Sainsbury's Labour and Supply Chain Problems: A Research Report
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This research report discusses Sainsbury's labour and supply chain problems, including competitors, target customers, and top three issues. It also discusses the impact of technology on the supply chain and logistics.
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RESEARCH REPORT
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Table of Contents INTRODUCTION...........................................................................................................................3 Company's problem.........................................................................................................................3 Labour and supply chain problem................................................................................................3 Areas of importance.....................................................................................................................4 Top three issues...........................................................................................................................5 CONCLUSION................................................................................................................................6 REFERENCES................................................................................................................................7
INTRODUCTION Sainsbury Plc is known for the largest chain of the supermarket in UK, with 17.0% share of the supermarket sector. Also, this is founded in 1869 by John James Sainsbury with shop in Drury Lane, London. All the stores of Sainsbury are related to environment friendly that is considered as largest food retailers with over 650 supermarkets and 900 convenience stores. The wide variety of products are available at stores of company in order to gain market share also in order to drive the passion for food that are serve together for helping every customer(Ali, 2020). By offering great quality food at competitive prices then today Sainsbury is one of the inspiring and delighting our customers with tasty food remains our priority. Further more and 2500 products are sold by company through online and offline stores and 1500 suppliers are over half of our sales that has own brand. Company's problem Labour and supply chain problem According to the CEO of Sainsbury it has been found that company facing the problem of regarding labour and supply chain challenges. On the other hand, scale and advanced costing is impacted by logistic operations and strong suppliers relationships affect the Christmas sales. Also, it is the largest shrugged off the problems with supplies that are dogged in United kingdom industry by ranging from the congestion at ports also shortage of shipping containers to staffing problems in the farms and factories that are related to first half of year that is return for profit and rising according to the sales as families that can be brought clothing and petrol so that it can continue for cook more meals(Sainsbury supermarket, 2020).Due to the material scarcity from the farm it has been analysed that it impacted on whole supply chain and supply of products are not available at time. Competitive analysis ParticularTescoAldiSainsbury ProductsElectronics,grocery, clothing etc. Fruitsandvegetable, grocery,clothing electronics etc. Morefocuson offeringgrocery products Pricing strategyPrice skimming policyPrice skimming policyCompetitivepricing policy USPLow priceWidevarietyofGood brand value 3
products Promotion strategyModernpromotion strategy Traditional promotion strategy Traditional & Modern promotion strategy Target marketHighincomelevel people Highincomelevel people Medium income level people Influencing factorRiskRiskBrand value Competitive market Due to supply chain is it can be said that competitors get benefit of that period in order to attract the customer by providing then product at right time at that time Sainsbury not able to corporate with company(Pizarro, Sainsbury & Loechel, 2018).Tesco has increased the process of suppliers in orders gaining competitive advantages dues to this problem. Further, Tesco has improved the marketing services in order to attract of Sainsbury. There were large number of customer shift to other brand and on the festive season like Christmas that is one of the biggest selling season of UK which impacted Sainsbury. Technology issue Then technical difficulties are unforeseen regarding equipment problem that is related to failure of hardware and software bugs that makes it difficulties or impossible for perform a desired action. Also, in the factories technological problem faced dire to old equipment and that is why supply chain get slow as compares to regulars supply and demand of products are increased at that time. Further, it is impacted by spending large amount for solving technical issue in order to work in better manner. Areas of importance Competitors The top competitors of Sainsbury are including Aldi UK,Tesco, Morrisons and also associated with the British foods that is engaged with general merchandize, food and clothing retailing that is also including financial services activities(Bhattacharya & Fayezi, 2021).Then Tesco is one of the biggestgrocery seller that helps for providing retail banking and insurance services. In addition to this, the quality of Sainsbury's product is higher than its competitors that are related to phenomenon in order to come at same price. Company needs for balancing the quality and price of competitors on the other hand Tesco providing products that are lower as the 4
