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The Logistics And Supply Chain Management Samples For Students.

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Discuss about the Logistics and Supply Chain Management ?



The concept of logistics and supply chain management was coined by Walmart executives who, advocated for a collaborative forecasting, replenishment through giving details links for communicating a point of scale, predictions, and sharing inventory information via its known website of suppliers. The supply chain process of retail business can refer to the complete process of distributing items or products from few suppliers as well as manufacturers. Hence making the chain management more critical than as expected, which is a priority of any chain of retail (Jasti NVK, 2015).

Specifics problems facing the Woolworth business can be categorized into horizontal and vertical directions as far as specific and general issues are concerned. The retailer company has several problems which include:

  1. a) Problems of identifying supply chain integration and strategic partnering.
  2. b) Different motivation and setting the strategy/distribution strategy.
  3. c) Information sharing/ IT and decision support systems.
  4. d) Vendor managed inventory.
  5. e) Outsourcing and procurement policies.


Woolworths company is one of the biggest organizations with an approximate brand value of AUD$4700 million. The company is also among the largest thirty retailers globally. The business has however faced with various challenges due to the dynamism of rapid technology, parallel, and brand competition, and convergence of other retailers’ company. The momentum modeling in supply chain management has also contributed to the downside for the welfare of Woolworth’s business. The firm owns prominent groceries in the world though stiff competition from other substitutes companies has risen. Woolworths developed the mechanism to deal with supply chain process that ensured all partners are distributed their produce in time. The operation was attached to high-cost business operations that kept on hiking (Gunasekaran A, 2010). The retailer sector has some issues that encounter firms such as Woolworths that include expansions of individual labels, global entrants. Besides, the political, geographical as well as ecological problems are part and parcel that affect sales and profit growth of the business.

Woolworths, as a retailer firm operating in Australia, has demonstrated a focused steps and boosted by the strength of the country’s currency and the slowing of the economic development leading to a sharp focus on the reduction of a chain of supply. The company advantage though, has gone through many challenges, were it not for that the government that undertaken action plans such as integrating partners or suppliers, decreasing resources at the interface and the operational cost of doing business. The problems have affected the intent of enhancing logistics and distributing the Woolworths’ management obligations back to the partners as well as another area of focus (Vonderembse MA, 2012).


Impacts of current inefficiencies that exist in Woolworths

Problem of identifying supply chain collaboration partners

The nature of integration and commitment to supplying chain cooperation of Woolworths has not enabled to collaborate with every partner. Nevertheless, the company has not allowed connecting all supply chain stakeholders in an in-depth manner. Thus creating challenges of the supply chain by determining which partner or suppliers to drive integration partnership. The company has not developed the solution to identify the level of value each and every supplier to the company as well as to the customers (Beth S, 2013). The level of value will, therefore, develop and enhance the company to pursue a collaborative partnership. Similarly, the Woolworths has not identified the general route to determine supplier value by calculating the total amount spent by the distributors. Furthermore, the business has not figured the ways in which it can become vulnerable if the vendors failed or disengaged. Woolworths has not been able to identify best practice of selecting suppliers (who will enable the business to target and reach to key customers), engaging them in creating a strong collaborative mutual partnership. Equally, the business has unable to solve any critical issues which could enable it to move to the next target of reaching to the client (Borade AB, 2013). The company has not yet to realize the benefits of collaborating supply chain members which can yield to embedment of daily practice and the need of less attention, hence focusing on building new collaborative partnerships.

The problems of motivation and setting the strategy of the business

The Woolworths has challenges on the motivation of the enhancing members to work as a system to compliment the supply chain process. The business has unable to pinpoint the collaborative standards that touch their corporate approach and also on the complexities of their surrounding environment, more accurate on the demand and supply features. Woolworth’s reality weak demand and supply uncertainties have not set strategies to aim high level of distributing their products to a great quantity to enhance and maximize the efficiencies (Holweg M, 2011). Another issue under this includes the firm not designed to achieve improvement as far as new factors escalating the higher level of uncertainties are concerned. The company’s supply chain has remained inflexible and slowly adapting the changes in the market. The company correctly has not underlined the primary motivator to drive the supply chain that will enhance cooperation and hence increase the business’ operation efficiencies. The business’ primary goal is to distribute products affordable to their customers by lowering prices. Hence, Woolworths lose focus to underline the activities towards this approach leading the company’s pressure increases in supply chains as retailers are competing to provide and deliver cheapest possible goods and services to the customers (Caniels M, 2015).

Information technology and decision support systems

Woolworths Company’s SCM is much concerned with the flow and use of information among the supply partners. The company has not been able to acquire the recent technology development to enable the firm to reach and distribute information quickly to their members. The lack of sufficient IT in company’s supply chain roles has crippled the company engaging in the chain the of supply management initiatives. The company has a lack of sharing the joint belief that all other partners will require to have effective collaborative effort. The company has failed to change the power from manufacturers to retailers since this has evident in the company as a critical issue (Samaddar S, 2010). The company, as retailer supermarket, has not demonstrated how information sharing should be used for mutual benefit. Equally, the company has failed to give sound information technologies, which can assure the company’s share the sale information from the central management to the many retailers and other major distributors (Zhang X, 2011).


