ASSIGNMENT QUESTIONS

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Table of Contents

Answer 1:

PART-I

Detail and examine how picking methods have changed in today’s Fulfilment Centres (FC) / Distribution Centres (DC) in reaction to the rapid growth in e-commerce

AI in FC

In order to examine and contrast the several facets of AI used in SCM, many case studies were conducted. It is plain to see that several different AI technologies are used in the SC to make it more productive and less wasteful. The review concluded that various AI technologies interact with one another and are employed jointly to create an application. An adequate amount of information technology equipment facilitates building process mechanization and improving process efficiency for SC jobs. It seems that some of the following are shared goals for these intended and projected impacts:

Less time is spent making choices or using assistance with decision systems. Although computers can pre-screen order paperwork, produce predictions, and schedule production, the ultimate choice is always made by a person. Even if better planning has been carried out, the procedures are still not completely independent. One individual can handle many instances while simultaneously focusing on higher-level issues. This results in increased production efficiency as well as an increased reaction rate (Leung et al., 2020). There will be a reduction in the number of human resources allocated to repetitious jobs. This affects the work done in the back office, which is required to finish different paperwork between the various organizational units, such as the client front end, manufacturing, and operations. Jobs needing less expertise and focusing on handling goods are particularly susceptible to the effects of process robotics, especially when integrated with judgment assistance (González Rodríguez et al., 2019).

A greater percentage of available resources being put to use is one of the goals shared by several management endeavors. The operations that can be carried out by artificial intelligence may provide people with almost real-time recommendations on how to enhance the system’s existing configuration. The practical application of this may be seen in situations such as studying the past and making predictions about the future. A higher utilization rate is a goal that is shared not just by intelligent linked equipment but also across income-generating machineries and all other inputs (Leung et al., 2020).

Figure 1: Core Trends for Retailers fulfilling client need (McKinsey, 2022)

The traditional business procedures and structures of many niche sectors have been severely affected due to advances in technology. Over the time period of the last several decades, an increasing number of third-party service vendors have entered a specific sector by launching a digital platform that allows interactions between the industry’s customers and distributors. We live in the digital era, characterized by an increasing number of new, cutting-edge solutions that serve as revolutionary technologies (Chiang et al., 2011). These technologies not only completely transform the value proposition and operations of a certain sector but also the manner in which we live. In the domain of logistics and transportation administration, the many participants participating in the supply chains, such as producers, distributors, and shops, are all experiencing significant hurdles in adjusting to the digital era. This is because to the fact that those involved have been confronted with major shifts throughout the course of the previous generations (Husár & Knapčíková, 2021). IoT, Cloud Computing, and AI are all being incorporated into what is being referred to as Industry 4.0 by manufacturers as a means of achieving greater levels of efficiency and data sharing in industrial technology. In order to seize a larger portion of the market share in the transit and circulation sector of the e-commerce business, logistics professionals are working actively to improve their core capabilities. These capabilities include not only being able to ship orders within the specified time frame but also enhancement of their service level by boosting the demand or distribution data openness for other transportation individuals and end customers.

Figure 2: Fulfilment beyond Distribution Centre (McKinsey, 2022)

The corporation of logistics and retail is becoming more inseparable in the B2C commerce as a direct result of the growing popularity of online shopping. Order fulfillment for end customers’ orders made via online purchasing avenues, such as Amazon in the USA and the Alibaba and similar others in China, is handled by divergent external operators. The B2C industry is not the only one that is seeing an increase in the popularity of e-commerce and online buying. As a result of the achievement of B2C e-commerce, B2C online merchants are aggressively entering into B2B sectors. To do this, they are providing company-based clients with an online purchasing infrastructure that is analogous to the platform that is used for B2C online shopping. According to a research, it is anticipated that the value of B2B e-trading will increase from nine hundred million USD in 2017 to roughly 1.5 trillion USD in 2021 in the USA. It is anticipated that the market for online retail sales to businesses will reach double that of sales to consumers (Helo & Hao, 2021).

Shops may pick from a variety of operational models to develop in-store distribution capacity. There are also small-scale, mechanical alternatives, where shops convert back-of-house or specialized workspace into a wrapping and sending room with efficient processes. This concept is often used by strong-productivity shops (such as luxury stores) that aren’t interested in to give up store space but yet want to fulfill quicker distribution promises than a centrally located DC would provide. On the opposite extreme of the frequencies, merchants that partition off and redesign significant areas of their storefronts, add shelves for goods, and construct robotics for choosing and packaging, are creating mini-DCs inside their physical locations. This business model is often used by merchants with large e-commerce volumes and underused physical space that is available for repurposing. In order to carry out online purchases, retail employees at choose products from the buying floor (McKinsey, 2022). Items are then prepared for mailing to clients by being packed in an inventory room or a return room. Due of the businesses’ limited space, parcels are frequently left in the shopfront while expecting to be picked up by delivery services. Since employees handle every task, this approach does not use mechanization; instead, it simply needs a specific area in the shop for packaging.

