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Logistics Company link to the Logistics plc web site: http://teaching.shu.ac.uk/om/thebusiness/website/new_logistics/ Most large retailers do not hold significant amounts of stock within the store. The management of the stock is sub-contracted to a separate division of the retailing parent company or to a quite separate logistics business. In either case, the logistics operation receives goods from suppliers or distributors at regional distribution centres. Stores make requests for stock on a daily basis and these requests are met daily from the distribution centres.
the business has contracted its stock management to Logistics plc, another replica company. The buyers from the business set up the contracts with the suppliers but all of the subsequent management of the supply is carried out by Logistics plc. The locations of the distribution centres for food and non-food items are given on the web site. At each centre the procedure is the same. The centre receives deliveries from all UK suppliers. They also take deliveries from distribution companies who are responsible for transporting imports arriving at docks or airports to Logistics’ distribution centres.
This procedure means that the stores provide only minimal storage areas – as much as possible of the building is used for selling. The stock management contract is a significant expense to the business but it does provide an extremely efficient service enabling the stores to make savings elsewhere.
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At the distribution centres, the deliveries are checked for accuracy and the goods are unloaded and unpacked. The quality of the product is then checked. Any discrepancies in the delivery or quality are reported to the suppliers. Logistics follows through and resolves these problems. The goods are transferred to appropriate storage, for example, suits and dresses are hung on rails, fruit and vegetables are placed in a cool room.
Each day Section staff in the branches of the business identify stock needs and these are emailed to the relevant distribution centre. Orders are ‘picked’ overnight by Logistics’ staff for transfer the next day to the relevant branch. The stock which is delivered in this way is loaded into the truck ready sorted by Section and hence, on arrival at the branch, it is ready to be taken straight to the selling floor. The delivery vehicles also remove any recyclable waste/packaging which is generated in the store and any faulty goods or returns to the manufacturer.