Sainsbury's Supply Chain Analysis: Strategies and Management Report

This report provides a comprehensive analysis of Sainsbury's supply chain management, examining key aspects such as supply chain relationships, the role of supply information systems, procurement strategies, and outsourcing practices. It delves into how Sainsbury utilizes the Blue Yonder platform to enhance supply chain relationships, improve forecasting, and manage various operations. The report further explores Sainsbury's procurement strategies, including inventory management, supplier diversification, and cargo insurance to mitigate supply chain risks. It also discusses the company's approach to outsourcing, emphasizing its impact on competitiveness and competence. Moreover, the report highlights Sainsbury's sustainability initiatives, such as the Fairly Traded program, efforts to reduce plastic waste, and involvement in forest conservation, as well as the implementation of reverse logistics. Overall, the report offers insights into Sainsbury's strategies for building a resilient and efficient supply chain that aligns with its sustainability goals.

Supply chain management

TABLE OF CONTENTS
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Supply chain relationship............................................................................................................1
Supply information system..........................................................................................................2
Procurement and outsourcing......................................................................................................3
Sustainability...............................................................................................................................5
RECOMMENDATION...................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Supply chain management is management that is followed by the organization for the flow
of goods or services from one place to another from the raw material to the finished goods.
Supply chain management involves the designing, effective planning, execution, controlling and
the monitoring of the activities of the supply chain that helps to contemporize the supply with
the demand. Sainsbury is a multinational second largest supermarket in the United Kingdom. It
is founded by John James Sainsbury in 1869 and its headquarters are in London, England and
UK. It becomes the largest retailer in the groceries in the year 1922 (Daniel, 2021). In this report
discussed about supply chain relationship, their supply information system aided for the
visibility by the Sainsbury, procurement strategies that is used to mitigate the supply chain risk
and outsourcing in their competence and the competition and ways to improve the supply
chain sustainability used by the Sainsbury.
MAIN BODY
Supply chain relationship.
Supply chain management is a link between the networks for the supply of the goods or
services to the appropriate location and the supply chain relationship is an ideal relationship
between the customers and the suppliers where the easy flow of the information, demand and
the queries or problems can be done so that the effective flow of supply can be done by the
organisation. If the relationship is not focussed by the organisation it will affects the
organisation negatively and affects to their suppliers and customers relationship. There is
various supply chain relationship that is used by the organisation. Sainsbury uses the blue
yonder end to end supply chain as a core platform for the supply chain relationship. With the
development of the blue yonder in the organisation of the Sainsbury it helps to its supply chain
strategies with a single artificial powered platform. With the use of the AI they improve the
relations to serve the needs of their customers. With the blue yonder it helps to build a strong
balance between the advanced capabilities their ML experiences, their culture and values with
the customers. To engage with the supply relationship management of the Sainsbury has
believed in delivering the different and the productive relationship (Michalski, Montes, and
Narasimhan, 2019). In Sainsbury the pillars for the supply relationship management are
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improving the quality, of services and product, focussing on more sustainably working
conditions, uses of the new ideas and innovation in the company and learning about the supply
management and risk associated with it.
Sainsbury focuses on for the integrating their supply chain relationship with the
deployment of blue yonder in the power to its end to end strategies for the supply chain. It
helps the company in future for its supply chain program and helps to benefits to their current
blue yonder solutions footprint with their powerful capabilities with the new and the powerful
capabilities helps to span up the Al- powered demand for the forecasting, digital control,
management of the space, range management, management in warehouse, labour and the
yard (Oyedijo, and et.al., 2018).
Sainsbury has to focuses on its online presence more with the effective supply chain
management and has to focuses on the transparency with their suppliers where the suppliers
can able to see the orders and update to their supply process etc that helps to build strong
relationship with the company. Sainsbury has to use the current IT technologies to build and
maintain the relations that helps to manage the supply chain management and helps to regular
deliveries of the product or services on time. From this it not only helps to build the effective
supply management but also improves the relations with the external and the internal
customers.
Supply information system
For the multinational company like the Sainsbury it is important for the effective supply
chain management that is used to increase on the productivity of the organizations operations.
