Supply Chain Analysis and Design of a Kmart Australia

Running head: SUPPLY CHAIN ANALYSIS AND DESIGN 1
Supply chain analysis and design
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1SUPPLY CHAIN ANALYSIS AND DESIGN
Executive Summary
The paper presents the designs and analysis of supply chain of a company. The case
study company is Kmart Australia. Kmart Australia is a retail store in Australia which
operates over 288 stores across New Zealand and Australia. It’s part of the Wes Farmers and
it has over 31,000 employees. The organization contributed over Australian $6 billion within
2018. Analyzing the supply chain of the company, the problem of the company was analyzed
to be high costs on offering good quality products. Kmart is known for offering sub-standard
products to the customers. This affects their revenue since a number of individuals will resort
to the competitors. Project management quantitative methodology is used in finding the
solution to the increasing costs of offering high quality products. The paper compares project
management methodology to other quantitative methodologies for example linear
programming where it elaborates the advantages of project management methodology.

2SUPPLY CHAIN ANALYSIS AND DESIGN
Table of contents
Introductio........................................................................................................................................4
Problem identification within Kmart Australia..............................................................................4
Chosen topic.............................................................................................5
Analysis...................................................................................................6
Results and Discussions.................................................................................6
Recommendations.........................................................................................7
References..................................................................................................8

3SUPPLY CHAIN ANALYSIS AND DESIGN
Introduction
While carrying out Supply chain analysis and design, the case study company is Kmart which
is located in Australia(Betty, 2011). Kmart Australia is a chain of retail stores within
Australia offering low prices. It is owned by the Wesfarmers. It operates over 288 stores
within and across New Zealand and Australia. It has its headquarters or office located within
Musgrave, Melbourne. The company has over 31,000 employees, it has a computed revenue
of Australian $6 billion as per 2018.Kmart Australia supply chain structure is characterized
with a number of attributes. Given the fact that Kmart faced consistent loses, within the year
of 2007 the company designed their supply chain structure so as to be in position of meeting
its business planning requirements. Kmart Australia made a modification of its practices
within business over a decade so as to favorably compete with other brands operating
internationally for example Woolworths, Wal-Mart, and others. The company invested in
logistic chain so as to increase on its profitability rather than mere reduction of costs. The
company is focusing on controlling tight control over basics or fundamentals for example
price citation, merchant choice, check of ethical actions, superiority, etc. The company
employs a Core's CBX system which is very helpful in meeting the requirements for
coordinating the different departments. The company acquired an "enterprise resource
planning system" which is very useful in sourcing unit. The goal for the company as well as
the established supply chain system is to combine merchants, buyers, as well as other
departments from the start to end to a single system where there is free transmission of
information among clients, time zones, and offices. Kmart Australia introduced the cross-
docking system within its supply chain. It is the first company to introduce the cross-docking
system within Australia, this technology was to help in consolidation of the distribution
operations within the different offices or branches of the company. This technology was