Logistics Management

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[pic] University of Huddersfield

Course : BA (Hons) Global Business and Logistics Management

Subject Title: Logistics Management
Course number:SHT4012

Assignment: Logistics Operations within the UK and Hong Kong Home Grocery Delivery

Student Name: Lam Pik Kee, Pekky (Student ID#1078762)

Table of Contents:

1. Introduction………………………………………………………………………………................P.1

2. Background and Mission of PARKnshop & Ocado……………………………….P.1

3. Different Approaches of Logistics Strategies & Operation Management……………………………………………………………………………………………….P.2

4. Information Technology for Logistics Operations ………………… ……………..………………………………………………………………P.5

5. Key Difficulties ……………………………………………………………………………………..…P.6

6. Conclusion…………………………………………………………………………………………………….P.8

1. Introduction
This written report would underline all factors that directly /indirectly affected to Ocado ,UK and Parnshop,HK to fulfill the achievements during the entire home grocery delivery logistics operation process. Moreover, heaps of logistics strategies, IT solution would be founded in this report, at last; it will also discuss the key difficulties in maintaining a high level of customer service at optimal cost.

2. Background of PARKnshop shop & Ocado

2.1 PARKnshop Background
Parknshop is the leading supermarket chain and multi formats retail in Hong Kong, who operates more than 230 outlets in Hong Kong and also accounts for over 40% of the packaged food market, which is equivalent of 250,000 containers per year and offer on-line shopping and home delivery service. Their mission is “To be the family first choice for Food Shopping” [pic]Parknshop Group

|Industry: |Retailing | |Founded /Headquarter |1973 / Hong Kong | |Area Served: |Hong Kong, Mainland China and Macau |

2.2 Ocado Background
Ocado is a British Internet retailer specializing in groceries wholly focused on the home delivery of high-quality food, drink and household goods. The company has centralized warehouse based and picking model in CFC, online delivery without any physical shops. Their mission is “Great Value, Great Service, Great Choice and Great Way to Shop”

[pic] Ocado Group
|Industry: |Internet retail | |Founded /Headquarter |2002 / Hatfield,Hertfordshire, United Kingdom |

P1
3. Different approaches of Logistics Strategies & Operation Management After research, Ocado and Parknshop have some difference approaches for their operation management activities and success supply chain, sustained the continuous development for the entire group. A strategies consists of those plans or patterns of actions that integrate an organization’s primary goals, policies and activities into a coherent whole (Patrik Jonsson Logistics Strategy P.19)

3.1 Ocado -Logistics Operation Management and Strategies
In Sept,2002, Ocado currently operate a 295,000 sq ft, the Fulfilment Centre (CFC) in Hatfield which is largest and highly automated. In Jan 2003 it centralized all warehousing operation and running all the customer majority of orders are relayed from CFC 1 to spokes for ultimate outward delivery to customer. This is a centralized DC and all of products are receive and delivery from this CFC. 85% of inbound goods are delivered direct from producers to CFC1, whiles 15% are delivered from the waitrose supply chain, at full capacity CFC1 will be able to stock up to 40,000 grocery SKU. Delivery area expanded to over 70% of UK household in 2011. All of the order will be order by CFC which simplified the order processing and lower operation cost. This is better control over the products, reduce overall stock holding, reduce...
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