Logistics Management 3A

Strategic Logistics Planning for Mr Price Group

Module Code: LMA13A3

Module Name: Logistics Management 3A

Lecturer: Gert Heyns

Due date: 29 April 2024

Surnames and Initials Student number

Phakathi T 201326016

Mpofu VM 220101832

Mulaudzi NP 219082545

Kouwanou TA 220003811

Mathibe HDZ 220075927

Welem M 221066151

Table of Contents

1
Executive Summary...........................................................................................................................3
Market Analysis...................................................................................................................................4
Supply Chain Design.........................................................................................................................6
Distribution Strategy..........................................................................................................................8
Technology Integration...................................................................................................................10
Sustainability Measures..................................................................................................................13
Risk Management.............................................................................................................................16
Customer Experience Enhancement...........................................................................................19
References..........................................................................................................................................20

2
Executive Summary

A logistics plan is essential for Mr Price Group because it ensure a well-organized

movement of goods from suppliers to stores, enhancing the inventory levels, meeting
the needs of customers and lowering costs. It helps in providing efficient operations,
reducing delays, ensuring that customer satisfaction is improved, and elevating
profitability. The key strategies consist of the execution of modern technology for
monitoring and tracking, continuously enhancing transportation and warehouse
process, and initiating tactical partnerships with trusted and reliable suppliers. The
goal consists of cost reduction, improving customer satisfaction and minimizing lead-
times. The anticipated outcomes consist of improving brand image, optimizing
competitiveness, and boosting profitability. A logistics plan is crucial for Mr Price
Group to preserve competitive pricing and delivering value to customers while
ensuring operational quality.

Logiconnect's logistics plan is central to achieving operational excellence, meeting

customer demands and ensuring sustainable growth. Through a combination of
inventory management, automation and strategic partnerships, Mr Price Group will
continue to thrive in the dynamic retail landscape. In essence, this logistics plan
serves as a crucial enabler of The Mr Price Group's overall success by ensuring
seamless operations, cost efficiency, customer satisfaction, and environmental
stewardship. By implementing the strategies outlined in this plan, the company can
strengthen its competitive position and sustain long-term growth in the dynamic retail
landscape of South Africa.

3
Market Analysis

Mr Price Group, a fashion retailer in South Africa, was rated No.1 in 2022 as the
most valuable fashion apparel retailer and 19th overall in the entire country (Mr Price
Group, 2022). There are various factors considered when conducting an analysis of
the firm’s market, and they are as follows:

1. Segmentation and targeting.

 The Mr Price Group’s focus is on budget-conscious consumers. They
target them by offering low-cost products ranging from clothing and
sporting goods to homeware. Their target market includes young adults
16-24 and their families (Oxford Business Group, 2012).
2. Competition.
 There is competition from both local and international retailers
operating in South Africa. The key competitors for The Mr Price Group
are Woolworths Holdings Ltd, Truworths International Ltd and The
Foschini Group (Pty) Ltd among others (Owler Inc, 2024).
3. Distribution channels.
 The Mr Price Group operates a widespread network of stores across
South Africa amounting to 2 702 stores. These include, Mr Price
Apparel, Mr Price Sport, Mr Price Home, Mr Price Money, Studio88,
MILADYS, YUPPIECHEF, Sheet Street and Mr Price Power.
Additionally, Mr Price has a growing online presence which contributes
approximately 2.5% towards the total retail sales, catering to the
increasing demand for e-commerce (Mr Price, 2022).
4. Brand Positioning.
 The company positions itself as Value-Oriented through its vision,
purpose, and values. The focus of The Mr Price Group is maintaining a
strong brand image by ensuring the product offerings align with the
latest fashion trends. They view offering fashion value to customers
servicing everyday merchandise at low and competitive prices. (Mr
Price, 2022).
5. Challenges.

