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Supply chain management and Logistics are one of the important parts of every business. Supply chain management and logistics can be changeable. Those are the two aspects of the process. Basically, supply chain refers to the large network of the particular organisation to deliver products in an organised manner from a supplier to the customers. Logistics is about the coordination and moving of the products from suppliers to the customers. The company Unilever UK is a British multinational consumer goods company. The company has their headquarters in London, England. The company sells different types of food, candy and other products. Basically, the product chosen for the report is Lipton tea of the Unilever UK. Lipton is a British brand of tea. The brand is owned by Unilever. It is a supermarket chain in the United Kingdom. The main objectives of the study are understanding the major brands and converting them to sustainable sourcing. The study helps to understand the challenges of supply chain and market transformation effort. It also illustrates the dilemmas of the organisation about adapting the changes of the market. It also helps to create traditional perception in the business responsibility. It also helps to create a sustainable agenda that will be beneficial for the company.
Outline of the supermarket supply chain
As it is mentioned above, Lipton is a brand owned by Unilever UK. The company has their selling in over 100 countries. So, it can be said the company has a very strong supply chain. According to the company, Lipton is one of the biggest selling brands in all over the world. The company does not able to transform their own supply chain. Instead of that, the company collaborates with many partners. The raw materials come from the certified rainforest farms. The company ties up with the national governments so they can run their supply chain. The company sources their raw materials from around the world. Besides that, the company has their own plantations that helps the company to gain benefits. The company Unilever UK sources raw materials from over 10,000 suppliers in the whole world (Hugos, M.H., 2018). So, it can be said, the company has a huge undertaking and it is necessary to make the supply chain stronger.
The company is having a clearly defined global strategy that makes the global supply chain more effective. The company also ensures that the global supply chain strategy has been executed properly. Unilever UK is an international firm. The company owns Lipton tea. The company has the concept of sustainability. Sustainable advantages provide the number of advantages of the supply chain. It also improves the productivity of the employees. The company includes the environmental factors but also helps to increase the experience of the workers and other employees who are involved in the supply chain. The company Unilever UK always embraces the supply chain partners and always ready to adopt the latest technology. The company first introduces the RFID technology that helps to track the products throughout the blockchain. The purpose of the company is to deliver Sustainable and profitable growth. It also helps to look beyond the financial results. The company has implemented a number of attractive policies in their supply chain and also protects sustainability. An effective supply chain can increase the business day by day (CHRISTOPHER, M.I., 2017). The company Lipton tea is already loved by the customers. So, the customers have expectations from the company. So, the company tries to make sure that the Customers get delivery of products perfectly. The company worked with the NGOS. The supply chain also ensures sustainability.
Role of Logistics
Logistics plays an important role in the UK' s economy. Logistics also helps and supports the movement and flow of many economic transactions. It is also an important activity that facilitates the sale of goods and services. It is important to understand the perspective of the system. Logistics has its effect on the rate of inflation, interest, productivity and other things. It has other aspects in the economy. An effective logistics management has been recognised as the element that will be helpful for improving both the profitability and the competitive Performance of the organisation. The company Unilever UK 's logistics leads the company to have the competitive advantage. Logistics is the concept of marketing that holds the business and helps to fulfil the needs of the customers. Logistics ensures that the products or the services give satisfaction to the customers. The management decides to reduce the quality of the products and also eliminates the features of the products. In the company Unilever UK, the company ensures that the company produces their products in the most effective and efficient way. The company will produce millions of products. The company Unilever UK operates in a highly competitive market. There are many companies who are selling the products (Cole et al 2019). It is very tough to hold a position in the global market. The Lipton tea is one of the bestselling products of the company. The customers ordered for it frequently so it is important to look upon the products to reach the retailers at the right time and in the right quantity. The transportation network of the company supports half a million shipments per year. The company always tackled the tasks and also streamlined the network and carrier partnership. Logistics make sure that all the products get delivered within the right time to the retailers so that they can fulfil the needs of the customers. The company has collaborated with the other NGOs and agencies and in this way the company makes the logistics system stronger.
Marketing Theory of Unilever UK
The marketing mix of Lipton analyses the brand' s product, price, place and promotion. There are several marketing strategies that help the companies to achieve the goals and objectives. The marketing mix helps to analyse the distribution strategies of Lipton.
- Lipton Product strategy
Lipton is owned by the famous company Unilever UK. The brand Lipton is one of the most popular tea brands. The brand has a very strong product line in the tea segment. There are different portfolios of Lipton such as green tea, lemon tea and ice tea. The brand has diversified their products portfolio just to serve the different types of needs. The brand serves different types of flavour just to fulfil the taste of different people.
- Lipton pricing strategy
According to the reports, Asia Pacific is one of the highest consumers of tea in the whole world. The competition is very high in the global market of tea. The company Lipton follows the competitive pricing strategy. They give value for money. The company Lipton follows the going rate pricing strategy. The green tea segment of Lipton charges high prices without considering the tough competition. The company mainly targeted the middle-class families and the upper middle-class families and set the pricing strategy as per the segment.
- Lipton place and distribution strategy
The brand Lipton is having the very strong model of supply chain. The company sources their raw materials from different places. According to the report, India is one of the main targeted countries for consuming tea. The company Unilever and Lipton targeted their current consumer strategy via its present marketing strategy. The company is focused on their distribution just after they started expanding. Green tea is one of the sold tea types and the footprint was very high. The company has more than 500 distributors.
