Supply Chain Management in Morrison's

This assignment focuses on the supply chain management practices in Morrison's, a leading supermarket in the UK. It discusses the supply chain relationships, information systems, procurement strategies, outsourcing, and sustainability initiatives. The impact of supply chain and logistics on ROI is also examined, along with strategies for improvement. The assignment provides valuable insights into the operations of Morrison's and its efforts to enhance supply chain efficiency and sustainability.

SUPPLY CHAIN MANAGEMENT

Table of Contents
INTRODUCTION.....................................................................................................................................3
TASK......................................................................................................................................................3
Supply chain relationships.......................................................................................................................3
Supply information systems....................................................................................................................5
Procurement and outsourcing..................................................................................................................6
Sustainability...........................................................................................................................................7
CONCLUSION..........................................................................................................................................8
REFERENCES........................................................................................................................................10

INTRODUCTION
Supply chain management is defined as an administration of key business operation such
as supply chain, in order to continue the follow of product delivery to customers that help to
enhance their satisfactory level and increase profitability of a company. It also refers to process
of designing, planning, organizing, executing and monitoring activities related to supply chain
with objective of developing net value, and building a competitive organization. It encompasses
varied elements and activities such as streamlining of a venture supply side practices, just to
increase target segment value and to obtain a competitive edge, while operating into specific
sector. The current assignment will be based on Morrison’s, which falls under category of the top
10 organizations in the United Kingdom that has successfully operated in retail sector as the
biggest supermarket. It performs and drive the attention of staff members to conduct practice that
help achieving set aims and objectives of its venture. Supermarket have more than 494 outlets in
the United Kingdom and considered as the fourth biggest supermarkets in nation, where it has
facing high competitive environment.
The mission of this brand is to provide satisfactory services and quality products to
consumers. By considering the needs and expectations of each buyer, firm has taken each
decision, which is one of its valuable attempts in that skilled and talented employees of company
also contribute. This study will explain supply chain relationship and information systems. It will
justify procurement, outsourcing sustainability concept, in the context of chosen company.
TASK
Supply chain relationships
Forms of supply chain relationships are there in Morrison’s-
In the world of business, there are varied forms of supply chain networks available and
used by many companies whether it is small or large (Kappel, Schiele and Buchholz, 2020).
Each company chose specific type of network, just like Morrison’s. It uses vertical integration
and partnership supply relations for purpose of increasing productivity, sales, profitability and
performance level even better than its rivals that has operated in same sector from longer time
period. Organization has created a sophisticated vertically combined supply chain that
differentiated its venture from key competitors (Li, and Chen, 2020). Along with this, there is

partnership supply chain network use in supermarket, through which it collaborates with
Amazon as such a big e-commerce brand. It announces a new supply contract with this, and in
coming weeks, more the hundreds of organizational goods may available to Amazon pantry and
Prime Now especially for all consumers. With these two networks, company may grow even
better and get unexpected success, which is quite valuable and beneficial for it.
Supply chain relationship is collaborative and integrated and employ IT systems-
Partnership supply chain relation is highly collaborative because it drives the attention of
organization towards conducting collaborative practices with Amazon, in order to sell its quality
products to wide customer base. Another network is also integrated because it enables firm to
control its suppliers, retail locations and distributors to manage its supply chain (Brun,
Karaosman and Barresi, 2020). Vertical and partnership supply chains networks employ
appropriate and effective information technology (IT) systems in order to aid collaboration and
integration and to make it much effective than ever. The process of integration is complete and
continue with excellent communication channels and connections within above chosen supply
chain networks. SCM is one of those IT systems that company may use to handle procedure
related to order fulfilment, material handling and information tracking such as manufacturers,
logistics providers, suppliers, retailers, etc. With the help of communication technologies and
software organization and its management may enhance their collaborative practices with supply
chain partner like Amazon.
Critically examine methods in which supply chain network may be improved in company-
Partnership supply relationship and vertical integration within organization play vital role
in progress and success of Morrison’s. They work really quite well, but still may improve by
applying certain methods or ways. For example, instead of communicating with suppliers or
supply chain partners once in a month, firm may communicate with them once in a week, to
known weekly updates as it does not put a lot of work pressure on workers for making any
improvement when they had related to supply chain and product quality (Four ways to improve
profitability in supply chain management, 2020). Regular communication allow management to
build strong bond with other key stakeholders like partners. Furthermore, along with way, they
may establish accountabilities and roles in understanding manner, which enable each candidate
to perform accordingly and productively that help to improve supply chain relationship. It can be

