Analysis on Supply Chain System of a Food RetailerContents - Case Study Example

Download file to see previous pages It is essential for them to have a partnership with the retailer. If the retailer is unable to provide any product to a consumer, then he would lose repeat customers. So, the retailer must also ensure that the supplier is closely located.

Quality: Presently, consumers have a sea of choices in terms of food retailers. If a retailer wants to attract consumers, then the product must fit the store’s image. The quality of the product would allow the retailer to set prices in line with the competitors.

In the present scenario, companies are spending significantly on their supply chain activities in order to gain an edge in the highly competitive market. There are certain business challenges that have compelled companies to emphasize more on supply chain management. According to reports, certain key changes have created a significant impact on the variation in the design and performance of the supply chain. These are:

Globalization: Globalisation has led to a drastic change in the business landscape and has immensely affected the supply chain management. Aspects such as sourcing of material, distribution, manufacturing, invoicing, and return, have been impacted significantly due to the integration of supplier base with the global customers. A well-knitted Supply Chain Network Design can help in optimizing the network through an efficient flow of material (Hitachi Consulting, 2009).

Increased Competition: With an increase in competition, there is less uniqueness in a particular company’s product in regard to price and quality. It has become difficult for companies to set higher prices on the basis of product innovation or brand equity. A significant cost improvement has been tried with the help of an improved supply chain framework. The companies are seeking ways to reduce the cost by creating an efficient value chain network and provide value-added services for catering to more consumers. ...Download file to see next pagesRead More