facing several legal and environmental issues due to this high carbon emission. Governments of several countries developed several regulations and policies for the business organizations in order to minimize the level of carbon emission in order maintain both environmental social sustainability. Being one of the leading and sustainable organizations, Tesco Plc. tries to reduce the carbon emission level in the business processes by implementing several sustainable green strategies in logistics and transport management process. The organization generally uses long headed and fuel efficient logistics trucks in order to maintain environmental sustainability. It is true that high millage fuel efficient vehicles require low consumption of fossil fuels comparing to other heavy vehicles that are used in logistics management system. Tesco is planning to introduce hybrid electronic vehicles in logistics and supply chain management process to reduce the level of carbon emission level in the business operation processes. Procurement is another significant part in the global logistics arena. It is discussed earlier that the organization used to implement several unique strategies in business process. The organization highly focuses on automation and advanced technological business operation processes. Advanced navigation process in logistics helps the organization to reduce the lead time of entire supply chain management process. In addition to this, the organization is trying to invest significant amount of its business process in the research h and development team in order to reduce each and every threat factors associated with the global logistics and supply chain management system (Mangan, Lalwani and Butcher, 2008, p.91). It is discussed earlier that the organization is trying to use substitute energy resources in business operation process in order to reduce the high consumption of fossil fuel. Introduction of hybrid electronic fuel efficient logistics vehicles will be considered as an effective example of actual creativity of the research and development team of Tesco and the corporate value of the organization. Effective Relationship with Customers and Other Stakeholders Efficiency of entire supply chain network and management process of a retail chain can be easily determined by evaluating the relationship of the organization with the customers and several stakeholders. Introduction of solar plants, water turbines and ground source heat pumps in order to find for new substitute energy resources is the example of Tesco’s corporate social responsibility. Carbon reduction in entire supply chain network and distribution channel helps the external and internal stakeholders to become loyal to the organization. Government of UK developed several strict policies and regulations for each and every business organization to maintain social and environmental stability. It is highly important for several leading organizations to maintain and follow each and every policies developed by government in order to avoid several types of legal challenges. Tesco Plc significantly integrates innovation and creativity across the entire supply chain network. It is important for the organization to adopt sustainable business operation strategies as the demand for stakeholders and customers are shifting to green strategies and green products or services. Looking into these market demand and preferences of stakeholders or the customers the organization developed green supply chain management strategies. This implementation of green business strategy helped the organization to get the support of society, community and government. It is true that several stakeholders take the interest in the strategies of the organization when the organization ensures business sustainability along with the business profit maximization. Tesco is known as one of the leading retail chains around the globe as the organization provides differentiated products in economic price level. Sustainable sourcing of green products and sustainable distribution system helps the organization to gain high customer loyalty. It is true that the organization implemented online order processing and online order delivery system. Therefore, it helps the target customers to become loyal to the organization. Customer can avail the products without any prior consumption effort. In the order delivery process the organization uses fuel efficient distribution vehicles that ensure low carbon emission level. In addition to this, integration of advanced navigation system helps the organization to deliver the products to the target customers within the given period of time. High customer satisfaction and significant value for the customers are the major business objective of this firm. Therefore, the organization generally used to organize several corporate social responsibility programmes in order to make the target customers aware about the sustainable business policies of the organization. In addition to this, the integration of green strategy, sustainability and advanced technology in the business operation process brought significant efficiency in the logistics and supply chain management process of Tesco (Christopher, 2010, p.89). This green and sustainable supply chain management process helped the organization to motivate the stakeholders to engage or involve in the decision making and strategy development process of the organization. Most importantly, the organization effectively takes care of the suggestions and opinions of the employees as the organization believes skilled and motivated employees are the major business growth driver for the organization. Conclusion It is clear from above discussion that being one of the leading organizations, Tesco always tries to measure effective social and corporate responsibility ahead of business profit maximization. Global business environment is becoming highly challenging for each and every organization due to economic volatility, legal policies, environme3mnbtal regulations and market demand for differentiated products. Tesco always tries to give effective value to the community, customers and stakeholders. Therefore, the organization always tries to adopt sustainable business operation strategies in order to meet the current market demand and avoid several external environmental issues. It is highly important for an organization like Tesco to maintain efficiency across the entire supply chain management process in order as it is the major business operation department of any retail chain organization. implementation of advanced technology in warehousing, sourcing of green products, motivating the suppliers to follow the developed sustainable policies in supply chain, use of fuel efficient logistics trucks, developing new hybrid electronic logistics trucks, introduction of several sustainable logistics and supply chain hubs across the globe, and maintain effective relationship with stakeholders or customers through sustainable business operation policies are the real example of the sustainability and green supply chain management operations of Tesco. Looking into these above discussions, it can be stated that the organization adopted several green strategies across the entire supply chain network in order to achieve potential competitive advantages and develop potential clients. The organization should continue this corporate value in near future in order to get effective support from external and internal stakeholders in its entire business operation processes. Table of Contents Supply Chain Activities of Tesco 2 Recycling Centre for Carbon Footprint 4 Green Warehousing and Inventory Management 5 Green Logistics 6 Effective Relationship with Customers and Other Stakeholders 9 Conclusion 11 Reference 13 Reference Agarwal, D., 2005. Textbook of Logistics and Supply Chain Management. London: Routledge. Ayers, J., 2002. Handbook of Supply Chain Management. London: CRC Press. Christopher, M., 2010. Logistics & Supply Chain Management: Creating Value-Adding Networks, Financial Times Series. New Jersey: Pearson. Christopher, M., 2012. Logistics and Supply Chain management. London: Kogan Page. Emmett, S., and Sood, V., 2010. Green Supply Chains. New Jersey: John Wiley & Sons. Levinson, D., 2010. Traceability in the Food Supply Chain. London: Diane. Mangan, J., Lalwani, C., and Butcher, T., 2008. Global Logistics and Supply Chain management. New Jersey: John Wiley & Sons. Measham, T., and Lockie, S., 2012. Risk and Social Theory in Environmental Management. New York: CSIRO. Plunkett, J., 2007. Plunkett’s Apparel and Textiles Industry Almanac. London: Plunkett Research Ltd. Rushton, A., Oxley, J., and Croucher, P., 2010. The handbook of Logistics and Distribution Management. London: Kogan Page. Sadler, I., 2007. Logistics and Supply Chain Integration. London: Sage. Shah, J., 2009. Supply Chain Management. New Jersey: Pearson. Read More