Logistics And Supply Chain Group Management

Key information of the company

Discuss about the Logistics and Supply Chain Group Management.

Logistics refers to activities within an organization and Supply Chain refers to a group of companies working together. Traditional logistics concentrate on activities like distribution and inventory management. Supply chain (Krajewski, Ritzman & Malhotra, 2013) also includes finance, marketing, handling customer service and product enhancement. Logistics is about giving a proper product to the right customer, with right quantity and in good condition at the right place and time (Christopher, 2016). Logistics management deals with daily activities in producing final product or output and services, effectively and efficiently. There are two types of logistics, inbound, and outbound. Inbound logistics refers to the movement of goods from suppliers to the company. Outbound logistics refers to the circulation of the final output from the enterprise to customers (Dyckhoff, Lackes & Reese, 2013). Supply chain management (Sharma, 2011) is a combination of warehouses, manufacturers, suppliers, and stores so that the products are produced and distributed to save cost and provide satisfactory service (Wisner, Tan & Leong, 2014).

A Singapore logistics company named Singapore Post Limited (SingPost) provides a combination of Logistics business, mail marketing, eCommerce solution and retail solution in Singapore and Asia Pacific Region. The firm has earned many awards. The company provides business solutions to its clients like serving customers better, save their time and money, providing a solution to grow the business. Business logistics is all about inventory management, purchasing, transportation and warehousing (Farahani et al., 2014). Singapore Post Limited has warehouse network in more than ten countries and can access to more than 220 countries worldwide. With a vast network, their clients can take its business to various places. Singapore Post Limited provides distribution solution globally and provides different options for delivery and returns to both local and international customers. With their multiple warehouses worldwide, they help their clients in managing the stock, pick and pack orders and prepare for inventories by the time and money of their client. Singapore Post Limited provides eCommerce solutions to the companies who need help to setup their eCommerce business by taking up their online store to customer care support, marketing, and logistics (Rushton, Croucher & Baker, 2014). If a company needs to send 500 letters in bulk and small packets, they can save money by sending homogeneous mail locally and internationally. Singapore Post Limited provides solutions by measuring, communicating and optimizing marketing campaigns for their target audience (SingPost.com, 2016).

One of the strategic activities of the supply chain management (Monczka et al., 2015) is providing Information Technology (Sundarakani, Tan & Over, 2012) infrastructure to give a base to supply chain operations (Stank et al., 2015). A booming technological power is a vital part of Singapore Post Limited’s conversion into a global eCommerce logistics service provider (Waters & Rinsler, 2014). The acquisition of two leading eCommerce vendors in the US has given a strong base of customer and huge eCommerce volumes. They provide end-to-end eCommerce solutions to more than 100 greatest brands like Calvin Klein, Adidas, etc. The eCommerce infrastructure provides a one-stop solution for brands and retailers to increase their base globally and provide a great shopping experience to the customers. The acquisition of TradeGlobal and Jagged Peak has expanded SingPost’s eCommerce logistics in the US. TradeGlobal is one of the top end-to-end eCommerce companies, and Jagged Peak provides a technology of Omni-channel order management system operating in more than 20 warehouses across North America and Europe.  There is various risk associated with investing and developing the technology. Failure in technology can disturb the daily business operation, which can further lead to financial loss. The technology committee of the company assesses and evaluates the plans, policies, rules and regulations relating to technology, the progress of IT projects, IT risk management and give feedbacks accordingly. With global industrial trends in postal, the company faces competition with a decline in the volume of letter mail. The operating cost has also been increasing in Singapore. Singapore Post Limited has invested in the postal infrastructure to upgrade their production and service quality. They are replacing two-wheel scooters with three wheelers, which have a higher load capacity. This will help in boosting the productivity of their postmen. They regularly conduct the quality check and review the operational process and delivery centers (Singapore Port Limited, 2016).

The interfaces

Figure 1: Communication in logistics management

(Source: Liang, Chaovalitwongse & Shi, 2015)

SingPost ensure operational facility by planning the business continuity. Systems have been placed for operations to respond to threats and lessen the impact on resources and services. Singapore Post Limited have combined their eCommerce division with US based eCommerce service providers Jagged Peak and TradeGlobal to form a global eCommerce facilitator for retailers and brands. Combination of logistic network and technology of the three entities will help the companies to expand in the world’s fastest growing eCommerce market. They provide end-to-end solutions that stretch web store operations and development, performance marketing, customer care service, cross-border commerce and global attainment. The progress of the company can be seen   after taking in the eCommerce business activities with a growth rising over a third of overall revenues. They chase for maximization of returns to their shareholders by realizing the potential of the assets. Several steps have been taken during the year to get value and yield from their real estate portfolio. They have started constructing new retail mall at Singapore incorporating eCommerce logistics solution. The mall is a combination of both offline and online shopping. Customers can browse and make in-store purchase, arranging for direct delivery to their home so as to continue shopping, eating or watching a movie. The company enlists investors and analyst community to convey company’s information about business strategy, financial and operational performance. The management maintains channels of communication to maintain regular interaction with stakeholders (Singapore Port Limited, 2016).

