Strategic Supply Chain Management & Logistics

This study explores the importance of supply chain management in achieving organizational objectives, the connection between supply chain management and business functions, key drivers for an integrated supply chain strategy, the role of information technology in supply chain management, strategies employed by Sainsbury to establish relationships with suppliers, and the evaluation of procurement practices and the role of logistics. It also provides recommendations for improving supply chain management.

STRATEGIC SUPPLY CHAIN
MANAGEMENT & LOGISTICS

Executive summary-
Supply chain management is administration of network of connected businesses included
in ultimate provision of services and goods packages. This study is based on Sainsbury firm who
are able to manage their outbound and inbound logistics. By implementing strategy and proposed
plan they improve its supply chain more than before. With the help of applying different
techniques company effectively overcome external and internal barriers.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Company overview......................................................................................................................4
Importance of effectiveness of supply chain management in achieving organizational
objectives.....................................................................................................................................4
Connection between supply chain management and business function of company..................5
Key drivers for achieving an integrated supply chain strategy of Sainsbury..............................6
Information technology contribute in effective management & integration of different parts of
supply chain management............................................................................................................7
Strategies employed by company to established relationship with suppliers..............................7
How IT can be used to develop strategies and systems to enhance & maintain relationship with
suppliers.......................................................................................................................................8
Evaluation of procurement practices in company and role of logistics.......................................9
Factors considered to help improve procurement and logistics practices in company................9
Plan with strategy to improve organization supply chain and External & internal barriers with
methods to overcome.................................................................................................................10
Findings and recommendations.................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Supply chain management and logistics plays vital role in success or failure of
companies, it helps to achieve desired goals and aims of business. The current report is based on
Sainsbury company operating their business in UK and all around the world with effective
supply chain. This study explains importance of supply chain management in achieving
objectives of firm, define key drivers for achieving integrated supply chain strategy and also
justified contribution of information technology in effective management as well as supply chain
management. Furthermore, this report clarified strategies employed to establish relationship with
suppliers and evaluate procurement practices in firm with the role of logistics in effective
managing supply chain management. Moreover, this assessment explain proposed plan with a
strategy to improve supply chain, explain internal & external barriers and also define methods to
overcome obstacles.
MAIN BODY
Company overview
Sainsbury is one of the most popular and well-known chain of supermarket in UK, with
more than 16.0% of market share of supermarket area. It was founded in 1869 by John James
Sainsbury, firm become the biggest retailer of groceries in 1922. With 116,400 skilled workers,
organization is able to manage their supply chain and logistics as well. It was leading UK
grocery retailer and became first one to provide retailing self-service. Firm develop suppliers
relationship management system to build strong relation with number of suppliers. The vision of
company it to be the most trusted retailer in the world, where individual love to shop and work.
The objective of this firm is to cater high quality products or services to its consumer that
maximize financial return to stakeholders.
Importance of effectiveness of supply chain management in achieving organizational objectives
Supply chain management refer to the wider range of activities needed to control, plan
and execute product's flow from raw materials to production to supply in most economical and
systematic way possible (Bozarth and Handfield, 2019). It encompasses management and
planning of all functions included in sourcing, logistics and conversion management. It plays
important role in success of business and contribute in achieving organization set objectives.
Supply chain management help in revenue enhancement of Sainsbury, asset utilization, cost
control and consumer satisfaction. It caters all the stakeholder of company with relevant info that

