Research Report on Sainsbury's Supply Chain and Labour Issues

This report examines the supply chain and labour challenges faced by Sainsbury's, a major UK supermarket chain. It identifies key problems such as material scarcity, technical difficulties, and intense market competition from rivals like Tesco and Aldi. The report analyzes Sainsbury's competitive positioning, target customer base, and market research strategies. It highlights three critical issues: market expansion difficulties, accurately identifying customer needs, and effectively understanding and managing the supply chain. The report concludes that addressing these challenges, particularly through technology development and improved supply chain management, is crucial for Sainsbury's to maintain its market position and meet customer demands. Desklib offers a wide range of similar reports and study resources for students.

RESEARCH REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
Company's problem.........................................................................................................................3
Labour and supply chain problem................................................................................................3
Areas of importance.....................................................................................................................4
Top three issues ...........................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Sainsbury Plc is known for the largest chain of the supermarket in UK, with 17.0% share
of the supermarket sector. Also, this is founded in 1869 by John James Sainsbury with shop in
Drury Lane, London. All the stores of Sainsbury are related to environment friendly that is
considered as largest food retailers with over 650 supermarkets and 900 convenience stores. The
wide variety of products are available at stores of company in order to gain market share also in
order to drive the passion for food that are serve together for helping every customer (Ali, 2020).
By offering great quality food at competitive prices then today Sainsbury is one of the inspiring
and delighting our customers with tasty food remains our priority. Further more and 2500
products are sold by company through online and offline stores and 1500 suppliers are over half
of our sales that has own brand.
Company's problem
Labour and supply chain problem
According to the CEO of Sainsbury it has been found that company facing the problem of
regarding labour and supply chain challenges. On the other hand, scale and advanced costing is
impacted by logistic operations and strong suppliers relationships affect the Christmas sales.
Also, it is the largest shrugged off the problems with supplies that are dogged in United kingdom
industry by ranging from the congestion at ports also shortage of shipping containers to staffing
problems in the farms and factories that are related to first half of year that is return for profit and
rising according to the sales as families that can be brought clothing and petrol so that it can
continue for cook more meals (Sainsbury supermarket, 2020). Due to the material scarcity from
the farm it has been analysed that it impacted on whole supply chain and supply of products are
not available at time.
Competitive analysis
Particular Tesco Aldi Sainsbury
Products Electronics, grocery,
clothing etc.
Fruits and vegetable,
grocery, clothing
electronics etc.
More focus on
offering grocery
products
Pricing strategy Price skimming policy Price skimming policy Competitive pricing
policy
USP Low price Wide variety of Good brand value
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products
Promotion strategy Modern promotion
strategy
Traditional promotion
strategy
Traditional & Modern
promotion strategy
Target market High income level
people
High income level
people
Medium income level
people
Influencing factor Risk Risk Brand value
Competitive market
Due to supply chain is it can be said that competitors get benefit of that period in order to
attract the customer by providing then product at right time at that time Sainsbury not able to
corporate with company (Pizarro, Sainsbury & Loechel, 2018). Tesco has increased the process
of suppliers in orders gaining competitive advantages dues to this problem. Further, Tesco has
improved the marketing services in order to attract of Sainsbury. There were large number of
customer shift to other brand and on the festive season like Christmas that is one of the biggest
selling season of UK which impacted Sainsbury.
Technology issue
Then technical difficulties are unforeseen regarding equipment problem that is related to failure
of hardware and software bugs that makes it difficulties or impossible for perform a desired
action. Also, in the factories technological problem faced dire to old equipment and that is why
supply chain get slow as compares to regulars supply and demand of products are increased at
that time. Further, it is impacted by spending large amount for solving technical issue in order to
work in better manner.
Areas of importance
Competitors
The top competitors of Sainsbury are including Aldi UK, Tesco, Morrisons and also
associated with the British foods that is engaged with general merchandize, food and clothing
retailing that is also including financial services activities (Bhattacharya & Fayezi, 2021). Then
Tesco is one of the biggest grocery seller that helps for providing retail banking and insurance
services. In addition to this, the quality of Sainsbury's product is higher than its competitors that
are related to phenomenon in order to come at same price. Company needs for balancing the
quality and price of competitors on the other hand Tesco providing products that are lower as the
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price offered by Sainsbury. Further, convenience goods produced by Tesco is better than
Sainsbury that is why this is the reason of online presence of Tesco is better than Sainsbury.
Further, fair-trade gives Sainsbury the edge over its competitors as well as being an ethical way
to trade.
