Enhancing Supply Chain Management in Sainsbury

Supply Chain
Management

Table of Contents
INTRODUCTION 3
TASK 3
Sainsbury supply chain management includes following factors that enhance its
performance: 3
How supply chain management and logistic is supported, delivered and developed in
Sainsbury. 4
Critical issues or problems faced by company in their supply chain management. 5
Recommendation or suggestion to improve supply chain management 8
CONCLUSION 9
REFERENCES 11

INTRODUCTION
The management of supply chain is a process through which entity ensure source of raw
material that is required for transforming goods or services to the potential audience. It consist
components such as planning, sourcing, making, delivering, running and enabling. It involves
various set of activities of distribution channels to perform various functions in organisation.
This combines procurement of raw material into work-in progress and finished goods or services
to the target audience. This integrates business operations and improves performance of industry.
The concept of supply chain involve whole network of organisation that collectively design,
produce and deliver goods or services to costumer. The management of supply chain and logistic
aids in costumer services, warehousing, transportation and sustainable competitive advantage.
The chosen organisation in this report is Sainsbury. This is the leading supermarket hub in UK,
which deliver grocery, clothing, electrical services etc. to the target audience. It is productively
recognized by John James in 1869. This report consist issues faced by the organisation and their
board of directors. It includes the response of mangers in respect of problems of logistics and
supply chain management. It also provide recommendation to enhance its supply chain and
logistic.
TASK
Sainsbury supply chain management includes following factors that enhance its
performance:
Customer services (Inventory management)- This includes proper management, arrangement of
stocks( product or services) to final end consumer. This depend on market and customer demand.
Sainsbury is working hard to improve its inventory management for attracting new customer. By
improving inventory or costumer service they enhance the level of profitability in business.
Transportation- Sainsbury has effective transportation facilities, by which they successfully
deliver their product or services from warehouse to final stores of the company (Berger,
Tortorella and Rodriguez, 2018). This will increase costumer experience and profitability of
company.
Warehousing (Capacity management)- Company easily manage capacity of its inventory
through assessment of demand of customer (Chukwu, Ezeanochikwa and, Eya, 2017). They
manage appropriate raw material stock in their warehouse in advance to produce final goods or

services. After producing final goods they kept all goods together in warehouse in deliver the
goods as per the demand of the particular store.
Competitive advantage- By effective supply chain of management, company can gain
competitive advantage. Because it enhance experience of consumer as product will deliver at
proper time by effective distribution channel of company (Dellino and et.al., 2018). Through
competitive benefit they can compete with its competitors. It will help them to generate more
revenues of company.
How supply chain management and logistic is supported, delivered and developed in
Sainsbury.
By growing importance in management of supply chain, Sainsbury puts all efforts in this
management and its operations. They designed this chain on basis of information technology,
warehouse, logistics, procurement etc. Sainsbury operates its function independently on its own.
They practice model of Kralijic procurement for delivering smoothening in their activities. It
facilitates in decreasing cost of operations and improves satisfaction of consumer. This method
ensures security in supply without cutting cost. Kralijic procurement combines of four steps in
this model. In first step, this include categorization of purchases. It combines purchase in regards
supply risk and impact of profit on particular item. This leads towards problem of scarcity and
product quality. In second stage, it includes evaluation of market. This aids in identifying
purchasing power along with suppliers strength. In third stage they examine strategic positioning.
This ensure high benefit involve along with high risk while purchase and supply of product. This
also aids in identify purchasing power and supply strength. In fourth step it concerned with
actions plan. It involved strategies in purchasing power and strategic positioning to create better
mix of product (Duong and et.al., 2019). They planned their supply chain while managing
logistical issues. They work with contracts players in logistic such as iForce. By this contract
they execute orders of online platform and returns of non food products. They established
suitable link between warehouses to final stores. This will deliver better services to the target
costumer and enhance business process. They create convenient depot for smoothening
execution of supply chain. However warehouse is also integral part of their logistic chain. The
company ensure optimum utilisation of technology in chain of supply management. They adopt
latest technology in all departments such as human resource, finance etc. It also facilitates
efficiency and enhance customer base.