Supply Chain Management in the Grocery Industry

This assignment explores the crucial role of supply chain management in the grocery industry. It highlights key issues like e-commerce, outsourcing, and consumer expectations. The author analyzes various theories like total quality management and resource-based theory to understand how companies can achieve competitive advantage through effective supply chain strategies. The impact of discounted stores and the growing influence of ecommerce are also discussed.

Running head: SUPPLY CHAIN MANAGEMENT
Supply Chain Management
Name of the student
Name of the university
Author note

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SUPPLY CHAIN MANAGEMENT
Through the dissertation I got to know that, it is significantly important for all companies to
appropriately manage their supply chains so that they can maximize customer value and gain
a competitive advantage which is sustainable effectively. The activities which are involved in
the management of supply chain are production, product development, sourcing and
coordinating such activities. The dissertation helped me to understand the specific issues of
the supply change in relation to the grocery industry. I got to know how one company can
develop competitive advantage over the other through the use of best practices in supply
chain management. There are several issues which have to be addressed while carrying out
effective management of the supply chain by a company. The issues are mostly related to the
type of industry. Other than the general issue of supply chain strategies which is predominant
in almost all industries the grocery industry aces issues like the use of e-commerce and
outsourcing activities with respect to the supply chain.
The modern day consumers are not only aware of their right but also about the strategies
companies might have in place to lure them. The consumers therefore want efficient as well
as transparent services so that they can fulfil their needs at the lowest cost. This particular
need of the customers make the companies to indulge in strategies like aggressive price
cutting which ultimately leads to short term losses. The total quality management theory
provides an approach towards enhancing the performance and quality of the company to meet
consumer expectations. The concept is very useful for supply chain management as it guides
the retailers to ensure quality in the processes and products. The resource based theory
provides the grounds for competitive advantages among the competitors within an industry. I
got to know that the theory states that company make strategies for the purpose of using
resources to gain a competitive advantage over the other. I was enlightened with the true
meaning of supply chain strategy which is actually the process of attaining cost benefits
trade-offs. The strategy provides support to the companies towards meeting their objectives

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SUPPLY CHAIN MANAGEMENT
and goals. However the use of the strategy is raising issues among the consumers that they
are provided with cheap products in order to lower their cost and make them look appealing
to the consumers.
I also got to know that discounted stores are growing at a high rate in the modern market.
These are stores which adopt a low cost business model. The company such as Aldi has been
able to get a good share in a short time only because it provides products at a reduced price.
Ecommerce is also a major factor affecting the companies in relation to supply chain
management along with that of outsourcing. Businesses have to formulate polices which
would help them to properly manage ecommerce as technology and its use is growing at a
rapid rate. Outsourcing also has to be addressed by the businesses to gain a competitive
advantage by reducing cost.