Target customer
There are large number of customers are involved in order to make it successful, but
mainly company target mother and family on the basis of companies websites and
advertisements on television. Also, there's are different type of market segment are used by
company in order to attract large numbers of customer. There are positive response given by
customer because it is focus on how to complete the need of customers in order to seven days a
week provide fresh food, groceries, general merchandize and clothing from suppliers around the
world through 33 distribution centres in the stores and online customers that are meeting for
completing the requirement for flexible and convenient shopping. On the basis of
communication's strategy it has been analysed that it is necessary to work according to
developing knowledge as well as it is also included letters, oral communication, formal letters.
Market research
On the basis of data collection method it can be said that customer is review on the basis
of qualitative and primary research that help for providing the market research in order to find
out the preferences of customers that helps to fell about the products (Alghababsheh & Gallear,
2022). Also, company focus on the direct marketing in order to develop the knowledge of
enlisting in different type of campaign that are help to sent customer in orders to personalize the
message which are related to mobile application that boost the visits and sales. Then there are
large number of retailers are connected with the organization because it supports small business
by providing them loyalty card in order to learn about customer and then offer relevant
promotion for driving up sales. On the basis of market research it has been said that there are
over 23,000 product line are sourced globally from more than 1500 suppliers and half of the
Sainsbury is related to the Sainsbury's own brand.
Top three issues
Market expansion
For Sainsbury it was very difficult to expand in another market because there are large number of
competition has seen in grocery and retail sector. Also, Tesco and Aldi has expertise in order to
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grocery and retail market in order to attract large number of customer. Also, due to globalization
it can be said that there are intense competition has seen in UK in order to create the presence of
rivals in market (Sainsbury supply chain, 2020). Then it is must find that there are different ways
which are used in competition itself for remain relevant for target customer. In order to stay in
the market it can be said that it is necessary to focus on different types of strategies which are
impacted bad on sale of product which are affected by supply chain.
Identification of customers
For the every business most successful point is when company largely depend on the
satisfaction of its customers. Then on the basis of project it has been analysed that there are large
number of target customer are involved for identifying it correctly (Wang, 2018). Then this is
also considered as the important part which help to develop the knowledge of finding the
potential customer that help to focus on meeting the need of customer by improving supply
chain. This is also challenging for the company in order to identify the best suppliers for the
company so that they help to solve their problem. Then more focus on technology development
help the company by providing support for improving labour markets by support them increasing
their hike.
Understanding of supply chain
By understanding the supply chain it can be said that Sainsbury is focus on creating the
new supply chain and logistic which are related to operating model as part of work that can cut
the cost from business. Also, on the basis of supermarket it can be
said that there are work involved by integrating process between Argos and Sainsbury ion order
to contribute towards saving of more than 150 million euros in the supply chain and logistic that
are between years 2019 to 2022. There are more than 2000 suppliers are involved in order to
complete the demand of more than 22 million customers. This is also considered as quite good
number of supplier in order to improve the customer demand. On the basis of markets research
company has identified the impact of learning in order to enhance knowledge.
CONCLUSION
It has been concluded that present report is based on Sainsbury's research in order to
identify the problem which is related to labour and supply chain management. Due to this
problem company has faced issue in this situation there are large numbers of customers are
shifted to other brand. Also, identified the companies competitors which are attracted Sainsbury's
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customers. Further, due to technical problem company has faced the issue in order to impact on
supply chain of organisation. Also, in this report there are problems criticized and more focus on
technology development help the company by providing support for improving labour markets
by support them increasing their hike.
REFERENCES
Books and journals
Ali, H. 2020 What Factors Contribute to Efficient Management of The Supply Chain of
Supermarket Within UK Retailers? Case Study―Sainsbury Supermarket PLC Supply
Chain.
Pizarro, J., Sainsbury, B. & Loechel, B. 2018. Climate change vulnerability assessment for the
uranium supply chain in Australia. Progress in Nuclear Energy, 109, 53-65.
Bhattacharya, A., & Fayezi, S. (2021). Ameliorating food loss and waste in the supply chain
through multi-stakeholder collaboration. Industrial Marketing Management, 93, 328-
343.
Cole, R., Stevenson, M., & Aitken, J. 2019. Blockchain technology: implications for operations
and supply chain management. Supply Chain Management: An International Journal.
Alghababsheh, M., & Gallear, D. 2022. Social sustainability in the supply chain: a literature
review of the adoption, approaches and (un) intended outcomes. Management &
Sustainability: An Arab Review.
Wang, Y. 2018. Fashion Supply Chain and Logistics Management. Routledge.
online
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Sainsbury supermarket, 2020. Available through.<
https://www.similarweb.com/website/sainsburys.co.uk/>
Sainsbury supply chain, 2020. Available through.< https://progressivegrocer.com/sainsburys-
supply-chain-woes-continue>
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