- Lipton Promotion and advertising strategy
The company Lipton has applied the extensive marketing strategy. The company has applied different advertisements with different types of taglines. The new innovative emotional marketing factors are nowadays common for the promotion. The company Lipton promoted their products in social media and reached up to many people. The new innovative emotional marketing factors are nowadays common for promotion. The company has taken the advantages of social media marketing and it gives more visibility to brands like Facebook, twitter and YouTube. They also do their content marketing of the product in magazines. The company has sponsored different events that made the brand more visible to the people and this way the marketing mix of Lipton gets completed.
Identification of relevant issues and potential problem areas.
The company Unilever UK has set a new example by improving the health of the planet. The company has taken decisions to fight against climate change and protect and regenerate nature. The company also preserves the sources for future generations so that they can use it. The company Unilever UK will achieve net zero emissions from all the products. The brands of Unilever UK including Lipton have invested huge amounts of money in the new climate and nature fund. When the whole world is fighting against the effects of Covid 19, the company is facing issues of inequality (Hong et al 2018). Climate change, deforestation, water scarcity, all these issues are interconnected to each other. The climate crisis is an environmental emergency that is leaving an impact on lives and livelihoods. One of the major risks identified was Unilever's operations and wider supply chain. They have taken into international standards and local conditions.
The company has stated that it is difficult for the companies to measure and manage the risks of the supply chain. The company does their business all over the world. The transportation system should be good enough and they should be trustworthy. Lipton is basically a food product so it can be destroyed due to lack of care so the company should take care of it. The interruptions to the flow of the products where raw materials or the parts within the supply chain, environmental risks that are from outside the supply chain that is usually related to economic, social, governmental factors that can be a threat to terrorism. Sometimes the problem arises due to the mismatch between the product and the type of the supply chain. The brand Lipton can face many risks such as demand related risks due to the unpredictable and misunderstanding of the customers. The demand of the customers should not be approached by the sellers (Lambert et al 2017). The flow of the products can get interrupted whether the raw materials or other parts got delivered in delay. The business risks caused by the factors such as the suppliers financial or management stability. There are also risks of physical plants. It is caused by the condition of the supplier's Physical facility and other regulatory compliance.
There are also internal supply chain risks such as the risks of manufacturing risks, the risks of business that are caused by changes in the key personnel, reporting structures or other business processes. The control risks can happen due to the inadequate assessment and planning. The cultural risks caused by the business's cultural tendency to hide the negative information that makes the business slower when impacted by unexpected events. There are many potential problem areas. The brand Lipton is already well known so people have enough expectations from the company. The Customers want quality Customers service from the customers so the supply chain management is centralized on the needs of the customers. The costing of the raw materials may increase anytime. Now due to covid-19, the costs of raw materials, energy and labour have increased due to the economic situation. The relationship between the company and the suppliers can create problems any time. The company Unilever UK is a very big company and besides that the company knows that risk is the natural part of the supply chain ecosystem. The international supply chain can be impacted by the different issues such as tariffs, fees and other customs. The global supply chain can face problems at any time.
Potential approaches that could minimise any negative effects on quality
The brand Lipton is very well known and besides that it is the most popular non-alcoholic drink after water. People are being very careful about their health nowadays. They are very careful about what is going into their bodies (Murphy et al 2018). Tea is safe enough to drink and sourced sustainably. The company Unilever UK is completely committed to sustainability. The raw materials that go into Lipton tea will be sourced sustainably. The practices reduce the use of pesticides and are considerate of the environment and the health, safety and livelihood of the farmers. Lipton rainforest alliances are certified and they require farmers to reduce their overall use of pesticides. The company also committed with the education program that helps the suppliers to understand the long-term goals for the sustainable production of tea and it also sets out the use of pesticides.
The brand called Lipton tea committed to sustainability by 2020. All the raw materials that go into making Lipton tea protects sustainability. Besides that, the company also makes the supply chain stronger. The makers of the tea make sure that the product is sustainable enough. The supply chain is also powerful enough even the company adopting new technologies. The company also makes the relationship good with the suppliers as well as with the employees who are involved with the supply chain. The company allows the suppliers and employees to give their suggestions so that they can feel engaged with the company. The company makes sure that the products reach all the customers as per their need. The company also diversified products so that the products can attract different types of Customers and fulfill their needs. The evolution of supply chain management has made significant changes in the processes of logistics (Dahlmann et al 2019). The quality management system can reduce the system of cost of equality. It is the faster event resolution that can reduce the costs that is extra. It also creates fewer operator errors (Tang et al 2019).
The company also reduces the risks that are continuous. It also improves the quality of the suppliers. Basically, the quality approach is one kind of marketing research that improves the customer service and also increases sales through various kinds of evolutions and customized training programs. The resources help to look upon the business as the customers do. The quality management strategies aim for long term success by enlisting members of an organisation. They create customer satisfaction by making the best products possible (AZIZ et al 2020). The products should be manufactured at lower cost. They focus on high quality information to improve processes and reduce variability. One of the main disadvantages of quality checking is the wide improvement of the quality. The partial efforts will not work in this case. The training is followed up with ongoing coaching, the knowledge and skills are provided by the company that helps to stick. The company always tries to brand itself.
It can be concluded that the entire report is about Unilever UK' s brand Lipton tea. It is already one of the well-known brands. The report is about the importance of the supply chain. The supply chain controls the global business. The supply chain ensures that the products reach the retailers and then to the customers. The brand also ensures that the quality is good enough and also fulfills the needs of the customers. The company Unilever UK is a company that is trustworthy and the company ensures that the logistics and supply chain of the company are interchangeable so that the company can adopt the new changes immediately.
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