Supply Chain Management for Metcash Distribution Centre

SUPPLY CHAIN MANAGEMENT 1
SUPPLY CHAIN MANAGEMENT
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SUPPLY CHAIN MANAGEMENT 2
Supply Chain Management
Introduction
Metcash Distribution Centre is a wholesale distribution company whose headquarters are
located in Sydney, Australia (Hoffman & Babb). Similar studies reveal that Metcash distributes
wide ranges of products to different consumers within Australia and outside Australia. Joe David
established the company in the year 1927. Reports show that the company started as a food store
which was started by Joe David. Later on, David Joe established another six other food store.
Finally, those food stores contributed to the birth of Metcash.
This report aims at examining, the history of Metcash industry. The report will further
explore Metcash products, customers and suppliers. Moreover, the report will also investigate the
supply chain concerning Metcash Ltd. Finally, the discussion with articulate Metcash
transportation network locally and internationally
Organization history
Studies show that, David was motivated by great opportunities he encountered in the
wholesale business. He had located niche markets with more potential retailers whom he could
supply with his products. Research indicates that in 1980, Metcash attained AG Campbell’s
wholesale business (Hay & Murdoch, p.13). Moreover, the company established its primary
retail group in NSW. Hence, Metcash industry was aimed at providing retail services to
numerous retailers across the globe.
David used the discount formula to attract more customers to buy his products in 1957
(Hay & Murdoch, p.12). Moreover, he implemented various technological innovations which
aided in the development of Metcash. Such innovations included computerized punch-card,
which eased the inventory work. Research shows that Met cash was the first organization to

SUPPLY CHAIN MANAGEMENT 3
utilize computerized punch card (Hay & Murdoch, p.13). Hence, in 1960, Metcash Ltd
established Supa Valu, a group of independent retailers.Thus, Supa Valu adopted the cooperative
food groups, which gave retailers more purchasing power since the resources were contained
together. Innovations were very crucial in Metcash; for instance, in 1972, Metcash established a
new distribution facility located in Blacktown.
Metcash distribution center deals with a different line of products. The company is the most
renowned wholesale inside and outside Australia dealing with Liquor, Food and grocery
products. Thus, Metcash sells a variety of food and household items such as vegetables, fruits,
deli platters, potato chips, ice creams, oils, aloe, organic food, cleansing bars and many more
(Dawson, p.26). The primary Metcash National and International products are:
 Food. Concerning food products, Metcash supplies more than 1,600 stores based in
Australia. Such stores include Foodland and IGA brands.
 Liquor. Studies show that Metcash is the most extensive supplies of Liquor within and
outside Australia. The company operates more than 2700 Liquor stores in Australia.
Similar studies show that the top Liquor brand includes- Thirsty Camel, Porters Liquor,
IGA Liquor and Cellarbrations (Browne & Levy, p.672).
 Hardware. Metcash have the most significant hardware market in Australia. The
company has a well-established hardware group that supply the hardware items to various
suppliers and customers. Statistics show that the company supply hardware items to more
than 1600 stores within Australia.
Metcash National & International Customers and suppliers
Metcash operates around three major business pillars, which include Australian Liquor
Marketers, IGA Distribution and Campbell’s’ cash and Carry (Sutton, Kamvounias & Taylor,