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  • Subject Name : Supply Chain Management

Case Study: Officeworks

Introduction

Officeworks was founded by the Coles Myer group in 1990’s which has become one of Australia leading office supply corporations which has focused on a vast demographic segment which covers the smaller section to larger section such as students to businesses. The corporation is steadily trying to enlarge its variety of merchandises while handling reasonable costs, a fiscal report in 2017 depicts an increment in the income of $1,964m which is the uppermost till present. Concentrating on the outlets and online expansion, Officeworks opened six new outlets summing up with a total of 164 shops successively operative throughout Australia. Though 87 per cent of sales are done through shops and 13 per cent of sales are achieved online. The corporation Officeworks always tries to advance its supply chains schemes to cope up with the era of encroachment and strives to keep its consumer joyful by its services.

The demand envisaged supply chain at Officeworks is rightly vibrant in nature which gives upsurge to the requirements of an effective supply chain management system. The corporation itself has a vital impact on Australia’s retail section. In order to accomplish a competitive benefit, the company requires to be advance on the regular basis to meet the consumer requirements (Ariu et al. 2019). The corporation with a projected income of $2 billion, the target marketplace for the organization varies from commercial institutions to students. The prime working of a supply chain is essential to operate a commerce functioning effectively. Therefore, enhancing price, improving consumer experience and handling an effective distribution chain is the motive that the company motives to accomplish. The restrictions of a distribution chain comprises but is not constraint to supply, demand, costs, transportation, postponements etc.

Company Background

Officeworks Business

The corporation tops in the category within the office distribution product classification. The corporation shops comprises of more than 40,000 products in which 1,000 to 2,000 merchandises yearly. The company aims to provide for the whole requirements of the small segment offices, home offices, and families with student sectors.

Major customers

The company Officeworks majorly focuses on the all the segment of the society as it deals with all the merchandises that are essentially needed for the people ranging from student to office works. From a pencil to workstations, Officeworks likewise contains 30,000 products which are considered to be required from every age group at reasonable costs.

Number of employees

The organization is a linkage of the Australian office supplies shops functioning under the parent corporation Westfarmers. At present, the corporation is having 167 shops and a total number of 8000 employees (Calvo & Martínez-de-Albéniz, 2016).

Management style

The company at present influences PageUp’s Performance and Learning Modules to assist an enriched performance handling procedure and assist every worker to comprehend their part in the corporation’s motive. In order to cope up with the hurdles of applying a novel method and the computerization of this approach, the management crew enhanced an intrinsic alteration management program that gave idea of about implementing the novel procedure and machinery that would bring advantage to every individual. Through this comprehensive talent management program, which is acknowledged to be named as OTIS (Officeworks Talent Information System), the corporation has been able to clarify the talent handling procedure.

Organizational structure

The organizational structure of Officeworks comprises of:

  • Managing director

  • Chief financial officer

It deals with two other department such as head of property and head of strategic investment and planning.

  • General Manager health and wellbeing

  • General Manager of marketing

It deals with four other segments such as customer experience and Ecommerce, brand design, business partnering, merchandise, marketing supply chain &customer experience and strategy development.

  • General Manager of merchandise

It also deals with four other sections like furniture, supply chain central operations, supply chains operation, and supply chain transformation

  • General Manager of human resource

It deals with two more departments such as safety and sustainable development.

  • General Manager of technology (Christopher, 2016).

Financial position

The financial position of Officeworks can be determined as:

The corporation has generated income of $2314 million for the year 2019 which is an increment of 8 per cent on the consistent year. Remunerations up surged to 7.1 per cent to $167 million. Income upsurge was conveyed through ongoing investments in cost leadership and efficient management of price of performing commerce which outcomes in an increment in lieu on capital of 0.4 percentage points to 17 per cent. The corporation would continue to enlarge its focused marketplace with relation to the consumer requirements and would also discover development in the novel sections for the purpose of small and medium sized commercials. In whole, it is assessed that these chances could enlarge Officeworks probable whole addressable market to $41 billion which is more than twice the present focused marketplace (Dubey et al. 2017).

Types of facilities

The organization mostly comprises of:

  • Printworks

It includes laminating, photocopying, ID photos, custom endorsement products, and name badges.

  • Tech works

It comprises of speakers, laptops, computers, headphones, Apple products, ink cartridges and etc.

  • Furniture works

It involves desks, chairs, cabinets, workstations, pedestals, lighting and various office furniture.

  • Stationary

It includes pen, paper, and several other office stationary requirements.

  • Art and craft supplies

It comprises of water colors, pencils, drawing pencils etc.

