Discuss about the Supermarket Chains Total Quality Management.
Woolworths is one of the largest supermarket chains in Australia. The head quarter of the organization is located at Bella Vista, New South Wales, Australia (Woolworths Supermarket, 2016). In the recent years, the particular organization has been enhancing its business opportunities through the implementations of several strategic approaches. However, the organization has been facing different issues including supply chain; check out issues, labor cost and old age problem (Christopher, 2016). With the involvement of these issues in the business, the particular organization has been facing intricacies in retaining the same business values in the market. By discussing the supply chain issues of the organization, it can be assessed that the company has been losing its effectiveness in the production due to the improper supply chain issues (Kahn, 2012). In the recent years, the supply chain issues of the business indicate the slipping profit margins, inefficient in operations, lack of receptiveness to the trends, poor quality and regulatory fulfillment and the inability for integrating the selling channel (Tayur, Ganeshan & Magazine, 2012). Besides the supply chain issues, the supply chain issue is one of the major intricacies in the business. Due to the check out issues, most of the customer has been reported negative feedbacks about the company. In most of the cases, it has been seen that the customers get issues in checking out from the website after purchasing the product. Aside from this, the increasing labor cost has also been affected the business. Due to the increased labor cost, the particular organization has been facing intricacies in retaining the employees in the business for a long timeframe (Stadtler, 2015).
For analyzing the particularly discussed issues in an efficient manner, we have engaged the primary qualitative data, where the managers and supervisors of the organization have been involved in providing their valuable point of views on the particular research issues. In this context, 5 managers have been involved in providing the qualitative analysis. The primary data collected from the participants have facilitated in identifying the key issues of the business.
As per the 1st and 2nd manager of the organization, supply chain issue is one of the major challenges for the organization as it creates intricacies in retaining the business growth in an efficient manner. Woolworths is one of the largest supermarket chains in Australia. Hence, the particular organization put extra pressure on their suppliers for decreasing the product value so that the company could enhance their profit margin. Consequently, suppliers have to cooperate with the organization due to the high brand value of the business. It often creates intricacies in upholding the good relationship with the suppliers. It creates the difficulties in retaining the flow of the supply chain process in an efficient manner. Besides this, the 3rd and 4th managers have identified that the inefficiency in the operations has also created difficulties in setting up high growth in the business.
Aside from supply chain issues, high labor cost also creates difficulties in expanding the business across the global market. According to the 1st, 2nd and 3rd managers of Woolworths, the increased labor cost results in higher expenses comparing to the revenues. Due to the particular issue, the particular organization called Woolworths need to enhance their product price for upholding their same labor forces in an efficient manner. Besides the labor cost, many customers have reported that they have been facing the checkout issues during purchasing products from the website. According to the management, the organization has been accumulated several negative feedbacks due to the discussed issues and the company has lost many customers. Hence, the organization needs to take action for resolving such issues in an efficient manner. Some managers of the organization have also identified other issues including old age employees. In the production process, a large section of the employee belongs to the old age group. According to the management of Woolworths, the particular issue results in decreasing the productivity of the business in the recent years.
By highlighting the primary data from the organization, different key development areas of the business can be identified in an effectual manner. In most of the cases, the management of Woolworths has been trying to implement different unique strategically approaches in order to obtain the triumph over such discussed issues.
By analyzing the primary data provided by the managers of the organization, it can be assessed that the particular organization needs to focus on their supply chain management in order to obtain the triumph in an appropriate manner. In the interview session, the managers were asked to highlight the key issues of the organization including supply chain, increased labor cost, old age issues, check out issues, etc. In most of the cases, it has been seen that the supply chain issues has been affecting the business (Monczk et al., 2015). For reducing such issues from the business, the particular company needs to focus on their multiple business channels so that they could easily enhance their sells revenues in an appropriate manner. Apart from this, the managers of Woolworths have highlighted the fact that the increased labor cost has also created the huge intricacies in retaining the production in a proper flow (Boeri, & Van Ours, 2013). Although the particular organization has also identified the issues, the management needs to implement some strategic actions including the increasing pricing, enhancing the product demand, etc. hence, it can be assessed that the particular interview session conducted by managers have provided the outline about the recent issues of the organization. The discussed issues by the managers have facilitated the organization in identifying the key development areas of the business.
It can be recommended that the particular organization needs to focus on improving their supply chain management for obtaining several advantages including reduced costs, increased efficiency in the business, enhanced outputs, increased profits, etc. For improvising the supply chain management, the particular organization needs to implement the automatic purchasing process along with the standardization of services. Apart from this, the management needs to increase the data transparency in an efficient manner. Moreover, the organization should uphold the good relationship with the suppliers in order to obtain the horizontal business flow. On the other hand, the real time inventory management would be able to reduce such issues within the short timeline. Unlike the traditional inventory management, the real-time inventory management allows the management to check out the data and information more quickly.
For reducing the labor cost, the particular organization needs to focus on preventing the employee turnover. Moreover, the organization needs to provide enhanced training and development session to the employees so that their workability can be increased. Consequently, it would allow the management in organizing the employee’s turnover easily. On the other hand, the checkout issues can be solved through upgrading the online and offline service process. For example, the management needs to upgrade the company’s website in order to reduce such issues in an efficient manner.
Process for implementation:
For implementing the strategies into the business, the management of the organization needs to proceed systematically. For reducing the supply chain issues in an efficient manner, the organization needs to analyze their traditional form the inventory process so that they could identify the key development areas in the business. By implementing the real-time inventory process, the particular organization would be able to obtain the triumph in the business. Besides this, for reducing the labor cost, Woolworths need to diminish the employee turnover issues. After reducing the employee turnover, the organization could experience the decreased labor cost, which would facilitate them in retaining the high production.
Boeri, T., & Van Ours, J. (2013). The economics of imperfect labor markets. Princeton University Press.
Christopher, M. (2016). Logistics & supply chain management. Pearson Higher Ed.
Kahn, L. M. (2012). Labor market policy: A comparative view on the costs and benefits of labor market flexibility. Journal of Policy Analysis and Management, 31(1), 94-110.
Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and supply chain management. Cengage Learning.
Stadtler, H. (2015). Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer Berlin Heidelberg.
Tayur, S., Ganeshan, R., & Magazine, M. (Eds.). (2012). Quantitative models for supply chain management (Vol. 17). Springer Science & Business Media.
Woolworths Supermarket - Buy Groceries Online. (2016). Woolworths Online. Retrieved 10 November 2016, from https://www.woolworths.com.au/
Yin, Y., Pei, E., & Ranchhod, A. (2013). The shopping experience of older supermarket consumers. Journal of Enterprise Information Management, 26(4), 444-471.