Strategic SCM and Logistics: Pret a Manger's Report and Analysis

This report provides a comprehensive analysis of Pret a Manger's supply chain management (SCM) practices. It begins with an introduction to SCM and its importance in achieving organizational objectives, followed by an examination of the connection between SCM and various business functions within the company. The report delves into key drivers for an integrated supply chain strategy and assesses the effectiveness of Pret a Manger's strategies for maintaining supplier relationships, including the role of information technology. It also explores the contribution of IT in integrating supply chain elements and its impact on the firm's SCM system. Furthermore, the report investigates the role of logistics in SCM and factors impacting logistics and procurement. Finally, it outlines strategies for improving SCM and their impact on the business, addressing barriers to implementation. The report concludes with an executive summary highlighting key findings and recommendations.

Strategic Supply Chain
Management & Logistics

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................4
1.1 Importance of effective supply chain management in achieving organizational objective..4
1.2 Connection between supply chain management and business functions in an organization.
.....................................................................................................................................................5
1.3 key drivers for achieving an integrated supply chain strategy..............................................6
Task 2...............................................................................................................................................7
2.1 Effectiveness of strategy by the firm in order to maintain supplier relationship...................7
2.2 Information Technology used to make strategy to build relationship with suppliers............8
2.3 System for maintaining relationship with organization and suppliers...................................9
Task 3...............................................................................................................................................9
3.1 Information technology contribution in integration of various elements of supply chain
management.................................................................................................................................9
3.2 Contribution of information technology in supply chain management system...................10
3.3 Effectiveness of Information Technology in managing supply chain of the firm...............10
TASK4...........................................................................................................................................11
4.1 Role of logistic in Supply chain management.....................................................................11
4.3 Factors that impact on logistics and procurement practices................................................13
Task 5.............................................................................................................................................15
5.1 Strategy to improve supply chain management...................................................................15
5.2 Supply chain management strategy impact on business......................................................16
5.3 Overcome from barrier related to implementation of supply chain improvement strategy 17
CONCLUSION..............................................................................................................................19
REFERENCES................................................................................................................................1

Executive Summary
Supply chain management effectiveness are necessary for changing business and it
becomes necessary for the firm to implement proper strategy to increase market share and
customer satisfaction level. Report describe about Pret a manger’s practices related to supply
chain management and the way in which it manage to implement various kind of plan to
overcome from various barriers associated with it.

INTRODUCTION
Supply chain management refers to the process in which raw material to finish product
reaches from agriculture land to customer. Pret a manger is one of rising food company in United
Kingdom and sales various kind of product. Company has followed different kind of strategy in
delivering and purchasing goods and service. Organic product of the company attract large
number of health consciousness customers and hence it able to increase market. Report describes
about supply chain management and its connection with organisation objective. It also describes
about information technology that firm in use business process and the way in which effect
supplier relationship to firm and help in gaining competitive advantage. Report also emphasizes
on logistic & procurement impact on supply chain management process of the firm. In the end
report describthe way in which company able to improve in SCM strategy.
Task 1
1.1 Importance of effective supply chain management in achieving organizational objective
Supply chain management can be defined as a process in which goods are transfer from
one to another end for example agriculture land to industry and then distributed among between
different wholesalers and retailers and this process in mange by the group of people which are
associated with it. In the first stage food is produced by agriculture society of the country for
commercial sale(Saberi and et.al., 2019). This food is purchase by mediators or direct purchase
by the company. After buying goods transfer it to company storehouse with the help of transport
system. In the next step this agriculture raw materials are converted into finished product and
packaged for further sale. This goods in later stage are transfer to mediator, wholesaler, retailers
etc. At last purchased by customers. This system must be effective in order to increase customer
satisfaction level and increase market share of the firm. There are various software and other
resources are use by managers to make supply chain management effective and hence to improve
buyers experience level towards firm's product.
Pret a Manger is one of rising food company in the world and it offers various kind of
product to customers and hence attract large number of people with quality product and effective
supply chain management. Organization was founded by Jeffery Hyman Pret a Manger in the
year 1983 as a shop in UK and in latter stage expanded business in different part of the globe.