  • Early learning and development products

It includes craft kits, puzzles, shape and letter sets and etc.

  • Mailman

It includes parcel postal services like document delivery amenities etc (Genovese et al. 2017).

Supply Chain Structure

Distribution chain

With the total of 40,000 merchandise reached, Officeworks end to end distribution chain is worldwide and complex. In order to safeguard that the merchandise vended are morally obtained, Officeworks has a complete method that is constructed at the values of transparency, integrity, collaboration and continuous improvement, aiming to safeguard employees’ rights for the duration of the supply chain. All suppliers of products and services are required to adhere to the Officeworks’ Ethical Sourcing Policy, which aligns to the values set by the International Labour Organisation (ILO) and the standards of the ethical trading Initiative (ETI). Officeworks is a member of Sedex, the world’s biggest collaborative platform for sharing accountable sourcing information on deliver chains (Ghumaan & Dhiman, 2016).

To make sure that suppliers are complying with the Ethical Sourcing Policy, a threefold technique is taken. Firstly, Officeworks seeks to apprehend what regulations and mechanisms that suppliers have in place to ensure that they are safely monitoring and addressing human rights inside their very own deliver chain and that it aligns to the Officeworks Ethical Sourcing Policy. Secondly, if these regulations do not meet the equal requirements and necessities, providers are required to sign up with Sedex and complete the self-assessment questionnaire.

This offers Officeworks a perception into the operating situations at the site where the products are produced. In the end, Officeworks may also then request third celebration audits that provide an impartial certain assessment of the conditions within the factory. Upon overview of these audits, Officeworks seeks to paintings with its providers and factories to cope with any issues through a remediation technique, which involves comply with-up audit to make certain that corrective moves have been implemented (Hugos, 2018).

There are presently 1015 production websites registered on Sedex that deliver products to Officeworks. Throughout the 2018 financial year Officeworks reviewed audits from 441 of these web sites, issuing dealer rankings and approval periods, primarily based at the running conditions recognized at the audits. Where infringements are identified, inclusive of insufficient personal protecting equipment, Officeworks works with providers to implement corrective action plans, which are carefully monitored to make certain that they're addressed in a well-timed way - the timeliness of that is primarily based on the severity. All through the 2018 monetary year, there was one case where a dealer was unwilling to put in force corrective actions, ensuing in the products being resourced from an extra collaborative provider (Kjellström, 2017).

Officeworks recognises that persons are the backbone of the supply chain, and therefore guarantees all providers, together with those us work with local and more immediately overseas, are upheld to the equal standards. Officeworks will hold to paintings with suppliers to enhance the operating situations of the people worried in producing the products offered at Officeworks shops.

Sourcing Materials and Services

The organization is dedicated to sourcing goods and services in maintainable and accountable means. This is supported by the way of work accomplished within the commerce and with the partners coming under the supply chain. Responsible sourcing targets basically on three major themes which safeguards the suppliers work in a moral and responsible way such as:

  • Sourcing wood fibre responsibly and sustainably

  • Sourcing goods and services ethically

  • Reducing our environmental impact (Mangan & Lalwani, 2016)

Sourcing wood fibre responsibly and sustainably

Consistent with Officeworks’ Sustainable Wood-Fibre Sourcing Policy, all paper and/or timber products offered, need to be responsibly sourced or contain 100% post-purchaser recycled material. The organisation prohibit paper and/or wood from excessive threat or illegal assets and our suppliers are required to finish a forestry questionnaire and provide applicable proof to assist their sourcing claims. The business enterprise aim is that by December 2020, all paper products they promote will either be FSC licensed or be made from one hundred% publish-consumer recycled content. All furnishings products will be sourced from demonstrated felony, low-risk, responsible assets or might be FSC certified.

Sourcing goods and services ethically

The company Ethical Sourcing and Modern Slavery Policy marks the obligation to safeguard that goods and services are found in an accountable manner though working with suppliers to improve their environmental and social practices. Suppliers are considered for the risk as per the handling of ethical and responsible sourcing threat and are needed to validate acquiescence to Officeworks Ethical Sourcing and Modern Slavery Policy. It has been demonstrated that limpidity and association are vital to support and admire human rights and labour circumstances during the supply chain (Paul & Rahman, 2017).

Reducing our environmental impact

The organization Sustainable Packaging Policy marks the prospects for the suppliers to assist the usage and quantity of sustainable wrapping for the merchandise delivered to the company to endure to deduce influences from merchandise wrapping.

Suggestions

  • It should function under a certified ISO14001:2004 Environmental Management System or by operating according to the strategies to endorse sustainability and deduce the contrary environmental effects of their function.

