Sustainable Supply Chain Management

This assignment delves into the concept of sustainable supply chain management. It examines how processes, people, and resources are integrated to deliver goods to end-users while emphasizing quality and continuous improvement. The discussion draws upon various theories that shed light on the relationship between quality, sustainability, and supply chain performance within the food industry.

Purchasing and supply chain

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Relevance of research.............................................................................................................1
Market needs..........................................................................................................................1
Assortment of planning..........................................................................................................3
Own brand............................................................................................................................5
Supply chain operations.........................................................................................................5
Purchasing decision................................................................................................................5
Analysis and application of theory.........................................................................................7
Applications............................................................................................................................8
Recommendation....................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Purchasing generally refers to company seeks to get goods and services to attain their
goals. There are some organisation who sets his benchmark or standards in purchasing process to
grab objective. The word of purchasing is not used interchangeably with procurement cause this
is basically used for expediting, quality suppliers and logistic in addition to purchasing. This can
be said that a purchasing is the activities that gets services and products to complete their pre
determined objective for organisation ( Carter and Liane 2011). The goal of purchasing can be
defined in some ways as to maintain the value and quality of the firm's goods the other one is
reduces the cost that are tied up with inventory. The supply chain is a system of company
persons, activity and informations that involves products and services which moves from
supplier to customer. The ALDI is the German retailer chain they deals in food and beverages
and headquarter in also in German. This report will discovers the all those condition in which
retailer are meet with market need also there are some theories like TQM for quality product.
TASK
Relevance of research
ALDI is the supermarket retailer in German who are providing food in several places but
they gives main attention to grab high demand in market with full satisfaction. Hence they plan
out some strategy to capture appropriate want of his products.
Market needs
The supermarkets and food grocery store organisations are makers up the largest chain in
food industry in UK. This firms generally offers the fresh consumable thing to his customers
hence in this essay how they meet and grab customer's attention in market will be gives. The
grocery retail are under going in their profits due to emerging and shift in demands of his
customers by changing in competitive environment and advanced technology (Green and et. al.,
2012). There is continuous increase in needs and wants of customer and it provide opportunity to
different supermarket such as Asda, Aldi etc to increase the sales and profit through fulfilling the
needs and wants of customers.
Market need of the company is all about how they sell its product and earn profit also
they always seeks out the strategy who helps them in expanding the business. There are some
steps which discusses as:
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Identifying market trends: the trend of the market is the statement of the financial condition of
the same. Hence it is necessary for producer before launch his product in market thy should
seeks out and examine the current trend of the market because the trends are important fact in
market research which provides clear ideas to organiser and helps them in making decision of
product and price of the goods. It is critically analyse the changes occur in market trend and
therefore company need to focus on determining the trend and modify products. . For example,
Aldi company can identify the needs and wants of customers and deliver products accordingly
Identify the competitors: the first steps in order to meet with needs of markets are starts with
this here producer who are suppose to launches his goods in selected target market are going out
and making strategy through which they discover his competitors who are selling same product
in same market and customers. After assessing them the producer needs to seeks out for quality
of revival's product so they have proper idea as what quality they should made up for demanded
market (Kern 2011). In the market there are many competitor who make quality products and
services for customers. Therefore it is critically examine that in respect to gain competitive
advantage Aldi need to different its product from its competitor in term of uniqueness, price etc.
For instance, Tesco company focus on pricing strategy which help them in survie in competitive
market. Similarly, Asda used to sell online product which help in increasing the sale. Therefore
Aldi can focus on making products different from its competitor or try to differentiate in term of
its features.
Framing the list of customers and preferences: they will crates a list whom have the numbers
of the customers who are interested in their product. Which helps in clearing the idea of retailer
or producer that how many person are wished to have their food so they will produces
accordingly. After that they may arranges the program that provides awareness in market for its
product. They also looking out for the preferences of its target customers because it is a food
retailers company and every one has different taste for their food and beverages. If company
introduces the product whom are bad or bit differ in taste then how can consumers will took that
hence it is needs to look out those goods that will be matched with the preference.