can be used for effective & quick decision-making. It helps to achieve the objective of
organization by balancing needs of clients and growth needs of business. Furthermore, by
implementing supply chain management within organizational structure effectively, firm will
improve their inventory control, enhance effectiveness of distribution programmes and reduce
holding costs. In simple words, it provides means to company for supplying products to target
market at right time, at right place, to consumer satisfaction. It defined as increasing added value
and decreasing cost across whole trading procedure through centring on speed and quality of
response to target market. Supply chain management help to achieve business objective by
focusing on quality and delivery of goods (Genovese and et.al., 2017). It deals with storing and
movement of materials required to create good and inventory management as well as keeping
track of completed products from where they were produced to who they go to.
Connection between supply chain management and business function of company
Supply chain management cannot achieve business goals by working alone, with the
support of other functions of Sainsbury business, such as human resource, marketing,
information technology etc., effective supply chain administration can help to get success of
company. Here, it discussed some of organizational functions of Sainsbury and their link to
supply chain management (Azmi and et.al., 2017).
Marketing-
Consumer are point of focus for marketing department, supply chain management
supports streamlining firm supply chain which cannot be gained without complete understanding
of customer segments and types. Marketing function provide information about consumers and
its types which is used by management to cater flexibility to supply chain.
Finance-
Along with above function, supply chain management is related to improving growth and
controlling cots of firm. At Sainsbury, SCM and finance are linked or work together through
different activities such as financial planning, cost management, budgeting and procurement.
Information technology-
The link between IT and supply chain management, reflect through simple explanation.
This function has provided programmes that help in supply chain management effectively.
Besides with progress of technology, communication and interaction between different entities of
supply chain will be faster and more suitable.

Operations-
SCHM is integrated to operations in Sainsbury as it help to provide clear guidelines for
function, firm believe in generating and implementing production level awareness among staff of
operation department.
Key drivers for achieving an integrated supply chain strategy of Sainsbury
To gain competitive advantages in competitive business environment, company decided
to replace legacy system by investing heavily to re-engineering supply chain system. This
decision will assure firm that its supply chain performance as faster products moving with better
& relevant information communication between supermarkets and suppliers and good resources'
allocation (Luthra and et.al., 2019).
Key drivers-
Facilities-
In order to achieve supply chain strategy company needs to balance their efficiency with
responsiveness in their supply chain. Facilities is the main key driver that help in achieving
above strategy effectively, it defined as location to which inventory transported. The role of this
driver is to decide where products of Sainsbury are stores before being transported to next
location, that help to make supply chain work smoother.
Inventories-
Inventory also play vital role in supply chain in which manager of company use inventory
to run its supply chain in effective manner. To make legacy system flexible and re-structure
supply chain effectively, manager identify the mismatch between supply & demand. It plays
important role in supply chain capability to perform well.
Transportation-
This driver help and play their role by considering target market and its demands. It
moves goods between different phase in supply chain and had great effect responsiveness of
supply chain. Manager manage and chose the best transportation services that help to provide
products at right time at right consumers according to their demand.
Information-
It has no physical evidence, unlike transportation, inventory and facilities. This driver
plays vital role in achieving supply chain strategy by providing proper info to supply chain
management. Data is gathered at each and every phase of supply system this information is

essential as it supports chain to rectify itself at every stage and also help to reconfigure itself,
there by increasing supply chain productivity and profitability.
Information technology contribute in effective management & integration of different parts of
supply chain management
IT defined as technology including maintenance, development and use of computer
systems, network, software for processing and distribution of data. Information technology play
vital role in effective management and integration of several sections of supply chain
management (Kurbel, 2016). From planning to inventory, production to transportation, it
contributes by sharing essential information or data that help to manage supply chain activities of
Sainsbury effectively. It caters reliable and faster communication sources for communicating
among supply chain entities. It also helps to reach target market and consumer segment, create
awareness and get clients preferences. For firm, email is the principal means of communication
between suppliers, workers and consumers. It was one of the early key driver of internet, offering
simple and easiest way to communicate. With the help of Information technology company can
easily communicate with their supplier and share info related to delivering goods. Through
communication, it supports in effective management, workers manage time and work accordant
to the expectation of organization with the latest technologies or systems at work place.
Information technology contribute by offering data management services that can be use
for tracking as well as monitoring different procurement and logistics procedures. It helps in
providing a programme for better management of suppliers connections.
Strategies employed by company to established relationship with suppliers
Communication strategy-
Sainsbury had effective relation with their suppliers, in to make it stronger, company
employed different strategies. For example. Organization communication strategy comprises
most of the components of top communication plan that include letters, oral, written and formal
letters. They develop this strategy that takes into account of differences in values and language
among their stakeholder (Liu and et.al., 2016). According to it, company management
communicate effectively with different suppliers purses objectives. With the help of
communication channels firm provide information about supplier perspectives that help to build
good relationship with them. The interaction sources used in establishing relationship with
suppliers include written, oral and online communication. Due to the reality that company is one