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  The key factors affecting The Mr Price Group are on a competitive
landscape, the unpredictability of the economy and consumer
preferences, the effect load-shedding has had on their overall
operating efficiency. The increased global appetite for ESG (Economic,
Social and Governance) investments and measurable outcomes of
ESG, Technological innovation and Digital Transformation as well as
consumer constraints (Mr Price Annual Integrated Report, 2023

The factors mentioned in the analysis of Mr Price Group can significantly impact the
logistics and supply chain management of the organisation. Consumer Preferences
are continuously changing and there needs to be an understanding of their
preferences to effectively manage inventory and demand forecasting. Mr Price
Group needs to closely monitor market trends to ensure they have the right quantity
of stock when it is required. This requires a flexible supply chain that can quickly
respond to changes in demand. The unpredictability of the economy and the
fluctuations influences the sourcing and procurement costs for the organisation. The
fluctuating exchange rates can have an impact on the cost of importing goods which
affects the pricing strategies and overall profit margins.

Intense competition in the South African retail sector suggests that Mr Price Group
should ensure an efficient logistics and supply chain system to gain and maintain
competitive advantage. Mr Price Group should strive for operational efficiency by
minimizing costs and maximising service levels. With the increase towards e-
commerce, Mr Price group needs to ensure a logistics and supply chain system is in
place that can support omnichannel retailing. This includes the smooth integration
between physical stores and online platforms.

Mr Price Group’s market in South Africa is dynamic and competitive, requiring the
organisation to stay flexible and innovative to maintain its current position and
ensure continued growth in the retail sector. The factors mentioned in the firm’s
market analysis have an impact on the logistics and supply chain management of Mr
Price Group in South Africa. By addressing the mentioned factors, the company can
enhance operational efficiency, reduce costs, mitigate risks, and overall provide more
value to their customers.

5
Supply Chain Design

Mr Price Group Limited is a South African retail company operating in diverse

divisions, which include clothing, financial services, and homeware. The supply chain
structure for Mr Price consists of the following factors:

1. The process of procurement.

 Need identification- the procurement process starts with pointing out
the products needed to attain the need of customers and sustain
inventory levels.
 Identification of suppliers- Mr Price looks for potential suppliers through
trade shows and market research. This involves evaluating supplier’s
compliance, capabilities, and reliability with quality and ethical
standards.
 Negotiation and contracting- Once the appropriate suppliers are
identified, negotiation takes place to concur on terms and conditions,
as well as pricing. Contracts are then formulated to formalise the
concurrence, delivery schedules, product specifications, and excellent
standards.
 Placement of orders- orders are placed with the chosen suppliers
based on inventory requirements and predicted need. Purchase orders
may be issued either through traditional means or electronically,
depending on the supplier’s capabilities and preferences.
2. Inventory management.
 Predicting demand- Mr Price Group employs subtle predicting
techniques to forecast the needs of customers precisely. This involves
examining past sales data, external factors influencing demand and
market trends.
 Just-in-Time (JIT) inventory- While sustaining safety stock, Mr Price
Group also practice Just-In-Time inventory ethics to reduce carrying
costs and excess inventory. This involves synchronizing production and
refilling cycles with demand designs.

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  Optimization of inventory- Mr Price Group uses inventory enhancement
software and tools to enhance stock levels across its system. It
includes discovering economic order quantities, reorder points and
refilling frequencies to increase sales and reduce holding costs.
3. Selection of suppliers.
 Excellent standards- Mr Price Group’s most important considerations
are high quality standards and cohere to applicable regulations and
verifications.
 Reliability- Suppliers with statistics of consonant delivery performance
and reliability and preferred to guarantee on-time delivery and reduce
interruptions to the supply chain.
 Competitive cost- Mr Price Group examines supplier’s cost
competitiveness to sustain profitability and enhance procurement
costs.
 Ethical considerations- Mr Price Group values ethical business
implementations and evaluates supplier’s environmental responsibility
initiatives and social capabilities as part of the selection process.
4. Customer service and returns.
 Mr Price sets a strong significance on customer service and
contentment. The Group has devoted customer service team s to
address inquiries, resolve issues, and process returns. The ability to
handle customer inquiries and returns contributes to customer loyalty
and positive brand knowledge.
5. Distribution centres.
 Mr Price operates distribution centres tactically located to distribute its
retail network. The centres receive, categorise, and store inventory
from suppliers before distributing it to retail stores across numerous
locations. Distribution centres play an important role in order fulfilment
and inventory management.
6. Logistics and transportation.
 Logistics and efficient transportation are crucial for Mr Price’s supply
chain because the company resorts to different modes of transport,
such as airplanes, trucks, and ships to move products from suppliers to
distribution centres and from distribution centres to the retail stores.

