Compelling customer offering: Argos uses its scale advantage to enable customers to make choice form broad products they want with a competitive price. In addition, through the well-developed infrastructure of logistics network Argos is able to improve the deliver speed to customers. Recently, Argos launched a new deliver service called Fast Track that allows customers to order and get products at the same day for just pay the extra £3.95. The same-day deliver services cover Argos’s 20,000 most popular products and Argos is the first British retailer that offers the same-day deliver service (BBC, 2015).
4. Continued cost management: Argos improves the flexibility and reduces cost to enhance its operational standards by implement track record of organization and infrastructure changes. This is let Argos got cost reduction of £142m in the past four years.
5. Financial strength: Argos has a very strong cash flow that it has £331m of net cash at March 2014 (Home Retail Group, 2015). The huge cash flow could secure the long term operation development of Argos and provide Argos a health and stable economic environment.
Those business strategies make Argos understand its business position and the need of customers. In addition Argos knows the strengths they have like the well-developed logistics network and the huge kinds of products.
Logistics …show more content…
Fadhil (2013) show the warehouse in Staffordshire and Bedfordshire is main operated on the custom-built, in-house system, which is a system manage the orders, customers’ placed orders, replenishment, forecasting and warehouse.
The system is running reliable and stable but with the increase of Argos’ logistics throughput the system is unable to cope with the growth. Thus, Argos aims to upgrade an entirely new warehouse management system and apply the new system to the third warehouse.
For Argos the core objective for its logistics strategy is to provide products to customer with the lower price and deliver ordered products in a short time. Fadhil (2013) concluded nine key elements could influence and change the Argos’s supply chain performance and design: emerging markets, competitors, short product life cycles, global supply networks, facilities, inventory, sourcing, pricing and demanding customers. This part would focus on the facilities, inventory, sourcing and demanding customers. For the facilities, Argos analyze demand of customer to manage its warehouse and thus to make its supply chain smoothly. For the inventory, Argos reduce inventory by make products available at warehouse and distribution center at the same time that have short live cycle as inventory (Fadhil,