Laura Ashley

Topics: Inventory, Logistics, Supply chain management Pages: 2 (761 words) Published: March 18, 2009
Laura Ashley(LA) a global clothing and furnishing retailer based in United Kingdom, and logistics leader Federal Express Business Logistics Service (BLS) announced a strategic alliance to work together to mutually utilize and excel with each other’s expertise. LA had inadequacies in their warehouse management, distribution, working capital, responses to demand,and warehousing operations thus couldn’t control stock outs, stock levels, margins , stock replenishment , condition of end product thus endangering the happiness of the end user also as the product didn’t reach them in time as desired even if the product was in abundant in the warehouse. LA faced with weakness like overdependence in-house manufacturing, currency exposure, working capital intensity, excessive short term debt and rapid cash outflow resulting in expensive hierarchy with an inappropriate structure needing IT support for the system. Third party product services without a proper logistics would just duplicate functions, complicating systems and increasing the problem and investment. All SBU’s being independently managed by local logistics transportation system lead to overall system disaster, as there was no global vision leading to increased transportation and distribution routes, and excess ,stagnant inventory throughout supply chain. This can lead to obsolete product and thus hamper the total business. Thus with the IT systems development with the help of FedEx the entire supply chain was made more efficiently connected, with shorter lead times. Managing Collection, storage, inventory control, customs/administration, customer service support, international forwarding and air freight, delivery end to end, recording , forecasting and integrating all functions properly and thus enabling global control. Transparency and product delivery made at right time resulting in customer satisfaction helping LA to concentrate on core business. FedEx also enabled them for global and efficient purchase...
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