...1. By dropping prices and increasing product range, is Woolworths diluting its value proposition? Woolworths is not diluting its value proposition by dropping prices as they still intend to deliver good quality products, superior packaging and excellent customer relations. They still intend to deliver on that promise and ensure that the consumer prefers its products and services above their competitors in the long run, thus maintaining the key to a sustainable competitive advantage (Hough, 2011). In the case study the divisional director for foods, Mr Julian Novack, mentions that because they carry a large portion of own-brand products, they are able to exert greater control over the prices by optimising the production process and reduce the input costs. Woolworths consulted with its suppliers to find ways to reduce pricing on their products and reviewed its entire supply chain, reducing unnecessary packaging, improving their logistics and also keeping an eye on price of commodities such as wheat. By making effective changes in their value chain Woolworths is able to increase the value delivered to their...
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...Woolworths Supply Chain and Logistics Business Strategy This assignment is submitted in partial fulfilment of the requirements of the B.COM (HONS) IN TRANSPORT ECONOMICS Department of Business Management By BUSISIWE MNCUBE Student no: 920216064 At the UNIVERSITY OF JOHANNESBURG 13th March 2012 Tel: 084 312 4161 Table of Content 1. Abbreviations ........................................................3 2. Introduction ...........................................................4 3. Business focus areas ............................................5 4. Demand Management ..........................................5-6 5. Primary Distribution ...............................................6 6. Secondary Distribution ..........................................6 7. Inventory Management ..........................................7-8 8. Warehousing ..........................................................8-9 9. Packaging ...............................................................9 10. Material Handling ....................................................9-10 11. Information Technology ...........................................10 12. Reverse Logistics .....................................................10 13. Environmentally Sustainability ..................................11 14. Recommendation and Conclusion ............................12 15. Bibliography ................................................................
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...product range, is Woolworths diluting its vales proposition? Value proposition is a promise to be delivered by the company to the customer, a statement that summarises why a customer should buy their products. The CEO of Woolworths has stated clearly that their products will add more value on the basis of “quality, innovation, freshness and unique placements”. This value proposition is in line with the company’s strategic plan of providing good quality products, superior packaging and excellent customer relations. Woolworths has adopted a differentiation strategy, whereby it is out-competing its competitors based on these qualities. Thus in order for this company to continue having a sustainable competitive advantage over its rivals and continue to serve its niche high income and the newly discovered middle-income (Black diamonds) target markets, this strategy needs to also be maintained. For a company and its strategy to successfully compete, the company must continually scan the environment it operates in, ensure that its strategy is aligned with that environment, and ensure that the company has the capabilities to execute the strategy. Woolworths scanned the environment and acknowledged that the global economic recession was severely affecting its target market spending power and were as a result, loosing business to competitors like Pick ‘n Pay and achieving lower profit margins. Thus by lowering its product prices and adding more product lines, Woolworths ensured that their...
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...CHAPTER ONE 1. Introduction to the study The purpose of study is to evaluate the effects of strategic buyer-supplier alliances and partnerships in the South African clothing stores, sector and industry. Strategic Alliances, Partnerships and Joint Ventures involve the establishment of informal and formal relationships with other individuals or businesses to share resources, ideas or capital (Hugo, Badenhorst-Weiss & Biljon 2007). The research indicates that during the past decade, companies in all types of industries and all parts of the world have elected to form strategic alliances and partnerships to complement their own strategic initiatives and strengthen their competitiveness in domestic and international markets (Thompson Jr, Gamble & Strickland, 2006), the statement confirms that some of the companies realize the importance of strategic alliances and partnerships. The current situation in South Africa indicates that the government is imposing Quotas on Chinese imports with intent to influence the South Africa retailers to buy from local suppliers (Sandrey & Fundra, 2008). The quotas have encouraged the major retailers in South Africa to procure more from local suppliers than ever before given the growth in their collective businesses over the last four years. Preliminary investigation between the retailers and clothing manufacturers confirm the retailers’ expectations that local companies will be unable to make up the expected shortfall the quotas will inflict...
