Read the articles and more related ones during your research. From a supply chain management (SCM) perspective, compare the performance of the two companies in question along four dimensions.. Write a report to summarise the SCM of the two companies, analyse their respective critical success factors, and answer the given assignment question.
Woolworths has been the largest supermarket chain in Australia for many years. However, its business and market dominance has been threatened by new comers, such as ALDI, which has increased its market share from 6.7% in 2011 to 12.4% in 2019, more than one third of the market share held by Woolworths Group. To some, it is a classic story of David vs. Goliath.
- There are many reasons for ALDI’s success. Many of them help the company cut cost, maximise efficiency or minimise waste and errors. They include (1) standardised store layout, (2) smaller stores with a few staff, (3) small range of products, (4) own brands, (5) custom shelving, (6) large barcodes, (7) no promotion, and (8) efficient logistics, among others.
- Your task is to investigate how the two companies manage their respective supply chains from four aspects so as to understand why ALDI, as a late comer, can be so competitive and successful.
The Assignment Question
Woolworths has been the largest supermarket chain in Australia for many years. However, its business and market dominance has been threatened by new comers, such as ALDI. To some, it is a classic story of David vs. Goliath. From a supply chain management perspective, compare the two firms and discuss:
(1) how and why ALDI could succeed in its invasion.
(2) what Woolworths should improve in order to maintain its competitive position?
In order to compare the supply chain performance of the two companies (i.e., ALDI vs. Woolworths), you will need to research on the history of development, the challenges and issues they faced in the development process, and the different approaches they took to address these issues. The focus should be on how they ran their businesses and served their customers using logistics and supply chain management techniques as well as information technology.
You are required to analyse the performance of the two firms along the following dimensions (each to be discussed in a separate section in the report) applying what you have learned from the first few book chapters:
- The three decision phases in a supply chain(e., how they run their supply chains);
- The push/pull view of supply chain process(i.e., how they structure their supply chain);
- Implied demand uncertainty, supply chain capabilities, strategic fit, and scope of strategic fit (e., how they ensure their successes); and
- The use of the various supply chain drivers (, facilities, inventory, transportation, information, sourcing, and pricing) to achieve supply chain objectives(e., efficiency and responsiveness).