To increases the supply chain visibility of the organization Sainsbury adopted the Information
system in their business operations. With the increase in the availability of the information
helps to improve the flexibility in the manufacturing and the enhances the supply chain
management. Company like Sainsbury that is big corporate organization has to be an effective
information system that helps to manage the working environment of the organization
effectively. For the effective management of the supply chain Sainsbury uses the inter
organizational information system that helps manages the inventory system with the use of the
LAN network. These networks are operated for the stock and inventory control from that the
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stock can be maintained in the organization (Ahmed, and et.al., 2019). The information system
in the Sainsbury is used at various levels of the management and the departments. At each
level the information system is required that helps to manages the work with the suppliers and
build the relations. All the departments are linked with each other and the information is
provided with each other helps to enhance the productivity of the Sainsbury. With the use of
the modern information system it helps the Sainsbury to share the information to all the
departments easily and effectively. With the use of the modern information system it helps to
share, gather and the competitive intelligent that helps in improving the functionality of the
supply chain management. With the use of the modern information system where the large
data is gathered in a single system helps the management and the suppliers to use it effectively
with the information and clearly that helps to maintain the work properly and effectively
(Rainer, and et.al., 2020). By adopting of the modern information system it helps to improve
the transparency in the information and brings the various changes in the supply chain
management that helps the suppliers to provide the information easily and helps the partners
in the supply chain network of the Sainsbury.
The logistics and the inventory of the company directly affects to the return on the
investment. With the proper exaction and planning of the inventory helps to increase the ROI
and the profitability of the Sainsbury. Sainsbury properly planned to their logistics that helps for
the proper execution to their supply chain management. Sainsbury is successful in the
management of its logistics with the supply chain that are achieved with the proper linking with
rail to its warehouses with the flight terminals. By the setting of the convenient depots the
logistics of the Sainsbury get better. With the creation of the sufficient large warehouses and
the convenient depots for their product Sainsbury operates it supply chain with the efficiency
and the stamp authority that helps to improve the return on investment of the company.
Procurement and outsourcing
Procurement strategy used by organisation
The term procurement strategy is one of the most important part of the organisation that
refers to the long term plan to cost effectively acquire the necessary supplies from the list of
efficient vendors who are helping them to deliver the quality and quantity of goods on the
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given time (Niuand et.al., 2019). There are various strategies that are used by the Sainsbury
company to be more effective in their work And it also helps them to mitigate the supply risk
within the supply chain management. here are some of them-
Inventory management
Inventory management is the software that is used by the Sainsbury company to remove the
supply risk from the attainment achievement. the software or technology helpful for the
company to manage requirements of the product Within the global as well as domestic market.
they can calculate the future needs and on the basis of they can contain product’s for this
apply. It is necessary for every company to manage this inventory so they can have a necessary
goods when it is required by the customers. it also helps to ensure the quantity of the supply
and company and able to manage accordingly.
Diversify suppliers
since many company leaders are not only depended on a single supplier Whereas they are
having various numbers of suppliers who deliver them raw material. it means that if one of
their supplier is not able to fulfil the supply of the raw material than they can contact other
suppliers to deliver it for them on the time. it is one of the best strategy that is used by the
Sainsbury company to remove the risk of supply (Skipworth, Delbufalo, and Mena., 2020).
Cargo insurance
All the delivery cargo send by the Sainsbury company are having the insuranceWhich means
that if the accident take place then there all the product waste from the accident will be
recovered through the insurance and they will get money back. It is the best strategy that is
helping to make their supply safe and They can deliver the product safely to the final stage.
Outsourcing of the company in terms of competence and competition
An organisation in terms of competition And competence
When the organisation completely improving their position within the market and taking the
competitive advantages, they typically think about the internal transmission their posture like
measuring and implementing the new technology within their workplace an developing an
innovation process or even adopt A fresh business model. One of the best option that is used by
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the organisation is outsourcing that is also used by the Sainsbury company that change in
competitive landscape and innovate their business and grow effectively.
Outsourcing what can provide a competitive advantage and increase the competence of the
business because it brings more opportunities for the business where big and get customers
who can give them up more work (Niu, and Mu., 2020).
It can increase the revenue of the organisation Anne company can also increase their business
within the market where their operating their business and they can show their present
internationally.
Sustainability.
For the effective supply chain the sustainability is important for the organisation that will
help them to improve in their overall performance. To improve their performance and the
supply chain management Sainsbury started focuses on the fairly traded programme that has
ambition to support to the sustainability. To resilience and efficiency to their suppliers, farmers
and to their producers that supplies the tea to the Sainsbury (Pagano, and Liotine, 2019).