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 Modern logistics systems help to enhance delivery roads and reduce
transit times.

Mr Price’s supply chain structure is outlined to be customer centric and responsive.

By merging procurement, inventory management, supplier selection, distribution
centres, customer service and returns, and logistics and transportation consistently,
Mr Price Group strives to deliver value to customers while enhancing cists and
operational productivity.

Distribution Strategy

To optimise the delivery process for Mr Price Group, a comprehensive distribution

strategy is essential, focusing on shipping partners, warehouse locations, and
inventory stocking levels while considering order fulfilment speed and cost-
effectiveness.

1. Selection of shipping partners.

 Choosing reliable shipping partners is important for efficient delivery.
Mr Price Group should assess potential partners based on criteria such
as reliability, cost-effectiveness, and coverage. Notable logistics
companies such as DHL, UPS, and FedEx offer global reach and
reliable services (Johnston et al.,2012). Negotiating contracts with
these partners to secure favourable rates and terms aligned with Mr
Price Group’s needs is essential (Bowersox et al.,2013). Continuous
monitoring of shipping performance using data analytics ensures
ongoing optimization of partner relationship (Christopher,2016).
2. Warehouse locations.
 strategic placement of warehouse minimizes shipping distances and
transit times, enhancing delivery speed. Market analysis should identify
regions with high demand, guiding warehouse placement decisions
(Coyle et al.,2017). Factors like proximity to transportation hubs and
labour availability influence location choices (Rushton et al.,2019).
Advanced modelling techniques optimize warehouse numbers and
placements, balancing inventory holding costs and transportation
expenses (Chopra & Meindl,2016).
3. Inventory stocking levels.

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  Effective inventory management ensures products are available to fulfil
order promptly without excess stock. Demand-driven approaches
supported by real-time and predictive analytics enables accurate
demand forecasting (Simchi-Levi et al.,2014). Just-in-time inventory
strategies minimizes holding costs while ensuring product availability
(Jacobs et al.,2011). Collaborating with suppliers to establish efficient
replenishment processes is important for maintain optimal inventory
levels (Monczka et al.,2015).
4. Order fulfilment speed.
 Efficient order processing workflows and technology integration
expedite order fulfilment. Automation solutions like barcode scanning
and order management software streamline operations (Fernie &
Sparks,2014).
5. Cost-effectiveness.
 Regular cost-benefit analyses identify opportunities for cost
optimization across the distribution network. Alternative transportation
modes and shipping methods can minimize costs while maintaining
service levels (Coyle et al.,2017). Benchmarking distribution costs
against industry standards and competitors guides cost-saving efforts
(Burt et al.,2015).

9
Technology Integration

In the logistics function, the digitization and incorporation of technology can assist Mr
Price Group to gain visibility into operations, optimize their supply chain planning,
forecasting, replenishment, and enable them to carry less inventory (‘The future of
logistics’, 2023). They will be able to optimize route planning, implement
sophisticated tracking technology (Anderson, 2023) and by choosing the correct
order management system (OMS), this will allow Mr Price Group to streamline their
order management processes. By utilizing technology, customers are provided with
the convenience of placing their orders at the comfort of their own homes on their
mobile devices through the Mr Price Group’s website or mobile application and the
items will be delivered straight to their doors. It is Mr Price Group’s responsibility to
ensure this process happens smoothly.

Order management systems (OMS)

 This refers to the digital methods to manage an orders lifecycle (Kokori,

2018). An OMS solution would allow Mr Price Group to automate its
entire process of managing orders (‘What is order management’,
2024). An OMS serves as a link that connects order placement, order
processing, tracking etc. (Khattar, 2022). Mr Price Group will have
concise real-time insight into inventories including tracking, making
updates to expected shipping dates, add, or remove items from an
order before it is shipped, and customers can check arrival date of their
orders should they purchase an item from Mr Price Group’s website.

