Supply Chain Management Report: Issues in Grocery Industry

This report delves into the intricacies of supply chain management within the grocery industry. It explores the challenges and opportunities presented by e-commerce, examining why online grocery shopping hasn't fully taken off due to issues like transportation costs and consumer preferences for fresh products. The report also addresses the benefits and drawbacks of process outsourcing, highlighting its impact on cost reduction, service quality, and business transformation. Furthermore, it discusses various supply chain strategies, including total quality management and resource-based theories, while also touching upon Material Requirement Planning and its relevance to companies like Tesco and Aldi. Overall, the report concludes that while there are inherent complexities in supply chain management, addressing these issues strategically can lead to significant growth and success for grocery businesses. The report provides a comprehensive overview of the key aspects of supply chain management in the grocery sector.

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

1
SUPPLY CHAIN MANAGEMENT
In this paper I am writing about my experience related to supply chain management. The
reflection is particularly based on supply change management in the grocery industry.
Managing the supply chain is not difficult if proper measures are taken to address the issues
arising out of it. New companies are coming up and posing a stiff completion to the existing
leaders in the grocery industry through adopting policies such as price reduction and the
introduction of extensive e-commerce. The major issues which I have been able to identify in
relation to grocery supply chain management are that of process outsourcing, supply chain
strategies and the problems related to ecommerce.
The grocery industry has not been able to incorporate the concept of e-commerce within it.
This is because the transportation charges and durability of the products do not allow the
system to be best suited for the company. The good are perishable and it is not always to
possible them to deliver on time. Moreover I believe that consumers demand fresh products
when it comes to grocery and thus they are not able to trust online shopping. There are also
other reasons why e-commerce is yet to be incorporated by the large grocery companies.
Various studies depict that online shopping is confusing, in addition to be eligible for free
shipping a person has to order a specific amount of goods, however grocery consumers do not
find it smart to purchase goods in bulk which leads to the failure of e-commerce. The internet
users are increasing at a very rapid rate in the UK and thus this opportunity has to be utilized
by the grocery industry which has been done by companies such as Aldi.
Another issue which I identified related to supply chain management of the grocery industry
is the issue related to process outsourcing. Outsourcing helps companies to focus on core
business of the company, reduces cost, improves the quality of services, helps in business
transformation, provides more financial flexibility, better access to resources and also
provides clear idea about the cost involved to remove hidden costs.

2
SUPPLY CHAIN MANAGEMENT
When it comes to supply chain strategies there are various theories which have been provided
through studies. These theories include total quality management theory and resources based
theory. These theories majorly focus on reducing cost and providing the consumers with
quality products in accordance to their expectations. However this may be against the
principles of price quality relationship and the customers would believe that they are being
provided with bad quality goods for a cheaper price. The Material Requirement Planning
theories may also help the grocery companies like Tesco and Aldi which provides for
carrying out the process of controlling and scheduling inventories by the production
managers.
The overall knowledge which I was able to gain is that although there are problems in the
supply chain management process the issues if addressed in a proper way can to the contrary
be helpful for the organizations. If proper management theories are followed in accordance
with the specific situation than the companies can really grow in the industry.