This report examines the logistics management system in Chandlers - an electrical home appliances retailing group, with its heavy capital investment in inventory. The major components of logistics management are discussed one by one, in comparison with the concepts presented in literature to the real operations in this company. Some problems are identified and suggested actions are made for future improvement.
Chapter 1 is a brief introduction to the definition of logistics and managerial issues in channel management, and is followed by a description of Chandlers company and the Vox retail group, to which it belongs, in chapter 2.
Through Chapter 3 to chapter 7, many critical issues are raised, such as the concepts of supply chain management, the third party contractor carriers, psychic stock in the store, EDI utilization and the relationship of high inventory and high customer service.
Finally, this report concludes that the problems identified can be solved, either with or without any capital investment. In the short run, improvement and maintenance of relationships with its channel members can assist in enhancing the customer service. For the long run, investment in EDI, EPOS, or even automated order picking process will benefit Chandlers by cost-savings, inventory control, and better purchasing decisions.