Some of the features Mr Price Group can consider when selecting the appropriate
Order Management System (OMS) software include:

1. Order tracking.
 The purpose of an OMS is to make life easier for both businesses and
customers. With the order tracking feature of an OMS, Mr Price Group
will be able to sell orders through various channels as it focuses on
making a sale, increasing productivity, and saving time (Khattar, 2022).
2. Route optimization.

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  A good OMS can develop a quick and cost-efficient delivery route that
helps reduce shipping costs (Khattar, 2022).
3. Refunds and returns.
 Reverse logistics which occurs because of customer returns or refunds
are pain points for businesses as it can be a complex process,
however the right OMS solution should streamline the returns process
and allow Mr Price Group to easily set a returns policy that customers
can comply with. Mr Price Group should also be able to offer “instant/
immediate” and automated refund processes (Munir, 2023).
4. Inventory visibility.
 OMS solution that displays inventory availability giving Mr Price Group
a global view of on-shelf, in-transit, on-order inventory across the
supply chain in real-time. The Mr Price Group Distributed Order
Management (DOM) software would display inventory by geographic
proximity, availability at nearby stores (Munir, 2023).
5. Accepting backorders and preorders.
 When OMS solution that provides backorder capabilities as backorders
allow customers to place an order for an item that is temporarily out of
stock in that way, Mr Price Group can capture sales and retain
customers that would abandon a transaction when their item is out of
stock on the website (Munir, 2023).
6. Management of supply chain complexity.
 OMS solution that can tackle supply chain complexities like being able
to merge with multiple warehouses, route orders to optimal warehouse
location for fast deliveries, etc. (Munir, 2023).

A few Order Management Systems (OMS) Software solution that could be utilized by
Mr Price Group are listed below:

1. Fabric OMS.
 Fabric OMS is built to support the order fulfilment process for retail
brands including buy online pick up in-store (BOPIS), ship-to-store (for
replenishment) and store fulfilment. It provides Mr Price Group the
ability to consolidate their order lifecycle to a single interface from

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 legacy systems, plan new fulfilment experiences for customers, reduce
out-of-stock rates and so much more (Munir, 2023). Mr Price Group will
be able to set instructions to pool inventory and control the availability
of stock to sell in each region (‘One system to manage orders,
inventory, and fulfilment’, 2024). To avoid overselling, Mr Price Group
will be able to set a minimum level for reordering. They can virtually
track the quantities of inventory for a specific demand. Mr Price Group
will be provided with the ability to track and merge orders from the time
the customer places an order until post delivery service when using
Fabric (Editorial team, 2024).
2. The order fulfilment logic (OFL).
 Refers to logic-based rules that makes decisions about where the
company routes its orders for optimized fulfilment to the best locations,
feature will give the business the capacity to create fulfilment rule sets
that direct orders to different fulfilment locations based on certain
characteristics which may include geolocation, warehouse location,
item price, etc. (Editorial team, 2024).
3. IBM Sterling.
 It refers to an order fulfilment software that offers real-time visibility and
management of inventory orders and fulfilment across networks. It
would give Mr Price Group the capacity to control multi-brand
executions, manage inventory segmentation and distribution of
inventory (,gain access to sophisticated scheduling and optimization
rules and among many more capabilities (Munir, 2023).
4. Powered by IMB ILOG CPLEX optimizer.
 It considers all available shipment methods virtually and selects highly
developed algorithms based on types of orders to determine the best
shipment modes and routes at the lowest cost (IBM Corporation, 2011).
5. Fluent commerce.
 It refers to an Order Management System (OMS) that provides precise
and almost immediate inventory availability across various locations,
order planning, fulfilment optimization, manages fulfilment locations,
etc. (‘Fluent order management’, 2024). Fluent Commerce would allow
Mr Price Group to store route fulfilment by shipping orders from the

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 best location such as the store with the highest sell through, oldest
stock, highest discount or stores that are closest to customers
(‘Fulfilment optimization’, 2024).