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...Executive Summary 7-Eleven is a famous brand and provide more than 40 thousands convenience stores for the customers in the worldwide and the most important factor is successful performance in Supply Chain Management (SCM). However, 7-Eleven still has been facing a lot of problems which should be sorting them out in order to get more business opportunities. This report focuses on the supply chain management of 7-Eleven and suggests the improvement for potential problem of its whole supply chain system. At first, will introduce the company’s background by collecting data about its current situation and identifies the issues which are supported by SWOT analysis. And through the GAP analyses of the business the key existent issues faced by 7-Eleven. According to those above, the report will finalize the recommendations and implementation methods in order to improve the business and set a benchmark for future development. In the end, although 7-Eleven’s trend is led more convenience stores to satisfy the need of customers, but it still needs to improve its supply chain and operation mode to Commercial global optimization to continue keeping its leading position in the retail market. 7-Eleven Background 7-Eleven is the largest convenience store chain in the world, which has approximately 47,500 stores in 16 countries. The first Australian store was opened in 1977 owned by the Withers/Barlow family which has the license to operate and franchise 7-Eleven stores in Australia from...
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...Furthermore in evaluating consumers management must first determine if it will be able to meet the needs of large consumer segments (Stock and Lambert, 2001). Imperial Logistics has created a large customer base in almost every industry from: retail, construction, mining and minerals, technology, chemical, automotive, FMCG, to petro-chemical and agriculture and forestry. Imperial logistics has diversified customer list with reputable brands such as Woolworths, Tiger Brands, Heinz, BAT, Brandhouse, Distell, Nampak, Mondi Packaging, Tetra Pak, CONSOL, PG Group, Mittal, Shell, Sasol, Lafarge, Toyota, BMW, Porsche, ABSA and Standard Bank (Imperial Logistics, 2010). 2. Evaluation and Selection of Target Markets: The goal should be to select target markets that promise to generate the highest returns per segment. The selection of which must take into account the strengths and weaknesses of the company (Stock and Lambert, 2010). Imperial Logistics, values customers’ businesses as much as they do. As a strategic out-sources logistics and supply chain partner, they multi-disciplinary specialists develop market and future oriented solutions in response to...
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...commitment across organisational boundaries. Core competencies enable access to wide variety of markets, add customer value, and are difficult to imitate and thus constitute a source of competitive advantage (Prahalad & Hamel, 1990). Wal-Mart’s competitive advantages include: • Sophisticated logistics system – Wal-Mart’s internal capabilities in inventory management and distribution have played a key role in maintaining its ability to continuously deliver on its CVP of ensuring the maximum availability and accessibility of goods, being trustworthy, and ensuring ‘everyday low prices’. Supply chain management is driven by the practice of ‘cross-docking’, which eliminates inventory holding, minimises stock-outs and permits more accurate and stable pricing. Strategic investments in various interlocking support systems (IT, satellite communications system) ensure all participants in the supply chain are connected and in constant communication with each other. These capabilities...
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...Links issue no. 10 Supply Chain Finance A Third Report from Demica Demica Report Series April 2009 Issue no.10 Summary Continuing tight credit conditions have made liquidity scarce. Corporations want to extend payment terms for their supply chain, but suppliers are finding it difficult or impossible to accommodate this requirement. Demica’s latest research report into Supply Chain Finance (SCF) compares the situation in the UK and Germany and reveals that 88% of UK firms and 55% of German companies have identified that key suppliers are unable to sustain further lengthening of payment periods. As a solution to this situation SCF is generating much enthusiasm amongst banks and their corporate customers as a means of substituting for lower credit availability. Supply Chain Finance structures not only allow large corporations to extend their credit terms with suppliers, but their suppliers can also use the credit quality of their receivables debtors to finance their receivables at favourable rates based on the individual debtor credit profile. Some 43% of German companies and 61% of British firms are planning to monetise their receivables/payables to provide liquidity within their supply chain. This report updates Demica’s first two Supply Chain Finance research projects from 2007 and 2008 and reveals that the majority of Germany and UK firms believe their banking relationships have irrevocably changed over the last 18months. Supply Chain Finance – a Growing Need ...