of the biggest international organizations in UK, their suppliers are representative of several
nations and cultures as well. Therefore, each supplier has to be communicated with talking into
account their cultural and language differences, that build strong connection between firm and
suppliers.
Supplier feedback-
Feedback is one of the best way to improve relationship and make it stronger rather than
before. When Sainsbury management take feedback of their suppliers, it shows their concern
towards supplier perspective that help to established effective relationship with them. With the
help of asking for feedback, company gain trust of their suppliers who are able to deliver the best
products to them.
Furthermore, company employed these two strategies that contribute in developing
relationship with range of suppliers. It is quite beneficial in term of reducing cost, increasing
communication and efficiency of supply chain procedures.
How IT can be used to develop strategies and systems to enhance & maintain relationship with
suppliers
System development is the procedure of designing, defining, testing and then
implementing a software application. Information technology is accountable and experienced in
developing and implementing new system that enhance as well as help to communicate with
suppliers of Sainsbury in systematic manner. Information technology employees could use four
elements such as software, hardware, network and database to develop information strategy and
systems that communicate with suppliers and build strong connection with them (Ahmad and
et.al., 2016). IT make organization technology work better for workers. They help to identify
issues and develop plan to solve it as soon as possible that help to interact with suppliers and
enhance relationship of management with them. Information technology department analyse
design, support and modify consumers & supplier communication systems. They help to increase
communication, allow greater integration of businesses and supply chain alongside increased
effective suppliers' relationship. IT department know and have a lot of experience about the latest
technology, they develop new system effectively that will be used to communicate with suppliers
in at different countries effectively. They are able to install and evaluate proper software and
hardware systems essential to keep network functioning properly and allow workers to
communicate with product suppliers.

Evaluation of procurement practices in company and role of logistics
Procurement is the procedure of agreeing and finding of terms and obtaining products,
work or services from external sources. This practices in Sainsbury included in buying inputs
that range from machinery, supplies, equipment and raw materials. Due to the linkage with
different supply chain activities. Company carefully consider their procurement practices
optimizing operational, outbound and inbound value chain. Every company has a number of
suppliers who are able to deliver important goods, cater speciality services and complete one
time urgent things. Supplier engagement is one of the procurement practices that company will
focus on it. The procedure of determining a potential supplier, obtaining invoice and on boarding
vendor is overwhelming. It is very difficult to manage supply chain activities in way that will
increase their effectiveness to company. Some firms are best served by integrating proficient
supply chain management professionals in different business units. Sainsbury worked with and
have adopted a hybrid method that combines centralized plan to gain consensus with
decentralized execution to enhance services.
Role of logistic-
It is extremely essential entity of supply chain, help to operate a lean supply chain
effectively. Sainsbury needs that elements be transported from suppliers in efficient and timely
manner. Logistics is like oxygen for company which makes their supply chain live because
without appropriate logistical help, movement of products across the nation would not smooth.
Purchase order is main part to transaction between third parties in supply chain, this agreement
contains all essential details such as commercial terms and technicalities of goods. Right
logistics assure that this document is processed in time so as it help company to assure an
effective performance structure and to clear out any questions about availability of raw materials
as well payment terms.
Factors considered to help improve procurement and logistics practices in company
Supplier relationship-
Supplier relation is one of the factor that consider improving logistics and procurement
practices in Sainsbury. It is very important for company to consider this element because there
are directly connected with procurement and inbound logistics (Kim and Chai, 2017). Without
making effective relation with suppliers firm cannot be able to conduct any practices effectively,