The integration of technology solutions is not merely a choice, it is a necessity and

with innovative solutions the logistics function is becoming more effective and
efficient. Mr Price Group can streamline their supply chain operations to reduce
costs while improving customer services.

Sustainability Measures

Sustainable logistics, often known as green logistics, refers to the numerous

operations carried out by businesses across the supply chain to reduce their
environmental impact, from raw material processing to final product delivery to
clients. Sustainable fashion emphasises environmentally and socially responsible
techniques in clothing design, manufacturing, and consumption. It prioritises waste
minimisation, responsible consumption, and quality above quantity. This trend
reflects the global focus on green energy and ethical manufacturing.

Sustainable fashion aims to reduce negative environmental impact while producing

aesthetically beautiful and high-quality clothing. The industry's transition to
sustainability represents a deliberate and ethical approach to fashion
consumption. In the goal of environmental sustainability, optimising packaging
materials is critical. Businesses that make thoughtful packaging decisions can
dramatically cut waste and adopt a more sustainable approach.

We will look at eight practical recommendations to help Mr Price Group choose eco-
friendly packaging that reduces waste and promotes a better future.

1. The right package size.

 Using packaging that fits products tightly avoids the need for extra
materials and wasted space. Right sizing your packaging allows you to
reduce material usage while also increasing the efficiency of your
packaging operation.
2. Choose environmentally friendly materials.
 Choose packaging materials that are biodegradable, compostable, or
manufactured from recycled materials. These eco-friendly options help

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 to reduce the environmental impact of packaging waste and promote a
circular economy.
3. Consider alternative packaging designs.
 Consider new packaging methods that employ less material while still
protecting your products. Consider choices like simple packing, or
collapsible constructions. These solutions can greatly cut material
consumption and trash production.
4. Implement light-weighting.
 Choose lightweight packing materials that nonetheless provide enough
product protection. Lightweight materials not only reduce the total
weight of your packing, but they also improve transportation efficiency,
resulting in fewer fuel usage and carbon emissions.
5. Avoid over-packaging.
 Streamline your packaging design to remove needless layers and
wrapping. Conduct a thorough audit of your packaging process to
discover areas where you may reduce waste and increase packing
efficiency without jeopardising product safety.
6. Encourage package reuse.
 Design packaging that customers can reuse or recycle. Promoting
packaging reusability reduces waste while also engaging customers in
sustainable activities. Consider using resealable closures, robust
materials, or multipurpose packaging designs.
7. Collaborate with suppliers.
 Collaborate with your suppliers to source and develop environmentally
friendly packaging options. Engage in open communication with your
suppliers and encourage them to prioritise sustainable packaging
materials and processes. By working together, you can create good
change throughout your supply chain.
8. Educate consumers.
 Increase customer knowledge of the relevance of sustainable
packaging alternatives. Communicate the benefits of environmentally
friendly packaging and offer advice on proper disposal or recycling.
Encourage customers to actively contribute to waste reduction efforts
and make informed purchasing decisions. Businesses can make a big

14
 contribution to waste reduction and a greener future by optimising
packaging materials and adopting sustainable practices. From right-
sizing packaging to selecting eco-friendly materials, experimenting with
alternative designs, and educating customers, each step towards
sustainable packaging puts us closer to a more sustainable future. Let
us prioritise eco-friendly packaging options and work together to
reduce trash and protect our world for future generations.

Mr Price Group can differentiate itself from competitors by implementing

sustainability as it demonstrates a dedication to social and environmental
responsibility. This differentiation could give a company a competitive edge in a
market where ethical considerations are becoming more and more valued by
customers. Efforts to promote sustainability encourage honesty and transparency,
both of which are necessary to win over customers. Brands that proactively address
social and environmental issues can increase consumer confidence and reassure
customers of their dedication to ethical standards.