Because of the organizational modifications in B2B logistics orders and the inability of distribution centers to adapt their logistics operating procedures, 3PLs are having a hard time keeping up with the demands of handling B2B e-commerce system. Supplier freight dealers need to cultivate their own core competence to get an edge in the rapidly growing B2B online trading field. Therefore, the authors developed a multivariate online sorting order scheduling technique, which makes use of various algorithmic calculations and fuzzy mathematical methods to classify arriving huge amount of B2B orders for subsequent actual batch handling in fulfillment centers and to adjust the maximum length of each order arrangement. This is done so that more orders may be processed at once. An innovative B2B order maintenance method is given as the answer, since it is designed to handle orders made via B2B e-commerce.

PART-II

Propose what advances in technology and equipment will we most likely see being introduced into FC / DC operations over the next 5-10 years?

RFID in FC

Both the sales department and the logistics department are tightly intertwined with one another. When it comes to a connection between a warehouse and a client, the rapidity and effectiveness of the delivery of products is what determines the significance of logistics for overall sales. In the next part, we will examine how the logistics process has evolved as well as how augmented reality technology is used in this sector (Choy et al., 2012). The whole process of logistics has undergone technological improvement in recent years, culminating in the creation of Logistics 4.0. This has been accomplished through converting and digitizing a variety of procedures. The development of innovative approaches to computer vision, such as virtual reality and augmented reality, is another example of how technology has improved in recent years. It has the potential to affect and simplify significant operations inside the warehouse, including the gathering, sorting, and loading of items. This technology makes the storage facility smarter by making it simpler for players to choose products, showing them the correct method to sort the range, assisting players in loading goods in the best sequence, and recognizing and making aware of the danger of damage while distributing items. Additionally, this technology makes it feasible for the warehouse to load goods in the best available order. The Internet of Things (IoT) is what allows us to link all of these different things, including people, devices, and items, to the internet. This will allow for a much quicker access to both data and information inside warehouses.

It is tough for LSPs to manage B2B online purchases that are obtained from retail websites, despite the fact that there is an huge opportunity for LSPs to capture the B2B online business. This is due to the reality that their transportation establishments structures and in-house order handling processes were created initially for traditional orders.  The following are the primary reasons why it is becoming too much challenging for freight professionals to manage B2B online demands (González Rodríguez et al., 2019).

Figure 3: Top Technological Trends in Years to come (WEforum Agenda 2021, 2022)

The future prospect of Technological Trends:

1. Automation and procedure optimization.

2. The IoT and 5G’s quicker connectivity to the internet have an opportunity to spur economic growth.

3. As part of a dispersed IT architecture, 85% of businesses will use combination-cloud or multiple clouds solutions by the year 2022. It will imply that information and its processing can be managed via the internet while making devices more quickly available.

4. Unparalleled commercial competencies will be made possible by next-generation processing, which will aid in finding solutions to issues that have plagued society and research for a long time.

5. Intelligent automation in use.

6. Over 8 billion records of information were hacked in 2019. In spite of technological advancements, thieves remain to step up their attempts.

7. The fields of wellness, farming, household goods, power, and commodities are all expected to be impacted by an intersection of natural scientific advancements that promise to have a big influence on advantages and our lives.

1. An increased market presence for vendors participating in B2B online retail structure – The vulnerability of sellers is significantly reduced when selling items online through supplier B2B settings in comparison to the conventional e-procurement method, which mainly depends on email and telephonic discussions between two companies. In turn, the increased visibility that sellers get from participating in B2B platforms promotes more transaction than have ever been seen before. As a result, third-party logistics providers (3PLs), who work in collaboration with retailers to manage the full process of order completion and delivery, are being asked to manage an increased volume of business-to-business orders within the same window of time.

2. Greater distribution facility throughput is required to handle orders that are increasingly fragmented, according to data provided by several scientists. The number of B2B orders handled by 3PLs is steadily increasing. In order to meet shipping dates and convey the items to specific customers at the right quantity, third party transportation companies must process B2B online purchases more quickly and accurately. This is due to the fact that the B2B e-commerce setting is the main source of a growth in the volume of cross-border commercial transactions (Dekker et al., 2012).

Figure 4: Technological Trend Effects (WEforum Agenda 2021, 2022)

PART-III

Select one future technology you have proposed and predict its impact on future FC / DC operations.

