Procurement and Demand Management in Woolworths - Supply Chain Management

Running head: Supply chain management
Supply chain management

Supply chain management
Table of Contents
Introduction.................................................................................................................................................3
Procurement and demand management....................................................................................................3
Conclusion...................................................................................................................................................7
References...................................................................................................................................................9
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Supply chain management
Introduction
The main aim of this task is to provide a brief overview about the procurement and
demand management of Woolworths. Woolworths is the biggest retail company which delivers
retail products and services to the customers across the world. In today’s competitive world, the
firm is expanding and flourishing its business activities day by day. Also, it explains that how
procurement and demand management can be applied in the Woolworths. Further detail of the
task has been discussed below.
Woolworths group is a major Australian company which operates and manages its
business activities and operations in Australia and New Zealand. It is the second largest
organization in Australia and New Zealand evaluated by revenue. The company is the biggest
takeaway liquor retailer in Australia. The firm was incorporated in 1924 with it’s headquarter is
situated in Bella Vista, New south wales, Australia. The main object of this company is to
deliver valuable and best quality products and services to its customers in the market place.
There are approx 205,000 employees employed in the organization. The firm is trusted on
business partners such as manufactures and local farmers. Along with this, the organization has
approx 3,000 stores in different countries across the world. In addition, Woolworths follows
corporate social responsibilities effectively and efficiently. Woolworths values include customer
obsessed, being responsible, inspirational, collaborative and quality. The main mission of the
corporation is to create a bright future by delivering unique and effective products and services
to the customers across the world (Woolworthsgroup, 2018).
Procurement and demand management
Woolworths uses effective and unique procurement and demand management to save the
resources and capital. Procurement is a process and method by which items and stocks are
bought from outside suppliers. Managing the ordering, review, receipt and approval of items
from suppliers are involved in the procurement management process (Varley, 2014). On the
other hand, demand management is a key practice in the procurement process to reduce costs by
managing the necessities, controlling demand and distinctive between needs and wants. The
procurement and demand management helps to overcome the competitors in the marketplace.
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Supply chain management
The firm uses tradestone’s merchandise lifecycle management platform to deal with its supply
chain within the organization. The tradestone offers a platform for the business activities and
operations to handle orders, B2B sales, suppliers and financing. It is connected with more than
6,000 suppliers. This management also helps to handle the various types of products such as food
and beverages (Varley, 2014). Therefore, the company uses tradestone platform to manage and
control the procurement and demand of the customers. The key strategies which are involved in
merchandise life cycle management have been stated below.
Strategic planning: Under this stage, the firm needs to ensure planning processes to integrate
goals and objectives. SAP solutions help streamline merchandise life cycle processes so retailers
can easily execute and implement strategic merchandise decisions.
Merchandise and assortment planning: SAP solutions are unable to define the channel, plans
and merchandise with including place holders for new styles. Actions and events can be assigned
for sales, buy and margin targets at all levels of the location.
Promotion planning: Promotion planning plays a vital role in Woolworths Company to increase
the number of customers in the marketplace. Along with this, performance details are easily
available to provide support for implementation of vendor rebates.
Life cycle pricing: SAP (system application and product) helps the company to manage and
control the trade-offs between profit, returns and price image and keep the prices that provide
support a retailer’s brand strategy. By evaluating shopper demand, location price, SKU level and
channel, price changes that meet strategic goals and objectives can be chosen. Along with this,
life cycle pricing helps to set the appropriate prices of the products and services.
Along with this, Woolworths uses procurement and demand management process to stay
in the competitive market. This process also helps to buy the goods and services from the
enormous suppliers. The company uses demand management to fulfill the demand, needs and
requirements of customers. In the operations and activities of retail industry like Woolworths
store, demand management is considered the management of demand which is generated
products and services at the stores for the customers. In addition, Woolworths monitors and
evaluates the choices, preferences and desires of customers to sell the products effectively. In
today’s era, the employees at Woolworths have not been able to grip the requirements and
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