Nowadays, a lot of shoppers base their choices on personal values such as social
justice and environmental consciousness. These principles are shared by brands
that promote sustainability, which strengthens the emotional connection between
them and their customers and boosts brand loyalty. Mr Price Group may engage
customers in meaningful experiences that go beyond just selling items by
implementing sustainability initiatives. Environmentally friendly product launches,
community cleanups, and collaborations with environmental organisations can all
result in memorable occasions that enhance a brand's reputation and foster
consumer loyalty.

To summarise, sustainability initiatives improve brand image and customer loyalty by

differentiating the brand, building trust, connecting with consumer values, creating
meaningful experiences, educating, and empowering consumers, providing long-
term value, encouraging advocacy, and adapting to changing expectations. Brands
that incorporate sustainability into their core values and operations can foster
stronger consumer relationships and drive long-term success.

15
Risk Management

Mr. Price Group’s operations may be significantly impacted by the risks mentioned
below, which may affect the company's capacity to meet client orders on time,
guarantee efficient logistical operations, and keep ideal inventory levels.
Implementation of mitigation strategies is required to address these risks.

1. Supply chain disruptions.

 Factors like floods, earthquakes, and hurricanes can have a major
effect on distribution centres and manufacturing facilities. These
disruptions have the potential to seriously slow down the supply chain
by stopping production, damaging inventory warehouses.
 Risks related to suppliers include insolvency, unexpected problems
with quality, and manufacturing delays brought on by strikes or
shortages of raw materials. Such issues may result in shortages of
necessary goods, which could affect production plans and possibly stall
the delivery of finished goods.
 Reliance on restricted options for suppliers increases the possibility of
disruptions in the event of a supplier's bankruptcy or financial
challenges.

Mitigation strategies.

 Mr Price Group can use analytics and supply chain technologies to

constantly observe and track key performance indicators all the way
through the supply chain. To anticipate any disruptions and take
proactive steps to mitigate risks, utilize real-time data and predictive
analytics. Develop performance metrics and transparent
communication channels with suppliers to maintain and check on their
production capacity, financial standing, and adherence to quality
standards regularly. Perform routine risk assessments and supplier
audits to find and mitigate any weaknesses on time.

Mr Price Group can diversify their supply base to locate and evaluate substitute
suppliers in various geographic areas. This will ensure supply continuity in the event
of disruptions, create backup plans and pre-negotiated contracts with suppliers.

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 2. Transportation delays.
 Poor choices of transportation routes, ineffective scheduling, and
inadequate coordination among logistics partners can cause longer
transit times, increased transportation costs, and a higher likelihood of
product delivery delays can be caused by poor choices of
transportation routes, ineffective scheduling, or inadequate
coordination among logistics partners.
 Heavy traffic in towns or on congested highways due to strikes, high
volumes of goods, or inefficiencies in inventory handling processes can
cause delays in the delivery of products.
 Storms, torrential rains, snowstorms, or fog are a few instances of
severe weather conditions that can disrupt transportation and cause
shipments to be delayed, cancelled, or rerouted. Unfavourable weather
can also influence transportation of goods and workers' safety.

Mitigation strategies.

 Transportation management systems can be used to reduce costs and

transit times and improve routes. Mr Price Group can identify and
establish alternative transportation routes to mitigate the impact of
disruptions, implement effective transportation plans and take
advantage of economies of scale by working together with other
logistics partners. Mr Price Group can use logistics management
software and GPS tracking to keep track of shipments in real-time,
change routes as necessary, and anticipate potential delays.
 Constantly communicate with the carriers to proactively handle
problems and guarantee on-time delivery. Add buffer time to the
delivery schedule, to account for unforeseen delays, interruptions, or in
case of emergency.

Mr Price Group can diversify transportation modes to mitigate risk associated with
using single transport for delivery. This can be achieved by evaluating transit time
and reliability of different transportation modes and selecting the most suitable mode
based on the specific requirements.