The use of augmented reality was one of the first things implemented into the Vision Picking program by DHL’s worldwide supply chain, making it one of the first organizations to do so. In 2014, it was piloted for the first time at a DHL facility in the Netherlands in conjunction with Google, Vuzix, and Ubimax (Chiang et al., 2011). A worker may pick up things using either Google Glass or Vuzix smart glasses and a ring scanner thanks to the platform that was developed by Ubimax, which manages the whole operation. The operator is provided with access to a variety of tasks and data through these devices. In order to begin working with the system, the initial thing that must be done is to log in as the operator and switch on any required hardware. The user picks a cart from those that are offered, then scans it into the machine after they have been welcomed by the gadget. You are provided with a visual assistance that is presented via the glasses, and it contains all of the information that you need to pick up the order. Within the user interface, the user is presented with the aisle number, the precise distribution of the items, the amount that must be chosen, and the next item. The worker is directed to the correct order item in a way that is precise, swift, as well as effective thanks to this knowledge. Because of this, the process of selecting items using this approach is far more effective than the traditional paper manner of selection. The barcode on the item is scanned by glasses, and the system then tells precisely which of the boxes on the cart the item should be entered into and what number it ought to go in. The technology is able to determine the precise location of each box on the trolley at any given time (Berg & Zijm, 1999). The worker is able to do more work in the allotted time thanks to the headset, which frees up his hands. The visual assistance included in the glasses assists in the sorting of the items, which in turn ensures both the speed with which the task is completed and its general quality. We are able to declare, with reference to the process of educating employees and fully integrating the technology into the working environment, that this technology is not difficult to use and will be rapidly embraced by the worker. The goal of DHL’s augmented reality (AR) initiative is to boost and improve customer advantages by integrating AR into the whole of the process of distributing items in the warehouse across numerous activities.

Figure 5: Tech Effects across Sectors

References

Berg, J. P. van den, & Zijm, W. H. M. (1999). Models for warehouse management: Classification and examples. International Journal of Production Economics, 59(1-3), 519–528. https://doi.org/10.1016/s0925-5273(98)00114-5

Chiang, D. M.-H., Lin, C.-P., & Chen, M.-C. (2011). The adaptive approach for storage assignment by mining data of warehouse management system for distribution centres. Enterprise Information Systems, 5(2), 219–234. https://doi.org/10.1080/17517575.2010.537784

Choy, K. L., Chow, H. K. H., Poon, T. C., & Ho, G. T. S. (2012). Cross-dock job assignment problem in space-constrained industrial logistics distribution hubs with a single docking zone. International Journal of Production Research, 50(9), 2439–2450. https://doi.org/10.1080/00207543.2011.581006

Dekker, R., Bloemhof, J., & Mallidis, I. (2012). Operations Research for green logistics – An overview of aspects, issues, contributions and challenges. European Journal of Operational Research, 219(3), 671–679. https://doi.org/10.1016/j.ejor.2011.11.010

González Rodríguez, G., Gonzalez-Cava, J. M., & Méndez Pérez, J. A. (2019). An intelligent decision support system for production planning based on machine learning. Journal of Intelligent Manufacturing, 31(5), 1257–1273. https://doi.org/10.1007/s10845-019-01510-y

Helo, P., & Hao, Y. (2021). Artificial intelligence in operations management and supply chain management: an exploratory case study. Production Planning & Control, 33(16), 1–18. Tandfonline. https://doi.org/10.1080/09537287.2021.1882690

Husár, J., & Knapčíková, L. (2021). POSSIBILITIES OF USING AUGMENTED REALITY IN WAREHOUSE MANAGEMENT: A STUDY. Acta Logistica, 8(2), 133–139. https://doi.org/10.22306/al.v8i2.212

Leung, K. H., Lee, C. K. M., & Choy, K. L. (2020). An integrated online pick-to-sort order batching approach for managing frequent arrivals of B2B e-commerce orders under both fixed and variable time-window batching. Advanced Engineering Informatics, 45, 101125. https://doi.org/10.1016/j.aei.2020.101125

Answer 2:

