Asda's Supply Chain Management Strategies

This assignment examines Asda's supply chain management approach, focusing on both online and offline operations. It discusses the benefits and drawbacks of each channel, considering factors such as accuracy, customer relationships, trust, cost, investment, demand variance, and environmental impact. The analysis aims to highlight how Asda effectively utilizes both online and traditional supply chains to cater to its customers' needs.

Individual Report

Table of Contents
INTRODUCTION............................................................................................................................3
SUPPLY CHAIN MANAGEMENT...............................................................................................3
EFFICIENT SUPPLY CHAIN MANAGEMENT..........................................................................4
RESEARCH AND DISCUSSION TO CONSIDER SUPPLY AND DEMAND IS MANAGED
IN BOTH ONLINE AND OFFLINE...............................................................................................4
EVALUATION BETWEEN OF ONLINE AND OFFLINE SUPPLY CHAIN MANAGEMENT
..........................................................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES.................................................................................................................................9

INTRODUCTION
Asda Stores Limited is a multinational retailer company which have the retailer store
chain in UK and other countries. This is a British supermarket retailer, this company have other
subsidiary work e. g. clothing, financial services and George stores (clothing). Asda is mainly
working in super market retail stores which have multiple brands in their store(Christopher,
2016.). Asda is known for their large and stylish super market chain in UK. Asda have different
types of super markets such as super centres, super stores, supermarket, living, George stores etc.
Asda is using both types of market offline market which is related to supermarket chain
and online market for the online customers who are not prefer to go in supermarkets. In the
current scenario online market is taking lead on supermarket, people does not want to go for
shopping, this is a waste of time. Company is doing their best in this segment; customers are
taking interest in online shopping of Asda. Asda is providing all products which they have in
supermarkets in their online shopping website. Company is taking serious interest to manage
supply system of online shopping. Customers want their products in a shorter time so it is a duty
of company to provide in a short of time period(Ballou, 2007. ). Company is taking efficient
supply chain management to provide customer satisfaction by their products and services. Supply
chain management touches major issues of including the rapid growth of company. Impact of the
supply chain management is to boost customer services, supply product on time. Company's
supply chain management helps in to those products have to be accessible in the location that
consumers expect. Clients must also obtain superiority after-sale support services. Supply chain
management is helping into modernize everything from daily product flows to unexpected
ordinary calamity.
SUPPLY CHAIN MANAGEMENT
Supply chain management is a type of operational management which manages supply
chain of the products and goods of the company. Supply Chain Management (SCM) is an
important factor to run the operational activities in right manner. It has taken imporant role in
meet the purchaser satisfaction and attain the objecites of business (Dekker, 2013). This is very
essential for Asda. In the prospectus of Asda have multi types of brands in their supermarkets
and they have many supermarkets. So the company have the best supply management in manage
their supply of goods on the demand of customer. For an example: a custo mer lives in Ireland

and he bought a product by the online shopping services of Asda, so this the responsibility of
company to provide that demanded product in shipping days with safety. So it can be possible
by the effective management of supply chain (Seuring and Müller, 2008.). Supply chain
management helps in customer service by making sure the right collection of product and
quantity are delivered in a given shipping time. One more thing this management helps into
provides the products safely to their customers. Additionally, those products must be available in
the location that customers expect. Customers should also receive quality after-sale customer
support. Efficient supply chain management helps in to reduce the cost of supplying goods and
this is beneficial for company.
EFFICIENT SUPPLY CHAIN MANAGEMENT
Meaning of efficient is achieving maximum productivity with minimum wasted effort, so
in the context of supply chain management, supplying chain of the Asda is very efficient by the
efforts of the supply chain managers. Efficient supply chain management impacts on the
distribution cost of the products. Lowering distribution costs is a major function of supply chain
management. With a cost-efficient supply chain, manufacturers can reduce overhead and direct
sales costs at the same time. In the efficient supply chain management use technologically
advanced routing and navigation systems for drivers, fuel-efficient vehicles for the distribution of
products. One more thing which is a part of efficient supply chain management is cost-efficient
purchasing of material which used in to distribution of the product. Order-processing systems is
also play an important role in it, this is based on the location of the customer and the availability
of the product in that particular area (Carter and Rogers, 2008.). Supply management plays a
crucial role in to supplying of products to their customer and efficient supply management helps
in built up belief and faith of their customers in the company. This is a most desired thing for a
company that customers showing belief in company and in the production. So mainly efficient
supply management is having a positive impact on customer and on company.
RESEARCH AND DISCUSSION TO CONSIDER SUPPLY AND DEMAND
IS MANAGED IN BOTH ONLINE AND OFFLINE
Online and offline chain management is lump sum same, they does not have another
strategy in their supply and demand. Difference between online and offline is the way of layout
of products. As we all know that online shopping market is growing and offline market is calling

