Warehousing Case

1.0 Introduction

Logistics plays such an essential roles in this era. It is because the presence of logistics proves that our world keep developing and becomes more advance with various technology ahead. Hence, logistics is the management of flow or movement of goods, information and other resources including energy and people between the point of origin and the point of consumption. Logistics involves with the combination of information regards the goods, transportation to transport goods, inventory (checking the goods), warehousing, material handling and packaging. Example of company that practising logistics is IKEA in Damansara, Malaysia.

A firm may evolve its company by growing up the business to international or establish a good relationship with other companies in worldwide. Besides, by implementing international logistic, the firm can implement cost-saving programs such as just-in-time (JIT), electronic data interchange (EDI) and early supplier involvement (ESI). In addition, logistics management realize that each facility has an impact on its cost. Logistics links supplier with customer and make use of customer needs and wants. It is important for logistic to meet the requirement of customer so that they would feel satisfy with the product.

On the other hand, supply chain management can be said as bits differ from logistic management. Supply chain can be described as the integration of business processes from the end user through original supplier then will be distribute to the customers. In order words, supply chain can be said as logistics network. In addition, supply chain plays the main and important roles in order to ensure the management flow of the goods is running smoothly because without supply chain, logistic will not exist. Why is it so? The most primary reason is because logistic is actually in the supply chain.

Supply chain is where the raw materials will be taking in and process through supplier until the goods is finished then it will go through manufacturing. In manufacturing, the roles of logistic will begin where the finish goods from supplier will be processed such as packaging, labelling, marking and inventory process. After that, the goods will then be distributed to the customers by using available transportation. For instance, in order to produce a car, TOYOTA company will buy the raw materials from difference places such as rubber, glass, engine, plastic metal and so on.

These raw materials will then be passed through supplier to get it complete. By the time the car is finished it will be send to manufacturing whereby logistic will be in charge. Then, the car will be distributed to TOYOTA showroom and only then the company will sell the car for the sake of customer demands.

Figure 1.0 : Process of Logistic Figure 1.1 : Process of Supply Chain

However, logistics system and modern transportation are often being the targets of threat. Regards on this matter, the business growing may be affected and decreases the profit of companies. Taking the example of after the terrorist attack in 11 September 2001 in World Trade Centre in New York City, companies business became slowed down because it involves aviation logistic between international. The business became down due to the reason that other companies in international are afraid to take a risk in transporting the goods because of the attacks. Besides, because of this attack all the plans for their international shipments also being affected.

Figure 1.2 : The terrorist attack

2.0 Background of Harvey Norman Company

Figure 1.3 : Harvey Norman Holding Limited

Harvey Norman is one of the company that practising logistics. As we have learned, logistics involves suppliers, manufacturing centres, distribution centres and also warehouses. Harvey Norman (HN) is the company that build up its own warehouses. Hence, Harvey Norman Holdings Limited is a public company in the minor sector occupied in selling products for households and offices that include electrical, computers and communications, small appliances, furniture, bedding and manchester, home improvements, lighting and carpet and flooring. As a franchisor Harvey Norman grants franchisers to expand its business in worldwide. After leaving school, Harvey got a job as a seller of vacuum cleaners door-to-door. Thereafter he realized that he had a talent for sales and became the top seller in the company he worked for. Harvey felt interested and attracted into the retail business for himself and engaged to his friend Ian Norman, who had inherited some £700 after the death of his father.

There are more than 230 Harvey Norman stores such as in Australia, New Zealand, Slovenia, Ireland, Singapore and Malaysia as well. Harvey Norman is the one who leads the retail chain in Australia such as Domayne, Space Furniture, Ariston Appliances and Joyce Mayne. The Harvey Norman first succeed when the company started as independent electrical goods and appliance store that was opened by the company chairmen Gerry Harvey with the retailer named Ian Norman. The opening was held at a site of a former auction house in Sydney, Australia in 1961. At first, they could not find a suitable name for the new business but they finally decided to choose the combination of Norman's name and the first store manager, Peter Ross. Thus, the retail chain was named as Norman Ross. Harvey Norman set its motto quotes 'Go Harvey, Go Harvey, Go Harvey Norman'.

In 1979, Norman Ross became one of the largest appliance retail chains where it controlled 42 stores by the sales of $240 million. Later in 1982, Harvey and Norman had purchased a new shopping centre in outer Sydney with cost exceeding $3 million. Thereafter, the first Harvey Norman store was opened. At first, the venture wanted to be a single store but however because of their success, many other people started to follow their footsteps. On the 3rd or September in 1987, Harvey Norman Holdings Limited had successful be listed on the Australian stock market. In the early 1990s, in United States, they were productively entered the computer and furniture markets

Other than that, Harvey Norman was also sold Apple computer products for several years but the business had stopped in 1990s since Apple decided not to supply to Harvey Norman any longer. In addition, Harvey Norman Holdings Limited also establish for home designation and renovations that includes renovation in bathroom, kitchen, wardrobe, home office, and home theatre renovations. In December 2007, Harvey Norman was officially announced