Assume that you are the Logistic Manager of a Manufacturer (H&M in Singapore)

Logistics Management at H&M in Singapore
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Logistics Management at H&M in Singapore
Introduction
Logistics refers to the flow of goods from one locality to another with the aim of satisfying the needs of the consumer in the market. Animals, equipment, fluids, foods, materials, information outlets are what constitute components of logistics (Svensson, 2001). Logistics in this regard ensures the smooth flow of these commodities until they reach the consumer. In combination with processes such as packaging, warehousing, production, inventory and materials handling, goods, in this case, can reach the consumer. Due to this reason, this report will evaluate the logistics management at H & M in Singapore.
H & M in Singapore is a company that deals with fashion and beauty. The company has assortments that give the reflection of fashion and beauty trends thus assisting their respective customers in realizing their dream in fashion outlook as well as in the periods of seasonal fluctuations and limitations in the edition of color collections (Bag, 2016). Meanwhile, the reason why H &M decided to engage in the line of beauty products was to develop the concept that is comprehensive and also that something that comprehends with updates. In fact, it took the company four years to fully develop this concept. For example, the company exhausted everything beginning from a color range for the nail polish to the creation of the design for packaging. Due to this reason, it then becomes necessary to evaluate the process of logistic management processes as it takes place in the company.

2.1 Production
Mostly, products that have same characteristics such as physical wants, handling needs, size, weight and order of frequency elements all fall into the category of logistic family. H & M management has in consideration some concerns that ensure that its products and services satisfy their customer needs (Tokar, 2010). For instance, physical parameters are vital in the evaluation of inventory systems. Some of these are stocking capacity, method of selection, the efficiency of utilization, volumetric use efficiency, the capability and the availability of mode of transport. Meanwhile, monetary metrics such as the expenses met in the acquisition of space for operation, the cost of construction, the cost of handling and labor costs are also part of the logistic transportation involved in realizing the set target of the company. On the same note, there are other metrics that the inventory turnover always takes into consideration during the process of the transaction. With regards to H&M Company of Singapore, the specifications for the goods that will set for shipping will be 30ft containers.
2.2 Marketing
In logistics management, marketing entail planning, delivery and the control of the movement of physical goods, materials for marketing and information beginning from the producer to the particular market to satisfy the demands of the consumer while at the same time realizing profits (Grawe, 2009). Added to the same, maintenance of the competitive edge of an organization refers to knowledge on and the implementation of the marketing logistics strategy that are effective about the product, its price, locality, and promotion. For this reason, the four marketing logistics functions assist an organization such as H&M in this case in reaching its targeted customers and the delivery of products or services it sells to them.
As a function logistics marketing, product delivery entails establishing on the customers of the organization and the manner to have the product or service reach them. Every customer has a chance to have his or her personal needs, and for this reason, the logistical services offered are always not similar to each and every customer (Tokar, 2010). Despite these variations, a customer has an expectation of 100 percent satisfaction and an assurance of reliability in every kind of transaction going taking place between him or her and the organization. H&M Company about this has goals in a filing of the order, on-time delivery, precise invoicing standards and zero damage effects on the commodity or service being offered by the company to their esteemed customer
As an organization, H&M has its pricing decisions that depend on both internal and external influences. Market logistics in this case in the company takes care of the price drivers such as the customer’s profile, the product and order type. On its part, promotion as an element of marketing logistics must be in place during the introduction of a new product in the market. For this reason, the company, need to ensure the coordination of components of marketing logistics for it to undertake an effective promotion (Rushton, Croucher & Baker, 2010). Finally, a place in marketing logistics enables the organization to have the simplification of the transactions involved between itself and the customer. In this regard, the organization needs to undertake the execution of logistics in a manner that customer does not become aware of the difficulties involved in the process of logistics. In fact for a customer, what is more, important is the output while not the process of logistics.
2.3 Accounting and Finance in logistic management
The financial performance of H&M Company relies on its cash management and profitability. Management of cash, for instance, is very sensitive in the survival of any company with H&M not left out in this case (Rushton, Croucher & Baker, 2010). At some times, the company may register good performance about sales and services but however still fails in the generation of cash effectively. In the end, it leads to conditions that are not favorable to the company at all. With the objective of ensuring that it registers good performance, H&M Company has adequate sales that sustain the accumulating expenses and fixed costs as well as the continuous and increasing returns on the investment.
3.0 Order Cycle
In logistics, order cycle is the flow of the commodity or service until it reaches the consumer. The process of order cycle then entails the stages as discussed below;
Order Processing
The stage here involves the processing of the withdrawal lists, picking based on a selected removal of the times from the loading point. Also, the process also needs the assorting of the items assembled based on their destination (Nilsson, 2006) and packaging by weighing and product labeling so that the esteemed consumer may be able to differentiate them. Order packaging also involves the process of consolidation that in this involves the process of collecting packages to loading units with the objective of transporting and management.
3.2 Handling
In this stage, the manager always takes into consideration of the unit loads of the products he or she has plans in delivering to the targeted areas. For the case of H&M Company, it resorted to using the 30ft containers due to the fact these containers are less likely to overturn while on transit. Upon the delivery of products, the next stage is to unload them. Materials handling, in this case, would be suitable for use in such circumstances (Jedliński, 2015). However, there is the need to take precaution that handling of materials needs to be of the retractable mast, bilateral, stacker, counterweight or trilateral. After unloading the commodities, there is need to ensure their safety storage. In this regard, handling materials during storage are the pile stocking, cantilever racks, gravity racks and cell racks.