An order processing system takes order data from the customer service staff or directly from the customers, stores the information in a database and sends data to the shipping and accounting sections. It also tracks data on orders and stock for each step. It provides powerful means of capturing, tracking and shipping orders of the customer. It can also space various continents to track international orders, shipments, and returns for a broad range of product lines. Postal services are the backbone of the conversion of eCommerce logistics business. The company optimizes every delivery network, innovating new product and process to improve the effectiveness and efficiency of the service and needs of the customer. They have upgraded the infrastructure for improvement in quality delivery service. The sorting machines are upgraded to handle large packages and do it efficiently. They have replaced two wheelers to three wheelers which have increased from 110 to 230. The company is researching drone technology to provide upgraded end-to-end solutions facilitating urban logistics tapping on the eCommerce growth in Asia Pacific.  They have remodeled more branches of the post office network increasing the accessibility and convenience of their consumers. 29 out of 58 post offices have been upgraded with features providing crucial services with digital access, making essential services such as collection of the parcel, making bill payment available to customers 24/7. The post offices have been designed with self-packing mode desks, big storage space for packages to serve blog shop owners and online shoppers better.  Their Self-Service Automated Machines are being extended to an omnichannel platform allowing its customers to access Self-Service Automated Machines transactions on their own mobiles via web portal and app device. To develop their eCommerce products and agencies, bilateral agreements have formed with postal agencies of major partners such as Brazil and United Kingdom. They have launched an Asian ePacket service with other Asian postal organizations. This will offer a reliable and cost efficient delivery service with tracking facility to the eCommerce retailers. The company began a partnership with SATS to initiate airport consignment outbound operations at Changi Airport to improve the efficiency and space utilization. The initiation will enable sorting, single scanning; remove the need to tow mail, parcel bags and pallets between facilities. This will upgrade operational efficiency, including shorter cycle, connection times and increase productivity. The company participated in International postal events organized by the Universal Postal Union and Asian-Pacific Postal Union and conferences such as World Mail and Express, and Post Expo. SingPost participated in an exhibition and launched limited edition stamps “50 stamps for 50 years” in celebration of SG50. The postal network is widely used to transport the parcels. Postal operators should make changes to their business model by edging on their network and keep on developing eCommerce to remain in the competition (Singapore Port Limited, 2016). The order processing system of the the organization follows a simple flow and the keep the work fast and hassle free. The demands of the labor increase in the peak seasons and hence, they keep a simple system to make the workers understand their operations.

Order Cycle

Figure 2: Order processing model

(Source: Krajewski, Ritzman & Malhotra, 2013)

Inventory management is a combined process aiming to operationalize a firm’s and value chain’s inventory policy. It has an overall impact on the effectiveness and efficiency of the supply chain. It is a practice of planning, directing and controlling inventory to maximize profit. The company has expanded its eCommerce logistics network and executed strategic and game-changing activities. Recent acquisition and infrastructure investment made end-to-end logistics value chain stronger. Progress was made in last mile delivery, freight, and warehousing and customer service. Quantium Solutions, a subsidiary owned by SingPost made several acquisitions that strengthen their last mile ecosystem in Hong Kong and Australia. The investment made in Australian eCommerce company Hubbed, the country’s only logistics service provider to the news channel agency, adding company’s 680 newsagents to their network. The company CouriersPlease which was acquired last year offer customers in Australia collecting online purchases, dropping off parcels, buying delivery products from Hubbed agents at any time and at their convenience. The company grew existing core services launching new domestic and international services including global priority, international saver and local same day. effectiveThey have also expanded CouriersPlease in Darwin, Cairns, Perth, Albury and Coffs Harbour, forming an efficient and profitable network in the entire Australia. CouriersPlease launched POPStations in the past enabling their customers to collect their parcel on their own. The company invested in Morning Express Couriers in Hong Kong and E Link station operating in an expanding network of self-collection parcel smart lockers. The investments made by the corporation have created an efficient logistics delivery system for online retailers selling international brand such as Clarins and Calvin Klein. Shoppers in Hong Kong can receive parcel through various channel like digital lockers and redemption centres. They initiated information technology system across eCommerce platforms and marketplace enabling transactions and information sharing.  The POPStation network in Singapore has expanded in 140 locations. Customers can also return their online purchases through smart lockers can make payment on collection through various card options like credit card and cash cards. They have initiated 10 POPStations in Australia through CouriersPlease with a target to increase distribution. The logistics hub in Singapore brings SingPost’s eCommerce logistics services under one roof. The company has modified the transshipment hub center in Singapore offering a wide range of guaranteed sailings and carriers to attract the cargo. Multi-modal transportation modes have been introduced such as sea-air and air-sea to support shippers for creating value for the customers. Famous Holdings is working closely with Quantium Solutions to offer supply chain solutions to connect warehouse management to final distribution service. New services like sea freight for vPost were launched to upgrade eCommerce logistics value chain. It enables customers to use eCommerce platforms for purchasing bulk items and receive at their doorstep without paying higher air freight rates (Singapore Port Limited, 2016). The theory of levelized production of inventory management is taken into consideration by the organization. As per the theory, the business owners can optimize the labor cost by the nature of the products (Dyckhoff, Lackes & Reese, 2013). The levelized production theory would help the organization to bapoid paying extra amount of money to the labors or give extra money to the third party organizations. Following the theory, it will help the organization to forecast  the market on yearly, monthly or quarterly basis and hire the workers accordingly.

Conclusion

After going through the case study of the Singapore post, it can be concluded that the organization is depended on technology for managing the logistics. The production, marketing and the accounts and finance of the logistics is done with the help of technology. Even though, technology come with valorous risks, yet adhering to the same has helped the organization speed up their process. The levelized production theory for inventory management has helped the organization to forecast the labors as per the peak seasons and the normal seasons. In this way, they manage the inventory so that they do not have overflow of labors or unavailability of the labors. As Singapore post mainly deals with the mail, hence the main area they had concentrated is on managing the labor as per the products in the inventory. The order processing system of Singapore post is simple. As a result, it helps them to manage the orders in a better manner in the peak timings. Due to the proper management of the aspects of the logistics, the subsidiary of Singapore post Quantum Solutions has been able to build strong market presence. In addition to this, the proper way of maintaining the logistics has helped them grow its business in the international market as well.

Reference

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