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Managing Business Logistics & Negotiations (UG)

Introduction - Managing Business Logistics & Negotiations (UG)

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The primary goal of this paper is to identify the different forms of supply chain management-assisted business logistics and negotiations. The term "logistics" is often used to refer to the operations that take place inside a single company. Networks of firms that collaborate to bring a commodity to the marketplace are known as supply chains. Modern supply networks must adapt to meet the expectations and difficulties of new distribution networks. Boohoo Group plc's distribution system, as well as logistics, will also be discussed throughout the study. Boohoo Group plc's supply chain managers need to plan out numerous SCM procedures in order to keep processes operating as smoothly as possible Consumer demands, additional routes to market, global complexity, and a variety of sorts of suppliers have all combined to create considerable hurdles for the whole supply chain.

Supply chain management and inventory management are also part of traditional logistics. As a part of supply chain management, advertising, innovative product development, financing as well as customer support all seem to be part of SCM. To put it another way, logistics is the practice of keeping tabs on and directing the flow of products. That is only the beginning of the extent of controlled processes, but Transport management, cargo as well as inventory control, and handling of materials, including order fulfilment, are some of the components included here. Optimization of income, physical labour, educated judgments, and exceeding customer expectations are all part of an effective logistics control procedure. As a result, a better supply chain, as well as logistics control, will be beneficial to the aforementioned firm.

Main Body

Background information of Boohoo Group plc

Boohoo Group plc is a UK’s online fashion retailer for 16-30-year. The company was founded in 2006 and had £ 856.9 million in 2019. The company specializes in their own branded fashion apparel with over 36,000 products. The main focus of Boohoo Group is on digital and social media for marketing. In other words, it occupies the platform that the target audience uses regularly. The brand has successfully collaborated with social media marketing and influencers and is at the core of its identity. Boohoo Group plc is a holding company operated through a subsidiary that operates an online clothing retailer (Kain et al.,2018).

The company's largest shareholder is founder Mamoo Abdullah Kamani, with Jupiter Fund Management being the second largest. Interestingly, Price also owns a large 11% stake in Boohoo's rival ASOS (just behind Bestseller, ASOS's largest shareholder). Boohoo Group plc has more than 200 campuses in 186 in the UK and Ireland, more than 400 campuses in the US and Australia, and more than 4 million Instagram followers. The ambassadors of the organization are part of the wider boohoo family, enjoying exclusive travel and events and branding and promoting throughout the campus. The organization has the vision of that all the materials the organization use for garments shall be more sustainable in 2025: All polyesters and cotton will be recycled or more by 2025 (Lai et al., 2018).

Market outlook

The Boohoo Group plc designs, procures, and sells clothing, shoes, various types of accessories, and beauty products. As of March 31, 2022, the total number of issued shares is 1,267,698,710. As of March 4, 2022, 29.1% of the shares are not publicly traded (Anca et al., 2019). Demand of their product remains high in the market and the organization gives tough competition to their competitors.

Boohoo Supply chain Management system

Boohoo has placed robust attention on growing green delivery chains, meaning it may carry garments from the catwalk to the closet inside some weeks. They are using electric vehicles for transporting raw materials and others to reduce the harmful impact on the environment. Its agile delivery chain permits it to reply fast and adjust to the purchaser's pReferences. At the maximum essential level, Supply Chain Management (SCM) controls the drift of products, data, and price range associated with a product or service, from the procurement of raw substances to the transport of the product to its very last destination. Supply chain control controls the drift of products and offerings and consists of all approaches that remodel raw substances into final products. It includes the lively streamlining of a Boohoo Group plc deliver-facet sports to maximize client cost and benefit an aggressive benefit with inside the marketplace (Tu et al., 2018).

The Supply chain Management (SCM) represents an attempt through providers to increase and put in force delivery chains which can be as green and low cost as possible. Supply chains cowl everything from manufacturing to product improvement to the statistics structures that had to direct those undertakings. Boohoo focuses on building an efficient supply chain. This means the Boohoo Group plc can carry the clothes from the runway to the closet in a few weeks. Moreover, they have good collaborations with their suppliers and distributors. Its agile supply chain allows it to respond quickly to changing customer preferences. The global manufacturing supply chain of Boohoo list includes approximately 1,100 factories after an extensive mapping and audit period launched last year.

