Whuk01 0211-40087163 74075 rev 5 supply chain uk
Transcript of Whuk01 0211-40087163 74075 rev 5 supply chain uk
Supply chain analysis i
[“Supply chain analysis of Tesco super market by comparing its supply chain in UK and
Thailand and finding ways to improve it so that Tesco occupies strong position in retail sector”]
By
[Author’s Name]
[Faculty Name]
[Department or School Name]
[Month Year]
Supply chain analysis ii
Acknowledgement
This research would not have been possible without the help of my research supervisor
and my family so I would like to thank them for their utmost support throughout this research.
Supply chain analysis iii
DECLARATION
I [type your full first names and surname here] hereby declare that the matter and the
ideas presented in this report is my own un aided word and the contents of this research have not
been submitted earlier for any educational purpose.
Signed __________________ Date _________________
Supply chain analysis iv
Abstract
Extensive literature shows that supply chain management practices represent a critical
source of sustained competitive advantage. According to (Copacino 1997, 52) emerging markets
are fuelling double-digit growth in the global retail market. In an increasingly consolidated
market, moving outside of the domestic region and into emerging markets can be a lucrative
step, although it is also a complicated and difficult growth strategy. Even within countries the
size of China, India and Russia, there are dramatic differences on a regional basis. "It is the
growth of these countries that make them so appealing. The BRIC countries (Brazil, Russia,
India and China) are showing two or three times the growth of the developed countries. Retailing
is a crucial sector and major contributor to the UK economy. At a simple level, for the majority
of consumer goods and services it provides the link between production and consumption.
Furthermore beyond the large omnipresent chains, exists a large body of independent businesses,
which provide self-employment opportunities (competitive analysis of retail sector). U.K. retail
sector e has higher number of women.
Supply chain analysis v
Contents
ACKNOWLEDGEMENT..........................................................................................................................................II
DECLARATION........................................................................................................................................................III
ABSTRACT................................................................................................................................................................IV
CHAPTER 1: INTRODUCTION................................................................................................................................1
Background..............................................................................................................................1
Statement of objectives............................................................................................................1
Research problem:-.................................................................................................................1
Objectives................................................................................................................................2
Validity and Reliability............................................................................................................2
Limitation of the research........................................................................................................3
Time Table of Research Activities...........................................................................................4
CHAPTER 2: LITERATURE REVIEW...................................................................................................................5
Strategic objective in the supply chain....................................................................................7
Chain Management (SCM)......................................................................................................8
Retail Sector...........................................................................................................................10
Principles for managing the supply chain.............................................................................14
Principle No. 1:.....................................................................................................................14
Principle No. 2:.....................................................................................................................14
Principle No. 3:.....................................................................................................................15
Principle No. 4:.....................................................................................................................15
Principle No. 5:.....................................................................................................................15
Principle No. 6:.....................................................................................................................16
Supply chain analysis vi
Principle No. 7:.....................................................................................................................16
Supply Chain Decisions.........................................................................................................21
Location Decisions................................................................................................................22
Production Decisions.............................................................................................................22
Inventory Decisions...............................................................................................................23
Transportation Decisions......................................................................................................23
CHAPTER 3: METHODOLOGY.............................................................................................................................25
Research Design....................................................................................................................25
Data collection, Analysis and Interpretation.........................................................................25
Sampling Technique...............................................................................................................25
Sample Selection & Size........................................................................................................26
Data Processing and Analysis...............................................................................................26
Approach to data analysis.....................................................................................................26
CHAPTER 4: DISCUSSION AND ANALYSIS......................................................................................................28
UK..........................................................................................................................................33
Thailand.................................................................................................................................35
CHAPTER 5: CONCLUSION...................................................................................................................................47
Critical appraisal and Recommendation...............................................................................47
Advantages.............................................................................................................................47
Disadvantages........................................................................................................................48
Recommendation....................................................................................................................49
REFERENCES............................................................................................................................................................51
Supply chain analysis vii
APPENDICES..............................................................................................................................................................58
Supply chain analysis 1
Chapter 1: Introduction
Background
According to Greasley (2009, 392) the Supply chain consists of series of activities that
moves material from suppliers, through operations to customers. Each product or service will
have its own supply chain, which may involve many organizations in processing, transportation,
warehousing and retail. The structure of a supply chain consists of upstream suppliers and
downstream suppliers. Upstream suppliers that supply the organization directly are termed as
‘first tier’ and supplies that supply the first tier organization are termed as ‘second tier’.
Upstream suppliers are component and subassembly suppliers. Downstream suppliers are
divided into tiers of customers for example; wholesalers and retailers. During the last three
decades, supply chain management has been both an important and a productive aim of
corporations. By working to coordinate the production, shipment, and delivery of the goods
required to meet their business needs, companies have been able to more easily meet the
demands of their customers (EPIQ advanced supply management Articles).
