Supply Chain Challenges in the Grocery Industry

This assignment examines the significant challenges faced by companies in the grocery industry concerning supply chain management. It highlights issues related to information and e-commerce systems, outsourcing functions, and supply chain strategy. The analysis emphasizes how these challenges can lead to losses for major grocery chains like Tesco and the need for collaborative efforts among trading partners to maintain low costs and enhance revenue. Furthermore, it explores the changing customer demands in a rapidly evolving retail landscape and stresses the importance of efficient, transparent, and cost-effective supply chain operations for success in the competitive UK grocery market.

Running head: SUPPLY CHAIN MANAGEMENT
Supply Chain Management
Name of the student
Name of the university
Author note

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SUPPLY CHAIN MANAGEMENT
Supply chain management is a significant issue for any industry in order to have a
competitive edge in the modern day market. When it comes to the grocery industry I got to
know that companies in it are facing significant issues and those companies which have
adopted a proper supply chain management system have a competitive advantage over the
other. I have been able to identify the specific issue which may prevent the companies in the
grocery industry to function and grow properly. These issues are majorly related to
information and ecommerce system, outsourcing of function and supply chain strategy. These
issues with respect to the supply chain can result in significant losses for the major companies
in grocery market such as Tesco. The identified challenges can be beneficial for the
organizations if they are managed appropriately. The challenges in the supply chain affect the
procurement of appropriate raw materials and transporting them in an appropriate manner at
the lowest possible cost. The major challenge faced by the companies in relation to the supply
chain is to maintain a low cost and enhance revenue with respect to the overall supply chain.
This can be triggered through collaboration efforts of trading partners.
The scenario of the grocery retail industry is changing due to the changing requirements and
demands of the customers. The modern day customers have little time and therefore require
quick and efficient services. They also seek high level transparency as they are well aware of
the modern technologies and do not want to feel cheated. Therefore in order to meet the
expectations of the clients the businesses have to ensure a fast, efficient and low cost supply
chain.
The issues resulting out of the supply chain is leading to war among the grocery industry with
related to the price. Companies are depicting severe losses every year to maintain their
customer bases by aggressively cutting down price to be able to survive in the competitive
market. I have also found out that in UK about 92% of the people use internet and the number
is increasing every year. Therefore the companies must provide significant importance to e

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SUPPLY CHAIN MANAGEMENT
commerce activities and ensure that the issue which the customers face in relation to online
shopping such as transparency, inadequate details and slow loading of sites are addressed.
Grocery in not even close to the top ten products purchased through online shopping,
therefore it has to be ensured by the companies that they raise awareness in the society that
effective groceries shopping can be also done online.
I got to know that the grocery industry is subjected to a very complex and competitive market
in the UK. In order to survive in such environment it is necessary that the companies give
high level importance to supply chain management strategies. Companies may also adopt
large scale outsourcing of their functions to ensure that they are able to focus in details of
their main functions. Outsourcing can reduce the cost and liability of the companies and
provide them a competitive edge over the others.