Supply Chain Management in Morrisons

SUPPLY CHAIN
MANAGEMENT

Table of Contents
1) INTRODUCTION.......................................................................................................................3
MAIN BODY...................................................................................................................................3
2) Customer Service and Inventory.............................................................................................3
3) Transportation and LSP's.........................................................................................................4
4) Warehousing and capacity.......................................................................................................6
5) Strategy and competitive advantage........................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

1) INTRODUCTION
Morrisons is one of the largest supermarket of UK having. Its headquarter is in Bradford,
UK. It was founded on 1899 by William Morrison. It has a long success history from a bradford
market stall to become the top 4th largest supermarket of UK. The main aim of the Morrisons is
to enable the customer a single stop where they can meet all their needs by offering every
product which they want. It is the biggest seller of food and drink, books, clothing, magazines
and many more. Having a wide scope the supply chain of Morrisons is also very strong. It
operates its transportation facility under the name of Morrisons express.
This report will discuss the concept of supply chain management and its various
associated concepts in the context of Morrisons.
MAIN BODY
2) Customer Service and Inventory
The product of the Morrisons are readily available to their customers because of the good
inventory management practices. This means that the inventory practice of the Morrisons are
adopted and implemented in such a manner that the company has not faced the problem and
situation of shortage of inventory which result in the readily and timely delivery of products to
its customers.
The inventory method used by Morrisons are as follows:
There are various methods used by Morrisons in order to have availability of inventory in its
company. These methods are:
Safety stock:
It is one of the best method of inventory management. As per this method companies kept
some additional inventory in their warehouses which is being used to meet the situation of
emergency (Brunaud and et.al., 2019). This method is generally used by Morrisons where it
keeps some additional inventory in its warehouse which it uses to meet the situation of
emergency. This method enables the company to have availability of stock every-time.
Reorder level (ROL):
As per this method of inventory management and controlling the companies fix a level
which shows that when the inventory will reach at that level then company need to reorder it

(Inegbedion and et.al., 2019). This method is also used by Morrisons in its workplace. As
receiving and issuing the inventory is very common business practice so when the inventory will
reach at that level of mark then it is necessary for the companies to have reordering it. This is one
of the best method of inventory ordering that ensures no shortage of inventory in the company.
Management of stock:
The methods used by Morrisons for the management of stock are as follows:
Economic Order Quantity (EOQ):
It refers to that quantity of stock which is economic to order. This means that EOQ refers
to that ideal quantity of order that will save the company from high inventory cost (Çalışkan,
2020). As per this method it is always important that an ideal quantity of order will be made so
that its cost regarding holding of inventory, shortage cost, order cost will all remain minimum.
Pareto method:
As per this method the 80% results are being generated with 20% of efforts. This is also
known as 80/20 rule. This means that 80% of the sales are being generated with the 20% of the
best efforts and sales of the products (Kuo and Lee, 2019).
However, in case of Morrisons it usually follows the method of EOQ whereby it makes
order of adequate quantity so that it will not face the situation of shortage and its cost will also
remain maintained.
3) Transportation and LSP's
Mode of transportation:
It refers to a way or mode that could lead the companies to deliver the products among
the customers. Transportation in case of supply chain plays an important role in terms of
delivering and making the availability of the product among the customers. There are various
modes of transportation that is used by companies including air, water, road and many others.
However, in case of Morrisons, it run its mode of transportation under the name of Morrisons
Express which enable it to deliver its product in a short span of time. Morrison Express work as
an air freight specialist. The reason behind the choosing of this air mode by the Morrison
Express will lead it to deliver and make the product accessible among the customers in a very
short time so that as soon as they make order they would receive the products.