Statement of objectives
Research problem:-
An unmanaged supply chain is not inherently stable. Demand variability increases as one
move up the supply chain away from the retail customer; the effect occurs when there is lack of
synchronization in supply chain members. Even a slight change in consumer sales will ripple
backwards in the form of magnified oscillations in demand upstream. Eventually, the network
can oscillate in very large swings as each organization in supply chain seeks to solve the problem
Supply chain analysis 2
from its own perspective called bullwhip effect unplanned variability that causes “waste”. Is
common in most industries, it results in increased cost and poor service. Greasley (2009.394)
Objectives
The aim of this research is:
Critically evaluate the applicability of Tesco’s supply chain management strategies in
Thailand in context of current Retail Industry Practice.
Evaluating current UK Practice in relation to supply chain Management for Tesco
Super market
Considering Trade issues and Laws related to Thailand in the context of supply chain.
Analyze the supply chain method with respect to super market.
Validity and Reliability
The concept of validity is described by a wide range of terms in qualitative studies. This
concept is not a single, fixed or universal concept, but “rather a contingent construct, inescapably
grounded in the processes and intentions of particular research methodologies and projects” (Den
Butter & Gand Linse 2008,76). Although some qualitative researchers have argued that the term
validity is not applicable to qualitative research, but at the same time, they have realised the need
for some kind of qualifying check or measure for their research. For example, Creswell & Miller
(2000) suggest that the validity is affected by the researcher’s perception of validity in the study
and his/her choice of paradigm assumption. As a result, many researchers have developed their
own concepts of validity and have often generated or adopted what they consider to be more
Supply chain analysis 3
appropriate terms, such as, quality, rigor and trustworthiness (Dekker 2003, 123). The researcher
will try to ask the appropriate and valid research questions from the interviewee.
The term ‘Reliability’ is a concept used for testing or evaluating quantitative research, the
idea is most often used in all kinds of research. If we see the idea of testing as a way of
information elicitation then the most important test of any qualitative study is its quality. A good
qualitative study can help us “understand a situation that would otherwise be enigmatic or
confusing” ( (Copacino 1997,52). This relates to the concept of a good quality research when
reliability is a concept to evaluate quality in quantitative study with a “purpose of explaining”
while quality concept in qualitative study has the purpose of “generating understanding”
( (Copacino 1997,52). While the terms Reliability and Validity are essential criterion for
quality in quantitative paradigms, in qualitative paradigms the terms Credibility, Neutrality or
Confirmability, Consistency or Dependability and Applicability or Transferability are to be the
essential criteria for quality (Davis, 1993, 35). The researcher will ensure that the research
instrument used in the research i.e. the qualitative research to be neutral and consistent across
multiple occasions of use.
Limitation of the research
Data is less representative - findings cannot be extended to wider populations with same
degree of certainty.
Danger of bias in the research – As the research is carried out at the management
levels, so there is a danger that managers will show some kind of bias.
Supply chain analysis 4
Time Table of Research Activities
Research on the topic
20th Aug – 25th Aug 2010
Literature Review
1st Sep – 15th Oct 2010
Interviews
15th Nov – 14h Dec 2010
Data Coding and Analysis
1st Jan – 10th Feb 2011
Report Presentation
1st March 2011- 20th March 2011
Supply chain analysis 5
Chapter 2: Literature Review
Literature is reviewed on the feature of retailing industry under globalization, U.K. retail
market characteristics, and supply chain operations.
According to (Cooperand Slagmulder 2003,14) Building sustainable supply chains is not
just about counting carbon emissions, Rather, it is about choosing development and production
patterns that can still function "in 50 years' time”. There are four "core principles" that any food
manufacturer or retailer needs to keep in mind for a sustainable supply chain. First development,
needs to become sustainable, second, the three "key dimensions" of sustainable development -
economic, social and environmental - must have equal priority. Food retailers, too, have begun
serious efforts to develop environmentally-sustainable supply chains. On the other hand, Tesco, a
UK-based international supermarket group, insists there is also a strong commercial reason to
develop sustainable supply chains. "The supply chain is the big prize," According to (Cooper and
Slagmulde 1999, 32), the future many of our customers are going to care about this: and this will
be an area of competitive advantage." Last year, Tesco started looking both upstream and
downstream in its supply chain. The company had achieved big environmental improvements in
its own distribution activity (Copacino 1997, 52) and in order to expand the company supply
chain process Tesco recently announced that it was looking at the prospects of online shopping
in Thailand. After a bit of experimenting, Tesco also recently launched Club card, a loyalty
programme, one of the first in Thailand - and the data gleaned from this will help it establish and
market its online offer (Anonymous, 2009). Extensive research has been carried out in finding
better ways of managing the supply chain and optimizing its performance. According to
(Cooperand Slagmulder 2003, 12), (Cooperand Slagmulder 2003, 14) and (Cooperand
Supply chain analysis 6
Slagmulder 2003, 12) suggests that there are seven basic principles in managing a supply chain.