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...this journal is available at www.emeraldinsight.com/0957-4093.htm Effectiveness and efficiency: the role of demand chain management David Walters University of Western Sydney, Parramatta, Australia Abstract Purpose – The paper aims to focus on and discuss the differences between the demand chain led organization and the supply chain led organization. Design/methodology/approach – The paper uses a desk-based approach to data collection and provides analysis and discussion of the issues. Findings – The paper finds that the differences between the demand chain led organization and the supply chain led organization are ones of emphasis. Supply management is cost-led and attempts to provide an adequate level of service. By contrast the demand chain approach is a broader view of relationship management taking a view that the two overlap and that effective management is to integrate the two. Originality/value – The paper focuses on the increasing importance of demand chain and supply chain management decisions. Keywords Supply chain management, Cost effectiveness Paper type Research paper The role of demand chain management 75 A glance at today’s financial pages suggests that it is those firms that consistently and persistently manage their cost structures that are seen as the achievers. There also appears to be a popular notion that an effective supply chain alone will ensure adequate customer satisfaction through reducing costs, and therefore, prices. At the same time, it...
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...WAL-MART'S SUPPLY CHAIN MANAGEMENT PRACTICES Do No tC op y OPER - 020 This case was written by P. Mohan Chandran, under the direction of Vivek Gupta, ICFAI Center for Management Research (ICMR). It is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources. 2003, ICFAI Center for Management Research. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means – electronic or mechanical, without permission. To order copies, call 0091-40-2343-0462/63/64 or write to ICFAI Center for Management Research, Plot # 49, Nagarjuna Hills, Hyderabad 500 082, India or email icmr@icfai.org. Website: www.icmrindia.org OPER/020 WAL-MART'S SUPPLY CHAIN MANAGEMENT PRACTICES “When you start to collapse the supply chain, accuracy in execution becomes critical. Any lack of accurate information and processes creates costly bottlenecks in the flow of goods and materials.” -- Bruce Richmond, Global head, Andersen Consulting. y INTRODUCTION tC op The US-based Wal-Mart ranked first in the global Fortune 500 list in the financial year 2001-02 earning revenues of $219.81 billion (Refer Table I). Wal-Mart was the largest retailing company in the world. The company was much bigger than its competitors in the US –...
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...SUPPLY CHAIN PRACTICES OF CTI Education Group TABLE OF CONTENTS Introduction ……………………………………………………………………….. Page 02 Contacts at CTI …………………………………………………………………... Page 02 Supply Chain Management …………………………………………………….. Page 02 Competitive Advantages ………………………………………………….…….. Page 03 Core Product / Service Offerings ………………………………………………. Page 04 Description of CTI Education Group’s Students …………………………….. Page 05 Supply Chain Strategy ………………………………………………………….. Page 06 Are CTI Group’s Supply Chain and Product Offering Aligned? ……………. Page 08 Supplier Relationship Management …………………………………………... Page 08 CTI Education Group’s Suppliers................................................................ Page 09 Supplier Involvement in CTI Education Group’s Operations....................... Page 10 Supply Chain Integration and Management ………………………………... Page 11 Conclusion................................................................................................... Page 13 Bibliography ……………………………………………………………………… Page 14 Appendix A (Permission from CTI) ……………………………………………. Page 16 Appendix B (List of Suppliers) …………………………………………………. Page 17 Appendix C (Campuses) ……………………………………………………….. Page 18 Appendix D (Career Paths) ……..……………………………………………… Page 19 Appendix E (Trade & Industry) ………………………………………………… Page 20 INTRODUCTION For this assignment I have elected to case study CTI Education Group. Reasons for choice: 1) While...