It is critically analyse the Tesco company use to take feedback from their customers
related to products which they deliver. As it helps company in understanding the needs of
customer and try to fulfil it for satisfy them. Likewise Aldi company can focus on customer
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relationship management as it help in resolving their issues on time and deliver them product as
per their preference.
Identify the environment: when ever company goes out for expending their business they needs
to look out all those factor that may affect his production or entire organisation such as other
nation's political, legal, technical factor cause they have enough power to make impact on
business strategy. Other side if producer are planning to introduces his product in different
market then some elements are also there whom affect the product demand such as rivalry so
they need to made up some strategy that cope with all these things. It is critically analyse the
company can focus on analysing the external environment which help them in managing their
business operations. As it is not easy to operate business in different countries due to some
political factors. Therefore, Aldi can identify the political environment and make policy and
procedure in respect to carry out business activites
So, these are the factors which are considered for meeting the need of market or a organisation.
The market need refers to a deep market research which helps organiser in fulfilling his objective
as facilitates in expanding business, earn profit and grab demands.
Assortment of planning
To meet up with need of market, producer will frame some planing which facilitates them
in launching his product in target areas. For it ALDI will go with some strategy procedures that
assist them in attaining demands. There are some steps for ALDI in planing process ( Diabat and
Govindan 2011).
Planning for food services and importance: the planning for food service business are has its
own importance cause it will connects market opportunities with strengths and facilitates
direction to grab objective. It enables company to successfully out lines a path and progress
towards its predetermined objective. Every planing has some sub steps as:
Quality product: They starts to add more quality to their consumer. ALDI are trying to
give best quality in market. Cause quality product are able and capable to have attention in
demand place. Managing quality is the main thing for food retailers because quality product
helps in providing customer satisfaction and builds loyalty it also helps in reducing the risk of
replacing the bad faulty product. For instance Aldi can focus on using different quality
management tool such as six sigma etc which help them in analysing the quality of the products.
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The question arises as how can a quality management of product are important for retailer
organisation or for how the management of quality will helps them to meet the needs of
customers.
Online and offline: In order to serving market with consumable items, this grocery shopping
will continue to every phase of the time. ALDI should look after the availability of his products
in market hence they needs to setting up his store in both terms as online which people can assess
and use the store in between 24*7 when ever they wants or offline store which can persons visits
as per their needs this offline store helps in providing physical identity to product that creates
authenticity in goods. There are many advance technologies which company can used in respect
to meet market needs. Selling product online help company in increasing the sale because it
make easier for people to purchase product anytime from any place.s
Figure out the last mile: stores for food items should be near by to the target customers. It is
beneficial in both way if people ordered online them they will not need so much time to deliver it
and if person have need and on urgent basis then they will be able to visit the store whom are
located in near by place cause online goods will be able to deliver least in tow working day
which will not fill the urgent requirement.
Marketing over social media: now a days people are become more friendly with digital
technology hence this will be good option for the market in order to creating and spreading the
awareness for his goods or product. ALDI need to use it as they wants to grab more customer in
exiting and presentational market (Barney 2012). For instance Aldo can use Facebook, or other
social networking sites which help in targeting large number of customer in less times. It is
because Facebook is used by large number of people in all over the world and they can easily see
advertisement of company on it.
Proper supply chain: whenever any firm wish to expand business they needs to look after their
supply chin management how are the core thing in food retailing company. This involves
smooth running of business by delivering products on time with sufficiency.
Framing prices: the cost is other main thing element for every company as ALDI wants to
launched his product in market they need to set up its price in accordance to target customers
which they can afford items.
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Own brand
The own brand will be a aid to food retailers as they are creating and framing his own
product in market and they what quality in which they are serving goods are the identity or brand
of their food item. In this process, they are looking for manufacturing of consumable goods and
maintain quality of it. With context to Aldi, under the promotional mix, it uses its own brand
campaign to label various offerings. “Like Brands” is one of the most popular campaign of
Aldi’s advertisement which clearly convey consumers about the product quality and value for
money. Such branding strategy is helpful for Aldi to show final-users that how they can derive
benefits after product usage and satisfy their own need. It helps in building confidence and
personalized connection with the target people and help company to respond market
requirements. The campaign brings successful results by increasing its market share to 2.5% by
meeting out market requirements. ‘Aldi Advocates’ is another online campaign of Aldi which is
used to strongly appeal to the customers through low price goods.