They are:
1. Segmenting the customers according to their demands.
2. Customizing the logistics network through more robust logistics planning.
3. Listening to signals of market demand and planning the production according to
them.
4. Differentiating products closer to the customer avoids product obsolescence.
5. Sourcing strategically from suppliers who share the common goals improves the
supply chains efficiency.
6. Developing supply chain wide common technology strategy improves interaction
between the supply chain partners,
7. Adopting a common supply chain wide performance measure directs all the
supply chain partners to work towards a common goal.
According to (Harland, 1997, 219) suggests that there are six pillars that have to be built
for the success of a global supply chain planning process. They are: 1. Integrating supply chain
planning activities. 2. Establishing uniform business policies. 3. Unified supply chain planning
information systems help in reducing the costs. 4. Establishing planning centres of excellence. 5.
Shared performance measurements facilitate evaluating partner contributions and worker skills.
6. A process based organizational structure supports global supply chain planning by improving
communication throughout the supply chain.
High levels of competition in international markets and our country have led companies
to the conclusion that to survive and thrive in harsh environments, it is not enough to improve
their operations and integrate their internal functions, it is necessary go beyond the boundaries of
Supply chain analysis 7
the company and initiated exchange of information, materials and resources with suppliers and
customers in a much more integrated, using innovative approaches that benefit, together with all
stakeholders in the supply chain.
Strategic objective in the supply chain
Increase participants' ability to make decisions, formulate plans and outline the
implementation of a series of actions: (Davis, 1993, 35)
The significant improvement in the productivity of the logistics system
operational
To increase service levels to customers
In the implementation of actions that lead to better management of operations and
development of lasting relationships of great benefit to suppliers and key customers of the supply
chain. (Cooperand Slagmulder 2003, 12 )
(Loading dept. )
Supply chain analysis 8
"In the future, competition will not be business to business, but rather supply chain
supply chain."
Chain Management (SCM)
The management of the supply chain (SCM for short in English, Supply Chain
Management), is emerging as the combination of technology and best business practices
worldwide. Companies have improved their internal operations are now working to achieve
greater savings and benefits by improving processes and information exchanges that occur
between business partners. (Cooperand Slagmulder 2003,14)
A successful supply chain delivery to final customers the right product at the right place
at the right time, the required price and the lowest possible cost.
Best SCM programs share common features, first of all, have an obsessive fixation on
customer demand. Instead of forcing the products to market quickly sold may or may not meet
the demands of customers or be complete financial failure, this type of initiative is plotted
development objectives and producing products that are demanded by customers, minimizing,
the flow of raw materials, finished products, packaging materials, money and information at each
point of the product cycle.
These objectives have been sought by industrial companies for several decades and has
experienced management and successfully implemented modern techniques such as Just In Time
(JIT), Quick Response (QR), Efficient Customer Response (ECR)-Managed Inventory Provider
(VMI) and many more. These are the tools that help build a structure of robust supply chain.
From the cost point of view, is where you perform the best benefits, a recent study
showed that the total costs of the supply chain become 75% of operating budget expenditures.
Supply chain analysis 9
MIT recently did a study which showed that companies that have successfully
implemented these programs achieve benefits such as we can tell (Cooper and Slagmulde
1999,32 ), inventory reductions of up to 50%, 40% increase in on-time delivery, 27% reduction
in cycle Product accumulated, doubling inventory turns, reduced 9 times the missing, and 17%
increase in sales.
Another study by a consulting firm found that these companies typically achieve
excellent results in reducing operating costs, improve asset productivity and be more efficient in
responding to changing market demands.
What do you call this in the language of finance?, Return on Assets, "and the language of
business" for some, survival, for others, leadership.
In the last decade companies have implemented a range of programs designed to reduce
the cost of operating, doing business concepts such as downsizing, reengineering, outsourcing,
etc. and helped restore the competitiveness of entire industries.
During this period the focus was to increase profitability, cost-cutting rather than
increasing sales. This cannot be brought up to certain limits, today's businesses, operations are
thinner and healthier looking to grow, and are repositioning the concept of supply chain as a
lever for growth. The question then arises, Why not?, But how?. Smart managers recognize two
important things. First, think about your supply chain as a whole, all the links involved in
managing the flow of goods, services, information and funds from the vendor of your client to
client. Second, continually seek tangible results, with a focus on sales growth, asset utilization
and cost reduction.