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...Executive Summary This report aims to analysis the Australia Company Coca-Cola Amatil of the logistics and supply chain activities. Coca-Cola Amatil is an Australian beverage company which is a partner of Coca-Cola Company purchasing and distributing carbonated soft drinks from Coca-Cola license. In addition to this, CCA provides their own products of water, soft drinks and fruit juices, and spirits and an alcoholic beverage. In view of the supply chain of CCA, we have a specific of the analysis for the quality management systems, transportation and warehousing system, inventory management systems during our report. Besides of the manufacturing in CCA, amatil have their responsibility in distributing the products during two kinds of the operation patterns delivery partner and out delivery partner. To maintain the quality of their product, CCA based on the implementation of ISO 9001, ISO 14001, ISO 22000 and OHSAS 18001 Coca-Cola created a system called Coca-Cola Operating Requirements (KORE) system. CCA has an cooperation with Swisslog to build its own warehouse system and logistics system to ensure distribution system in normal running. Forecasting is important for CCA to review the past and planning the strategy in inventory for the future by using technology and collaborative planning. Table of Contents Table of Contents - 2 - 1. Background - 3 - 2. Supply Chain Structure - 4 - 3. Quality Management - 6 - 3.1 ISO 9001, ISO 14001, ISO 22000 and OHSAS 18001 Accredited...
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...Crafting And Executive Strategy Assignment 1 Case Study # 6 Dell Inc. In 2008 : Can it overtake Hewlett – Packard as the worldwide leaders in personal computers ? Submitted to : Prof. James Farmer Submitted By : Roshni Patel Student Number : 300686000 Question 1: Dell inc. Began with a ‘winning strategy’. At this time (2012), this strategy is not used to the extent that it was once was and the company is now not the company that it was once. Did Dell’s strategy fails, did the company fail to effectively execute the strategy or did the environment changes around Dell? Evaluate the possibilities. Answer: Dell is a global company that delivers products and services in more than 190 countries and company had given employment to over 4000 employees. The company deals in enterprise computing products, monitors, printers, software and peripherals with a focus on fully integrated improved environmental performance into business. The company had gone through many ups and downs from its inception in 1984 and has to face many challenges and competitors to stay ahead in the market. Dell founded the company with simple vision and business concept that the personal computers could be built and sold directly to consumers which would eliminate the additional cost of intermediaries between the company and consumer and thus reducing the overall cost of the PCs making it cheaper than other PCs in the market. The other advantage was that it reduces the costs and risk associated with...
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...Distribution Strategy (Group D _ Session 7 _ Assignment) San Fabian (SF) - MacDowell Philippines (MP) - Paulo Remita Incorporated (PR) Problem Statement After 19 years of an established “exclusive-distribution” agreement with San Fabian; MacDowell Philippines decided to terminate the deal. MacDowell Philippines decided to take over the Wholesale role of San Fabian (SF) and would participate directly in large Commercials as well as Government Projects. Accordingly MP (MacDowell Philippines) products line will be made available to Construction Supply dealers across Philippines. MP claimed to be forced to take that step to help increasing Sales since they experienced an operation capacity around 50%. Situation Analysis As Mr. Paul Cheng _ President of SF was looking at that situation imposed by MP; he went back in time when the relationship started between both corporations in 1967 and continued since then and saw how that engagement was considered to be a “ Natural Fit “ or in other words a “ Win to Win “ situation. There were things SF wanted in MP and other things MP was missing that could be briefly explained as follows: a) SF MP * SF was missing the roofing product line * MP was the only manufacturers who accepted the “exclusive-distribution” agreement b) MP SF * SF was a growing co. with a solid, good reputation * SF didn’t carry any competing product line * SF could offer a national coverage * SF would be able to pay...
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...control from Spain, the sole logistics hub. Although 34% of Inditex’s manufacturing is outsourced to Asia, and 14% to parts of Europe including Turkey, those tend to be the more basic items. The high-fashion stuff, 49% of what it sells, is cut and finished in Spain though some sewing is done elsewhere. So this structure clearly makes sense. Long lead times and the concomitant inventories are more tolerable for basic T-shirts and such that will essentially always be carried. Labor savings from sourcing in Asia are likely more than enough to offset the added holding cost. That wouldn’t be true for products with more “fashion content” that may sell today but not tomorrow. Keeping that work in or near Spain shortens the lead time and avoid supply-demand mismatches. But how long will Zara be able to keep with this model? Particularly if the real growth opportunity is in Asia. A big question, however, is how far [Inditex] can go on growing from its home base. Now that 15% of its sales are in Asia, does it make sense to run product design and logistics just from Spain? Some clothes it has made in China are shipped to Spain and then back to shops in China. The...
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