Needs and Preferences of Customers - Essay Example

4Vs include volume, variety, variation of demand, and visibility. Below describes how the 4Vs are involved in the business process in the supermarket.

Ordering and delivery of goods from suppliers depends on the volume of goods that were sold. The amount of goods ordered (volume) usually depends on the amount present and the sales records. There can be a situation where the ordered volume of products is high but with a low variety of the same products. An example is when a large volume but a small variety of fruits is ordered from suppliers.

The demand for each product in a supermarket varies and is very hard to predict, and with not enough inventory space, what the management does is stock less volume of the products with more variety. This is to make sure that there is a variety of a product available for customers as each customer has different preferences. A competitive supermarket must make sure they do not run out of each of the variety of products available.

Another ‘V’ which is crucial to a supermarket is the variation of demand as supermarkets have to cope with changing customer needs during different seasons. Therefore it is ultimately important to have a large variety of products.

Merchandising or displaying products on shelves is also important. This is known as visibility. Products should be displayed in a manner that they are highly visible to the customer to make it easier for them to find the products. The main idea is to attract customers who have many variety of easily visible products. Therefore the shelves should be designed in a way that there is a large variety of a certain product in its category on the shelf. Also fast- moving goods should be placed on shelves next to the entrance for the convenience of customers (Samson and Draft, 2012,56).

Below is a sub-process that occurs between and within the warehouse and the retail shop displayed in the swim lane diagram:

Warehouse

Supply of ordered goods

Receipt of order

Retail shop

Display of goods (merchandising)

Inventory management - checking on the level of inventory. Analysis of fast-moving goods.

Order for products

Receive goods

Customers

Customer purchase of goods

Retail store orders goods from warehouses according to the needs and preferences of local customers. Periodically, the store checks its inventories to be able to detect fast-moving goods which need to be restocked (Noonan 1998, 82).  This will enable the store to come up with a list of goods that need to be restocked frequently or order quantity increased, and goods that should not be ordered for a while (slow-moving stock).