Woolworths also referred to as “Woolies” is the biggest supermarket chain in Australia. The primary activities are to provide groceries, non-foods, minor electronics, as well as seasonal goods. Thus, to operate a retail store, the company push brands to the clients. Nonetheless, the company is attempting to gain competitive advantages through lowering their prices through selling in volume and variety. The company opened its original retail in 1924 in Sydney as a bargain basement retail outlet (Blackhurst et al 2005). Thus, through acquisition along with expansion over those years, Woolworths has grown to be the leading supermarket chain in Australia and other parts of the world, with approximately 31 percent market share. Amongst the major brands of the company, supermarket industry is one of the promising ventures of the company and is the primary focus of the company. The firm has 3,200 retail stores across Australia in addition to New Zealand, with eight hundred and forty supermarkets in Australia and about 156 chains located in New Zealand.
Reviewing its Hierarchy
First, Woolworth should improve its value chain by reviewing its hierarchy. Reduction in the present size of the department, as well as designing a disconnect supply chain will improve greatly its value chain. A supply chain department with a balanced along with a mutual team, will lower duplication of procedures within the department and enhance the communication process. Several of the current positions held within the company are duplicated in some areas (Bowersox et al 2013). Thus, eliminating the human resource (HR) logistics roles plus outsourcing them as payroll will lower the cost in the firm’s supply chain. Positioning the human resource function along with realigning them with their department will be more suitable towards improving the company’s value chain. The present structure within Woolworths demonstrates that human resource is over one-third the size of the employees. By lowering the cost of the business over the last 3 years, the company will increase the size of the HR in addition to recruiting. Therefore, the increase in salary for the department will surpass any rate in reductions to per hour wage employees. To eliminate present hierarchy involves surrogate with a more rational along with a strategic alignment. Eliminating the “Buyers Market” mentality and putting in place the Four Criteria recommended by Cohen and Roussel (2005) will fashion a more strategic along with a collaborative environment.
Controlling inventory is an important strategy that will help the company to improve its performance and efficiency in the industry. To control its inventory, Woolworths should use a perpetual inventory control procedure to ascertain replenishment requirements. Through gathering data from individual stores founded on sell rate via POS, the company stores may stock appropriate levels of products founded on client’s needs for a particular market. This means that the store will themselves store bigger amounts of goods sold at particular locations and lower space of products selling at slower rates. Thus, this will reduce storage inventory in the stores receiving areas, produce bigger sales, and be more gainful with more resourceful procedures and practices (Diabat et al 2012).
The diversity in the workplace and increasing complexity in many companies like Woolworths demands the use of big data to solve these problems to optimize performance. Using big data development and advanced analytics can improve the growth of Woolworth supermarket (Hansen 2017). In retail industry, big data and advanced analytics may be used to access data towards improving human resources regarding employees and applicant pools than ever before. Supermarket executives at Woolworths have the capacity to use technology to guide employment-related decisions. Data publicly accessible via social media accounts and other ways may be analyzed in conjunction with Woolworths’ internal data to guide decisions related to selection and hiring, employee termination, as well as performance management, and promotion (Columbus 2016). Furthermore, Woolworths may too analyze data to guide the development of policies, which will improve productivity. For example, the company could experiment with substituting a regular social collection for employees at a subset of their stories and then examine the data on productivity, morale, as well as turnover in the following months. They may discover that collection resulted in a more positive work environment in which workers may feel greater engagement in the workplace, and it can roll the policy out to other stores.
In marketing, the big data is offering insights into which content is the most efficient at each stage of the sales cycle. It also boosts the way investments in customer relationship management (CRM) systems may be improved, together with approaches for enhancing conversion rates, prospect management revenue along with lifetime value. The big data also help to manage other customer-driven metrics necessary to operating the cloud-based business. This implies that the big data will help the company improve its marketing approaches because they will have adequate information to use to monitor its clients and the market. Additionally, Woolworths can use big data to lessen waste and augment customer engagement by introducing quality carts in produce departments across its stores. Woolworths will need to use quality carts in across its 3,200 stores now and extend in the future to new stores. Woolworths should understand that keeping its clients in the fresh goods department is most important towards client engagement and the realization of quality carts has eye-catching offerings for them. The company should use big data analysis will assist them to find the way people loiter in the fresh produce department. This information from the big data analysis will help Woolworths to monitor its customers and ensure that they improve their experiences through meeting their demands. Usually, customers are attracted to fresh produce in supermarkets (McAfee et al 2012, pp. 65).
Woolworths has the potential to improve its value chain that is currently 100 percent efficient through introducing big data and advanced analytics. This is important because it will allow the company to have adequate information that will be used to improve efficiency. Also, the company can streamline its inventory so as to create more space and ensure that goods are adequate. Finally, streamlining its hierarchy in its departments will work towards increasing profitability within the company.
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