(BUS06131) Operations and logistics management assignment reviewing the operations and logistics management of Holt Renfrew
Task: Analyse the operational and strategic performance of Holt Renfrew. Evaluate the role of logistics in the success of Holt Renfrew. Analyse the organisational requirements for effective operations and logistics management in the industry as per case study undertaken for the operations and logistics managementassignment.
In 1837, in Lower Canada in Quebec City Holt Renfrew company was established. The founder of this firm is William S. Henderson. This is a retail industry in Canada. The headquarters of this industry is located in Toronto, Ontario. Andrew Jennings is the president of the retail firm. Holt Renfrew industry has 1,001 to 5,000 workers, working in this environment. One of the luxury retail companies in Canada is Holt Renfrew.
Figure 1: Holt Renfrew
(Source:Mendy-Zambo,Raphael, and Taman, 2021)
Holt Renfrew referred to for the operations and logistics management assignmenthas seven physical locations in Canada, including four in the Toronto Area, as well as in Montreal, Alberta, and Columbia (Mendy-Zambo,Raphael, and Taman, 2021). Consumers may also shop online at Holtrenfrew.com. This operations and logistics management assignment will study how Holt Renfrew is going to discuss operational and strategic performance and the key to the success of logistics.
Background of Holt Renfrew in the operations and logistics management assignment
The Selfridges Group, directed by W. Galen Weston, owns the network of upscale retail stores known as Holt Renfrew. It has locations all around Canada. Even though the industry's peak selling was in March, April, July, August, November, and December, it employed marketing strategies to advertise different items all year (Kumarand Perepu, 2020). The corporation may trace its roots back to a fur trader, who was born in Ireland and operated in Quebec City in 1837. Galen Weston, a Canadian investor, acquired the company in 2003 for about 600 million pounds. As per the operations and logistics management assignment since then, it has grown to incorporate additional chain store brands, such as Arnotts and Brown Thomas in Irish, both Holt Renfrew and De Bijenkorf are in the Netherlands. This logistics has both offline and online chains in Canada. The customer is very satisfied with its service. It is largely a structure from its time that was created in the Streamline Moderne Art Deco design style. There were adjustments over the period. James Kennedy made a tasteful addition to the structure's west side in 1946 (Dares,2021). The customers at Holt Renfrew's primary shop on Bloor Street in Toronto placed about 21,500 orders per year. As per the operations and logistics management assignment findings orders were typically issued many months ahead of time. Although the industry worked with over 3,000 customers, only about 1,000 of them were utilized annually.
A) Operational and strategic performance of Holt Renfrew addressed in the operations and logistics management assignment
According to the operations and logistics management assignment, one of the best retailers or logistics in Canada is Holt Renfrew. The customers of this industry placed orders with the distributors. In this firm, every month 1200 to 1500 complaints regarding the orders which are placed by the consumers (Spellman,Medders, Fullerand Graham, 2021). All the suppliers were shipped to the local Holt Renfrew distribution office, which is established in Mississauga, Ontario for claiming the issue related delivery of the commodity. The distributors were responsible for manufacturing and shipping the orders and the prices which are included in the product are supply free on board. The 80,000 square meters of distribution centre was intended to be pass warehousing where arriving items would be handled immediately and sent to the retail locations. A lot of selection, registration and item labelling were all activities in the distribution centre. As per the operations and logistics management assignment findings, the warehouse employees worked about 55 hours in the logistics, non-union entire employees, throughout two shifts. Employees received a $14.00 hourly wage salary plus, they amounted to an additional 25% of their monthly wages. The management periodically added unskilled workers to the workplace to skill them in this field. The company has the 60,000 square-foot secondary storehouses of Holt Renfrew, situated in Mississauga, which received merchandise that wasn't sold in the shops (Roller,2019). The business paid $5.00 per square foot per year for a warehouse lease and an extra $2.50 per square foot annually for tax, repairs, and security. The annual expenses like heating, lighting and energy were around $1.50 per square foot as per the findings in the operations and logistics management assignment. The distribution centre typically got $40 million in merchandise every month but at the busiest times, this amount may rise to $60 million. The distribution centre gets around 136,000 boxes and 32,000 sets of displaying goods each year. The company's overall performance is not soo good. Strategic performance management increases frontline managers' understanding of the groups' goals and offers a continuous system for tracking achievement toward these objectives using clear-cut performance data. As per the organization considered for the operations and logistics management assignment, Holt Renfrew, the strategic performance of the industry is the company has the 60,000 square-foot secondary storehouses of Holt Renfrew, situated in Mississauga, which received merchandise that wasn't sold in the shops. The business paid $5.00 per square foot per year for a warehouse lease and an extra $2.50 per square foot annually for tax, repairs, and security. Goods were transferred to the secondary storehouse if it wasn't sold at the last call and stayed there until proper preparations for disposition were made. The new strategy which is decided to be included by Holt Renfrew is to add Tony to skip the retiring supervisor of the industry, who worked under this logistics for 19 years (Loureiro, Al-Ansi, Ryu, Ariza-Montesand Han,2022). Tony, who worked as the vice president of finance, had much more than 20 years of experience in the UK and the US before taking this job. As part of the transfer process, their successor, who had already advanced through the levels of the Holt Renfrew industry division, has decided to continue working for two weeks following Tony's entry. The employees of this logistics company reviewed in the operations and logistics management assignmentwere not working properly. The commodities are out of stock every time tony decides to report to the vice president of finance and thinks about hiring some fresh ideas for enhancing the logistics and solving the problems of this industry, which are used in the process of business and population resource strategy. Tony is concerned with the organization closing the secondary warehouse. If this operation will be performed Tony wants a 20,000-square-foot floor to add the distribution centre at a rate of $1 million.
