Optimizing the Logistic System-Analysis of Australia Burberry's Logistic System

Abstract

Business logistics has become a very important part of many companies. In some cases, the costs of logistics account for more than 30% of the sales dollar. Therefore, a good plan for the organisation and the control of the supply chain and distribution structure is vital to minimise the amount of time and personnel required, which in turn, lowers the cost. Meanwhile, the company must maintain or even improve the quality of their product in order to keep their customers satisfied. A case study on Burberry Limited is used as an example in this report to demonstrate how a supply chain and a distribution structure operate in the company. First, the paper introduces the background knowledge from the perspectives of Burberry’s history and its business structure; second, the structure of Burberry’s supply chain is thoroughly described; after that, how Burberry operates its communication is discussed; next, Burberry’s distribution system is presented, followed by a demonstration of Burberry’s scheduling and routing. Finally, recommendations are given for how Burberry’s could enhance its competitiveness.