Sainsbury adopted the approach with the collaboration with the work to tackle the change in
the climate and that reduces to the impact on the environment of the raw material. With the
use of the sustainability in the supply chain so that improves the livelihood of the farmers,
suppliers and the growers. Company reduces the use of the plastic waste in the organisation
and in the supply chain management that affects the environment. With the reduce of the
plastic waste and encourages the use of the reusable or recycled products during the supply
process helps to reduces the use of plastic and it doesn’t impact to the environment. Sainsbury
also supports with the Cocoa and the forest initiative and also working as a part of the
consumer good forum for the positive forest coalition of the actions that help to give efforts to
reduce the deforestation from their supply chain (Qorri, Mujkić, and Kraslawski, 2018).
Reverse logistics is an activity set by the organisation that involves the returning of the
product to the manufacturers by the customers for the recycle and reuse of the product. It is
also termed as aftermarket supply chain. This helps the environment and reduces the waste
and helps to improve the sustainability of the resources with the reuse of the products. It is
totally opposite to the standard supply chain management. Company like Sainsbury also
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implement the reverse logistics that helps to improves the customer satisfaction and to their
loyalty by giving attentions to the faulty goods. Sainsbury launches the vending machines for
the trial for the recycling. Company started the schemes to return the plastic bottles and the
drink cans in exchange of the money for their shopping in the stores (Sangwan, 2017).
Customers has to deposit the cans the plastic bottles at the entrance of the stores in the
machine that is up to in the three litre of the size an d after that customers has to provided the
coupons that is worth of 5p to per item that is to be used during their shopping. From this they
are encouraging to save by the recycle from their shopping to the customer.
RECOMMENDATION
Supply chain management is one of the most important part of the business but make available
the product and services to the customers in their own area local shops. there are some
improvement that can be done by the Sainsbury company like implementation of technology.
Company can implement new technology in the supply chain management that will make the
process smoother and Co valuable to send their product on time to the retail stores that means
customer will get the product on time. Edible satisfying and gain the loyalty of the customers
and they will able to take competitive advantages.
CONCLUSION
As per the report has been covered study of Sainsbury and explain the supply chain
management of the company. This report has been provided supply chain relationships an
information about the supply chain management of the company. it also has been discussed
about procurement and outsourcing and explain the procurement strategy used by company to
decrease supply risk can also outsourcing in terms of competition and competence. In the end
of this report has been provided sustainability Hindi logistics and what company is doing to
improve the supply chain sustainability.
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REFERENCES
Journals and books
Ahmed, M.U., and et.al., 2019. Building high performance supply-chain relationships for
dynamic environments. Business Process Management Journal.
Michalski, M., Montes, J.L. and Narasimhan, R., 2019. Relational asymmetry, trust, and
innovation in supply chain management: a non-linear approach. The International
Journal of Logistics Management.
Niu, B. and Mu, Z., 2020. Sustainable efforts, procurement outsourcing, and channel co-
opetition in emerging markets. Transportation Research Part E: Logistics and
Transportation Review. 138. p.101960.
Niu, B., and et.al., 2019. Coordinate the economic and environmental sustainability via
procurement outsourcing in a co-opetitive supply chain. Resources, Conservation and
Recycling. 146. pp.17-27.
Oyedijo, A., and et.al., 2018. Fairness in supply chain relationships: The value and consequence
for reputation and sustainability. In The Susilo Institute for Ethics in the Global Economy
3rd Annual Symposium. Newcastle University.
Pagano, A.M. and Liotine, M., 2019. Technology in Supply Chain Management and Logistics:
Current Practice and Future Applications. Elsevier.
Qorri, A., Mujkić, Z. and Kraslawski, A., 2018. A conceptual framework for measuring
sustainability performance of supply chains. Journal of Cleaner Production. 189.
pp.570-584.
Rainer, R.K., and et.al., 2020. Introduction to information systems. John Wiley & Sons.
Sangwan, K.S., 2017. Key activities, decision variables and performance indicators of reverse
logistics. Procedia Cirp. 61. pp.257-262.
Skipworth, H., Delbufalo, E. and Mena, C., 2020. Logistics and procurement outsourcing in the
healthcare sector: a comparative analysis. European Management Journal. 38(3).
pp.518-532.
Online references
Daniel, D., 2021. supply chain management (SCM). [Online]. Available through <
https://searcherp.techtarget.com/definition/supply-chain-management-SCM>.
[Accessed on 25 May, 2021].
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