Supply chain analysis 10
Retail Sector
The food system consists of broad sectors that include production, processing and
manufacturing, distribution, and retail. The retail sector is the part of this system that is closest to
the consumer. Although processors/manufacturers were once quite powerful, exerting
tremendous influence over retailers and consumers, this dynamic is shifting toward greater
retailer power. The leading retailers make up a large and increasing percentage of sales for the
largest food processors. Wal-Mart, for example, sells more than 10 percent of the products made
by Dean Foods, General Mills, Kellogg, Kraft, Campbell's, Tyson, and Pepsi. This gives Wal-
Mart the leverage to demand low wholesale prices, as well as exacting packaging and delivery
requirements, from its suppliers. Leading retailers are also more effectively encouraging
consumers to behave in ways that enhance their profits, using means such as store design and
shelf placement. Their increasingly sophisticated marketing strategies also include discounts for
customers who use loyalty or rewards cards—these enable the collection of massive amounts of
data and highly targeted advertising efforts.
Food retailing was dominated by supermarkets from the 1950s to the 1990s. The
supermarket format originated in the United States and is characterized by: 1) a reliance on
customers to self-service and line up to check out; 2) a larger store size and higher number of
food items (currently 15,000+) than most other formats; 3) low markups from wholesale prices;
and 4) high sales volumes (currently $2 million or more annually). Many of these innovations
were facilitated by the development of a national highway system and refrigerated trucking,
which lessened dependence on railroads and encouraged more self-distribution by retailers. By
shipping directly from manufacturers, supermarkets were able to negotiate price discounts based
Supply chain analysis 11
on volume. Until recently, more than 75 percent of food sales in the United States were made
through supermarkets and grocery stores, and the average person was estimated to spend 2
percent of their life in these retail outlets.
Supermarkets and grocery stores are facing increasing competition from other retail
formats including hypermarkets/supercenters (a combination supermarket and department store,
pioneered by the French firm Carrefour in the 1960s), wholesale buying clubs, convenience
stores, inexpensive department stores (e.g., dollar stores), and specialty retailers (e.g.,
natural/organic markets, ethnic markets). They are also affected by a trend of increasing
expenditures for food consumed outside the home, particularly at fast food restaurants. The
differentiation unfolding in the retail sector reflects a shift from mass production and
consumption to a model more highly targeted to particular groups of consumers (based on age,
socioeconomic status, ethnicity, or other differences), or even to individuals.
The entrance of Wal-Mart into food retailing has had a dramatic effect on the retail
sector. Wal-Mart began selling groceries in a supercenter format in 1988, and in little more than
a decade it became the leading food retailer in the United States. The corporation also operates a
chain of wholesale buying clubs (Sam's Club) and introduced a chain of smaller-format grocery
stores (Wal-Mart Neighborhood Market) in 1998. Wal-Mart's involvement in food retailing
helped to trigger a wave of consolidation in the 1990s, particularly in North America and
Europe, as other retailers merged or made acquisitions to remain competitive. It is estimated that
the top 3 firms control 80 percent of grocery sales in Australia, the top 4 firms control 75 percent
of sales in the United Kingdom, the top 5 firms control 50 percent of sales in the United States,
and the top 30 firms control 33 percent of sales globally.
Supply chain analysis 12
Food retailing is an increasingly international business, with the leading firms in North
America and Europe rapidly dominating markets in Latin America, Africa, and Asia. This
interest in expansion is a result of slowing sales in highly industrialized nations. Much of their
growth in foreign countries has occurred through acquisitions of existing supermarket chains but
has also included opening new stores. Even firms that do not sell globally do source food from
all over the world to ensure an adequate supply of food (such as out-of-season fresh produce)
and, increasingly, to secure the lowest possible prices for a given commodity.
By establishing their own distribution networks and supply chains, retailers exert a high
level of control over the food production process. These companies develop their own standards
for growing, harvesting, and processing fresh produce, often requiring more stringent safety
practices than government regulations. Control over processed food production is increasing as
well, through the growth of private label or store brand products. Retailers enter into contracts
with manufacturers to package products with the store brand that are typically sold at lower
prices than comparable name-brand products. The quality of these private label foods is much
improved compared with early generic products, and sales are growing much faster in this
segment than name-brand items.
These trends have resulted in relatively low prices for consumers, as retailers have
engaged in cost-cutting strategies and increased the efficiencies of their operations. Another
benefit is the increasing diversity of food that is available year-round. In addition, the
convenience of ready-to-eat meals and markets open 24 hours a day has enabled consumers to
reduce the amount of time spent on planning and preparing meals.