Goods of the firms are Sandwiches, salads, sushi, soups, coffees and snacks. Company Smart
objective are.
 Company is focused on providing product after one minute of placing the single order.
 Record the customers served in a one minute for one hour.
 Checking whether the employees able to serve the single order customers within one
minute.
 Serving customers quickly and increase profit as well as attracting others by fast delivery
of the product.
 Workers have one time to achieving one minute service.
Company focusing on increasing customer satisfaction level by providing by single food
product in one minute (Koberg and Longoni, 2019). It helps firms in gaining large market share
in changing business and increase customer satisfaction level. This has long impact on firm's
profit as different consumers will attracted towards fast services and hence company can
achiever higher target on time.
There are various benefits of supply chain management in order to accomplish long terms
objective. In this organization will be able to gain higher profit and market share and able to gain
competitive advantage. Increasing customer satisfaction level become part of promotion of Pret a
Manger for example increase service experience create mouth-to-mouth publicity of the product
and more and more buyers will be attracted towards firm's product. Better quality services are
most effective in achieving long term goal of the firm. It has set one minute time for single order
demand of the consumers and trying to achieve with various strategies such as increasing number
of employees and machines in the firm. Supply chain management effectiveness has long termed
benefit such as it increase customer satisfaction level, improve firm's image, company will be
able to achieve higher target on time etc. hence it is need full for the firm to implement proper
procedure for it.
1.2 Connection between supply chain management and business functions in an organization.
Pret a Manger provides various kind of food product service online as well as in shops.
There are various function perform similar work and hence create confusion for example
Production team has purchase same ingredient for the product as R&D and hence this confusion
will lead to waste of resources. Overcoming from this challenges company has divided different
department such as finance which focuses on monetary method, Marketing has various elements

(Promotion of product, customer satisfaction level for the product, competitor analysis etc.),
Human resource management deals with employees training and development with various kind
of process etc. This helps firm in increasing market share in proper functioning of different
department.
For effective supply chain management senior authority must prepared plan for it for
example making coordination between employees and management in order to increase customer
satisfaction level. Pret a Manger has to provide quality food which are made from fresh raw
material in order to improve customer satisfaction level. Firm can use marketing team for
analysing present market trends and customer's demand according to supply the product.
Supplier of the company must effective in providing right raw material for changing taste and
trend of the customer's and hence company will be able to increase market share (Tiwari, Wee
and Daryanto, 2018).
In innovation and development of new product various department work together such as
marketing team of firm divided into group such as one is analysed from where the raw material
can purchase and of the best quality. This raw material is transfer to quality department of the
firm which evaluate if ingredients can be effective for product or not. After the approval finance
department provide fun to company and hence raw material is purchased. Coordination of
various organ is necessary for changing business and it improves efficiency, quality and
productivity of the work.
Human resource department play important function in supply chain management by
providing talented and skilled workforce. They also provide time to time training to workers for
changing business for example communication sessions are conducted by them which help in
dealing customers and different type of people associated to process. HRM team also focuses on
managing employees relations and improve it by emphasizes on their personal growth.
1.3 key drivers for achieving an integrated supply chain strategy
Pret a Manger have various drivers that are related to supply chain management such as
in logistical facilities, Inventory, Transportation, Information, Sourcing, Pricing. It helps firm in
increase production level and also impact on productivity.
Company has to provide good facilities in the firm for example better ambience, music
etc. and hence firm will be able to attract large number of customer's. Pret a Mager has to
implement proper plan for example stock of the product will be at right place so that it can use

effectively and on time. Fresh raw material must be used for the product and a proper chain must
setup between shop and supplier so that daily raw material is consumed for food product.
Employees must be given training session for it so that they can effectively accept changes in
supply chain management.
Company has tried to contact local farmers for different ingredient rather than making
dependency on fix number of suppliers (Cousins and et.al., 2019). It helps firm in gaining the
best quality raw material option and on the other it able to deliver quality services to customer's
which is needful in changing business marketplace. Direct connection with agriculturist improve
image of good-will in front of public and hence company will able to generate larger profit
according to changing competition. It helps firms in Inventory management.
After COVID and BREXIT firm' supply has to focus on pricing strategy as inflation rate
increase cost of raw material which will impact on customer's satisfaction level. It has to follow
strategy in which minimum price can be setup for selling larger food. It can help firm in gaining
large market share in United Kingdom and increase number of customer's.
Transportation system of the Pret a Mager must be effective in order to deliver product
timely and increase market share of the firm. Dependency on other for transferring product can
decrease customer satisfaction level and hence firm has to set up s strategy that more of personal
vehicle will be use for delivering goods and hence increase customer satisfaction level. A proper
channel with advance technology must be setup in order to address large number of customers in
Britain and hence able to generate higher output.
Task 2
2.1 Effectiveness of strategy by the firm in order to maintain supplier relationship
Pret a Mager use various kind of strategy in firm in order to create strong between
supplier such as partnership sourcing, supplier relationship management, vendor managed
inventory, JIT strategies (Hong, Zhang and Ding, 2018). Supplier plays important role in growth
of the firm for example if they do not provide right quality product on time then it will difficult
for the company to transfer proper services and goods on time to customer's. It effects on buyers
experience level which will hampered the growth of the firm.
Company has to follow partnership sourcing strategy and by it better relation with
suppliers can be maintained. It helps in increasing revenue of the firm by joining hands with the
suppliers and increase market share of the firm. In this management look out into all possible

