Relationship between Logistics and Supply Chain Management: A Case Study of Sainsbury

Running head: MARKETING
August 9
2018

MARKETING 1
Table of Contents
Introduction................................................................................................................................2
1. The relationship between Logistics Management and Supply Chain Management..........3
Supply Chain Management................................................................................................3
Logistics Management.......................................................................................................3
How Effectively Logistics Management can improve the profitability of Sainsbury’s.....4
2. Support of ERP to Sainsbury to improve its efficiency while reducing the cost of supply
chain management and logistics.............................................................................................5
3. Practices to increase Reliability in the Supply Chain and Logistics Management of
Sainsbury................................................................................................................................6
Conclusion..................................................................................................................................8
References..................................................................................................................................9

MARKETING 2
Introduction
Every organization needs to manage their flow of products or services in order to have a
complete management and record of the goods between supplier and receiver. Supply Chain
Management is the organization of the movement of services and goods and comprises every
procedure that converts raw materials into finished products (Lei and DeCandia, 2017).
Logistics management is the component of SCM that is utilized to fulfill the demands of the
consumer by control, planning, and execution of the operative movement and storage of
associated goods, information, and services from source to destination (Myerson, 2012). This
report is being presented in order to highlight the relationship between logistics management
and supply chain management. It will analyze how effective logistics management can
improve the profitability of the Sainsbury Company. Besides this, the report will analyze the
support of ERP in improving efficiency while decreasing the cost in the management of
supply chain. In the end, the report will raise the discussion regarding practices used to
increase company’s reliability in the logistics and supply chain management.
Sainsbury
Sainsbury is the United Kingdom’s second biggest supermarket chain, with a 16.9% market
share in the sector of supermarket in the UK. John James Sainsbury founded the business in
1869, with the first shop in London (Sainsbury’s, 2018). It became the groceries biggest
retailer in 1922, and the UK’s principal adopter of self-service trading. Tesco moved forward
from Sainsbury’s in 1995, in order to be the leader in the market and in 2003, Asda became
the second biggest Supermarket. This dragged Sainsbury’s to the third position for many
years but in January 2014, it again gained the second place in the market (Sainsbury’s, 2018).
Sainsbury’s Vision

MARKETING 3
The Sainsbury’s vision is to become the most reliable retailer where people enjoy shopping
and working. The company will achieve this by keeping customers at the center and investing
more in their colleagues, channels, and stores to provide the best quality and shopping
experience (Sainsbury’s, 2018).
Mission of Sainsbury
The mission of Sainsbury is to be the only choice of the customer for food, delivering goods
with best quality, and excellent service at a reasonable cost by working simpler, together, and
faster.
1. The relationship between Logistics Management and Supply Chain Management
Supply Chain Management
Supply Chain Management is the organization of services and goods flow and comprises all
the procedures that convert raw things into finished products (Stadtler and Kilger, 2014). It
includes the active reform of the supply-side activities of the business to increase consumer
value and attain a competitive advantage in the market. SCM signifies an effort by the
suppliers to create and execute supply chains that are well organized and economical
(Dyckhoff and Lackes, 2013).
Logistics Management
Logistics management is the component of the supply chain management that is utilized to
fulfill the demands of the consumers by planning, control, and application of the effective
drive and storage of associated information, services, and goods from source to endpoint.
Logistics management support business in decreasing expenses and improve customer
service. The procedure of logistics management instigates with an accumulation of the raw
material to the concluding stage of distributing goods to the endpoint (Farahani and
Rezapour, 2011).