Abrenica, Polivien Junel T.

September 9, 2025

BSBAHRM 4-2N Logistics Management (ELEC HRM-E4)

Assignment No. 1

Instructions: Answer the Assessment / Activities of Lesson 1 from the Learning Module.
Follow the given format and respond to all parts carefully:

1. Identification.

Write the correct answer for each item.

Supply Chain Management 1. Concerned with managing the entire chain of

processes, including raw material supply, manufacture, packaging and distribution to
the end-customer.

Segmentation 2. Describes how a given market might be broken up into different

groups of customers with similar needs.

Appraisal 3. This comprises the costs incurred in detecting defects, which would
include testing and inspection.

Capacity Planning 4. The task of planning and implementing sufficient capacity in the
supply chain to ensure that the right products can be procured in the right quantities
now and in the future.

Logistics Strategy 5. The set of guiding principles, driving forces and ingrained
attitudes that help to coordinate goals, plans and policies, and which are reinforced
through conscious and subconscious behavior within and between partners across a
network.

2. True/False.

Write TRUE if the statement is correct, and FALSE if it is incorrect.

FALSE 1. Supply Chain Management is a subset of Logistics.

TRUE 2. A supply network is a system in which each organization is linked to the

others.
TRUE 3. Indirect costs are whatever is left over after direct costs have been allocated.

TRUE 4. Directness of costs is concerned with the extent to which costs can be
allocated directly to given products.

TRUE 5. Directness of costs is concerned with the extent to which costs can be
allocated directly to given products.

3. Discussion Questions (1–7).

Answer each question in complete sentences. Provide examples or explanations

when necessary.

1. What is Logistics?

 Coordination of information flow and material flow along the supply chain is
known as logistics. It covers delivery, warehousing, transportation, and
procurement.
 Example: Amazon is one of the best examples of logistics in action. Its system
involves warehousing, inventory management, packaging, and delivery to
millions of customers worldwide. The efficiency of Amazon’s logistics ensures
that items ordered online are delivered on time, sometimes within a single day.

2. What is Supply Chain Management?

 The planning and controlling of all business operations. From raw material
suppliers to end customers whereas that link partners together in a supply chain.
 Example: Coca-Cola manages a global supply chain that starts with sourcing
raw materials like water, sugar, and flavorings. These are then processed in
bottling plants, packaged, and distributed to wholesalers, retailers, and then
customers. SCM ensures that every step, from sourcing to delivery is efficient
and cost-effective.

3. What is the relationship between material flow and information flow?

 Material flow is the physical movement of goods, while information flow offers the
data required to coordinate such movement. Delivering the appropriate materials
 at the appropriate time, location, and amount is ensured by accurate information.
The two are interdependent, and when properly aligned, they create a smooth
and responsive supply chain in which both of them must work together for the
supply chain to function effectively.
 Example: In Amazon, when a person selects an order (information flow), the
warehouse system instantly receives the data, selects the item, and ships it out
(material flow). Tracking updates then provide feedback to both the company and
the customer (information flow again), ensuring the material flow stays on
schedule.

4. Explain the Material Flow in a supply chain.

 The movement of semi-finished goods, raw materials, and finished products from
suppliers to manufacturers, distributors, and customers.
 Example: In the automobile sector, steel is shipped to car manufacturers (raw
materials), assembled into cars (production), delivered to dealerships
(distribution), and then purchased by customers. Another example is Jollibee in
the Philippines, where raw ingredients such as spices and chicken are shipped to
commissaries, processed, and then distributed to branches nationwide to
guarantee consistent quality and availability.

5. What is the relation between quality of service and customer loyalty?

 Satisfied customers become loyal when they receive high-quality services. Loyal
customers make repeat purchases and even recommend the business to others.
In addition to the product itself, quality of service encompasses the whole
customer experience, from purchase and delivery to problem--solving. A
customer is more inclined to stick with a brand if they feel appreciated and well-
cared for. For this reason, a lot of businesses spend money on staff training,
enhancing logistics, and utilizing technology to guarantee high-quality service
throughout the supply chain.
 Example: In Lazada and Shopee, which compete heavily in e-commerce.
Customers stay loyal to the platform that provides timely deliveries, correct
orders, and dependable customer support. Customers frequently move to other
 vendors when delivery is delayed or products are defective, demonstrating
that service quality directly affects loyalty.

