Analytics in Practice: Zero Cost Proposals for Woolworths

This report analyzes cost reduction strategies for Woolworths, a major Australian supermarket chain, focusing on the challenges and changes within the retail industry. The report proposes a "Zero Cost Project" centered on an Omni-channel distribution strategy, integrating online and offline services to enhance efficiency and reduce costs. The proposal suggests customers can order online and pick up orders at their nearest store, minimizing queue times and delivery costs. Furthermore, it includes strategies such as reducing packaging costs through biodegradable materials, outsourcing employment, and eliminating manual tasks. The implementation of cloud ERP technology and application-based product shelf arrangements are also proposed to streamline operations and improve customer satisfaction. The report emphasizes how these strategies can help Woolworths become more cost-effective and competitive in the retail market.

qwertyuiopasdfghjklzxcvbnmqw
ertyuiopasdfghjklzxcvbnmqwert
yuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiop
asdfghjklzxcvbnmqwertyuiopasd
fghjklzxcvbnmqwertyuiopasdfgh
jklzxcvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzxc
vbnmqwertyuiopasdfghjklzxcvb
nmqwertyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqw
ertyuiopasdfghjklzxcvbnmqwert
yuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiop
asdfghjklzxcvbnmqwertyuiopasd
fghjklzxcvbnmqwertyuiopasdfgh
jklzxcvbnmrtyuiopasdfghjklzxcv
Analytics in practice
[Type the document subtitle]
3/24/2020
student name

Kavan Pandya 19196804 Analytics in practice assignment 0
1
Contents
Introduction................................................................................................................................2
Proposal......................................................................................................................................2
Cost related strategies through proposal................................................................................4
Conclusion..................................................................................................................................5
References..................................................................................................................................6

Kavan Pandya 19196804 Analytics in practice assignment 0
2
Introduction
Retail industry has reflected various challenges and changes within the environment
which reflects change for strategies for the companies that have been working as brick and
mortar supermarkets. Woolworth is one of the popular Australian supermarket chains that
have been working since 1924, headquartered in Bella Vista. In retail industry role of
employees in the organisation is very high as the competition has increased considering
services instead of product oriented. Moreover, technological advancement in order to
compete in the industry has also increased which eventually reflect increase in investment by
the companies. The cost increase would not only affect the revenue of the company but also
impact profit margins for the company in the long run. The report will include zero cost
proposals for Woolworths, which will not only minimise the cost but also help making
current business model of Woolworth more efficient (woolworthsgroup, 2018).
Proposal
The proposed “Zero Cost Project” includes Omni channel distribution strategy for the
company. One of the best ways to decrease the cost and increase the efficiency of the stores is
integration of various distribution methods by the company. For instance the proposed option
for Woolworths includes integration of online and offline services. The company have been
serving through online portal as well as off-line brick and mortar stores purchase. The
proposal to reflect that the company must integrate the two systems to make it more efficient
that is to take orders online and provide delivery services through the nearest store for the
customers. Considering the two distribution channel that is online services and off-line stores
have their own pros and cons which could be considered as the strategy for the company to

Kavan Pandya 19196804 Analytics in practice assignment 0
3
use while minimising the weakness of both the distribution method and use of strengths to
gain opportunity (woolworths.co.za, 2018).
As per the current approach of the company the company is being offering goods and
services through stores to potential customer where is the business model include selection of
products from the shells with the staff members are helpful to the customers and getting into
the queue of billing line, making payment at the cash counter and leaving thereafter. On the
other hand, the online service includes ordering online at the delivery person to collect study
product packet of the customers and offer it to the customers with delivery at their doorstep.
From this proposed method, pros of both systems can be integrated that is the ordering
process can become done online whereas the selection of the nearest Woolworths centre
where visit of the customer is approachable can be done through the mobile application, as
the customer reaches the nearest store the package will be ready for the customer, for which
the payment has already been done on the pre-paid basis that is online payment. Lastly, the
customer could take the package and leave the store immediately (Ayers, 2017).
The major advantage of this proposed strategy for Woolworths there would be less
people in queue for billing counter and protect checking; moreover the payment hazel
through cash or online at the queues would be reduced as well. The time consumed in
packaging the goods and making it delivered to the doorstep would also be reduced for the
company there after reducing the delivery person‘s employment. Other than this this method
would also be advantages to customer and help the company gaining more customer
satisfaction, the reason being customers will not have to waste your time selecting the
products at the store, searching for the product and asking the staff members to help,
spending their time in queues of cash counter, and waiting for the products to be delivered by
the delivery person after a day or two. Therefore through this method a customer can take