relation bond creation with raw material providers and hence able to deliver product and services
to customers timely. For successful implementation of this strategy suppliers and management
must have strong coordination and cooperation with each other. They must have a common goal
and objectives in targetting market. If raw material will be of better quality and company will be
able to gain timely then it rights product, right time to right customers which increase consumer
experience for firm's product. Profit can be share by both the parties but majority of amount can
be taken by the company as they are providing other facility to customer's. It decreases work
load of the firm for planning and management of inventory and hence able to focus on other kind
of process that it has to follow in changing market. Communication between two parties also
improves and more productive result can be obtained. Effective transferring of information
decrease wastage of the raw material for example Pret a Mager ask for right quantity and quality
of product, as per the need and joint partnership supplier deliver exact amount of raw material
and hence company 's expenditure decreases. Risk is share between two partied one that is
buying and another which is supplying and hence such kind of challenges can be avoided by the
firm (Green and et.al., 2019). Company's less amount will be invested in raw material and on the
other hand higher output and profit will be generated which can be share with its partners. This
strategy help firm in gaining higher output on time and decrease expenditure, so it can be b
follow by Pret a Mager in business and hence able to generate higher output timely.
2.2 Information Technology used to make strategy to build relationship with suppliers
On the other hand Artificial intelligence play important role in running firm for example
Kiosks software which help in decreasing time of customer for purchasing company's product.
Touch screen again decrease the time of customers for providing goods. In these workers has to
fill the details regarding customers demand and other essential info can also be asked for
providing points which decrease next time cost of product (Duan, Xiu d Yao, 2019). It has
various benefits and firm can generate high amount of revenue through it and also decrease the
time of work. Training and development for can highly impact on performance of workforce, and
they are able to increase quality, efficiency and productivity of the employees.
Pret a Mager use Artificial intelligence to manage stock or provide product to customers.
All raw material list and quality is detailed in the software and firm will be able to generate
higher profit timely. It helps suppliers in analysing where the company is in short in raw material
and hence able to deliver it timely. On the other hand company will be able to pay and

communicate effectively with the help of AI tools. It becomes necessary for the organization to
increase customer satisfaction level, these softwares can help Pret a Mager in increasing
customer satisfaction level and can generate higher output timely. Radio Frequency
Identification (RFID) is the process by which company able to get total detail related to product
and hence in past when firm will take larger time to record inventory and sales product now
decreases with the help of this AI tools. It decreases suppliers and buyers both time and improve
communication level which is necessary for changing marketplace.
2.3 System for maintaining relationship with organization and suppliers
It becomes necessary for the company to make a strong bond between suppliers and
managers. There must be system that both of the parties able to increaser market share in
changing business sphere. Meeting and communication often on different platform can foster the
relationship between two parties which increase quality, efficiency and productivity of work.
Opinion regarding sale or purchase of material must be in effective way so that both the parties
come into a proper agreement. Key performance indicator has to be set by the Pret a Mager and
according to that they have to work. It helps in evaluating performance of management and
employees and able to increase profitability. Company able to provide list of raw material
require for the product and on the other hand payment can be timely delivered with the help of
technology (Lysons and Farrington, 2016). It increases customer satisfaction level of the
customer. Motivation of both parties can be enhanced by using performance appraisal and it
helps firm in creation of strong bond between each other. In this performance must be analysed
by the firm in order to understand if the meet specific objective of the firm.
Task 3
3.1 Information technology contribution in integration of various elements of supply chain
management
Information technology plays important role in creating bond between different kind of
stakeholders in the firm for example between firm and suppliers or its customer. Integration of
different elements of it can help firm in increasing market share and improve image of the firm.
Information Technology and Artificial intelligence combination can support achieving higher
target on time and increase output of the firm. There are large number of food supplying firms
using robots, robotic fryers which help firm in decreasing market share and increase quality,
efficiency and productivity of the work. After COVID it becomes important for the firm to