As the rate of change quickens in the 21st century as a consequence of the possibilities presented by technology advancements, the opening up of global markets, and the requirements for creativity, excellence, and pace, companies are required to recalibrate and reorganize how they operate in order to meet all of the problems they face. As the rate of change has accelerated, companies have been more compelled to become more knowledge-driven, market-focused, and outwardly focused. The process of comparing is a beneficial technique that may assist firms in developing strong skills, ensuring an inward flow of concepts, and establishing actual gaps in the competitive landscape. This article contains the results of a worldwide survey that was conducted by the European Centre for Total Quality Management (UK). The study’s main aim was to evaluate the current state of benchmarking and the transfer of best practices, as well as to forecast their likely future trajectories. In all, 235 different organizations took part in the research project. The benchmarking exercise included firms from 45 different nations, all of which participated. Participants came from a diverse range of business industries, including government departments, non-profit organizations, businesses providing management of the environment offerings, and manufacturers of automotive parts and accessories. The poll not only provided light on present trends in benchmarking (its expansion and the advantages attained), but it also identified several challenges that would impact the future of comparisons, namely the effects of information technological advances and globalization. The majority of those who took part in the survey saw these things more as an opportunity than as a danger.

Models determining reasons behind the retailers FC/DC network

The migration of retail activity away from the core areas of British towns is harming those areas. The Continental concept that has been proposed for the future of town centers seems appealing, but there are issues with it. National durable numerous are stuck in a locational bind since they are obligated to be located in town centers but also want to follow the market outside of town if that becomes required. As a consequence of this, many operate their activities in the town center as well as their businesses outside of the town simultaneously. The three waves of retail dispersion — food, bulky items, and comparison products – have varied impacts on various sizes of center depending on the kind of goods being sold. Larger town centers built on durable goods are likely to suffer from sluggish destruction, while certain food-anchored district centers might suffer from competition from newer, smaller supermarkets located outside of town. Some smaller market towns may benefit from the increasing number of people shopping for pleasure, since this trend is becoming more prevalent. The tide of out-of-town retailing is flowing so strongly that it is doubtful that the new stricter government policy will be able to totally stop it from occurring. Although the commercial activity in many town centers may decrease, these centers may continue to thrive if housing and service provision are fostered. Establishing powerful store and company branding has provided many retailers with a competitive edge in their native markets. This trend is likely to continue as merchants strive to establish themselves as companies in their own sense. Because customers in the host environment are less acquainted with the intangible aspects of a store’s picture, which have been built up over time through contact to the retail business, the building of the brand’s image, which includes both apparent and indistinguishable parameters, substances the difficulties of moving into international markets. Store image building includes both tangible and not tangible measurements. Before trying to reproduce their domestic image and positioning on a global scale, retail enterprises need to have a comprehensive understanding of the significance of image in competitive positioning as well as the components of store image. This article investigates these topics by referring to Marks & Spencer and the business’s expansion into the Spanish market. A study of consumer views of a variety of shop image qualities in the United Kingdom and Spain indicates variances and similarities in customer opinions. If a standardized stance is to be pursued in the host market, it will be necessary to address these differences and commonalities in perception. Since Brudtland’s analysis came out in 1987, governments and businesses have gradually incorporated SD and sustainability into policy and strategy. The SD framework has three parts: economics, ecology, and society. Therefore, under sustainable development (SD), economic growth should be accompanied with a concern for the environment and society. Since its inception in 1991-92 and its revision in 2001-02, Agenda 21 has provided a framework for addressing global, national, and regional sustainability concerns. Environmentally friendly initiatives along the three axes, such as those advocated by the United Nations Commission for Sustainable Production, have also been developed as a consequence of this awareness. It has also led to the development of sustainability measurements across all three dimensions.

Figure 1: M&S Dashboard Outlook

Regarding fashion retail logistic and supply arrangements, the three axes of SD are especially sensitive areas of concern. On the financial front, the delocalization of manufacturing to the eastern areas recently has reversed the economic development of the apparel sector in Europe. This system can be tracked down to the globalization of manufacturing that began in the 1970s. On the surroundings axis, the fashion retail logistic and supply arrangements make highly intense use of compounds such as dyes, and it is quite demanding about land and water consumption (for example, for cotton cultivation). This is because the fashion industry is very resource-intensive. Last but not least, on the social axis, well-known brands like Levi Strauss and Nike have been involved in controversies involving sweatshops, and as a result, consumers are increasingly conscious of the ethical considerations involved in the manufacturing of apparel.

Analysis for the optimized location

Through the “augmenting lenses” of sustainability, this research explores the sustainable fashion retail supply chain. More generally, there is a discussion on the connection between traditional (financial) success metrics and long-term viability. In particular, we investigate whether sustainability may and if it already does contribute to improving SC performance in the face of fierce worldwide competition. Financial ratios cannot easily be used to assess the performance of a supply chain, nor can they be established by simple logistical indicators like cash-to-cash cycle time, lead time, on-time delivery, or percentage of satisfied deliveries. This is largely acknowledged in the literature on supply chain management (SCM). Instead, a mix of these measures must be used to assess the performance of the supply chain. It is impacted by more general problems that result from both the internal organization of each supply chain actor (intra-organizational problems, like the quality of the product and human resource management) and the effectiveness of the relationships between the supply chain actors (inter-organizational problems, like logistics and transport organizations). The whole supply chain is impacted by these problems. New expectations from end users and other stakeholders are also emerging, and as they have the ability to effect performance, they must be taken into account when evaluating it.