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price offered by Sainsbury. Further, convenience goods produced by Tesco is better than Sainsbury that is why this is the reason of online presence of Tesco is better than Sainsbury. Further, fair-trade gives Sainsbury the edge over its competitors as well as being an ethical way to trade. Target customer There are large number of customers are involved in order to make it successful, but mainlycompanytargetmotherandfamilyonthebasisofcompanieswebsitesand advertisements on television. Also, there's are different type of market segment are used by company in order to attract large numbers of customer. There are positive response given by customer because it is focus on how to complete the need of customers in order to seven days a week provide fresh food, groceries, general merchandize and clothing from suppliers around the world through 33 distribution centres in the stores and online customers that are meeting for completingtherequirementforflexibleandconvenientshopping.Onthebasisof communication's strategy it has been analysed that it is necessary to work according to developing knowledge as well as it is also included letters, oral communication, formal letters. Market research On the basis of data collection method it can be said that customer is review on the basis of qualitative and primary research that help for providing the market research in order to find out the preferences of customers that helps to fell about theproducts (Alghababsheh & Gallear, 2022).Also, company focus on the direct marketing in order to develop the knowledge of enlisting in different type of campaign that are help to sent customer in orders to personalize the messagewhich are related to mobile application that boost the visits and sales. Then there are large number of retailers are connected with the organization because it supports small business by providing them loyalty card in order to learn about customer and then offer relevant promotion for driving up sales. On the basis of market research it has been said that there are over 23,000 product line are sourced globally frommore than 1500 suppliers and half of the Sainsbury is related to the Sainsbury's own brand. Top three issues Market expansion For Sainsbury it was very difficult to expand in another market because there are large number of competition has seen in grocery and retail sector. Also, Tesco and Aldi has expertise in order to 5
grocery and retail market in order to attract large number of customer. Also, due to globalization it can be said that there are intense competition has seen in UK in order to create the presence of rivals inmarket (Sainsbury supply chain, 2020).Then it is must find that there are different ways which are used in competition itself for remain relevant for target customer. In order to stay in the market it can be said that it is necessary to focus on different types of strategies which are impacted bad on sale of product which are affected by supply chain. Identification of customers For the every business most successful point is whencompany largely depend on the satisfaction of its customers. Then on the basis of project it has been analysed that there are large number of target customer are involved for identifying it correctly (Wang, 2018). Then this is also considered as the important part which help to develop the knowledge of finding the potential customer that help to focus on meeting the need of customer by improving supply chain.This isalso challenging for the company in order to identify the best suppliers for the company so that they help to solve their problem. Then more focus on technology development help the company by providing support for improving labour markets by support them increasing their hike. Understanding of supply chain By understanding the supply chain it can be said that Sainsbury is focus on creating the new supply chain and logistic which are related to operating model as part of work that can cut the cost from business. Also, on the basis of supermarket it can be said that there are work involved by integrating process between Argos and Sainsbury ion order to contribute towards saving of more than 150 million euros in the supply chain and logistic that are between years 2019 to 2022. There are more than 2000 suppliers are involved in order to complete the demand of more than 22 million customers. This is also considered as quite good number of supplier in order to improve the customer demand. On the basis of markets research company has identified the impact of learning in order to enhance knowledge. CONCLUSION It has been concluded that present report is based on Sainsbury's research in order to identify the problem which is related to labour and supply chain management. Due to this problem company has faced issue in this situation there are large numbers of customers are shifted to other brand. Also, identified the companies competitors which are attracted Sainsbury's 6
customers. Further, due to technical problem company has faced the issue in order to impact on supply chain of organisation. Also, in this report there are problems criticized and more focus on technology development help the company by providing support for improving labour markets by support them increasing their hike. REFERENCES Books and journals Ali, H. 2020 What Factors Contribute to Efficient Management of The Supply Chain of Supermarket Within UK Retailers? Case Study―Sainsbury Supermarket PLC Supply Chain. Pizarro, J., Sainsbury, B. & Loechel, B. 2018. Climate change vulnerability assessment for the uranium supply chain in Australia.Progress in Nuclear Energy,109, 53-65. Bhattacharya, A., & Fayezi, S. (2021). Ameliorating food loss and waste in the supply chain through multi-stakeholder collaboration.Industrial Marketing Management,93, 328- 343. Cole, R., Stevenson, M., & Aitken, J. 2019. Blockchain technology: implications for operations and supply chain management.Supply Chain Management: An International Journal. Alghababsheh, M., & Gallear, D. 2022. Social sustainability in the supply chain: a literature reviewoftheadoption,approachesand(un)intendedoutcomes.Management& Sustainability: An Arab Review. Wang, Y. 2018.Fashion Supply Chain and Logistics Management. Routledge. online 7
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