Supply chain analysis 13
The retail sector has also faced criticism, however. The low prices for consumers, for
example, are partially at the expense of producers, who lack sufficient bargaining power and may
sell at below the cost of production. Access to low-priced, nutritious food is not equitably
distributed either. A number of retail food chains in the United States have shut down inner-city
stores and opened new locations in growing suburbs. Some urban areas may have abundant
convenience stores and fast food restaurants but few options for fresh produce. Retailers have
also been accused of encouraging sprawl, excessive energy consumption in the production and
transport of food, mistreatment of animals, antiunion activities, and in some instances, price
fixing. Recent concern with rising obesity rates has led to claims that food retailers encourage the
consumption of unhealthy but profitable foods.
Retailers have implemented a variety of efforts to attempt to address these criticisms.
U.S. companies including Hannaford and SuperValu have introduced nutrition labeling programs
on their store shelves to help customers identify foods that are more or less healthy than others.
In the United Kingdom, Tesco is labeling some of its private label products with their carbon
footprint—the amount of carbon dioxide produced in their production. Wal-Mart has touted its
commitment to reducing energy consumption and reducing waste. Ninety percent of the leading
supermarket chains in Europe have removed genetically engineered ingredients from their stores,
and many of the largest retailers in the United States have banned milk produced with a
genetically engineered growth hormone for their store-brand dairy products.
Supply chain analysis 14
Principles for managing the supply chain
Andersen Consulting has proposed a list of 7 principles for managing the supply chain,
based on the experience of initiatives to improve supply chain in more than 100 industrial
companies, distributors and retailers.
The implementation of these principles, we can balance the needs of an excellent
customer service with the requirements of profitability and growth. In determining what
customers want and how to coordinate efforts across the supply chain to meet these demands
faster, cheaper and better. (Davis, 1993, 35)
Principle No. 1:
Segment your customers based on service needs of different groups and adapt the
supply chain to serve these markets profitably.
Traditionally, we have segmented customers by industry, product or sales channel
and we have given the same level of service to each customer within a segment.
An efficient supply chain customer groups for your service needs, regardless of
what industry it belongs and then tailor services to each of those segments.
Principle No. 2:
Adapt the network of logistics service requirements and profitability of customer
segments.
When designing the logistics network must focus intensely on the service
requirements and profitability of the identified segments. The conventional approach of
Supply chain analysis 15
monolithic networking is contrary to the successful management of the supply chain. (Cooperand
Slagmulder 2003, 12 )
Even less conventional thinking about the logistics emerges in certain industries
that share customers and geographical coverage, resulting in redundant networks. By changing
the logistics of complementary and competitive industries under the ownership of other
companies, savings can be achieved for all industries.
Principle No. 3:
Be attentive to market signals and align demand planning accordingly with the whole
supply chain, ensuring consistent forecasts and optimal resource allocation.
The sales and operations planning must cover the entire chain, looking for the timely
diagnosis of changes in demand, detecting patterns of change in processing customer orders
promotions, etc.. This intensive focus on demand leads to more consistent forecasts and optimal
resource allocation. (Cooperand Slagmulder 2003,14)
Principle No. 4:
Search differentiates the product as close as possible to the customer.
It is no longer possible to accumulate inventory to compensate for errors in sales
forecasts. What we must do is to postpone product differentiation in the supermarket process as
possible about the customer.
Principle No. 5:
Strategically manage the sources of supply.
Supply chain analysis 16
By working more closely with major suppliers to reduce the cost of materials and
services, we can improve margins both for ourselves and for our suppliers.
The concept of squeezing suppliers and make them compete and not how to
proceed, now the trend is "win-win"
Principle No. 6:
Develop a technology strategy for the entire supply chain.
One of the cornerstones of successful management of the supply chain is the information
technology that must support multiple levels of decision making and provide a clear view of the
flow of goods, services, information and funds.
Principle No. 7:
Take performance measurements for all channels.
Measurement systems in supply chains do more to monitor internal functions,
measurements must be taken to apply to each of the links in the chain. The most important thing
is that these measurements contain not only financial indicators but also help us measure the
levels of service, such as the profitability of each customer, each type of operation, business unit,
and ultimately, for each order.
These principles are not easy to implement, and require certain skills that in some cases
are not naturally found in the logistics professionals. It takes a group effort, multifunctional
skills, with ace, quality facilitators to integrate the divergent needs of supermarket and sales,
quality and price, cost and service and financial and qualitative measures.
Supply chain analysis 17
It should expand the understanding of other areas of the organization; you have to
improve understanding of the functions of purchasing, product planning, marketing, sales and
sales promotion, and also must develop a more intimate knowledge of their customers.
Remember that the supply chain begins and ends with the customer. (Cooper and
Slagmulde 1999,32 )
Additionally, it is important that professionals are knowledgeable about information
technology. The computer is not a function of additional support to the supply chain, rather it is
the enabler, the means by which many links are integrated into a single string.