they had to established strong relationship with raw materials suppliers which complete
procurement practices in systematic manner.
Consumer satisfaction-
This is the another factor need to consider that help to improve practices in firm
effectively. It directly connected with outbound logistics, without satisfying the needs of target
market, company cannot be able to improve procurement activities. Besides, procurement
procedures caters control over cost, which outcomes in final price to people. Therefore,
customers satisfaction is another element associated with procurement & logistics which is
essential to consider.
Plan with strategy to improve organization supply chain and External & internal barriers with
methods to overcome
Mission The mission of Sainsbury is to provide quality
products to its target market.
Vision The vision of company is to manage their
supply chain and deliver the best groceries
items to consumers within different market.
Objective  To enhance supply chain management
and logistics practices.
 To make effective relation with
suppliers
Strategy To improve supply chain company develop
their strategy. They try to communicate
efficiently and collaborate with internal
chances of business growth.
Impact of strategy on overall business
performance
The above strategy put positive impact on
business performance and productivity.
Company make commitment of scheduling
periodic and good meetings to give their
worker a chance to identify upcoming logistic
situation in advance as it help to improve

procurement and other practices of firm
effectively. Face to face communication and
meetings are valuable for management as it
help to avoid miscommunication and justified
any vague overviews. When further examining
these key area, employees can often determine
redundant procedures that waste things and
illuminate wider scale process modifies that
will effectively improve business operations
(Fayezi, Zutshi and O'Loughlin, 2017).
External barriers High cost of technologies-
While implementing proposed strategy as to
communicate workers to manage supply chain
by giving direction to staff, technologies are
required. But within market place the cost of
technologies is high, it impacts on firm profit
margin, they had to pay more to use it. It
impacts on communication and collaborate
practices negatively.
Privacy concern-
The concern of government towards data
privacy impact while implementing strategy.
Authorities require that company follow rules
and policies before sharing information
because it helps to make data secure for longer
and prevent from data breach.
Internal barriers Lack of coordination-
This internal barriers in Sainsbury will
decrease productivity and reduce the efficiency
of product management. Without effective

coordination, management cannot be able to
implement strategy.
Language barriers-
It refers to linguistic obstacles to
communication and implementation of above
strategy proposed by Sainsbury to improve
supply chain management. Within workplace
all the people belong to different culture and
specialist in one specific language, they cannot
be able to understand the other workers
language perfectly which make barrier while
implementing plan.
Tactics to overcome obstacles  To overcome first external barrier,
Sainsbury management make list and
mention prioritize and most essential
things that help to save money which
they can use to implement new
communication technology that help to
make effective connection between top
management and worker.
 To overcome third barrier, Sainsbury
management must identify the rule and
process of securing data that enhance
communication practices and motivate
people to implement strategy.
 Organization should give some time to
its worker for communicating with each
other, it allows understanding other
languages which is beneficial in term of
implementing proposed strategy and

working together perfectly.
 Team meeting give chance to
coordinate with each other and make
discussion how to implement strategy
that improve supply chain.
Findings and recommendations
From above analysis is has been find that Sainsbury want to improve their supply chain
effectively more than its competitors.
 Firm suggested to focus on supplier relation, trained their workers to perform much better
than before.
 Organization must measure, tweaked and reviewed their supply chain and procurement
practices continuously that help to stay effective for longer within supermarket sector.
CONCLUSION
As discussed in above study, Sainsbury started revolution in area of supply chain
management, which is improved by using strategy. Firm manage their supply chain, logistics and
procurement practices with skilled people and good relationship with their suppliers. With the
help of making plan with strategy, they can improve supply chain and implement method to
overcome internal and external barriers that impact on procedure of implementation of proposed
strategy.

REFERENCES
Book and Journals
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Genovese, A and et.al., 2017. Sustainable supply chain management and the transition towards a
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Luthra, S and et.al., 2019. Industry 4.0 as an enabler of sustainability diffusion in supply chain:
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