Operational Management Practice of J Sainsbury Plc: Impact of Supply Chain, Technology and Supporting Functions

This report analyses the operational management practice of J Sainsbury Plc, focusing on the impact of supply chain, technology and supporting functions. It evaluates the efficiency of the organisation, discusses the embedding of technology in the process and explores the supporting functions linked to the supply chain.

WRITTEN PROJECT

Table of Contents.
INTRODUCTION ..........................................................................................................................3
J Sainsbury Plc's operational management practice....................................................................3
How supply chain impact the efficiency of the organisation.......................................................4
Evaluate how technology could be embedded in this process.....................................................6
Discuss the supporting functions linked to the supply chain and how it helped them in
achieving success.........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Operation management is the method or ways of business activities which has
created the highest level of efficiency within the working of the business. In simple words,
converting the raw materials with the help of labour into goods and services so as to maximize
the profitability of the orgnisation (Maarof, Nawanir and Yusuf, (2022). The report will identify
and explain one operation management practice of the J Sainsbury Plc which is UK's second
largest chain of supermarket founded in 1869 by John James Sainsbury. The study will critically
analyse analyse the impact of operation management practice in regard to quoted company's
efficiency. The research will further evaluate how technology could be embedded for
achievment. In the end, the project will discuss the supporting functions and how they assist
them in ensuring the company's success.
J Sainsbury Plc's operational management practice
Supply chain, quality management standards, purchasing & ordering policies and
information management are four practices in operation management. This report will discuss
the supply chain of the Sainsbury Plc. The British based company is very operational in work
and appropriate strategic tools would be required to analyse the supply chain as for smooth flow
proper design process is being required for running such a wide supermarket chain (Guo and
Wang, 2019).
A supply chain refers to the activities which enable the organisation to present it's goods
or services to the consumer while managing the activities in a supply chain so that consumer gets
value for money is known as supply chain management. Sainsbury, using different methods to
efficiently utilize its supply chain which are based on considering logistics, warehouse,
procurement, storage and technology. The real time supply chain of the Sainsbury's allowed the
niost up-to-date stock information, improving the availability for customers and reducing the
waste by prevent packed goods from being expired with efficiently delivering of inventory to
stores before shortage. The supply chain of the quoted company is being analysed by the Kraljic
procurement matrix (Dekkers and et.al., 2020). With this method the study would be able to
identify that whether the supply chain of the Sainsbury helps in the cost reduction as well as
fulfilling the customer's wants. The method would firstly ensure that there should be an safe
amount of inventory while examining the market. Then the another step is in regard of the

strategic positioning which involves that the products of high profit margin should be
consistently puchased by the consumers without any shortage of supply. Finally, the last step is
to figure out the action plan considering the effective cooperation, inventory supply, buyer
power, supply continuity and resources being utilized in an efficient manner.
The quoted company has managed its supply chain by properly planning it's logistics.
They have effective management through a proper linking of it's warehouses to the terminals
with the help of iForce. There is an increase in the transparency in the supply chain by
publishing the suppliers list to the general public and also planning to add on General
Merchandise and Goods not for resale lists. Enterprise Resource Planning (ERP) system
integrate the business process and transaction oriented data which ensures supply continuity and
a situation of lack of stock could be avoided. The supply chain of the quoted company has
automatic warehouse through the Global Data Synchronising (GDS) which would allow them to
be a step ahead of its competitors. In recent, the given company has announced to create new
supply chain model to cut the costs from the businesses by integrating the logistics and supply
chain network with the Argos so that number of extra depots could be shut down. This would
save £150m through this model (Green, 2021).
How supply chain impact the efficiency of the organisation
Supply chain management is necessary for the growth of an organization. Optimum use
of supply chain has a great impact on the quoted company:
 Customer focus: Current and future requirements could be met by
satisfying the customers with th customer-centric approach. Customer
retention improved the financial and sustainability of the business.
Nowadays, awareness among the customer's regarding the knowledge of
the market force the organization to be conscious regarding the quality of
the product or service.
 Employee empowerment: The supply chain management of the quoted
company provides that the workforce being able to effectively flow of the
goods & services. Employees are the foundation of the supply chain
management. Having proper supply chain management model benefits the
employees and the organisation by sufficient decision-making power to