evaluated that along with benefits continue communication affect negatively in term of
consuming time.
Supply information systems
Modern information systems aided supply chain visibility in Morrison’s-
Supply chain visibility is defined as capability of elements, parts and goods in transit to
be monitored from producers to their final location. Modern information systems such as Block
chain, JDA, High Jump, etc. play vital role in the context of helping supply chain visibility in
organization (Pal, 2020). Usage of these information technologies in SCM may improve
accountability and visibility. Management in order to bring excellent efficiency to sum
production procedure, may clearly sight into exiting phase of in production goods, foresee any
potential issues or barriers they may face and be capable to align manufacture schedules
accordingly. It can be said that usage of advanced technologies may bring essential transparency
into entire process of supply chain as it permits company to have better control over goods flow
and data related to it. With information technology enabled, real time data sharing, organization
may maximize collaboration with its key supply chain partners. Its management may also track
each activity via entire supply chain, with appropriate visibility into distribution and supplier
procedures (Kurpjuweit and et.al., 2021). Some information systems and technologies may
support firm in making appropriate and more informed judgments as well as excellent forecast
further demand. It may help manager to make control on production process that leads to lower
costs via effective and strategic decisions in contract and procurement management. Modern
technology may also contribute to enhance the seep of delivery, which in return increase the
satisfactory level of customers.
Impact of supply chain and logistics on ROI for supermarket-
Return on investment is a kind of performance measurement tools that is utilized to
examine profitability and efficiency of organizational investment. It also to compare
effectiveness of number of varied investments in term of contributions (Vakil, 2020). It attempts
to directly measure sum of return on a specific investment, related to actual investment cost
invest by Morrison’s. Supply chain is one of those factors along with logistics that put positive
impact on ROI for supermarket.it help to increase it in term of collecting order status data from
all sources, regardless of system and format across supply chain. It can be said that supply chain

efficiency may enable company to transform overall procedures by optimizing supplier
interactions. These forms of capabilities may provide management with a valuable return on
investment (ROI) and enable to achieve operational improvements across outbound and inbound
processes. On the other hand, it may put negative impact on it in term of lacking collaboration
and tracking process of product delivery.
Logistics also affect ROI in two different manners such as positive and negative. For
example, by managing inventory and delivering quality products to customers, logistics activity
within Morrison may increase profitability. While it may affect negatively when operating
expenses get high or above budget, which in return does not provide expected outcomes in term
of increasing profits margin, which management may expect to gain after making investment to
run and operate each value chain activity in effective and systematic manner.
Procurement and outsourcing
How company strategy related to procurement mitigates supply chain-
Procurement is the key component of supply chain management, it defined as procedure
of finding and approving to terms and acquiring services, products and works from an external
source, via a competitive bidding procedure. In order to manage overall process in effective
manner, firm may create a procurement tactic that mitigates supply risk. According to the
procurement strategy, company may take initiative to develop multi-level supply chain that help
to mitigate supply chain risk that is performance risk (El Baz and Ruel, 2021). By strategy,
management may improve supply chain efficiency and overcome negative impact of above risk
in term of dividing roles and responsibilities of workers to continually monitor key performance
elements that may impact procurement process in negative manner and lead to decrease sales of
supermarket, more than its rivals. Along with current one, market, implementation and demand
risk are included in category of supply chain risk, which mitigate by developing effective and
appropriate procurement tactic, which in return may provide desire outcomes in term of
increasing productivity, enhancing customer’s satisfaction and maximizing profitability even
better than other supermarkets that has sustained within retail industry and operated at
international level (Offset These 5 Types of Supply Chain Risks, 2018).
Selection and implementation of procurement strategy may overcome strategy risk and
enable supply chain manager to obtain unexpected results. Firm may create a tactic under which

tolerance margin for products line quality standards consider. Its manager accountability to
monitor each line closely to identify early warning indications before problems may impact in
negative manner upon organization brand.
Evaluate Morrison’s outsourcing in term of competition and competence-
Sourcing is the main activity of procurement, it described as process of enabling a
company to concentrate on its time, key resources and energy on what they attempt to perform
the best. Supermarket may turn to outsourcing to aid transform its information technology at
same time as posting plentiful, competitor beating financial outcomes. Outsourcing help
company to beat its rivals and strengthen capability, which is quite important and beneficial. It
conducts in form of practice of choosing and hiring a third party stakeholder or company to carry
out services or products that were initially performed in its own outlet and warehouse. It can be
said that this practice may provide a lot of benefits to firm in varied terms. Outsourcing may
enable company to gain competitive advantages and give tough competition to rivals. There are
several reasons behind outsourcing is cost, flexibility of outsource, outsourcer capable to
concentrate on core capability, etc.
The most visible and clear benefit related to cost saving that this practice brings about.
Along with this, outsourcing bring many benefits to Morrison’s in term of gaining competitive
edge and increasing capability to serve quality services and delivery quality products to
customers. It helps to maximize focus on abilities and strategies as well as maximized flexibility
to meet changing venture and commercial situations. It provides access to intellectual property,
creativity and thought leadership. It lower costs related to particular practices.
Sustainability
Organization attempts to enhance supply chain sustainability-
Sustainability is a valuable asset or resource that help to improve quality of human life
and prevent environment from being polluted by many factors like environmental; it includes
land pollution, hazard, etc. In the world of corporate, there are varied methods, examples and
techniques available that company may use to improve its supply chain sustainability. For
example, in term of initiatives, supermarket attempts to work with its suppliers in order to keep
them sustainable. Through Wonky veg range, supermarket may relax cosmetic specifications on