Figure 2: M&S Consolidated Income Statement

Figure 3: M&S 3-years comparative financial statement

Because of the very nature of service vehicle activity, it is sometimes necessary for vehicles to be parked close to the premises being serviced. This is a substantial contribution to the urban freight mobility problem. In terms of the business procedures that could be focused on for minimizing in general freight automobile consequences, centrally organizing components of service provision (for example, for sanitation, machinery repair, and recyclate disposal), or offering enhanced, more adaptable parked the availability for service trucks could be just as helpful, if not more helpful, to decrease overall urban freight influences than concentrating on core goods shipping. Efforts to implement ‘green logistics’ in a commercial context via urban freight management need to include measures targeted at both the delivery and pickup of products as well as the provision of services that result in vehicle activity. This is because these are the three primary activities that contribute to the use of vehicles. Improvements in traffic flow and environmental quality might result from offering service vehicles better and more flexible parking options, particularly in off-street sites. For example, “pay-as-you-leave” car park billing systems might incentivize short-stay service cars to park off-street by charging them only when they depart the parking lot. To fill in the public transportation schedule gaps, “drop zones” that include a bus stop and amenities for package delivery might be set up in the same location. This would allow for more efficient use of the space.

Figure 4: M&S Consolidated Statement- Shareholder’s Equity

Figure 5: M&S Fashion Risk Management

Since a mean business on Winchester High Street got 2.4 garbage groups every week and over 19 distinct waste vendors engaged in extracting recyclables alone from a sample of 74 businesses, the equipment may be a new service activity that could be improved. Further, ‘take-back’ of discarded materials is another service that may be enhanced. The obvious remedy to this issue is back-loading. The term “back-loading” refers to the practice of using the core goods delivery trucks’ unused space to collect recyclables, supplies, and returns from end users. In some operations, such as those involving specific vendors in decentralized systems who may use their own trucks to transport goods back to their production problem, this approach is ideal. However, this strategy is more common in centralized systems, where logistics firms remove recyclables, stock, and returns before transporting the sorted and returned items back to the distribution center. Local municipal governments would need to take the lead in developing and implementing such “green logistics” programs. This could entail advocating for or even mandating that certain recognized methods or vendors be used for the benefit of all businesses in a given area when it comes to the handling of freight (whether for core product delivery or service activities). Businesses in the city may save money by working together and making purchases in bulk. In this context, the government would play the role of “landlord,” similar to the corporations that oversee the administration of massive malls with several tenants.

Figure 6: M&S Financial Positioning Update

References

Burt, S. L., Mellahi, K., Jackson, T. P., & Sparks, L. (2002). Retail internationalization and retail failure: issues from the case of Marks and Spencer. The International Review of Retail, Distribution and Consumer Research, 12(2), 191–219. https://doi.org/10.1080/09593960210127727

Gouldson, A., & Sullivan, R. (2013). Long-term corporate climate change targets: What could they deliver? Environmental Science & Policy, 27, 1–10. https://doi.org/10.1016/j.envsci.2012.11.013

Grayson, D. (2011). Embedding corporate responsibility and sustainability: Marks & Spencer. Journal of Management Development, 30(10), 1017–1026. https://doi.org/10.1108/02621711111182510

Jarrar, Y. F., & Zairi, M. (2001). Future trends in benchmarking for competitive advantage: A global survey. Total Quality Management, 12(7-8), 906–912. https://doi.org/10.1080/09544120100000014

Johnson, M. (2004). Marks & Spencer implements an ethical sourcing program for its global supply chain. Journal of Organizational Excellence, 23(2), 3–16. https://doi.org/10.1002/npr.20001

P. Wilson, J., & Beard, C. (2014). Constructing a sustainable learning organization. The Learning Organization, 21(2), 98–112. https://doi.org/10.1108/tlo-08-2012-0056

Storey, J., Emberson, C., & Reade, D. (2005). The barriers to customer responsive supply chain management. International Journal of Operations & Production Management, 25(3), 242–260. https://doi.org/10.1108/01443570510581853

Walters, D. (2006). Demand chain effectiveness – supply chain efficiencies. Journal of Enterprise Information Management, 19(3), 246–261. emerald. https://doi.org/10.1108/17410390610658441