Supply Chain Analytics: A Comparative Analysis of Woolworths and COSTCO

9/17/2019
RUNNING HEAD: SUPPLY CHAIN ANALYTICS
Management
Supply Chain Implementation

SUPPLY CHAIN ANALYTICS 1
Contents
Introduction......................................................................................................................................2
Company..........................................................................................................................................2
Woolworths..................................................................................................................................2
COSTCO......................................................................................................................................2
Comparative analysis.......................................................................................................................3
Literature..........................................................................................................................................4
Conclusion.......................................................................................................................................5
Bibliography....................................................................................................................................6

SUPPLY CHAIN ANALYTICS 2
Introduction
The research report is prepared on the title ‘Supply chain analytics’. It is a network including
organization, individuals, resources, activities, technology and information in the creation and
sale of product (Christopher, 2016). The key focus of the repot is on Woolworths and
COSTCO. The report initiates by providing a brief introduction about the two recognized
companies named as. The next section emphasizes on the supply chain implementation and
comparison of both the companies. Lastly, to provide an effective understanding, it also focuses
on the literature review of supply chain models. The key purpose of the report is to pour light on
the managerial concepts and models. Additionally, it provides an opportunity to upgrades the
knowledge with respect to both the organization.
Company overview
Woolworths
It is an Australian supermarket chain store founded in the year 1924 by Woolworths Group. It
offers multiple products to its customers like furniture, jewelry and electronics. It follows
‘Franchisee business model’ (Maritz , 2019). It is studied that Woolworths has altered its
business model. Its new operating model aims to change customer shopping experience and
habits (Hall , 2019). It serves around 3 million customers per day (King , 2019). Its top
supplier are Teys Australia and Red meat (Insidefmcg, 2019). Others include Perfection Fresh,
Driscoll’s Australia and Kailis Brother as award winner suppliers (AFN, 2019). In order to
make its supply chain effective, it has adopted better practices. This is because it aims at
achieving competitive lead and sustainability through its supply chain implementation
(Woolworths Group , 2019).
COSTCO
It is an American company founded in the year 1983. It is also a supermarket brand engaged in
selling variety of products like groceries, vegetables and cosmetics. As per the research, it is
examined that COSTCO relies on ‘Subscription business model’. It states that customers who
want to shop at the COSTCO store must buy a membership to purchase. Globally, it has 98.3
million customers with Costco membership (Conway, 2019). It has high number of suppliers
and they are called vendors. It is examined that it follows ‘high volume, low margin’ strategy in