Information technology should help in three different categories:
First must support operational activities, decision-making short-term, management of
daily transactions, order processing, shipping, warehouse movements, etc. Second, it must
support the planning and decision-making medium-term support such as demand planning,
master scheduling of production, and in general the optimal allocation of resources.
Finally, information systems must support the strategic analysis tools by providing
modulation and other tools that synthesize the information for planning scenarios to help
management assess the distribution centers, suppliers, outsourced services, etc. (Collins 2003,
42)
Implementing The Second-Generation Tray In Tesco’s Supply Chain
Tesco is one of the leading food retailers in the world (see Seth and Randall, 2005). It has
become the number one food retailer in the UK (Hurt and Sparks. 2003) and now has
stores across Eastern Europe and Asia. As a leading retailer, it has been subjected to
Supply chain analysis 18
considerable investigation by researchers and analysts. Within this, the transformation of
Tesco’s distribution has been particularly studied, and it is within this context that the case
study is developed. Readers wanting further information on the Tesco distribution systems
should refer to the earlier work of Smith and Sparks (Smith. 1998; Smith and Sparks,
1993, 2004; Sparks. 1986) and the references in those readings.
The case study presented here has been developed and researched in two ways. One
of the authors (David Smith) was involved in the implementation of the system and so is a
participant researcher. Subsequent to the case he has been engaged in research and
consultancy on logistics broadly for various clients and has thus also developed a more
reflective view of the activities In which he was once engaged.
The Tesco case study is an example of the rapid implementation of a national strategy
for recycling packaging. The impending EU legislation, in the early l990s, on packaging
recycling schemes, with its financial penalties forced retailers and suppliers to conduct a
strategic review of their practices for disposing of secondary packaging at the retail
store. The existing system saw secondary packaging either thrown away or recycled in
a cumbersome way. Tesco, as a leading food retailer, decided to act quickly to get
ahead of the legislation and implement a radically new approach for its stores and suppliers.
The context for this development within the Tesco supply chain has several aspects that arc
worth documenting before getting into the detail of the case study. Within the store product
range, there had been strong growth in the chilled fresh food categories. The logistics and
supply chain processes had speeded up to provide customers with fresher product that lasted
longer in the home. This focus on the rapid handling of fresh foods from supplier to retail shelf
Supply chain analysis 19
resulted in much less stock being held in the supply chain, as lime spent standing still was time
taken from the shelf-life available to the consumer. At the retail store there was an examination
of the labor costs of putting product on shelves, and new methods were devised to help retail
staff works more effectively. These trends formed the background for the Tesco development of
a second-generation plastic tray and a national network of recycling service units.
The timetable of events was compressed to get ahead of the legislation deadlines, and
can be divided into three phases. The first phase, 1990-92, involved the board decision to
proceed. The second phase,
1992—94, was the implementation of the national recycling network with the second-generation
plastic tray. The third phase, 199S-97, was the continued effort to grow the recycling
business using the plastic tray.
The first phase, from 1990 to 1992, involved the board decision to proceed with a new
approach for disposing of secondary packaging by the retail stores through the setting
up of specialized recycling service units that would recycle the plastic and cardboard
and clean the increasing volume of plastic trays so they could be reused by the
suppliers. This strategy repositioned the impending EU legislation on recycling from a
threat into a business opportunity. The board’s decision was based on an assessment
of the costs and benefits. There were the costs of change and implementation that were
set against the penalties being imposed by the EU legislation. The benefits were to be
found throughout the business, retail, commercial, logistics, suppliers and the
environment. Retail were able to work more productively in store using the plastic tray
for displaying products, especially fruit and vegetables. The commercial division
prioritized which product groups would benefit from lower costs in using the plastic tray
Supply chain analysis 20
rather than corrugated secondary packaging. Logistics improved their handling stacking
using the plastic tray. Suppliers paid less by using the plastic tray. The environmental
benefits contributed to the reputation of Tesco as a company acting as a good citizen.
The implementation phase, from 1992 to 1994, was intense and compressed to gel
ahead of the legislation deadlines. The national network of recycling service units
needed to be located next to the composite distribution centers that handled the fresh
food product range. All the cardboard and plastic that used to be disposed of locally
through the store waste compactors, as well as the plastic trays, was going to be
collected from the stores by the composite delivery vehicles on their return journeys.
Suppliers would then be able to collect the trays they needed after their deliveries to the
distribution centre. It was decided to give the contract for the operation of these
recycling service units to one contractor as part of the Tesco strategy to benefit from
applying best practice throughout the network. There was a standard design for all the
recycling service units. This design needed to balance the capacity and space for the
operation in order to keel) the costs of the land and building as low as possible.