B) Issues related to logisticsdiscussed in the operations and logistics management assignment
By analyzing the operations and logistics management assignment for Holt Renfrew, get to know about the problems of the downfall of the logistic. In this firm, every month has 1200 to 1500 complaints regarding the orders which are placed by the consumers. The main issue identified by Tony is that workers spent their period time on a phone call to confirm and try to adjust the delivery which was held previously (Rosebush, 2021). Employees have to check up on expected delivery progress with vendors and travel services suppliers often since shops were continuously phoning in search of items. The current scenario at Holt Renfrew highlighted some of the logistical issues that arise due to a lack of storage space and an efficient transportation system. The main issue is the lack of storage space available for the firm. It has two storage facilities one distribution center and secondary storage which contain close to 40 million dollar inventory. The firm has close to 3000 suppliers but in a year it only utilizes 1000 of all of them. This thing shows its inability to properly utilize its suppliers. The lack of coordination between suppliers and staff of storing facilities created an environment of uncertainty. The system used for storage planning is inadequate and the process is inadequate which increases the net time product will take between its arrival and departure from the storage facility. It is found in the operations and logistics management assignmentthat there is also a lack of a proper system for quality checking of products that are received at a storage facility which hampers the management of stocks in the facility. This is the major cause of chaos in storage facilities which hinders its capacity to deliver products on time to retail stores.
C) Requirement of the organization addressed in the operations and logistics management assignment
According to the operations and logistics management assignment, it seems that each available space in the structure was filled with goods, which were also spread across the corridors and under the belt. Finding space to handle products and offload trucks in the order to be distributed to retailers was difficult. Finding the goods was like going on an adventure every time a retailer contacted to hunt down a delivery (Kruger, 2018). Shop senior managers protested that stock shortages were being caused by the DC. The main requirement for the retail industry is to have an efficient network of suppliers and a proper system for distribution. Operation planning generally includes identifying areas for improving storage and inventory and distribution systems. A proper system is required for establishing an efficient coordination network between suppliers and staff at storage facilities. To fully utilize the space available at inventory an efficient product management system is required at the storage facility. This will be very crucial in the case of Holt Renfrew where there is a lack of organization in the storage facility which leads to the inability in deliver products to retail stores. As per the findings of the operations and logistics management assignmentsharing the plan and the importance of proper organization of products in storage facilities to the staff is a crucial aspect of operational planning. Sustainability and proper implementation depend on an efficient monitoring system for reviewing the progress and identifying areas and taking necessary steps for mitigating risk in the future. A new storage facility will largely help in managing huge stock at the distribution center. But before making any decision the firm must focus its attention and resources on improving business planning, improving the product management system, and a better strategy for human resource management.Due to a lack of good workers to run the logistics Holt Renfrew needs new unskilled workers in his firm and makes them enter the place of old ones. He thought that the arrival of new ones has solved the issues of logistics and walked the industry on a good path, by which the company gains profitable income (Weder,Koenig and Voci, 2019).
No doubt, as per the operations and logistics management assignmentcase study of Holt Renfrew, the logistics of Canada has not had an overall good performance in the Canadian market. In 1837, in Lower Canada in Quebec City Holt Renfrew company was established. The founder of this firm is William S. Henderson. It has both offline and online marketing strategies. The customers of this logistics company were satisfied with their services. The employees of this firm handled the call for a long period and solved the query about past deliveries. Due to the lack of good workers, Holt Renfrew wants to hire new unskilled workers in their working environment. This operations and logistics management assignmentconcludes that a huge number of complaints from the consumers who were listed by the executives had to be deceased, the firm used to update its process and add new strategies to their business to help the logistics to earn profitable income.
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