Kavan Pandya 19196804 Analytics in practice assignment 0
4
advantage of online offers, online selection of the products, online payment methods and can
pick the package through the store so as to reduce the time of delivery and can be useful in
urgent requirement of the products (Chou & Shao, 2016).
Cost related strategies through proposal
From the Analysis it can be said that increase in cost are due to various factors like
operating cost, cost of employs. Therefore this proposal will also include cutting of
unnecessary operating cost for Woolworths. The operating cost will include making payment
in the form of rent, salaries, inventory, maintenance, marketing and advertisement and similar
activities of business. The proposal will not only include the Omni channel distribution
services of the company but will also include reducing packaging Cost, moreover considering
corporate social responsibility biodegradable packaging must be considered by the company.
The company must reduce various materials used to package the products, however it look
attractive but still reduction in size of package boxes, replacing polythene bags with
cardboard boxes and use of paper-based material instead of plastic would be approachable
(fin24, 2019).
Other than this this strategy will also include hiring outsourced employees. Salaries to
the employees of permanent nature along with the other allowances like insurance would
increase the cost of the company, this strategy of hiring outsourced employees could reduce
the fixed expense of the company and the company could be individuals on the basis of work
done. Thus, the recommendation through this proposal include decreasing the hiring of
regular staff specially the work that is done based on the online portal or advertisement or
marketing activities done by the employees. Outsourcing strategy for employment would
certainly reduce the labour cost for the company. Another strategy will include elimination of
manual task. There is various staff required by the company in stores in case the task is done

Kavan Pandya 19196804 Analytics in practice assignment 0
5
manually, for making the implementation efficient and cost-effective. The major issue for
Woolworth is uncertain hiring manager which could be overcome through eliminating
manual task which reflect increase in use of employees in the organisation (Balmer & Abratt,
2016).
Considering the proposal offered to the company that is Omni channel distribution, it
could be integrated with the application-based product shelf arrangement. This will reflect
that an individual entering a store can look out for the products required through the
application that is the application will be able to guide and individual towards which sells the
product has been place and if the product is in stock or out of stock. This will not only reduce
the work of the staff members that are now available in the store but will also help the
customers to easily search out for the product without wasting their time. Moreover the
complex activities of the company like inventory tracking, revenue calculation, salary
distribution, re-occurring invoice generation and digital advertising must be done on the basis
of cloud ERP so as to reduce the operating cost of the companies and the outsourced
employees could work without entering the office all the time this will also increase the
productivity and efficiency of the company (woolworths.co.za, 2018).
Conclusion
From zero cost proposals to Woolworths it can be said that the Omni channel
distribution strategy is proposed to the company. This will include integration of online and
offline services of the company. Moreover the sub strategies to this proposal would also
include cloud ERP technology to use for complex business activities, outsourcing employees,
and capital intensive activities are included through the proposal.

Kavan Pandya 19196804 Analytics in practice assignment 0
6
References
Ayers, J. (2017). Retail supply chain management. Florida: CRC Press.
Balmer, J., & Abratt, R. (2016). Corporate brands and corporate marketing: Emerging trends
in the big five eco-system. Journal of Brand Management, 23(1), 3.
Chou, Y., & Shao, B. (2016). The impact of e-retail characteristics on initiating mobile retail
services: A modular innovation perspective. Information & Management, 53(4), 481-
492.
fin24. (2019). why-sa-consumers-are-most-satisfied-with-woolworths. Retrieved from
https://www.fin24.com/Companies/Retail/why-sa-consumers-are-most-satisfied-with-
woolworths-20170421
woolworths.co.za. (2018). Development opportunities. Retrieved from
https://www.woolworths.co.za/recipe/_/A-cmp100617
woolworthsgroup. (2018). Our Businesses. Retrieved from
https://www.woolworthsgroup.com.au/page/about-us/our-brands/