Logistic Management system

A logistics management system combines the software tools in the Boohoo Group plc that streamline business processes from start to finish. Logistics management systems help the Boohoo Group plc to process orders, manage inventory, transfer orders to the customers, and return orders as needed. A logistics management system is a way to plan, integrate, and regulate the supply chain of shipments, material storage, and inventory, including the time between reaching a point and meeting customer needs. Logistics management systems benefit the Boohoo Group plc by providing fast, high quality, and accurate service that enhances their experience. It also helps Boohoo Group plc gain insights into the supply chain, reduce costs, and streamline the logistics strategy. Order management begins when a customer places an order and ends when the package or service is received. Order management software in the Logistic Management of the Boohoo Group plc streamlines the fulfilment process, automates tasks, reduces errors, and makes customers get what they need faster.

Challenges for Boohoo Group plc

  1. Boohoo Group plc's profit levels are indeed being pressured by rising distribution network expenses. The absence of responsibility, as well as openness in all of these areas, might contribute to increased operational expenses since these costs originate from several sources.
  2. The Boohoo Group plc firm faces a number of issues, including growing gasoline expenses, increasing costs for raw materials, as well as rising labour expenses. The expense of keeping as well as delivering goods is significantly increased by complicated global transportation.
  3. A complicated issue, managing consumer items across many channels is a burden for the company.
  4. Shipping delays might be difficult for online stores that trade immediately to customers. In order for customers to get their purchases as fast as possible, drop shipping retail needs global delivery solutions.
  5. Enormous storage facilities in significant urban areas, as well as precise stock control, are required by conventional retailers as well as distributors in order to assure the availability of products.
  6. Boohoo Group plc, as well as other third-party marketplaces like it, need a thorough knowledge of fulfilment choices as well as a strict commitment to their norms as well as terms.
  7. An excellent end-customer experience is dependent on supply chain managers managing numerous distribution networks, third parties as well as other businesses.

Benefits of supply chain management

 Better collaboration with suppliers: Suppliers of the Boohoo Group plc have to understand the company's cost constraints, and the goals can be especially important for the low-margin companies. This can be stated that manufacturers selling to retailers who expect a 40 to 50% higher premium than the factory's gate price may face profit pressure if raw material prices are too high.

 Better quality control Shipping: Quality control issues can be identified faster when the Boohoo Group plc and the supplier work on the same standards. It is essential to Emphasize the benefits of trust with suppliers in the Boohoo Group plc (Ageron et al., 2018).

 Optimization Inventory: Logistics costs are expected to increase significantly, impacting SMEs in the UK. By reducing the number of individual distribution channels and hiring logistics specialists, the Boohoo Group plc can reduce the distribution costs compared to competitors and generate stronger cash flow and profits.

 Overhead reductions: An efficient supply chain in the Boohoo Group plc can reduce the need for warehousing, thereby reducing the overhead associated with storage and security. It is essential to maintain the low inventories, put more pressure on the distribution network, and reduce the resilience of supply chain shocks.

 Risk mitigation improvements: In general, the more issues in the supply chain, the higher is the cost of remediation. This is why supply chain management, which provides end-to-end supply chain visibility, is so important.

Stronger cash flow companies: SCM of the organization reatly benefit the Boohoo Group plc liquidity by improving cash flow by operating an efficient supply chain based on good supplier relationships, maintaining strict quality and inventory controls, and carefully monitoring costs and prices(Kozma et al.,2019).

 Improved visibility: The Boohoo Group plc managers can stay in touch with suppliers through mobile apps, conferencing platforms, and shared dashboards. Software tools can also help the company efficiently manage inventory levels, track sales channels, and monitor store performance.

Benefits of Logistic management

 Customer satisfaction: As customers demand, transportation providers must provide high-speed and high-quality service. Management strategies should constantly aim to improve the transportation process and avoid losses. This is also important because it is directly related to customer satisfaction. Providing better customer service can build a good reputation for the company's business and increase business opportunities. A smooth freight transfer process inside and outside the company helps bring value to the customers. The Boohoo Group plc can satisfy all the customers (Moons et al., 2019).

Cost Savings and Visibility: Doing visible work is paramount to the proper functioning of a company's supply chain. The efficient TMS (transportation management system) system analyzes historical data and provides real-time freight movement inside and outside the Boohoo Group plc. All this information is very important to the logistics manager as it helps avoid confusion and increase the efficiency of the process (Muessigmann et al., 2020).

Efficient cost reduction: Logistics management helps the Boohoo Group plc manage incoming cargo, properly organize the flow of goods, maintain optimal inventory, and reduce costs.