  • Keenly endorse and assist Australian self and indigenous commerce.

  • Rigorously observing to an Ethical and Environmental Sourcing Policy

  • It should be a signatory to the APC (Australian Packaging Covenant)

  • Providing an large variety of environmentally preferred merchandise

Distribution system of the identified major customer

There are many suppliers of the commerce which delivers many commodities to the corporation for its retail shops. Officeworks global sourcing merchandiser is the Leah Coleman who is the head of the sourcing segment of Officeworks Australia, who is accountable for handling the associations with the suppliers. The corporation distributes its merchandises to the consumers through retails shops at several locations. There are a total number of 167 shops at numerous sections that aid to give several retail goods. Additional, the corporation also have consignment consolidation that permits allocating its merchandises to the consumers in various nations. The corporation provides its customer service through on-site tech assistance through Geeks2U (Pettit, Croxton & Fiksel, 2019).

Retailing

Retailing is the vital commercial of the corporation under which it gives several merchandises comprising of office products as well as the stationary items to its customers. The products like Printworks which comprises of laminating, photocopying, ID photos, custom endorsement products, and name badges. Tech works which includes speakers, laptops, computers, headphones, Apple products, ink cartridges and etc. Furniture works which comprises of desks, chairs, cabinets, workstations, pedestals, lighting and various office furniture. Stationary items includes pen, paper, and several other office stationary requirements. Art and craft supplies includes water colors, pencils, drawing pencils etc. Early learning and development products which includes craft kits, puzzles, shape and letter sets and etc. Mailman which provide parcel postal services like document delivery amenities etc (Rahman et al. 2017).

Merchandising

It is the method by which the retail shops in order to endorse their merchandises by representing them at the shops. The merchandiser safeguards that there is a precise quantity of products available in the shop or at the online setup in order to make the accurate distribution to the consumers. They work intensely with the buying segment so that the efficient scheduling and predicting of the merchandise would be completed. In Officeworks, the corporation makes every possible efforts to give an improved errands experience to the peoples at the shops or from online website. Officeworks has employed merchandisers with the substantial skills in planning and have a strong knowledge base. Furthermore, in order to entice consumers through its notion of ‘purchasing inexpensive’ for the consumers (Rajé, 2017).

Suggestions

  • Incrementing or cautiously choosing the network intermediaries.

  • Incrementing the emphasis on supply chain management

  • Associating all networks into a solitary, resilient channel.

Demand Management

After accomplishing successful with retail forecasting carrying out Australian supply chain accessing firm GRA has combined with Officeworks to progress the commercial planning operation which includes precise enhancements to procedures and systems with the incorporation of GRA’s lead predicting and scheduling software, GAINS, and its IT platforms. The corporation is Australia’s foremost retailer and supplier of the office merchandise and solutions for house, commerce and tutelage requirements and has collaborate with the GRA’s wide list of blue- chip clients (Ran, 2017).

Inventory System

Inventory management is a device which businesses uses to preserve track of the items, right thru from ordering and storing to selling. An enterprise that has an efficient inventory control device could have the accurate stock available, within the right quantity, at precisely the right time. Accurate stock management practices can safeguard the commercial enterprise from having funds tied up in extra stock or having to pay for storage space. It also means that it is in a higher position to capitalize on sales, and in turn, force earnings.

Inventory management techniques

The manner corporation will manage stock will rely upon the dimensions and stage of the enterprise. For those starting out from domestic, the living room or spare room often doubles as 'warehouse' and this will prove tough for numerous motives. The business enterprise uses an Excel spreadsheet to hold song of the inventory reachable and orders most of the product in bulk while elements run low. Bulk ordering is one of the many stock control systems in practice.

Inventory control challenges

One of the maximum commonplace demanding situations to stock management is having an over or beneath deliver of inventory. An oversupply of inventory fees cash because it takes up area and requires storage and upkeep. It also ties up capital you may be the use of for advertising or different business expenses, and there's a risk of getting a product as a way to never promote.

The other reason is an undersupply of inventory may be equally tricky. Order too little and it is able to run out of inventory, missing out on potential income. Being not able to serve the clients can be adverse to a small business that is predicated on purchaser self-belief and loyalty, it is stated under a study of German clients by using GT Nexus located that sixty three in keeping with cent of buyers who encountered out-of-inventory stock selected to buy the product from a competitor or simply did not purchase it at all (Shafiq, Johnson & Awaysheh, 2019).