Recycling service unit operation and the second—generation plastic tray
The purpose of a recycling service unit (RSIJ) is to minimize the volume of
secondary packaging that has to go into landfill by recycling and reusing as much as
possible. Corrugated hoard and plastic wrapping arc recycled back to industry. The
plastic trays are reused many times within the supply chain. At the end of their life they
are shredded, forming raw material for manufacturing of new plastic trays or pallets.
Supply chain analysis 21
The processes that take place at a recycling service unit vary for the different categories
of cardboard, plastic wrapping and plastic trays. They are sorted on their arrival from the
stores into the different sections for recycling or washing. The plastic wrapping and
cardboard are placed into separate compactors that create bales that are then recycled.
They are sold into the marketplace as a national contract, which results in better prices
than they had before with each store negotiating separately.
Supply Chain Decisions
We classify the decisions for supply chain management into two broad categories --
strategic and operational. As the term implies, strategic decisions are made typically over a
longer time horizon. These are closely linked to the corporate strategy (they sometimes {\it are}
the corporate strategy), and guide supply chain policies from a design perspective. On the other
hand, operational decisions are short term, and focus on activities over a day-to-day basis. The
effort in these types of decisions is to effectively and efficiently manage the product flow in the
"strategically" planned supply chain. (Chakraborty,Majumder and Sarkar 2010,18)
There are four major decision areas in supply chain management: 1) location, 2)
production, 3) inventory, and 4) transportation (distribution), and there are both strategic and
operational elements in each of these decision areas.
Supply chain analysis 22
Location Decisions
The first step in creating a supply chain is the determination of the geographical
placement of the product, the warehousing facilities and the sourcing points. The locations which
are determined at this level must be available for a long term. After the initial decisions like size,
number and location is determined, the product flow can be formed easily keeping in view the
locations. The location decision is of high importance for the firm as it directly affects the
revenue of the firm, the cost of the product and the service level. These should maximize the
firm profit and help the firm to achieve break even very quickly. The variable factors like taxes
and duties imposed by the government, the local content, the distribution cost and the production
limitation must all be taken into account before the final decisions. The location decisions also
have operational level implications.
Production Decisions
The decisions regarding the production are also included in the supply chain
management. The producer must determine what to produce, how to produce and for whom to
produce and how much to produce. And then the supplier allocation to the plants, plants to
distributors and then finally to supermarket for customer. These decisions affect the revenues,
cost and customer service level of the producer. These decisions lay down the actual path of
product flows and assume the existence of these facilities. The capacity of the supermarket
facilities is another critical issue and usually it depends on the degree of vertical integration
within the firm. The detailed operational scheduling is focused by the operational decisions
which include the construction of master production schedules, the scheduling production on
machines and the maintenance of the equipment. The factors like quality control and the work
load balance are included in other considerations. (Chopra and Sodhi 2004, 53)
Supply chain analysis 23
Inventory Decisions
Inventory decisions are related to techniques through which the inventories are managed
in the supermarket. All stages of supply chain deal with the inventory management. The
inventory may be in the form of the raw materials; semi finished and finished goods or even
works in process as well. Inventory holding has a huge cost i.e. about 20 to 40 percent of their
actual cost that is why it is very important to manage the inventory to save their cost. The top
management always remains concerned about the inventory and as a result goals are set by them
to manage the inventory. Hence the researchers have approached the management from an
operational perspective. The push and pull strategies, the setting of safety stock level and control
policies are made up by the upper management to manage the stock. The primary determinants
of the customer service level are these levels and hence they have high importance.
Transportation Decisions
The most important decision of supply chain management is the choice of mode for the
good delivery. Inventory decision is closely linked to transportation decision. The firm must
choose such a system which ensures fastest and most efficient delivery. The fastest way of
delivery is by air but it is very expensive and will increase the cost of the good and the decrease
the revenues of the firm. The shipment through railway may be cheap but railway management
charge higher for the goods security and holding. Hence the customer service level and the
location of the customer is very important in choosing the transportation means. About thirty
percent of the overall cost of the good is allocated for the transportation cost hence the firm
should take all the decisions rationally. (Chakraborty,Majumder and Sarkar 2010,18)
Supply chain analysis 24
Supply chain analysis 25
Chapter 3: Methodology
Research Design
From the given nature of this research, qualitative methodology that uses interviews with
concerned stakeholders is chosen as a research methodology. According to Lake (2010)
“Qualitative research is method of advertising research that emphasizes the quality of meaning in
consumer perceptions and attitudes; for example, in-depth interviews and focus groups.
Data collection, Analysis and Interpretation
The data will be collected from the following sources for qualitative research:
Interviews with employees of Tesco, suppliers and customers and Telephonic
interview with key suppliers were taken to find how Tesco manages relationship with
them.