RFID Technology in SCM and logistics

 Autonomous item recognition, as well as monitoring, are made possible by the employment of radiofrequency electromagnetic signals as well as different forms of wireless non-contact RFID devices. The distribution and monitoring of commodities are especially well adapted to this RFID technology. To monitor supply chain workflows and give more relevant data regarding manufacturing facilities, inventories, asset management, as well as business operations, RFID may be used by organizations such as Boohoo Group plc. Streamlining these processes via automation may be achieved through the proper use of the data collected (Abdirad et al.,2018). E-commerce has enhanced its logistics operation using RFID technology to deliver a more transparent and interactive experience for customers. The Boohoo Group plc's merchandise may be found and monitored thanks to Radio Frequency Identification (RFID) automatically. The use of RFID technology in supply chain management minimizes the number of employees required to locate things. Scan all barcodes, seeking for missing products and counting inventory levels are no longer time-consuming tasks that must be performed by employees. Because it can scan numerous tags at once, RFID has the potential to be more effective than traditional barcode technologies. While barcodes, as well as wireless scanning devices, can immediately detect and record data within a scan range, tags may store more data per chipset (Tönnissen et al., 2020).

Increased efficiency of Boohoo Group

To improve the efficiency of the Boohoo group plc, it is very much necessary to concentrate upon the various types of SCM or else supply chain management and the logistic management criteria. Implementing different types of new, innovative technologies such as RFID (the technology can track the goods thus, can understand the exact location and likewise, increase efficiency), with employee considerations, extensive training, and cost savings are some of the most effective strategies that the Boohoo Group plc can use to increase supply chain productivity (Verhoeven et al., 2018). The various types of essential Tips for increasing Efficient Supply Chain Management

  1. Obtain a trustworthy provider.
  2. The significance of obtaining the proper provider cannot be exaggerated.
  3. Invest in employee development.
  4. Continuous improvement.
  5. Use new technology.
  6. Improve return management. To maximize surplus,
  7. In order to maintain the distribution network, it really is critical that every member of the network reinvest, develop, as well as innovate.

Cost reduction of Boohoo Group

To reduce the overall costs of the Boohoo Group plc, warehousing and warehousing should be fully optimized as part of a broader supply chain strategy. For example, companies can focus on their operations to reduce costs (Kummer et al., 2020). For example, space optimization, damage reduction, packaging minimization, and more. Consolidating stock levels, rebuilding smarter transport systems, establishing improved procedures, as well as enhancing connections among vendors and intermediaries are some of the ways to cut logistics expenses, as per experts.

  1. The various types of Centralized Procurement are very much necessary for cost reduction.
  2. Have to Focus On the different types of the informed procedure for Decision Making.
  3. Using technology such as RFID can help to track the goods and reduces the need of human labour. Thus, it also helps to reduce the cost.

 Thus, if is recommended the organization shall invest at least 5% of their profit to incorporate the technology in their entire warehouse. They shall also train their employees to use the technology. It shall make the SCM more cost effective.

Boohoo's a current sustainable business strategy

The various types of the Sustainable Business Strategy are very much essential for the Boohoo Group plc. Sustainable business strategies are viable steps that companies take to improve the impact on Boohoo Group plc communities and the environment. Implementing a sustainable strategy can take some time, but it should also benefit the company and its employees if done correctly.

To implement your strategy, the company need the following core elements:

  1. Awareness of Strategic Context
  2. Understand global and local sustainability issues that can affect the organization.
  3. Focus on priority (essential) issues that require management.

Likewise, the organization has the strategy to include fully green supply chain and to include advance technology to enhance the organizational efficiency.

Goals for 2030

The Boohoo Group plc ambassadors are part of the wider boohoo family, enjoying exclusive events and branding and promotion throughout the campus (Rejeb et al., 2020). All the materials for the company will be more sustainable and shall be recycled (as much as possible) by 2030: All polyesters and cotton we use will be recycled. Electric vehicles shall be used rather than fuel vehicles. The company decided to broadcast their business in the world. As the organization has already included electric vehicles and recycling process, thus such policy shall help the organization to become sustainable and to incorporate green SCM completely by 2030.


  1. It can be recommended that The Boohoo Group plc shall focus on the various types of the company's raw material (they shall select such products which can be recycled).
  2. It has to recommend that the cost-reducing factors are also very much essential.


It can be concluded that Supply chain management is recognized as one of the most important management processes of critical business processes across the network of Boohoo Group plc.


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