fresh vegetables and fruit by supporting suppliers to reduce on farm wastage. This attempt in
return has increase satisfactory level of customers and obtain growth in profitability as well as
sales. Its department may work with thousands of sustainable suppliers in and outside of national
boundaries just to make assure that company supply chain sustainability gets much better than
the expectations of stakeholders. It set high standards for goods firm buy to assure that each
source & produce accountability, to a top quality by taking safety measures into considerations
as always in mind. In order to improve its key process sustainability, supermarket may commit to
purchase fresh and health British produce where possible and directly buy from United Kingdom
farmers as well as trustable suppliers that are contributing to economic development.
Organization always take initiative to work with those suppliers who keep venture sustainable.
Morrison’s usage of reverse logistics-
Reverse logistic is process of developing, implementing, monitoring and planning cost-
effective flow of finished products, and in process inventory, which in return increase the flow of
profitability and better productivity. By using this element, company may increase asset usage
and create happier consumers. Furthermore, along with this reverse logistic help to reduce risk of
losses and enable firm to generate unpredicted return of investment. The best thing about this
form of logistic is that it helps to enhance environmental sustainability and made company
capable to make their contribution in doing so in effective and systematic manner. In recent time,
individual buyer expects from retailers like Morrison’s to cater painless return procedure, and
reverse logistic may support to fulfil this kind of expectations of customers. To make return
process stress free, firm may make returns more common with some statistics estimate that
return rates between 30-40%. Supermarket may get a lot of benefits from this retail return
process in term of retaining consumers and improving their satisfaction level.
CONCLUSION
From above analysis, it has been concluded that organization has successfully sustained
within retail industry and have gained competitive edge by taking initiative to maintain vertical
supply chain network. By employing information technology systems in this network
management has appropriately collaborate and integrate with its suppliers. It has used varied
approaches and techniques as well as ways that has improved supply chain relationship in
effective and appropriate manner, which continue the flow of products or service delivery and

enhanced satisfactory level of customers. Furthermore, it has been identified from above
discussion that by utilizing modern information systems company has effectively aided supply
chain visibility, which in return increased supply chain operation efficiency and productivity of
brand even better than its competitors. By managing supply chain and logistics organization has
increased profits margin and sales as well as generated revenue more than last certain years.
It has mitigated supply risk with the help of procurement tactic that play vital role in
growth and unpredicted success of supermarket. It has been summarized that outsourcing
contributed to gain competitive edge and appropriately increased customer base. Moreover,
company can improve its supply chain sustainability when it takes varied things into its
considerations and valuable initiatives in several terms.
Along with above initiatives, it can follow and adopt relevant suggestion, for example
company can use paper for product packaging instead of using plastic for same purpose as it give
management power to beat other top supermarket brands that existed in retail sector and has
operated from longer run.

REFERENCES
Book and Journals
Brun, A., Karaosman, H. and Barresi, T., 2020. Supply chain collaboration for transparency.
Sustainability. 12(11). p.4429.
El Baz, J. and Ruel, S., 2021. Can supply chain risk management practices mitigate the
disruption impacts on supply chains’ resilience and robustness? Evidence from an
empirical survey in a COVID-19 outbreak era. International Journal of Production
Economics. 233. p.107972.
Kappel, A., Schiele, H. and Buchholz, W., 2020. Coping with rising supply chain complexity:
conceptualising a supply network map structure model to address that challenge.
International Journal of Procurement Management. 13(6). pp.794-817.
Kurpjuweit, S. and et.al., 2021. Blockchain in additive manufacturing and its impact on supply
chains. Journal of Business Logistics. 42(1). pp.46-70.
Li, W. and Chen, J., 2020. Manufacturer’s vertical integration strategies in a three-tier supply
chain. Transportation Research Part E: Logistics and Transportation Review. 135.
p.101884.
Pal, K., 2020. Internet of things and blockchain technology in apparel manufacturing supply
chain data management. Procedia Computer Science. 170. pp.450-457.
Vakil, B., 2020. Plan, implement and institutionalise: The three phases of a supply chain
resiliency programme that can deliver robust ROI. Journal of Supply Chain Management,
Logistics and Procurement. 2(3). pp.243-260.
Online
Four ways to improve profitability in supply chain management. 2020. [Online]. Available
Through: https://supplychaindigital.com/supply-chain-2/four-ways-improve-profitability-
supply-chain-management
Offset These 5 Types of Supply Chain Risks. 2018. [Online]. Available Through:
<https://www.unleashedsoftware.com/blog/offset-5-types-supply-chain-risks>