act independently instead of further approval from the senior authority
regarding the demand and supply of the stock.
 Use of quality tools: To maintain the supply chain management, various
quality tools for enhancing the employee's skills and knowledge for the
smooth flow of supply chain is necessary. Virtual training, online courses,
skill programmes are the methods used by the Sainsbury for ensuring
better experience to the customer's while dealing with the online purchase
of the products (Ableeva and et.al., 2019). They should have sufficient
skills, abilities and knowledge to cop up with the supply chain
management in the given organisation.
 Visibility: The supply chain has a great impact on the visibility over
logistics operations. The modern inventory management software allow to
track the level of stages starting from warehouse to the ultimate consumer.
The visibility over the stock helps the company to forecast the data and
analytics of the inventory.
 Good relationship with supplier: Having proper supply chain boost the
relationship with the suppliers to avoid any issues, delays and shortage due
to the better communication. After discovering the consistent suppliers
who are both flexible and responsible to the company, proper supply chain
increase the relationship with the suppliers.
 Automatic process: Due to the supply chain management and by
following the technology in making the processes automatically would
increase the performance and save the money & time in long run of
business (Hornborg and et.al., 2019). Automated warehouse, shipping and
logistics are varients to improve the supply chain.
 Implement supply chain software: Supply chain helps to implement the
correct technology and software which would allow the team to work in an
efficient manner by following the strategies to manage the inventory
through advance softwares.
 Green initiatives: Supply chain management use cost-effective strategies
on packaging like SIOC packaging which would also reduce the cost of

shipping by eco-friendly technique (Lopienski, 2021). This work towards
minimizing the biodegradable waste which would save the ecology of the
planet.
 Optimize supply chain: With the help of new ideas and proper supply
chain management the entire supply chain could work effectively and
efficiently by increasing the productivity and profitability of the
organisation.
Evaluate how technology could be embedded in this process
Introduction of technology has witnessed a new dimension for the retail or supermarket
businesses. With the rise of digital technology, it is important for the organisation to imply
digital tools and innovative techniques in the offline & online stores and supply chains. Before
pandemic, the adoption of robots, drone deliveries were limited but post Covid-19 use of robotics
in the shops, warehouses, delivering has seen an immense growth. Technology is already helping
these businesses by bar codes analyser, managing order and tracking through online tech etc.
For Sainsbury, technology has been a keen part in overall growth of the various
operations of the business. The recent merger with the Korber company to transform its supply
chain by K.Motion warehouse system which would be an enhancement of Old WMS system
(Mooney, 2022). It would be important in the organisation's journey with a strong integrated
network to serve its customers and stores which would reduce the complexity. With the help of
new techniques the quoted firm is made an structural change in the beef supply chain which is
completely fit for the future. With collaboration with the farmers and producers, company has
found a way to which is beneficial for all the parties being involved i.e. farmers, customers and
the company.
Sainsbury's new software which would alert during potential problem to the chain and its
suppliers and provide a resolution to that issue. The Alert software provided by the Eqos firm
improved the efficiency and supplier relations. The quoted company has already launched its
first cashierless store with the help of Amazon's Tech in London. This concept which is known
as SmartShop Pick & go is combined of software, shelf technology and cameras. The company
is currently working on the upgradation of SmartShop. Operating Artificial Intelligence (AI) in
the supply chain functions with the help of Blue Yonder which forecast and replenish the end-to-

end supply chain (Walton, 2020). They are working together to describe this tech as ' advanced
machine learning for autonomous self-learning supply chain platform'. Blue Yonder's Luminate
manage the perishable goods and also enables the supply chain collaboration, visibility and
orchestration (Galea-Pace, 2020). It would provide the macro space planning, labour, space,
warehouse and range management.
Installing self service checkouts was firstly done by Sainsbury's in Europe in all
supermarkets which reduces the queing time and better the experience for the customers. Brand
Match is another technology being used for comparing Tesco's and Asda's pricing of goods in
seconds. The fundamental feature of this is the promotion and offer by issuing immediate
vouchers which definitely atrracts consumers. Nectar Loyalty Programme is another merger of
the quoted company's with the Nectar which directly reward the points to the cards and is widely
supported by the customer's as well as supplier. Mobile Scan & Go is a new initiative which is
on a trial stage which allowed the customers to scan products with their mobile device and pay at
checkout gate without unloading their bags. These all technologies would clearly show that how
the quoted company is being passionate about providing better experience to its customer's.
Discuss the supporting functions linked to the supply chain and how it helped them in achieving
success
There are various supporting functions which directly or indirectly linked with the supply
chain management of the Sainsbury's Plc and benefit of it in achieving the success:
 Procurement: The very first supporting function which deals with the supply
chain management is logistic department which is related to the buying and
selling of the products or services. The products which are being used for the free
flow of working within the organisation also comes under this department (Jones
and Comfort, 2020). Supply chain of the Sainsbury's is mainly run on automatic
techniques which is regulated by the top level executives. The proper supply
chain management complete the delivery of stocks & orders in a faster and
quicker way as per the scheduled time and date.
 R&D: Research and development mainly focus on the unique products or
services which should be brought from time to time to attract the consumer.
Organisation's should be aware of the new products or techniques of their