3. Inventory shortages.

17
  Inventory shortages may be caused by careless handling procedures
or insufficient security measures. Inaccurate demand forecasting might
result in inventory shortages and stockouts. Demand fluctuations
brought on by seasonality, trends, or unforeseen circumstances. A
company like Mr Price Group can suffer financial losses and
disruptions to operations because of inventory theft, damage, or
spoiling during transportation, handling, or storage. Equipment failures,
manufacturing delays, or issues with quality control will lead to low
inventory levels. Insufficient inventory levels will result in Mr Price
Group not fulfilling customer needs and demands.

Mitigation strategies.

 To increase the accuracy of demand forecasting, Mr Price Group must

invest in sophisticated forecasting models, make use of previous sales
information, market trends, and customer feedback. Work
collaboratively with the supply chain, sales, and marketing departments
to match inventory levels to planned demand and marketing initiatives.
To maximize inventory levels, avoid stockouts, and cut carrying costs,
use inventory optimization strategies such as ABC analysis, meaning
Mr Price Group will be maintaining base stock and safety stock levels
for fast-moving items to buffer against sudden increases in demand.

Contingency plans.

 The purpose of these contingency plans is to give Mr Price Group a

structure for handling unanticipated risks in the logistics process. Mr
Price Group can sustain high levels of customer satisfaction, enhance
their relationship with suppliers, reduce operational disruptions, and
strengthen its resistance to risks by putting these techniques into
practice.
 If primary suppliers experience problems, Mr Price Group can establish
contracts with backup suppliers to facilitate a smooth transition.
Establish an emergency response team whose job is to handle supply
chain interruptions and quickly initiate backup plans.

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  To speed up delivery in the event of a transportation delay, Mr Price
Group should establish arrangements with expedited shipping
suppliers. Include an extra day in delivery schedules to allow for
unforeseen circumstances.

To prevent stockouts, Mr Price Group can determine the right safety stock levels and
reorder points based on lead times and demand unpredictability. Make use of
dynamic inventory management systems to update reorder quantities in response to
changes in demand that occur in real time.

Customer Experience Enhancement

Enhancing customer experience through logistics involves a variety of strategies,

specifically in order tracking, providing precise delivery approximations, and
controlling returns efficiently. The following are possible strategies:

1. Real-time order tracking.

 Execute a tracking system that will allow consumers to track the status
of their orders in real-time. Supply tracking values and easy access to
the tracking site.
2. Communicate transparently.
 Communicate with customers about the delays or changes regarding
their order status. Send computerized notifications via emails at
essential stages of the delivery process.
3. Efficient inventory management.
 Invest in inventory management tools to prevent stockouts and
enhancing stock levels. Execute just-in-time inventory techniques to
reduce surplus inventory and refine order fulfilment speed.
4. Streamline returns process.
 Make the returns process easy by providing clear guideline and pre-
paid return labels. Offer various return alternatives, such as in-person
returns, drop-off locations, and mail-in-returns.
5. Flexible delivery options.
 Present various delivery options, such as same day delivery,
express shipping, and standard shipping. Offer alternatives for

19
 consumers to elect the delivery times and dates that suits their
schedules.

By executing these strategies, Mr Price can optimize the customer experience

through logistics, and this will lead to high customer satisfaction, customer loyalty,
and customer retention.

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References

Anon., n.d. [Online]

Available at: https://www.process.st/how-to/maximize-customer-satisfaction-in-
logistics/

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shipping-eqvrc

“Mr Price has been ranked No.1 most valuable fashion apparel retailer”.
Found at: https://www.mrpricegroup.com/mr-price-has-been-ranked-no-1-most-
valuable-fashion-apparel-retailer/

“Mr Price Group Target Market”

Found at:
https://oxfordbusinessgroup.com/reports/south-africa/2012-report/economy/mr-price-
retail

“Mr Price Group Company Competitors”

Found at: https://www.owler.com/company/mrpricegroup

“Fashion Value Retailer | Mr Price Group South Africa”

Found at: https://www.mrpricegroup.com/about-us/

“Vision, Purpose and Values”

Found at: https://www.mrpricegroup.com/about-us/

“Mr Price Annual Integrated Report (2023)”

Found at: https://www.mrpricegroup.com/pdfs/Mr-Price-Group-AIR23_IR.pdf

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