Comprehensive Analysis of Woolworths Supply Network and Strategies

This report provides an in-depth analysis of the supply chain network of Woolworths, a prominent Australian supermarket chain. It examines the company's supply chain management, focusing on key aspects such as procurement, distribution, and transportation. The report highlights the efficiency of Woolworths' direct store delivery system, the role of IT systems in streamlining operations, and the company's strategic approach to maintaining a strong market position. It explores the strengths and weaknesses of Woolworths' supply chain, including the use of economic order quantity models and the integration of local and international vendors. The analysis also covers the company's logistics network, transportation management, and the impact of IT systems on data flow and overall productivity. The report emphasizes how Woolworths leverages these elements to achieve high-quality standards, customer satisfaction, and profitability within the competitive retail sector.

ANALYSIS OF SUPPLY
NETWORK

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Analysis of the supply chain of the organisation.........................................................................3
IT systems:...................................................................................................................................6
Strengths and weaknesses............................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Analysis of supply network can be understood as the way logistics and purchasing,
distribution and outsourcing of products are facilitated among company business services. There
are various innovative models within supply chain models through which global business
parameters are developed, practical parameters can be implemented for efficient supply network
with various strengths and weaknesses. Report explains analysis of supply network within
company business framework through various parameters and networking chains to reach high
quality standards of customer focused services (Lu & Shang, 2017). Woolsworth is one of the
most trusted Australian chain of supermarkets and grocery stores offering various products
portfolio and services of innovative products and forms 80% of Australian market. Report
explains various patterns of supply chain theories within current supply network in company and
how it has benefited business in gaining strong market position for long term efficiency through
which various profitability goals are developed among sales management objectives with high
functional units and smooth supply chain as an asset, is established among customers market
share. Report brings forward various management activities and innovative strategic marketing
undertaken by Woolsworth to enhance its supply chain networking with large focus towards
establishing high quality benchmarks through which higher gaols can be structured for long term
powerful position within company networks.
MAIN BODY
Analysis of the supply chain of the organisation
Woolworths has been one of the most popular companies in the retail sector of Australia as
well as New Zealand. There are many factors related to the company that puts it at the top spot
and it is not easy to maintain the company at such a huge level (Dubey, & et.al., 2017). Despite
having multiple numbers of stores, the fact that all of its stores are properly stocked with the
necessary products is only due to the extremely efficient supply chain that they use. The owner
of multiple sub brands i.e. Woolworths redesigned its supply chain strategy and now it is based
more on the direct store delivery system.
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Figure 1: Supply Chain Management at Woolworths
Source: Australia’s Woolworths Chooses Supply Chain Management Platform, 2019
Based on the supply chain model that has been identified above, there are some major
departments that are being incorporated in the supply chain management at Woolworths and
these can be analysed in following manner:
Procurement: The procurement of the products that have already been manufactured and the
supplies for the vendors that need to be procured as raw material for further construction is
usually done on a local basis (Genovese & et.al., 2017). They identify domestic or local vendors
who can supply them the necessary goods and raw material at cheaper cost. This helps the
company in meeting multiple criteria of effectiveness in the supply chain i.e. it reduces their cost
of procurement and it also reduces the time taken for the availability of such resources. As the
per the Fisher Framework proposed in 1997, the efficient supply chain is categorised as one
where the availability of supplies or raw materials is as quick as possible and helps in the
meeting of the requirements of the customers. The framework further specifies that the retail
chain stores are aligned with the function supply chain as these are the goods that are required at
all times and therefore, the supply chain needs to be designed in optimised manner. The
decisions related to the sources or vendors from whom goods will be collected, the mechanism of
collection, the place of the delivery etc must all be determined very clearly (Fredendall & Hill,
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2016). In accordance with this framework, the Woolworths Company also uses the similar
framework where they try to develop an optimum mix of the sources form which raw material,
supplies etc. are tried to be recruited from the local vendors as well as from international sources
when they need to be imported. This helps them in maintaining an optimum balance between the
imported goods and the local goods that are being procured for better supply chain management.
Thus the procurement of resources from the vendors is a very well developed aspect in the
supply chain management of the Woolworths Company and helps them in cost minimisation.
