Management Accounting for Costs and Control

Running head: MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL
Management Accounting for Costs and Control
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1MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL
Table of Contents
Question 1: Value Chains................................................................................................................2
References:......................................................................................................................................4

2MANAGEMENT ACCOUNTING FOR COSTS AND CONTROL
Question 1: Value Chains
The organisation that has been selected for this part is Woolworths Group Limited, which
is involved in selling retail products mainly in Australia and New Zealand. The mission of the
firm is to ensure the delivery of improved quality products to its customers
(Woolworthsgroup.com.au, 2019). In the recent time, it has faced a number of issues related to
transport solutions, supplier collaboration, visibility of operations, outbound and inbound
integration and reporting capabilities. Therefore, Woolworths has to improve its store service
levels along with assuring competitive advantage to accomplish sustainability in supply chain.
Hence, the firm has converted its supply chain management system by using the value chain
analysis of Porter. Woolworths conducts three functions that create value, which assist in
fulfilling its promises. These functions mainly include inbound logistics, operations and
marketing and sales.
As mentioned by Crane et al., (2014), inbound logistics takes into consideration direct
associations with the suppliers and the activities to be obtained in stores and dissemination
inputs. For Woolworths, the firm is primarily a retailer. It is involved mainly in distribution and
control rather than producing the products sold on diversified platforms. In accordance with the
function of building distribution network, Woolworths provides contribution into logistics and
procurement.
For the procurement process, Woolworths uses the platform of “Trandestone’s
Merchandise Lifecycle Management”. By using this platform, it becomes easy for the firms to
manage their suppliers and orders, financing and relationships with more suppliers and business
to business sales (Mudambi & Puck, 2016).Woolworths has adopted “Stringent Certification