Issue of inventory control

Woolworths Company does not to a great percent involves the dealers in managing and taking responsibility for the retailers’ inventory. The essence of retailer inventory is to ensure efficiency in delivering the customer responsiveness, supporting and speeding up the supply chain process as well as curbing with limited product life cycles. Woolworths has lost many benefits that accrued in this process such as suppliers or distributors assumes responsiveness to make sure there is sufficient stock at the retailers’ warehouse (Mentrzer, 2010). Therefore, the vendors will not provide preference to their retailers in the case of shortages. Similarly, the retailers will miss to get the information in real-time on specific products sales, as well as lacking the detailed information needed to produce more products to replenish retail warehouses. Another issue in inventory management is that large wholesalers may fail to give stocks to single item stake as well as sharing information with others as far as supply chain system is concerned. By not sharing information, the Woolworths do not plan for the demand and manage inventory in their respective warehouses. Instead, the company has ignored to apply most traditional retailer controlled inventory like UCCnet global registry. Both retailers and the Woolworths are not able to use the registry hence fails to synchronize product information that would help them to coordinate on replenishment of inventory (Maseeha S, 2009).

Outsourcing and procurement strategies

The primary issue to focus in Woolworths is what to supply and manufacture internally as well as what to purchase from external sources to complement the supply chain process. Woolworths has a primary challenge on how to make the decisions when identifying risks associated with particular decisions and reducing them. Woolworths also encounter issue to consider the effect of the internet on procurement approaches and what ways to use when dealing with suppliers and partners. The company, therefore, need to decide on whether to outsource or purchase, various optimization models may be used to set of scales of risk and payoffs. If the company fails to make appropriate decisions on outsourcing, the company may not utilize the adequate information tech elements like internet portal and procurement software (Wong, 2009).



Woolworths has applied new technology to improve and as a useful tool and to enable collaboration within the supply chain system. For instance, the sharing of information, and vendor managed inventory and replenishment have optimized via new technology. The new tech significantly enhances operations effectiveness and flexibility which minimizes the waste and in return add value in overall chain of supply process. Woolworths have started to leverage the process technology to develop their operation. Woolworths consistently use the technology to boost the value to their products. The firm has implemented the Business-to- Business systems to support the partners to do business electronically. The company has the web which they share any information needed to facilitate the application of the technology. The primary goal of enhancing tech is to improve the collaborative business network, increase procurement effectiveness, and enhance service level and the entire chain of supply process (Nguyen HM, 2014)

Woolworths have enhanced the procurement efficiencies.

The effectiveness of acquisition has enabled by bringing the StockSmart as well as AuitoStockR systems. The two systems have allowed the firm to predict stock replacement at supply centers and warehouse. Similarly, the dual systems have contributed to the improvement of cooperation within the company which yielded in a constant increase in overall profit. Moreover, the sharing of information has made a significant contribution to the improvement of visibility in the overall supply chain as well as minimizes the bullwhip upshot .

Building typical customer relationship value approac

Woolworths have understood the clients’ value and complied the supply chain to reflect their needs. The company focuses on the needs of consumers via addressing various levels of a product, whereby the company supply not only accurately product but also augment product like rewards program and better client service. On their part, Woolworths have introduced the daily rewards program with the aim of better understanding their behavior of the customers. The program enhances the return of consumers and encourages loyalty. The company has successfully cooperated customers into their chain of supply network with the introduction of Woolworths Everyday Rewards which help the customers with fuel savings or Qantas Frequent Flyer points. Through this program, the company understand better the consumer behavior and leverage this understanding to gain operational effectiveness.


Proposed Solutions

Enterprise Resource Planning (ERP)

ERP solution has gain competencies among other used mechanism used to solve the Companies’ problems. ERP has increasingly known kind of software that organizes and interconnects most day in day out the operation of business. The integration of the system enhances the successful collaboration among supplier partners. Nonetheless, the system has challenges to implement technology to the chain supply because of workers refusal to buy the idea of new tech. The company has to mobilize all stakeholders to integrate ERP systems in their operation for a long term benefit. The company should provide in-depth training and development plans (Australian Government Productivity Commission, 2011).

Network configuration and flow optimization

Woolworths should adapt new techniques in business competition. The techniques should range from competing as SC and other SC from groups of companies. The SC to SC competition vertically cooperates company against substitute companies. Another network confirmation is on competing on supply network capacities which majorly compete on effectiveness, efficiency, and responsiveness of the system as well as network design utilized. The company should add and integrated the network functions (Leng, 2009).