Distribution: Distribution is the next major aspect that comes under the supply chain
management that is being implemented in the company and is extremely critical. The direct
supply chain is the recent strategy that the company has adopted where through the technique of
Direct Store Delivery i.e. DSD (Meredith & Shafer, 2019). This technique enables the vendors to
deliver the required products directly from their warehouses to the stores of Woolworths. As it
was also identified in the supply chain earlier, the DSD integrated supply chain involved direct
delivery to the stores. This has helped Woolworths in reducing their distribution centres from the
earlier figure of 31 stores to 9 stores. The national distribution centre i.e. NDC have been also
reduced to 2 that helps in managing and coordinating the resources that have been imported or
the ones those are to be exported. Overall, the drastic cut back in the distribution centres has led
to an immediate decline in the overall cost of the company. The strategy of greater integration
and collaboration has helped in the reduction of the excess storage and maintenance cost as
goods can be easily procured whenever required. The freight cost has also decrease drastically
thus causing additional benefits (Christopher, 2016). As per the analytical supply chin
optimisation model, it has been illustrated that the warehouse capacity, location, order size, stock
level etc. all are very critical decisions and the strategic decision making should be linked to the
operation capacity. The model adopted by Woolworths is exactly in accordance with the model
that is suggested here where the model has encouraged the use of appropriate techniques and
increased integration of local resources so that overall cost can be minimised. Therefore, it can
be adequately ascertained that the distribution system of the Woolworths company has been
highly optimised and the reduction in the sue of resources and the cost incurred has been
significant thus contributing in the overall wealth of the company by perfectly structured supply
chain.
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Transportation: The transportation management system is another major aspect of the
Woolworths Company where they tend to maintain the logistics aspect in the supply chain
management (Mangan & Lalwani, 2016). The transportation system involves the delivery of both
primary and secondary delivery chains i.e. the raw material is also collected from the vendors
and then brought to the distribution centres an apart from that the secondary delivery also takes
place where the goods collected are transported form distribution centres to the stores. The
Woolworths Company maintains their own logistics network and this enables them to improve
the time that is consumed overall in the overall logistics network. The safety of the goods that are
being delivered increases, the perishability of certain goods can be avoided by timely delivery,
the total delivery costs gets minimize consequently and the last most important benefit of such
logistics network is that it helps in increasing the bargaining power of the company. This
ultimately leads to reduction in the cost incurred in inventory management aspect of the
company. as per the theoretical perspective of the supply design, it is necessary to ascertain that
the key component of any supply chain management program is the identification of the correct
quantity that is to be stored in the form of inventory so that cost can be minimised without
incurring losses in production as well (Hugos, 2018). It is also better to distribute the time taken
in the supply of goods as the demand is continuously increasing and therefore unnecessary delay
in the production and delivery should not arise. This will simultaneously minimise the outbound
and inbound logistics cost for the Woolworths Company and help them in optimising revenue by
increasing the accessibility and availability of the products. Therefore, this is another major
aspect that contributes in the better supply chain management of Woolworths Company.
IT systems:
IT systems are an important part of supply chain management in today’s digital business
world with changing hemispheres of time and impact of time to speed up the whole procedure.
IT systems have largely established in gaining technical efficiency and have actively brought
Woolworths business services and determinants, onto which company can actively plan forward
various business research factors. The It systems enables in keeping data vitally newly structures
within company business framework, productively gains large profitable goals and highlights the
whole structure onto which supply chain is effectively built for larger productivity and functional
profitability (Lu & Shang,2017).
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Enterprise resource planning software combines various applications and tools that
facilitate the flow of information within company business framework, making Woolworth’s
logistics highly powerful for larger effective product delivery and distribution. The ERP has
innovatively built procedures of designing, planning, executing and monitoring supply chain
structure which has built competitive infrastructure and created large goodwill among
company structure. It has created worldwide logistics of company bringing high demand and
supply chain synchronisation and high global performance factors. Woolworths company
highly uses best technology networking units for bringing large exports under one chain for
larger productive outputs, strong functional chains and vitally relative functionality with high
investment factors being highly used (Ivanov,2018).
The company uses various parameters and investment funnel for high creative work
productivity, strong delivery of all products among market stores , for gaining higher
expansion and goodwill paradigms. Larger the productive factors, more is the efficient ERP
systems for connecting supply chain management delivery to best targeted positions and in
building the best resource factor which will technically bring best ERP functional chains
among company services. IT systems work as an asset onto which company has gained large
technical efficiency and productive outputs delivery through large functional delivery of
various productive goals and attributes to leverage best output resources which will add to the
various target building attributes. These scenarios have built company progressive channels of
services and avenues of strong product delivery channels which have built Woolworths large
functional channels and gathered huge expansion into domestic as well as international chains.
These factors preferably in detail explain the various factors and components build within IT
functional attribute for gaining strong functional chain of supply chain which works as an
asset for larger working criteria and development (Accorsi, Bortolini & Ferrari, (2017).
Strengths and weaknesses
Logistics is an integral part of business onto which higher gaols and key strength of company is
relied on which again works as one of the most important business function to focus on. The
report has focused on reliable and relevant data presentation on which Woolworths works for its
supply chain networks , with determinants for leveraging high end business targets through
which larger gaols are set for reaching strong profit margins and functional efficiency.
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Strengths:
 Strength in enabling large effective supply chain management within Woolworths networking
parameter can be understood with the analysis of supply chain factors, resources being vitally
used as inputs for larger productivity. Report brings forward various strengths of supply chain
management, constructs analysis on the supply chain networks as it is one of the most integral
business expansion decision upto which company plans its delivery functions to customers in
market share and technically brings large efficiency through which higher targets are structured.