Supply chain operations
This is the core or major element for every company that are planning for offering foods
items like ALDI. This operation system ensures the proper utilization of resources and focuses
on continuous working of all departments in organisation. This operation of supply chain refers
to the process model associate with business activities in order to satisfy customers demand.
Company uses this tool for analysis the current state of firm's objective, tacking performance and
relates them to benchmark data. Aldi’s SCM focuses on purchasing freshest ingredients and best
quality packaging material to match the customer requirements perfectly. All the dairy products
and items are sent to the stores through Aldi’s own truck with proper storing and package. the
concept is used by the Aldi to maintain environmental integrity for the public by controlling
environmental pollution through transport. On-Shelf availability of the item helps to meet
consumer requirements.
Purchasing decision
The decision of purchasing is an ongoing process that forces customers from defining
needs, generating options and selecting product and brand. Decision for purchasing can be in two
category like minor are like to buy lower price product and major are like selecting high cost
product such as house but for food retailer purchase decision are more important then others.
Distribution systems
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This can be defined as the proper flow of system, activities and procedures that are
framed and connect to offers and guide the movements of goods and services from stores to end
users. In other words distribution is all about creating product and items available to the final
customers where and when they feel need ( Sarkis Zhu and Lai 2011). Under the distribution
strategy, Aldi’s distribution network include various channels i.e. manufacturers, wholesalers,
distributors and others. It provides convenience to the clients as they can purchase required
products and services anytime. Online delivery provides great flexibility to the user as they just
need to order required goods and get its delivery at home.
(Source: Distribution channel and Logistic: Aldi, 2016)
Aldi uses selective distribution strategy for delivering demanded goods to the consumers.
In addition, under the push marketing strategy, manufacturer’s offers various incentives to
retailers and distributors like Aldi to sell their products to the final users and satisfy perfectly
their requirements.
Inventory management
Inventory control is the integrated part of the business functions in food and beverage
industry that is the largest firm in the world. Hence inventory controls is helping business by
checking the real stock and comparing it to what is sold out. This management process provides
retailers to have adequate demanded product in warehouse. In order to eliminate any possibility
of outage and maintain goods to a sufficient level, Aldi has large outlets with an area above 5000
sq. meter. Besides this, to store dairy products, it has ‘Cold Chain” which keep goods in a cold
area and also clearly communicate distributors about the key instructions that how long they can
be stored outside the cool. It enables users to purchase several items in off-season also and assure
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delivery throughout the year to serve more customer base. It enable company to grab larger
market share and stay competitively strong.
Customer service
This is an ongoing process which marks its presences after and before purchase the
successes of customer’s services is relays in proper interaction between customers and retailers.
In food industry good customer services is priority. Lack of it consumer service made customers
feels unwanted in food store. The beverage organisation will only flourish with high retention of
buyers.
Aldi uses various strategies to meet people desires and expectations clearly by online
delivery, quality management and assurance policy, affordable pricing mechanism without
compromising quality and others. Moreover, as company has established their stores and outlets
worldwide helps to satisfy people all over the world. People are communicated with its product
qualities and features using both the below the line and above-the –line promotional methods
with a clear focus on market need such as ‘Like Brands” and “Swap & Save” campaign. ALDI
keep their consumer priority at the top and deliver desired goods and services
Analysis and application of theory
There are so many theories by famous authors who gives lights on buying behaviour of
customers and also on supply chain managements.
Generic theory of buying behaviour: According to Gold Seuring and Beske (2010)they
states that people will go with decision making process in order to make purchases generally
buyer feel to need of making purchase and took steps for research on those product and goods or
its suitable price. Like having decision for buying fruits drinks might coma when first one will
be finished. The customers will search those drinks that has no added thing and are good for
health hence for it they will seek many options and costs but chooses the best suitable product.