opponents so as to advance their current launching product line. Sainsbury's Plc
with the help of R&D manages the supply chain of the company by adapting
various techniques in the logistics of the quoted company. The main duty of the
supply chain is to safely deliver the product to the stores from warehouse and
from stores to the ultimate consumers (Williams, 2020). This could satsify the
needs of the customers within the market and due to R&D quality beef could be
provided to the customer's considering the needs of the farmers.
 Information workflow: The supply chain could be easy to manage by sharing
and distributing the information among the other dunctions. Lack of
communication of information could build a gap between the entire supply chain
which led to mismanagement (Alzoubi, 2018). Accurate information could
support the supply chain by performing appropriately from the official in charge
of the operation.
CONCLUSION
The report has been concluded by explaining the meaning of operation management
and described the application of supply chain management by analysing the supply chain through
Kraljic procurement matrix. The study has been summarized the importance of technology in the
supply chain management and utilize the techniques such as K.MotionAlert software, SmartShop
Pick & go, Blue Yonder, Brand Match, Nectar Loyalty Programme and Mobile Scan & Go with
the help of modern technology of Sainsbury's Plc. The research has been discussed the
supporting functions being linked with the supply chain management which helps in achieving
the success of the quoted company.

REFERENCES
Books and journals
Ableeva, A. M. and et.al., (2019). Economic evaluation of the efficiency of supply chain
management in agricultural production based on multidimensional research
methods. International Journal of Supply Chain Management. 8(1). p.328.
Alzoubi, H. M., (2018). The role of intelligent information system in e-supply chain management
performance. INTELLIGENT INFORMATION SYSTEM SUPPLY CHAIN. 7(2). pp.363-
370.
Dekkers, R. and et.al., (2020). Evaluating theoretical conceptualisations for supply chain and
finance integration: A Scottish focus group. International Journal of Production
Economics. 220. p.107451.
Guo, L. and Wang, Z., (2019). Ratio analysis of J Sainsbury plc financial performance between
2015 and 2018 in comparison with Tesco and Morrisons. American Journal of
Industrial and Business Management. 9(2). pp.325-341.
Hornborg, S. and et.al., (2019). Ecosystem-based fisheries management requires broader
performance indicators for the human dimension. Marine Policy. 108. p.103639.
Jones, P. and Comfort, D., (2020). Sustainability bonds and green bonds in the retail
sector. International Journal of Sales, Retailing and Marketing. 9(1). pp.37-43.
Maarof, M. G., Nawanir, G. and Yusuf, M. F., (2022). The Meaning of Manufacturing
Flexibility as Perceived by Malaysian Manufacturing Practitioners. International
Journal of Business and Technology Management. 4(1). pp.112-119.
Online references
Galea-Pace, S., (2020). Sainsbury's chooses Blue Yonder to transform supply chain [Online].
Available through <https://supplychaindigital.com/digital-supply-chain/sainsburys-
chooses-blue-yonder-transform-supply-chain>
Green, W., (2021). Sainsbury's creating new supply chain model [Online]. Available through
<https://www.cips.org/supply-management/news/2021/april/sainsburys-creating-new-
supply-chain-model/#:~:text=Sainsbury's%20is%20creating%20a%20new,
%2F20%20and%202022%2F23.>
Lopienski, K., (2021). Guide To Improving Supply Chain Efficiency [Online]. Available through
<https://www.shipbob.com/blog/supply-chain-efficiency/>
Mooney, M., (2022). Sainsbury’s partners with Körber to transform logistics operations
[Online]. Available through <https://www.logisticsmanager.com/sainsburys-partners-
with-korber-to-transform-logistics-operations/>
Walton, C., (2020). Sainsbury’s adds artificial intelligence to supply chain functions [Online].
Available through <https://www.logisticsmanager.com/sainsburys-adds-artificial-
intelligence-to-supply-chain-functions/>
Williams, T., (2020). Sainsbury’s Uses New Relic’s Programmability Features to Proactively
Listen to Customer Feedback [Online]. Available through
<https://newrelic.com/blog/best-practices/sainsburys-new-relic-customer-feedback-
twitter>
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