 . The economic order quantity model used by Woolworths explains how supply chain minimizes
the total handling costs and ordering costs which impacts positively on prices of products, larger
work revenue from business and strong working targets through which company can gain strong
higher profits. Supply chain modelling in general explains various parameters and research
breakthrough which can be implemented in company business model which has established
higher working parameters. The modelling tasks of supply chain through which Woolworths
have been successful in gaining strong efficient business scale among services of products are
highly focused towards dynamic business view which constructs the implementation of business
regulations effectively (Treiblmaier, 2018).
 The company internal structure of logistics is widely dynamic and has the potentiality to embrace
new logistic changes with high quality working models of innovative business services. These
factors have enabled in establishing high quality supply chain model which networks internal
and external resources which are part of company working chains, potentiality of bringing new
changes within model of logistics is high which develops high quality business framework onto
which company establishes high focus . The company services of Woolworths are determined to
expand its chain of products delivery and services by logistics on international market horizons
and high focus towards raising relative focus on functionally enhancing various business
parameters onto which company can gain goodwill among consumers.
Weaknesses:
 The Woolworths need to programm into company business supply chains networks whiuch will
enhance company keen focus towards researching best ways for delivering services to
customers, products keenly being presented among market share which also builds competitive
market revenue as comparatively to other companies on which higher research is based for
potentially developing strong benchmarks. As currently there are some barriers due to non
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structured planning, resources being not used with cost effective structure which has impacted
company revenues into various margins (Gilal, Zhang & Gilal,2017). Woolworths being one of
the high goodwill attained brand should plan to operate its supply chain networks by using
dynamic working supply chain networks through which customers can preferred services within
the accomplished time frame, impactful delivery of products builds goodwill and keenly
leverages higher profits for long term in business framework.
 Woolworths stresses to plan it its supply chain models with the best technology networking
chains through which research factors can be keenly invested among company business
networks, address the changing market needs. As currently employees are also not effectively
trained as per the requirements. These factors will help company in building high quality supply
chain models where technology works as an important tool to gather synergy of growth and work
as fundamental asset of brand.
CONCLUSION
On the basis of the research conducted in the report above, it can be concluded that the
supply chain management is indeed an extremely detailed and intricate process for an
organisation affecting the entire cost generation system and the revenue generation system as
well. Supply chain and logistics management is directly linked to the sales management in a
company thus presenting better opportunities. The report used the fisher framework, analytical
supply chain optimisation model and the theoretical model of supply chain design that helped in
evaluating the different aspects associated with the overall supply chain of an organization. It
was also concluded that the entire report was extremely useful in understanding the manner in
which the supply chain management in a company works and thus contribute to the revenue
generation and overall management in the company by special reference to the Maveri Co. for
whom the report was prepared.
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REFERENCES
Books and Journals
Accorsi, R., Bortolini, M., & Ferrari, E. (2017). Internet-of-things paradigm in food supply chains
control and management. Procedia Manufacturing. 11. 889-895.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Dubey, R., & et.al., (2017). Sustainable supply chain management: framework and further research
directions. Journal of Cleaner Production. 142. 1119-1130.
Fredendall, L. D., & Hill, E. (2016). Basics of supply chain management. CRC Press.
Genovese, A., & et.al., (2017). Sustainable supply chain management and the transition towards a
circular economy: Evidence and some applications. Omega. 66. 344-357.
Gilal, F. G., Zhang, J., & Gilal, N. G. (2017). Supply chain management practices and product
development: a moderated mediation model of supply chain responsiveness,
organization structure, and research and development. Journal of Advanced
Manufacturing Systems. 16(01). 35-56.
Hugos, M.H., (2018). Essentials of supply chain management. John Wiley & Sons.
Ivanov, D. (2018). Revealing interfaces of supply chain resilience and sustainability: a simulation
study. International Journal of Production Research, 56(10), 3507-3523..
Lu, G., & Shang, G. (2017). Impact of supply base structural complexity on financial performance:
Roles of visible and not-so-visible characteristics. Journal of Operations
Management. 53. 23-44.
Mangan, J., & Lalwani, C. (2016). Global logistics and supply chain management. John Wiley &
Sons.
Meredith, J. R., & Shafer, S. M. (2019). Operations and supply chain management for MBAs.
Wiley.
Treiblmaier, H. (2018). The impact of the blockchain on the supply chain: a theory-based research
framework and a call for action. Supply Chain Management: An International
Journal.
Online
Australia’s Woolworths Chooses Supply Chain Management Platform. 2019. [ONLINE]
Available through :< https://www.pymnts.com/news/b2b-payments/2015/australias-
woolworths-choose-supply-chain-management-platform/>
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