4. Enumeration.

List down the required items completely and in proper order (if applicable).

1. Two Key Flows in Logistics

 Material Flow
 Information Flow

2. Four options for crafting strategy

 Evolve
 Classical
 Accommodate
 Systemic

3. Selected service level measurements

 On time in full, outbound

 On time in full, inbound
 Internal defect rates
 New product introduction rate
 Cost reduction
 Stock turns
 Order-to-delivery lead time
 Financial flexibility

5. Essay

• Write a well-organized essay with an introduction, body, and conclusion.

• Minimum of 300 words.

A. Identify how supply chains compete in terms of time, cost and quality.
 In today's competitive market, businesses are being judged on the strength of
their supply networks rather than just their individual accomplishments or achievements.
Supply chains must compete on three key factors which are quality, cost, and time to
meet consumer expectations for timely service, competitively priced items, and
dependable quality. With that, finding a balance between these elements not only
determines customer pleasure but also provides a long-term competitive advantage.

Time is an important factor because reliability and speed directly impact

customer loyalty. Products that have shorter lead times reach consumers more quickly,
fostering convenience, and confidence. One great example is Amazon Prime, who has
one-day and two-day shipping strategy which has raised the bar for delivery times
across the world In the Philippines, Jollibee is a prime example of this concept. Its
effective logistics system ensures that all its locations are stocked daily, allowing the
company to deliver meals on time and with reliability. Because it is responsive, it has a
clear advantage over rivals. However, cost is just as important, particularly in regions
where consumers are price sensitive. Supply chains can either reduce prices or boost
profit margins by reducing manufacturing, storage, and transportation costs. Walmart is
renowned for its cost-leadership approach, which is accomplished by making large
purchases and maintaining incredibly effective facilities. Locally, Shopee and Lazada
use comparable strategies to entice Filipino customers by providing free shipping offers
and collaborating with several couriers to keep delivery costs down. Furthermore, the
third pillar of competition is quality. Customer trust can be swiftly damaged by poor
quality, which displays as defects, incorrect orders, or frequent returns. Businesses like
Toyota steer clear of these dangers by using stringent quality management procedures
that prioritize inspection and prevention. In the Philippines, LBC has gained loyalty by
offering dependable reliable parcel delivery. demonstrating that even in highly
competitive markets, consistent service quality attracts customers.

Therefore, the supply chains benefit from improved time, cost, and quality
performance whereas cost-effectiveness delivers affordability, timeliness brings
responsiveness, and good quality builds trust. Companies mentioned above such as
Amazon, Jollibee, and LBC that can successfully balance these three elements or
factors may stand out in their respective marketplaces and achieve long-term success.

B. Show how different supply chains may adopt a different and distinctive
strategies for competing in the marketplace.

Strategy shows how businesses compete in their markets and add value.
Depending on the demands of their clients and the state of the market, many
companies give varying weights to objectives like speed, cost, or differentiation. A
strategy is deemed unique when it creates a distinct and long-lasting competitive
advantage by striking a balance between logistics needs and customer expectations.

In the context of cost leadership. IKEA sets the standard by providing flat-pack
furniture, which lowers storage and shipping expenses. Its bulk shipping methods and
integrated warehouses further cut costs, enabling the business to offer fashionable yet
reasonably priced goods. Puregold employs the same strategy in the Philippines,
purchasing goods in bulk and distributing them effectively to maintain cheap pricing for
regular consumers. Additionally, a strategy's uniqueness and focus-maintenance
depend on how well it works. Businesses must be prepared to make trade-offs because
no supply chain can function as effectively in terms of time, cost, and quality. For
instance, a business that values speed might use pricey air freight, but a business that
values cost could prefer combination shipments and maritime transit. In order to prevent
inefficiencies and ensure that operations continue to meet customer expectations, it is
helpful to understand critical aspects like time, money, and quality. Nike also provides
another helpful illustration of difference. It uses worldwide outsourcing to cut expenses,
but it also makes branding and design investments to keep up a high-end image. While
typical products are sent or sent more slowly to save money, Nike uses swift air
transport for new product releases in order to meet demand faster. This demonstrates
how a business can modify or alter its tactics to accommodate various priorities inside
the same supply chain.
 In conclusion, supply chain strategies are essential tools for competing in a range
of markets. Successful strategies align logistics operations with customer needs,
whether through speed, cost-effectiveness, or uniqueness. Companies like Nike,
Puregold, and IKEA show that a distinctive and well-executed strategy can sustain long-
term success in a highly competitive business climate.

