Supply Chain & Operations: Logistics & Procurement at Sainsbury's

This report examines the supply chain and operations management strategies employed by Sainsbury's, emphasizing the crucial role of logistics in enhancing overall organizational performance. It delves into the importance of logistics in adding value to deliveries and facilitating effective product movement, highlighting Sainsbury's use of logistics for planning and coordinating product distribution. The report also evaluates the effectiveness of Sainsbury's procurement strategies and procedures, focusing on error minimization, authorized buyer identification, technical evaluations, and effective negotiation. Furthermore, it identifies factors that can improve logistics and procurement, such as maintaining efficient inventory, learning from competitors, boosting innovation, and developing supply chain management knowledge. The analysis includes designing an economic order quantity, evaluating the roles of LIFO and FIFO principles in inventory control, and assessing the Just-In-Time (JIT) system for managing inventory. The report concludes that a well-managed supply chain and effective operations management are vital for organizational success.

Supply Chain and Operations
Management

Table of Content
 INTRODUCTION
 3.1 Importance and use of logistic in supply chain management of Sainsbury's
 3.2 Effectiveness of procurement strategies and procedures
 3.3 Critical analysis of factors that can help in improving the logistics and procurement
strategies
 4.1 Designing the effective and economic order quantity for procurements
 4.2 Critical evaluation of the role of principles of LIFO and FIFO in the inventory
control
 4.3 Evaluation of Just in time system of managing inventory
 CONCLUSION
 REFERENCES

INTRODUCTION
The supply chain management in an
organization can be an effective activity that
can be performed by the companies to
achieve effectiveness in their day to day
performance.
The Presentation will explain about the
importance of the supply chain and the
operation management in the organization.

3.1 Importance and use of logistic in
supply chain management
Importance and use of logistics in the supply chain
management of Sainsbury's are as follows.
Importance of logistics
 The logistics plays an important role in the supply chain
management of the Sainsbury's as the organization takes
benefits of the logistics that increases the overall value of
every delivery.
Use of Logistics
 The Sainsbury's uses the logistics in the supply chain
management because it helps the company in planning and
co-ordinating the movements of the products effectively
so that the products can reach to the destination safely and
on time.

3.2 Effectiveness of procurement
strategies and procedures
Effectiveness of procurement strategies and procedures in the Sainsbury's are as follows.
Effectiveness of procurement strategies
 Minimizing the error
 Identification of authorized buyers
 Increasing efficiency for timely delivery
Effectiveness of procurement procedures
 Evaluation in technical aspects
 Effective negotiation

3.3 Factors that can help in improving the
logistics and procurement strategies
The various factors can be helpful for the Sainsbury's in improving the logistics and
procurement strategies of the company.
Factors for improving logistics
 Maintaining efficient inventory
 Learning from competition
Factors for improving procurement strategies
 Boosting the innovation
 Develop the knowledge of supply chain management

4.1 Designing the effective and economic
order quantity for procurements
The most effective and economic order quantity for the
procurements of the Sainsbury's can be made that the
company should make the quantity of 400 units that can be
ordered in the 6 annual orders.
The organization should also have a combined ordering
and holding cost that should not cost the Sainsbury's more
than $120.

4.2 Roles of principles of LIFO and
FIFO in the inventory control
Role of principles of LIFO in inventory control
 Calculating the inventory sold
Role of principles of FIFO in inventory control
 Avoiding the expiration

4.3 Evaluation of Just in time system
of managing inventory
 The just in time system of the
inventory management is a
method that is used to manage the
inventory by choosing the method
of receiving the goods from the
suppliers only when they are
needed.

CONCLUSION
Thus, it can be concluded that the supply chain management and the operation
management can be an important aspect of the organization that the companies should be
focusing on.
The logistics can play an important role in the successful management of the supply chain
of the organization.

REFERENCES
 Alamri, A.A. and Syntetos, A.A., 2018. Beyond LIFO and FIFO: Exploring an
Allocation-In-Fraction-Out (AIFO) policy in a two-warehouse inventory
model. International journal of production economics. 206. pp.33-45.
 Bonnal, C. and et.al., 2020. Just in time collision avoidance–A review. Acta
Astronautica. 170. pp.637-651.
 Koberg, E. and Longoni, A., 2019. A systematic review of sustainable supply chain
management in global supply chains. Journal of cleaner production. 207. pp.1084-
1098.
 Mena, C., Van Hoek, R. and Christopher, M., 2018. Leading procurement strategy:
driving value through the supply chain. Kogan Page Publishers.
 Sainsbury's. 2022. [Online] Available through: <https://www.sainsburys.co.uk/>