In your case study paper, you will address the following questions:
Explain how software, technology and equipment has improved the systems for Argos five-year transformation program. Please be explicit in your response
Identify two outstanding challenges that remain with respect to customer relationship management for our gross five-year transformation program. Please be explicit in your response
Describe two types of innovations that are gross utilized with respect to materials management and handling in their supply chain process for the five-year transformation program.
People have always been considered vital ingredients in any successful enterprise supply chain. Discuss how the employee training programs in our gross five-year transformation program assisted to optimize employee participation and effectiveness.
You will submit a paper of at least 500 words, not including title or reference page. This case study paper is worth 100 points.
You will need use at least one source, the course textbook, to support the conclusions provided. All references are to be from academic journals, professional or academic textbooks, authored websites, or standard business publications, such as The Wall Street Journal. No more than 15% of the content can be taken directly from all sources. This means if TurnItIn is used, then the similarity index must be 15% or lower. The final score of the case study will be reduced by one point for each percentage point over 15%.
NOTE: Wikipedia and unauthored websites are not acceptable sources. Do not use these types of sources, or you will lose points. The reason is, if you look at the home page for Wikipedia, you will note that anyone can post or edit the material and in the past false information has been placed in Wikipedia. Therefore, it is not a good place to source information from; although it can be useful to get links and ideas! There are several universities and instructors who simply will not accept Wiki citations. It can be used as a place for expanding your ideas etc., but as a cited source in a submission it is not a good idea!
The format of the paper should conform to Publication Manual for the American Psychological Association (APA) 7th edition, for the title page, text, citations, references, and so forth. A basic APA tutorial can be found in the Web Resources section of the Course Resources page (available in the Introduction and Resources module). Submit the completed paper as a Microsoft Word document. All graphics are to be a part of the single case study document you submit. Documents authored in other applications, such as WordPerfect or Microsoft Works, will not be accepted. For more information, see Paper Outline and Guidelines sections below.
Each case study is to be accomplished individually and will reflect the work of each student. All DeVry University policies are in effect, including the plagiarism policy. Late papers will not be accepted without prior permission.
Structure your analysis. Use headings and subheadings and follow APA guidelines.
Paper Outline and Guidelines
The following are best practices in preparing your paper. Follow APA guidelines in constructing your case study.
Cover page: This includes who you prepared the paper for, who prepared it, and the date. Follow APA guidelines for the format.
Body of the case study: Follow the outline noted above. Use titles to identify different areas you address. Follow APA guidelines for the format.
Summary and conclusion: Summarizing is like paraphrasing but presents the gist of the material in fewer words than the original. A conclusion identifies the main ideas and major support points from the body of your report. Minor details are left out. Summarize the benefits of the ideas and their effects.
References: References are required. Follow APA guidelines for the format.
Additional hints on preparing the best possible project are as follows.
Apply a four-step process of writing: plan, write, complete, and review.
Prepare an outline of your research paper before you go forward.
Complete a first draft and then go back to edit, evaluate, and make any changes required.
Use visual communication if it will help clarify and support your work. Any materials that can be removed and not affect the clarity of your work are essentially fillers and should be avoided. Fillers distract from the flow of your work and will most likely cause you to lose points.
Page 494 from book
Omnichannel Transformation–Argos and LLamasoft (2017)
Argos is a £5.7bn general merchandise retailer in the UK operating 840+ stores. In 2013 they announced a £300m five-year transformation program to become a truly multichannel retailer.
Over a 4-year period Argos developed a market leading customer proposition using LLamasoft’s professional services and software.
They now offer an award-winning service with same-day collection and delivery with demanding order cut-off times for 20,000 products throughout the UK.
The journey began when Argos embarked on a strategic review of its business, focusing on customer proposition. This review was driven by research into the customers’ expectations of a digitally evolving retail environment, with the goal of positioning Argos as a leading digital retailer.
Research carried out identified that customers wanted several key propositional dimensions that would challenge existing and traditional supply chains at affordable costs, including
A choice of fulfillment to home or point of pickup.
An expectation of fast and convenient home delivery.
Local convenience when collecting orders.
A seamless link between e-commerce, mobile commerce, and physical stores.
Consistent delivery of fulfillment promises.
A wide range of products on an expedited lead time.
A simple convenient way to return any product.
The review highlighted key strategic advantages in the Argos existing real estate model that could be leveraged for competitive advantage in developing an omnichannel fulfillment proposition, including
Real-time, local, store stock balances.
A history of putting these real-time balances in the customers’ hands with supporting processes to ensure accuracy to 99.99 percent.
A store model more characteristic of 840+ nationally distributed warehouses.
Strategic insight into the notion that key online players were developing links with partners who have physical points of presence.
However, the existing store estate varied considerably in both size and immediately available range—with inconsistent, and lengthy, lead times for the products not held in hundreds of smaller stores. Lead time for products not held suited existing replenishment operations—not that of the Argos customers’ fulfilment requirements. The one-man home delivery offer left customers waiting in all day 8 am to 7 pm.
There was a fundamental need to capitalize on the structural advantages and reengineer the supply chain operating model (systems, process, people, skills, and infrastructure) in order to deliver compelling customer propositions in a way that was not previously possible. The business required growth to be sustained through more cost-effective ways of working and the release of working capital so that it could deliver the strategic vision.
With over 40 percent of sales facilitated through online interactions, and over 80 percent still involving a physical store, it was important for Argos to focus on their Supply Chain to deliver the vision: transforming the supply chain from a traditional “replenishment model” to an agile “fulfillment model,” responsible for the speedy delivery of customer promises.
The customer research was translated into key customer fulfillment propositions:
Up to 20,000 SKUs available same day, to any store regardless of size or location.
Same-Day Home Delivery
Same-day, next, or named-day home delivery.
Within all these, a choice of convenient delivery slots.
Same-Day Pickup, Fast Track Collection
To deliver same-day pickup, Argos implemented a new hub-and-spoke operating model; that’s where LLamasoft’s Supply Chain Guru Software came in.
With a store base of about 840 locations with varying capacities for storage, picking, and van operations, and different proximity to other stores and customers’ homes, we were faced with the task of deciding which stores should become hubs for this service, and which should become spokes. This involved trading off the management and administrative costs involved in running a hub, with the delivery costs associated with different configurations, while achieving the tight collections and delivery windows.
The design phase was critical in assessing the viability of the new service prior to a decision to launch, as well as providing the blueprint for the implementation. In the early phases of the project, LLamasoft consultants built models and ran optimizations around many different scenarios. They honed in on the right solution and determined which stores should be hubs, which should be spokes, and which hubs they were served from. The power of the analytics, combined with the mapping of results for the different scenarios, helped to convince Argos’s management that the project was heading in the right direction.
As the project headed toward reality, the team carried out regional trials and updated the Supply Chain Guru models, also adding in the concessions (new small stores within Homebase and Sainsbury’s), and evaluated the impact before rollout.
Highlights of the project include
150 larger stores converted to hubs—holding a 20k SKU range.
600 spokes retained a smaller modified range, acting as immediate sales and collection points.
Hubs and spokes organized into clusters allowing same-day collection of 20k SKUs in all stores.
Hub stores operating vans to spokes (subsequently to be used for home delivery).
A collection proposition of
order by 1 pm for 4 pm same day, and
0rder by midnight for collection on opening.
Video links for youtube.