Supply Chain and Operations Management - Analysis of Logistics and Procurement Strategies of Sainsbury's

This report analyses the logistics and procurement strategies of Sainsbury's and evaluates the effectiveness of inventory management, procurement procedures, and just in time system. It discusses the factors that help in improving the strategies and their impact on the organization's productivity and profitability.

EXECUTIVE SUMMARY
The supply chain and the operation management has been analysed as an important
aspect of the organizations that the companies are required to be focusing on. The logistics is one
of the most important aspect of the Sainsbury's as it has been seen that it is important in
increasing the overall value of the deliveries that the organization performs. The Sainsbury's uses
the logistics as in the supply chain management as it helps the organization in planning and co-
ordinating the movements of their products effectively as it helps the company in effectively
delivering the product to the destination safely and in time. It has been useful for the
organization to effectively manage its logistics as it has been beneficial in increasing the
efficiency of the company. Logistics management has been a critical part in the supply
management process and have been an important factor for the company to gain competitive
advantage in the industry. The organization may actively look for ways to improve its current
strategy to manage the logistics effectively in order to reduce the risks and problems in the
supply chain process.
The procurement strategies of the Sainsbury's are effective enough that it helps the
organization in minimizing the risk of errors so that the organization can effectively perform
their day to day operations without facing any problems in the process. The procurement
procedures of the Sainsbury's are effective enough that it provides the organization with the
evaluation of the technical aspects and helps the organization in having the effective negotiation
with the suppliers and the buyers of the Sainsbury's. It has been an important factor in
development of the organizational aims and objectives. This strategy has provided the
organization with various methods in order to deal with the supply chain issues effectively. The
technical aspects evaluated by the procurement procedures have been beneficial in enhancing
overall performance of the organization in the market. It has contributed towards increasing the
productivity of the company.
The various factors that helps the Sainsbury's in improving the logistics and procurement
strategies are effective in making the organization to achieve the effectiveness in the
management of the supply chain and the operations of the organization. The factors of
maintaining the efficient inventory and learning from the competition is helpful for the
Sainsbury's as it provides the various types of improvement in the day to day operations of the
organization and helps in achieving effectiveness and efficiency in the logistics of the company.

The various factors such as boosting the innovation and developing the knowledge of supply
chain management can help the organizations in achieving the effectiveness in the procurement
strategies of the company that can be used by the Sainsbury's so that the organization can gain
effective management of supply chain and its operations. These factors have been useful for the
company to improve the overall development of supply chain operations of the organization.
They have benefited the organization to prepare effective strategies in order to improve the
performance and the current situation of the organization. With the help of these factors, the
management have increased opportunities for the business to grow in the competitive market.
They have a positive effect on the productivity of the company and are one of the main reasons
for achieving success in the competitive environment.
The designing of the order quantity has been done after keeping the various factors of the
effectiveness and the economic aspects in mind. The design is effective enough that it can
provide the organization with effective inventory management and will be helpful for the
organization in having economic benefits. It has been beneficial for the organization in
increasing its profitability. The organization has been able to face the challenges in an effective
way with the help of effective and economic quantity. It has been useful in maintaining the
quality of work for the organization and increasing its market share in the industry. The
organization has been able to identify the ideal order quantity which should be purchased in
order to reduce the expenses of the company. It has been a positive factor for the organization to
design the order quantity effectively in order to gain competitive advantage in the industry. It has
been helpful for the business to gain competitive advantage in the industry and increase its
market share among its competitors.
The critical evaluation of the principles of LIFO and FIFO has been done so that it can be
analysed that what are the impacts that the principles of both models can make on the
organization and its supply chain management. The principles can make the impacts on the
management of the organization as it provides the organizations with the various types of
strategies that can help the companies in calculating and managing the old and the new
inventories. It has been useful for the organization to increase its productivity in order to gain a
better market share in the industry. These principles have provided a better system for the
organization ion order to monitor and control the inventory effectively. They have a positive

impact on the growth of the organization which helps the organization to improve its brand
image in the market.
The evaluation of the just in time system of managing inventory is a system that helps the
organizations in receiving goods from its suppliers at the time of needs so that the companies
does not have the excessive amount of inventory that can be damaged or depreciated with time
and reduce the value that has been paid by the organizations at the time of purchasing the goods.
This system have been effective for the organization as it provides the organization with
solutions to the challenges and barriers that arises in the management of inventory. It has been a
helpful system for the organization to increase its productivity and gain competitive advantage in
the industry. It has benefited the company to reduce wastage in the inventory management which
have been beneficial for the organization in order to increase its profitability in the market.