as traditional way of business. So all the organisations which are doing their business in
traditional way have started in online business (Srivastava, 2007.). Online availability is essential
for every company, to grow up their business. In this time everyone have internet and
smartphones, and this is the best way in to reach of customers.
Supply chain management of goods have to be faster, better and efficient in this online
sale of products. Effective supply chain management is the basic need of this because every
product which is sell out having a cost of delivery which is add in the price of the product. In the
traditional style of selling product the supply chain management is relates to supplies of the
retail stores but in this current scenario supply chain management working in both input and
output of the products.
Supply and demand is a theory of economics which says that if demand of a particular
good is low than price also would be low and if the demand is high price also get high. Demand
refers to how much (quantity) of a product or service is desired by buyers. The quantity
demanded is the amount of a product people are willing to buy at a certain price; the relationship
between price and quantity demanded is known as the demand relationship (Li, 2006.). Supply
represents how much the market can offer. The quantity supplied refers to the amount of a
certain good producers are willing to supply when receiving a certain price.
EVALUATION BETWEEN OF ONLINE AND OFFLINE SUPPLY CHAIN
MANAGEMENT
Efficient Supply
Chain
Supply Demand
Online
 Advantages
Locations
Structure
Profitable
 Disadvantage
Website Cost
Shipping Cost
 Advantages
Home Based
Daily Demands
24*7 Market
 Disadvantage
Inconsistency Of Demand
Fake Customers

Offline
 Advantages
Accuracy
Relationship
Trust of Customer
 Disadvantage
Increased Cost
Heavy Investment
 Advantages
Regular Customers
Attractive
Feedback Of Products
 Disadvantage
Variance
Environmental Affects
Online efficient supply chain management
Supply
Advantages:
1. Locations: In the online supply chain management Asda PLC knows about the locations
of the customers and they knows the grip of the products in a particular area because
company is using navigation system to navigate the customers.
2. Structure: In this type of business, there is no need company outlet, which have the big
investment on the structure. Asda is a big name in Uk so there is no need to open new
outlet to compete in market.
3. Profitable: Online supply chain system more profits than the offline because company
have the stock and it is just for increase to sale.
Disadvantage:
1. Website Cost: It has expenses of website to work on internet and to be in the upper side
of search engine. This is a main or basic cost of the company to provide their services.
2. Shipping Cost: Company includes the shipping cost in their products which have to
supply to their customers. Most of the time this cost is carried by the Asda.
Demands
Advantages:
1. Home Based: The demands are home based, this is a part of online home shopping and
this is very popular in trends. Asda deals in several products so this is the more variety for
demand.

2. Daily Demands: A customer can demands daily in various types of products, just
because it is a part of home shopping. Company is dealing in home merchandise so it is
routine products which is daily need of customers.
3. 24*7 Market: In this trade company have the 24*7 business because it is a online
shopping and people can shopping whenever they get free. Asda has a team for online
shopping and they are very 24*7 in the help of the customer.
Disadvantage:
1. Inconsistency Of The Demand: A customer have many options on internet to buy a
product, so it is a factor which creates inconsistency in the demands of the products.
2. Fake Customers: Many of satisfied customers are regularly us in the online portal of
Asda for shopping. But some new or fake customers buy a product in the cash on delivery
and refuse it to buy when the product reach to them. So this is an extra burden on Asda.
Offline efficient supply chain management
Supply
Advantages:
1. Accuracy: It is very easy way to deal with customers in quantity of the product. In this
type of trade, there no issue on the quantity of the product in between customer and the
company. These types of issue can be occur in the online trade.
2. Relationship: Asda is creating a fair relation with their customers by their products and
services.
3. Trust Of Customers: This is very essential to gain the trust of a customer and company
is doing very well in this.
Disadvantages:
1. Increased Cost: Asda has a big staff in the supermarkets to manage and maintain their
services, so it is a reason for increasing the cost of products.
2. Heavy investment: Asda having a chain of supermarkets retail stores in the UK. It is a
very big investment in it to having a supermarket in best locations in UK.
Demands
Advantages:

1. Regular Customers: In the retail markets company is having their regular customer
which is comes on weekly or monthly basis. Asda is having a large range of products
which are in regularly in use of the customers.
2. Attractive: When a customer comes in a retail store of Asda to buy a particular product,
but some time he attracts with the other product and it becomes in a extra sale of prodcts.
3. Feedback Of The products: In retail market, company get the immediate feedback of
the brand and the product.
Disadvantages:
1. Variance: Retail outlets based on the need and free time of the customers, in the current
scenario everyone is struggling with the time. So it is based on the free time of the
customers so it creates a variance in the sale.
2. Environmental Affects: Asda having their many retail supermarkets in the UK. Most of
the time heave snowfall creates a bad impact on the demand of the products. Online
CONCLUSION
Asda is dealing in both channels online and offline supply chain management, online
supply management is better than the traditional because world is changing and peoples are
changing, so some changes are essential for Asda. Company is using their online sepply chain
management very well, they are delivering at home their delicious food, clothes and other
products. So online supply management is also helpful for traditional supply chain because it is
creating and developing their business. Online supply chain management is faster and better for
company, it is providing more business to company. This the capability of their supply chain
managers whom are maintaining it in very well manner.

REFERENCES
Books and Journals-