Another stock control venture is simply how difficult it may be to expect call for. inner troubles consisting of stock delays, new merchandise and inaccurate report-keeping can impact inventory, as do the changes out of doors of your manipulate, like market call for. This type of stock evaluation is time-ingesting but can be finished effectively with the assist of stock management software program, consisting of change Gecko or Xero.

Suggestions

There are numerous other commonly used strategies:

  1. Just in time

The usage of this device, it enables reduce waste and saves on garage expenses however may be complicated if the dealer is not on time and cannot deliver stock on time.

  1. Forecasting

This system is based on educated guesses based on previous sales figures as to how many income it's miles going to make over a period of time. In step with this, the records may be used as the basis for the inventory order.

  1. First in, first out.

This is where goods are sold within the same chronological order as they have been bought. It is particularly beneficial for perishable gadgets including food, however can be used for any product which are not important and want sitting around for a long time period, either because it is prone to harm, or it runs the danger of turning into obsolete.

Conclusion

In the conclusion, it can be stated that the corporation Officeworks was established by Coles Myer with the purpose of selling office goods and stationary items which focuses the people ranging from every age group. The company aims to sell its products at a very reasonable costs which can be affordable to the consumers. The corporation has a total number of 167 shops and about 40,000 merchandises. The organization applies sustainable methods in its sourcing of goods and materials which are abiding by law.

The company Officeworks uses a comprehensive procedure that is made by keeping in minds the morals of transparency, association, ongoing advancement, integrity, focuses on the worker’s rights during the supply chain. The distribution system is highly dependent on retailing which consists of the various merchandises kept in the shops and merchandising which endorses the products in order to attract the consumers. At last, the inventory system of the corporation helps the organization to work efficiently and precisely by using the modern technologies in the department.

It can be said that Officeworks has strong management and employees which are responsible for its continuous growth and expansion and also has keen knowledge about the demand management as well as the inventory management which aids the corporation to deal with the customer’s altering needs and ensures them timely distribution of the orders placed by them with premium quality at reasonable costs. At last, Officeworks with its efficient management and wide range of products tops the Australian retail market with highest profit earners.

References

Ariu, A., Breinlich, H., Corcos, G., & Mion, G. (2019). The interconnections between services and goods trade at the firm-level. Journal of International Economics, 116, 173-188.

Calvo, E., & Martínez-de-Albéniz, V. (2016). Sourcing strategies and supplier incentives for short-life-cycle goods. Management Science, 62(2), 436-455.

Christopher, M. (2016). Logistics & supply chain management. Pearson, UK.

Dubey, R., Gunasekaran, A., Papadopoulos, T., Childe, S. J., Shibin, K. T., & Wamba, S. F. (2017). Sustainable supply chain management: framework and further research directions. Journal of Cleaner Production, 142, 1119-1130.

Genovese, A., Acquaye, A. A., Figueroa, A., & Koh, S. L. (2017). Sustainable supply chain management and the transition towards a circular economy: Evidence and some applications. Omega, 66, 344-357.

Ghumaan, G. K., & Dhiman, P. K. (2016). Perception of Fair Price Shop’s Dealers towards Public Distribution System. International Journal of Business and General Management, 5(6), 11-24.

Hugos, M. H. (2018). Essentials of supply chain management. John Wiley & Sons, New Jersey.

Kjellström, E. (2017). Organizational routines in global sourcing. Culture and Behavioral Strategy, IAP, New York, 189-210.

Mangan, J., & Lalwani, C. (2016). Global logistics and supply chain management. John Wiley & Sons, New Jersey.

Paul, S., & Rahman, S. (2017). A quantitative and simulation model for managing sudden supply delay with fuzzy demand and safety stock. International Journal of Production Research, 1-19. http://dx.doi.org/10.1080/00207543.2017.1412528

Pettit, T. J., Croxton, K. L., & Fiksel, J. (2019). The evolution of resilience in supply chain management: a retrospective on ensuring supply chain resilience. Journal of Business Logistics, 40(1), 56-65.

Rahman, N., Sohan, S., Rizvi, M., Hassan, M., & Haque, M. (2017). Genetic Algorithm Approach for Optimization in a Multi Objective Supply Chain Network. Imperial Journal of Interdisciplinary Research (IJIR), 3(1), 1895-1900.

Rajé, F. (2017). Transport, demand management and social inclusion: The need for ethnic perspectives. Routledge, London.

Ran, S. U. N. (2017). Study on the Joint Distribution at Retail Shops. Logistics Engineering and Management, (4), 41.

Shafiq, A., Johnson, P. F., & Awaysheh, A. (2019). Emerging economy sourcing: Implications of supplier social practices for firm performance. International Journal of Production Economics, 218, 148-158.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Supply Chain Management Assignment Help

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