Developing collaborative planning activities

Woolworths should consider the significant role played by improving the collaborative planning activities. The strategy is equally imperative since it improves the effectiveness and efficiency of the overall supply chain. The need for proper integration among the supply partners should translate into the process as well as roles coordination within these company and along the whole supply chain. The approach helps to identify benefits of bleaching the gaps of information which form collaborative planning leading to inventory reduction for every supply chain partner (HL, 2012).



  1. a) Woolworths should introduce new products in the market and enhance or upgrade the existing products to outdo their competitors.
  2. b) The company should take notice of improving the current new tech or introducing new ones to improve supply chain processes.
  3. c) The company should have a new selection of suppliers as well distributors’ partners who will guarantee them an efficient sharing of information and decision support system.
  4. d) Woolworths should propose the changes in demand and supply patterns for products manufactured to match the needs and specifications of the customers.
  5. e) Finally, the Woolworths Company should enhance the commitments within or among partners supply chain process

Tools used to improve the Woolworths

 Statistical process control tool. (SPC)

Statistical process manages a device is a tool designed for coping with operations. Woolworths’ enterprise desires to apply SPC technique for lowering the variety in offerings, distributions, gadget, strategies, and attitudes, which are the purpose of most high-quality issues. The approach will allow unveiling the whether or not a process is on top of things or out manage, and this is whether ‘solid and displaying’ simplest or ‘random version.' Also, the agency can also practice the tool to observe the tactics that are in control, using way and scales which constitute statistics, for example, income extent, clients’ objection, in a chain order displaying how disparities occur with time (Nahmias, 2014).

Brainstorming tool

Woolworth’s business enterprise might also as well use the tool, which requires a big institution of thinkers who has in a completely shortest time and can make use of in a ramification of situations. The crew may additionally incorporate wild ideas and not use a complaint or assessment occurs at this stage expected. Each member has equal chances to put forward an idea touching the troubles being considered. The tool may carry changes because it identifies troubled areas, determine regions for improvement, predicts possible solutions to problems, and help to broaden actions plans (Schmenner, 2015).



Beth S, B. D. C. W. G. C. L. H. L. R. &. M. S., 2013. Supply Chain Challenges; building relationships. Havard Business review, 1(1), pp. 1-24.

Borade AB, B. S., 2013. Domain of Supply Chain Management. Journal of Technology management and innovation, 2(4), pp. 109-121.

Caniels M, G. C., 2015. Purchasing Strategies 1 the Kraljic Matrix. Journal of Purchasing and Supply Management, 11(3), pp. 141-155.

Commission, A. G. P., 2011. Economic Structure and Performance of the Australian Retail Industry, Sydney: Productivity Commision Issues Paper.

Gunasekaran A, L. K. E. C. T., 2010. Responsive Supply Chain Management; A competitive approach in a networked economy. Omega, 26(13), pp. 1051-1068.

HL, L., 2012. Aligning Supply Chain Strategies with Product Uncertainities. California Management Review, 2(3), pp. 342-354.

Holweg M, D. S. H. J. &. S. J., 2011. Supply Chain Collabaration; Mkaing Sense of the Strategy continuum. European Management, 23(2), pp. 170-181.

Jasti NVK, R. K., 2015. A critcal review of Lean Supply chain Management frameworks. Prod Plan control, 36(4), pp. 549-564.

Leng, M. &. P. M., 2009. Lead-time Reduction in aTwo-Level Supply Chain. International Journal Production Economics, 118(35), pp. 521-544.

Maseeha S, P. I. P. D., 2009. Australia's Leading Retailer Woolworths' Retial Operation, Sydney: IBS Center for management Research.

Mentrzer, J., 2010. Supply Chain Management. 1st ed. Califonia: Sage Publications Inc..

Nahmias, P. B. A. &. A. J. V., 2014. Production and Operations Analysis. Stratwegy and Business, 15(4), pp. 52-61.

Nguyen HM, &. H. N., 2014. Electronic Supply Chain Orienattion and Its Competitive Dimensions. production and Planning and Control, 15(6), pp. 596-607.

Samaddar S, N. S. D. M., 2010. Inter-organization Information Sharing; The role of Supply Network configuration and Partner goal Conference. European journal of operational resaerch, 174(56), pp. 744-756.

Schmenner, M. L. S., 2015. On Theory in Operations Management. Journal of Operations Management, 3(5), pp. 97-113.

Vonderembse MA, U. M. H. S. D. J., 2012. Designing Supply Chains; towards Theory development. International Journal Production of Economy, 100(2), pp. 223-238.

Wong, O. E. &., 2009. Supply Chain Performance Evaluation: trends and challenges. American journal of Engineering and Applied Science, 2(1), pp. 202-211.

Zhang X, C. J. H. Y. &. H. T., 2011. Building a Dynamic Data Driven supply chain Management System. Information Technology Journal, 10(3), pp. 703-709.

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