C. Explain how customer segmentation works, and to emphasize its importance

to logistics.

Segmentation is the process of dividing or categorizing a market into groups of

people with similar preferences, needs, or behaviors. Segmentation is important not
only in marketing but also in logistics because it ensures that companies allocate
resources efficiently and design services that truly match customer expectations.
Without segmentation, some companies risk treating all customers the same, which
often leads to wasted effort, dissatisfaction, and loss of profit.

Segmentation can take many forms or factors. It may be demographic, such as

age or income; geographic, such as region or climate; or behavioral, such as buying
habits and frequency of purchase. One of the clear examples of segmentation in
business is the Airlines. Passengers are divided into economy, business, and first-class
categories, with each group receiving different levels of service. Logistics plays a role in
coordinating everything from seating and catering to baggage handling so that each
segment is accommodated properly. In the Philippines, segmentation can be seen in
the food and beverage industry. Like Jollibee targets families with affordable meal
bundles, while its subsidiary Chowking appeals to those who enjoy Chinese-inspired
cuisine then Coca-Cola also segments its consumers by preference, offering Coke Zero
for health-conscious customers and Sprite for those seeking light refreshment. Added to
that, logistics ensures that all these product lines are supplied to the right appropriate
markets at the exact time. Segmentation has a direct impact on logistics because
different customer groups often require different service levels. Premium customers
may expect faster delivery or customized services, while more price-sensitive
customers may accept slower and less costly shipping options. With that said, effective
segmentation allows companies to balance these differences while maintaining
efficiency.

To conclude, the importance of segmentation lies in its ability to improve both

customer satisfaction and profitability. By tailoring logistics strategies to each group,
firms can maximize value while building stronger customer relationships. In short,
segmentation helps companies like Jollibee and Coca-Cola align operations with
customer needs, creating loyalty and long-term competitiveness.

D. Show how current segmentation practice can be re-engineered to set logistics

priorities.

As markets evolve and customer behaviors change in this world, companies

must review and adjust their segmentation practices. Re-engineering segmentation
means revisiting how customers are grouped, reviewing their needs, and aligning
logistics priorities accordingly. This ensures that supply chains remain responsive,
efficient, and competitive in a constantly shifting environment.

Setting clear priorities in logistics processes is important because it directs how

logistics resources are allocated. A business that prioritizes speed may choose express
transport services, while one that emphasizes cost may prefer bulk shipping and longer
delivery times. These decisions ensure that logistics supports customer expectations
rather than working against them. The process of re-engineering segmentation involves
four key steps. The business must first assess and pinpoint the shortcomings of its
current segmentation strategy. Second, it must examine consumer purchasing patterns
to ascertain the factors that are most important to various demographics. Third, it is
important to measure the factors that influence logistics strategy, such as prices, service
quality, and delivery schedules. Lastly, the business needs to outline a new
segmentation strategy that promotes long-term competitiveness and meets customer
expectations. A good example will be Lazada. In the first step, Lazada examines its
current segmentation, which groups users mostly by product categories such as
grocery, apparel, and gadgets. Next in step two, It examines consumer behavior and
finds that although supermarket customers prioritize price and freshness, electronics
buyers place a higher value on quick and secure delivery. In the third step, Lazada
measures logistics drivers: express delivery for electronics is more expensive but
matches customer expectations, while bulk or standard delivery lowers costs for grocery
customers.

In conclusion, re-engineering segmentation allows companies to remain aligned

with changing customer needs. By setting priorities and following structured steps,
businesses can optimize logistics operations and provide tailored services. This not only
improves efficiency but also strengthens competitiveness by ensuring customers
receive the right value at the right time.