Cultural theory : in the words of Stadtler (2015) he said that cultural can make affect a
buying behaviour of individual person. A consumer's culture will be his values and beliefs which
comes in context of society. If a person is satisfy with the product then they will took decision
for purchase in future.
Internal theory: in the words of Wisner Tan and Leong (2014)they explained that there are
some customer who loves to buy and go to last mile store to evaluate available product then
compare its pricing before having decision for making purchase.
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Theory of TQM: this is describe as total quality management approach which gives chance to
grow long in food retailing industry. TQM offers management to work together in order to
improve its process, product and made sound culture in industry. The theory is based on
philosophy of quality. This helps retailer to look after the quality of food item. This is purely a
customer oriented approach which provides success to organisation. . Aldi is strongly committed
towards delivering superb quality products and services to the end-users using Total Quality
Management. It also introduces innovation in their product so as to serve consumers in the
market with the increased value.
Applications
Through these theories the food retailer should look after the quality and frame the teams
for quality who took assessment of whole production's quality and checks weather it is match
with benchmark or not if the quality and services are not sufficient then retailer need to restart
entire production.
Recommendation
Some recommendation are describes here which provides support to ALDI retailers
company through they can improve his working and quality of service or goods ( Monczka and
et. al., 2015).
 They should seeks out the target market where they suppose to serve.
 ALDI needs to look after quality of their product.
 The taste of customer are vary form one place to other hence they should know
preference of the target consumers and made food or product accordingly.
 They also need to identify rivalries and market competition before launching goods.
CONCLUSION
From the above essay it has been concluded that the purchasing power of customer are
the major element which make impact on company. This can be describe as the intention of a
buyers to buy some thing from market. Supply chain is a systematic manner that utilizes all over
things together such as process, people and resources and helps in deliver the final goods from
one place to end user. There are some theories which shows lights on how they will be based on
quality of food item and unstoppable process of improving quality.
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REFERENCES
Books and Journals
Barney, J.B., 2012. Purchasing, supply chain management and sustained competitive advantage:
The relevance of resource‐based theory. Journal of supply chain management. 48(2).
pp.3-6.
Carter, C.R. and Liane Easton, P., 2011. Sustainable supply chain management: evolution and
future directions. International journal of physical distribution & logistics management.
41(1).. pp.46-62.
Diabat, A. and Govindan, K., 2011. An analysis of the drivers affecting the implementation of
green supply chain management. Resources, Conservation and Recycling. 55(6).
pp.659-667.
Gold, S., Seuring, S. and Beske, P., 2010. Sustainable supply chain management and inter‐
organizational resources: a literature review. Corporate social responsibility and
environmental management. 17(4). pp.230-245.
Green Jr, K.W., and et. al., 2012. Green supply chain management practices: impact on
performance. Supply Chain Management: An International Journal. 17(3). pp.290-305.
Kern, D., 2011. Introduction. In Essays on Purchasing and Supply Management (pp. 1-3).
Gabler Verlag.
Monczka, R.M., and et. al., 2015. Purchasing and supply chain management. Cengage Learning.
Sarkis, J., Zhu, Q. and Lai, K.H., 2011. An organizational theoretic review of green supply chain
management literature. International Journal of Production Economics. 130(1). pp.1-
15.
Seuring, S., 2013. A review of modeling approaches for sustainable supply chain management.
Decision support systems. 54(4). pp.1513-1520.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and
advanced planning (pp. 3-28). Springer Berlin Heidelberg.
Walker, H. and Jones, N., 2012. Sustainable supply chain management across the UK private
sector. Supply Chain Management: An International Journal. 17(1). pp.15-28.
Wisner, J.D., Tan, K.C. and Leong, G.K., 2014. Principles of supply chain management: A
balanced approach. Cengage Learning.
Online
Distribution channel and Logistic: Aldi. 2016 [Online]. Available through: <
https://liandeblog.wordpress.com/2016/05/13/distribution-channels-and-logistics-aldi/>.
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