increase safety of workers and employees and AI+IT support will help in improving performance
of the work and it also improves good- will of the firm. More and more customer will attract
towards firm's services which help in increasing market share in changing business.
Communication between various workers in the firm can becomes effective with the help of it
while time and cost will decrease (Nakasumi, 2017). Pret a Mager is one high profitable
company in UK and using this finance firm will be able to increase output and provide safety to
all. IT can also be use in supply chain management system of the company for example different
department coordinate with each other effectively; for example marketing team can ask for funds
to finance which analyse need according to provide report and grant it and hence time can be
saved in it. Proper transformation of information is needful according to changing world and
with the help of it, firm can achieve long term goal timely.
3.2 Contribution of information technology in supply chain management system
Information technology becomes an important part of the firm. It helps firm in multi-way
for example customer's queue decreases and on the other hand it increases customer satisfaction
level. Pret a Mager implement this tools at workplace which helps in increase customer
satisfaction level. Integration of all support in gaining higher output on time and raise the speed
of work. Supply chain management improves with the help of it for example now order of
product can be tracked by customers and hence they are able to tackle different kind of
complexion related to process of the work. Kisoks software is use by the firm in providing
different kinds of product to customers timely. It is screen touch base system and fast details of
order can be taken and also provide timely. There are multiple benefit of IT tools such as it
increase quality, efficiency and productivity of work and workers and decrease stress. This
system also distributed task and according to data is provided to customers for example if the
person call on customer care then it will share various problems that can be happened to him and
it will be select any of as per the require issue. This system improving customer's satisfaction
level and increasing speed of work which is needful. It has multi dimension impact such as
timely goals can be achieved, logistics system can be improved etc.
3.3 Effectiveness of Information Technology in managing supply chain of the firm
Information technology system is highly costly and need time to time maintenance and
up gradation and hence it increases overall cost of the system. However, in initial year company
gets higher output with the help of these tools but in later stage profit can be compromise.

Training and development of the workers for the services also require large amount and hence
increase overall budget of the firm. There are various kinds of training programs are provided by
the firm in order top gain higher output from this technology, such as servicing of machines,
working according to up gradation etc (Baryannis and et.al., 2019). Pret a Mager implement this
training for new candidates and un skilled workforce so that they remain prepare for changing
technology and on the other hand it increases quality, efficiency and productivity of the services
delivered by the firm. United Kingdom is technology advance country and in every new feature
will be added to the product or new services started and hence it becomes difficult for the firm to
work according to changing marketplace. It also increases expenditure of organization which
impact on its financial capacity. However, for running effectively firm has to implement this
technology in work, but in this company can select right tools that are latest can help in
sustainable growth of the firm (Elbegzaya, 2020). Choice of the machines must be right so that
it cannot increase burden on the form for example low amount technology can easily be purchase
but not beneficial for achieving higher target.
TASK4
4.1 Role of logistic in Supply chain management
Logistic plays important part in acquiring, storing and transporting raw materials and
goods. nPret a manger use different kinds of methods to ensure the safety of goods that are
reaching to the company by passing various stages. It becomes necessary for manager of the firm
to implement such method that can help in reaching produce in proper way and as early as
possible so that they can full-fill need of consumers(Kaur and Singh, 2019).
Changing business increases the need of effective logistic method and hence to ensure
timely delivery of product to customer in order to gain competitive advantage and increase
market share. Supply chain management process need effective logistic method and hence Pret a
manger focus highly on improving logistic method (Nandkumar, 2017). Delivering of goods and
services must be with proper packaging and timely to different part of the country and hence a
proper channel need for it. Reason behind it is that right goods, right time can be delivered to
right person. Firm has adopted various changes in its logistic system in order to increase
innovation in the system such as Process automation in warehouse, Augmented reality, help in
cloud for compliance, analytics etc. This technology has multiple effects on logistic system of
the firm and it is able to deliver fast track services to various people timely. Advance technology

created large number of opportunity for Pret a merger to make changes in traditional system of
logistic and focus on sustainable development of business.
There are various kind of strategy company follow for effective logistic such as Just in
Time (JIT). Firm maintain relation with few suppliers which support for long time and hence
company do not have to focus on others for raw materials. Rather than large number of goods in
a bundle, company can segregate in small packages so that it will not overload and effect on
product quality or packaging. Timely delivery of with effective transportation is another strategy
that helps in increasing customer satisfaction level. Encouraging employees for effective work
can also help in improving logistic system such as fast packaging of product and uploading for
supply.
Integration strategy is another approach for effective logistic system. It is divided into
parts namely vertical which consist of forward & backward and horizontal that is separated into
3 parts such as acquisition, merger and strategic alliance. In vertical raw material is produced and
purchased by the supplier and convert into intermediate goods. After this provided to firms
which manufacture into finish product and distributed among various retailers, sales men,
marketers etc. In the end with the help of this people product reach to customers. If all this stages
are combined and proper monitor by Pret a Manger then firm will be to achieve higher target on
time and increase market share in changing business. In Horizontal integration firm hire another
company which is concerned with logistic such as deliver services firm and this alliance remain
in same level and hence company will be able to increase market share with the help of it and
supply chain management can be improved.
4.2 Procurement Practices
Procurement play important role in providing best quality services to the customers. Pret
a manger use various form of online and offline system for it so that company can manage all
related to raw material and ingredients. It also help firm in increase in efficiency of work and
suppliers can timely provide intermediate goods. It become necessary for the organisation to be
effective and advance in technological changes such as various company in united kingdom
(Anca, 2019). It also started online platform and a separate department in it which check all
quality and quantity for the product manufacturing and the list of details from where firm can
purchase can raw material.