3.3 Picking
Picking process may either occur on the manual basis or automated basis. For the sake of H&M Company, the automated option stands out to be the best option due to the fragility and delicacy of the beauty products (Grawe, 2009). At the same time, automated picking is suitable since it is very much faster and efficient when it comes to handling large quantities of goods.
3.4 Shipping
So far shipping industry forms nearly ninety percent of trading activities taking place in the world trade. The importation and exportation concept of goods and the free trade activities are only possible with the presence of shipping industry. Within H&M Company, shipping, and its related mercantile industry enables it to reach people all over the world through offering them high-quality services and freight costs that are unmatched( Grant, 2012). Added to the same, both the performance and efficiency of ship industry has resulted into the increment in the trade levels between countries through bringing on board and economic turnaround that has on its part led to the improvement in the economic conditions or environments of several countries all over the world (Johannessen & Solem, 2002). As it stands, there are over 50, 000 merchant ships that assist in the international trade for transporting cargo from one area to another in the whole world. More than 150 countries including Singapore, the home of H&M Company, are using these ships. The ship is ably guarded by more than one million seafarers that are dedicated towards the representation of nearly each nation in the world.
4.0 Inventory Management
The performance of logistics for any company relies on low inventories; quality delivered and the time of delivery as well. In the past, logistics was not part of the sub-function marketing in which the departments made the focus on the unit sales within a given period. Sales forces, on the other hand, had their ways of realizing them (Christopher, 2011). Logistics initially entailed the issues of procurement, warehousing, and transportation of goods. As at present and on H&M Company in this report, logistic management has attained wider scopes and emphasis on supply chain management. For example, logistic management appears to a system of delivery of goods from one area to another. However, for this take place, there is need to configure properly the inventory system the same way as the systems of production. The configuration itself entails the manner by which the warehouse design specifications handle the inflow and outflows of goods expected from it. In this regard, the management of H&M Company has a kind of a store that meets their expected production targets (Bowersox, Closs, & Cooper, 2007). Apart from the design specifications, the configuration of the storage of H&M Company takes into consideration of the technical operation issues and economic concerns that ensure the smooth functioning of the warehouse. The issues here include the rack dimensions, palletizing methods, size and quantity of racks, the total quantity of systems available for retrieval.
During the configuration of the distribution network, the company made consideration of the model available. Other issues that it factored in include the nodes available within the company’s geographical area of coverage and capability or capacity which every node could deliver efficiently (Ballou, 2006). Many at times, the nodes of distribution are very rare within the supply chain and for this reason had to be given consideration. On the other hand, the management may have the option of the configuring network of distribution to zero. However, during such occasions and the logistics principles, restructuring of the present systems must be given priority before proceeding with such configurations. The process of restructuring in this case then relies on several factors to be successful after its implementation. Part of these factors includes the demand fluctuations, changes in the innovations and the available opportunities towards the outsourcing of techniques. On top of these, other factors include the change in policy that the government has on barriers to trade, transport and communication and supportive ICT sectors.
Upon the warehouse construction, the H&M Company’s management considered the decisions deemed to be very sensitive and as a result requiring deliberation on plus also the likely network that warehouse was to serve (Bag, 2016). Also, the internal pressures of management are part of the tactical decisions that the company put into consideration upon completion of the warehouse. Pressure from the management may take place on the resources available and the way to utilize them in an effective manner. External pressures on the other hand also may prevail on the management as they aim at the implementation of the tasks that lie ahead of them. In the warehouse or example, a manager has to come up with some decisions on the choice of racks over the merchandise available.
5.0 Conclusion
Within the scopes of logistic management, decisions considered to be unwise may lead to the generation of various issues. For example, there may be a failure in deliveries or delays that in the end may lead to dissatisfaction from a customer. Cases of logistic management that is poor with time lead to the increment in expenses and also other issues that may emerge because of the implementation of the logistic software that is not effective. Many of these problems happen because of the decisions were taken that are not proper about outsourcing like the selection of a wrong vendor is performing a delivery task without adequate resources. In the case of H&M Company, as discussed in this report, it needs to pay attention top collaboration instead of competition. Where there is good collaboration especially among those who offer transport services, both buyers and vendors would assist in the reduction of expenses. Added to the same time, an efficient and safe mode of transport from a provider is vital to the success of the business. As a manager in the field of logistics, he or she remains to be in charge of a busy demand in the warehouse. The supply of goods then is the major responsibility of the manager in combination with educating colleagues in ensuring the delivery of essential duties defined in the field of logistics and supply management.
References
Bag, S. (2016). Flexible procurement systems are key to supply chain sustainability. Journal Of Transport And Supply Chain Management, 10(1). http://dx.doi.org/10.4102/jtscm.v10i1.213
Ballou, R. (2006). Revenue estimation for logistics customer service offerings. The International Journal Of Logistics Management, 17(1), 21-37. http://dx.doi.org/10.1108/09574090610663419Bowersox, D., Closs, D., & Cooper, M. (2007). Supply chain logistics management (1st ed.). Boston, Mass.: McGraw-Hill/Irwin.
Christopher, M. (2011). Logistics & supply chain management (1st ed.). Harlow, England: Financial Times Prentice Hall.
Grant, D. (2012). Logistics Management (1st ed.). Harlow: Pearson Education Ltd.
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Nilsson, F. (2006). Logistics management in practice – towards theories of complexlogistics. The International Journal Of Logistics Management, 17(1), 38-54. http://dx.doi.org/10.1108/09574090610663428Rushton, A., Croucher, P., & Baker, P. (2010). The handbook of logistics & distributionmanagement (1st ed.). London: Kogan Page.
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