The interviewing methods include Personal interviews, Email surveys, and web page
surveys.
Sampling Technique
Due to the nature of research, Purposive sampling method is proposed for this research.
According to Denscombe (2007) with purposive sampling the sample is ‘hand picked’ for the
research. The researcher already knows something about the specified people or events and
deliberately select suppliers, employees, managers who have exposure of supply chain
management and business processes and they are likely to produce most valuable data. Dane
Supply chain analysis 26
(1990) points out the advantage of purposive sampling is that it allows the researcher to
concentrate on people or events, which have good grounds in what they believe, will be critical
for the research. Almost like detective, the researcher follows a trail of clues, which leads the
researcher in a particular direction until the questions have been answered and things can be
explained (Robson 1993, 99).
Sample Selection & Size
Suppliers – 10 of the suppliers in UK and Thailand will be interviewed to explore their
process and how Tesco manages relationships with them.
Customers – 50 customers will be interviewed to explore their satisfaction against the
availability of product of their need on continuous basis and its cost.
Employees – 25 of employees will be interviewed to explore how frequently the supply
of the products comes and time duration.
Data Processing and Analysis
Once the data from the above stated research methodology is collected, analysis of data
will be started. Mills (1994) emphasizes on the fact that it is best to begin analysing the data as
soon as the initial data has been collected.
Approach to data analysis
Questionnaire survey of suppliers of Tesco in UK and Thailand.
Telephone interviews with key representatives of selected set of suppliers. To probe
how the Tesco manage relationships with these specific suppliers.
Supply chain analysis 27
Interviews with the employees of Tesco.
Interview with the customers.
Supply chain analysis 28
Chapter 4: Discussion and Analysis
Before changing the goods in the supermarket lying in a shelf, there are several overcome
obstacles such as traffic. A few years ago put Scala Logistics Consulting on behalf the UK
Department of Transport an research showing that the rush British roads had become less
crowded, The main reason for this decline is The Sunday opening of supermarkets. Around 18%
of primary and fourth of secondary supply now takes place on weekends. The study showed also
that the traffic is still the reason for 22% of delays in food and 17% in the supply of beverages.
Other factors include availability of drivers and issues when collecting the goods, but the main
culprits are "a business problem ' or "an unknown delivery problem ', this is generally for 61%
and 69% in beverage industry. Cafes, bars and restaurants were included, which are smaller and
less easily accessible than the large supermarkets, but are nevertheless surprisingly high
numbers. It seems customers borrowing more to this situation than logistics organizations, but to
all fronts in the supply chain space for improvement. "A can of soda has almost a whole years to
the supermarket shelf to achieve.” The supermarket industry has been investigating more than
ten years various possibilities for improvement. Some, at first sight promising options do not
meet the met expectations, the best example this is online shopping. Initiatives initially yielded
savings (Such as B2B auctions), came to nothing because sellers withdrew as due to ever lower
prices. The argument that larger firms standardized products for European regions creates
economies of scale and in emerging markets remains the time being so, but mature markets will
find that progress will stagnate and sometimes decrease. Almost one year on to my shelf To
optimize the entire logistics chain should look at the total picture Supply Chain for supermarkets
5 4 and are working effectively together. Take a can of soda. When Jones and his team a
Supply chain analysis 29
commodity analysis performed in one of the largest supermarkets in Europe, they discovered that
the route of the mine (including metal, packaging and purchasing of ingredients) to the shop
lasted 319 days. That is almost a whole year, while the actual supermarket and filling the can, but
in two hours confiscated in today's uncertain times, people look more than ever into the future.
Financial analysts and journalist’s dur- Ven no longer predict the future with certainty and have
different possible scenarios for 2009 without to comment on the likelihood of the options, well-
same with the weatherman says that tomorrow it may rain or dry. There is a scenario that the
fiscal and monetary authorities manage to stem the financial crisis, a where this fails and a
variant that confidence quickly restored after the break failed. Choose what it is. Meanwhile, hit
the global financial crisis is the real economy where products are made and visible services are
delivered. Luxury Brands are heavy tide- the meet. Discounters such as Aldi and Lidl already
winning field the major international supermarket chains Tesco and Carre- four. No-nonsense
brands are expected in 2009 good. Typically this is that the U.S. Campbell Soup Company on
September 29, 2008, when the U.S. Congress first rejected bailout of Wall Street, as any
company listed on the Standard & Poor 500 index increased in value, while the rest are all
crashed. According to marketing consultancy interbred biological products also victims of this
crisis. In December 1, special of NRC Handelsblad says director Fritz's degree from Jumbo, the
supermarkets themselves will have to send more organic products. A recent survey of financial
Directors of the University of Tilburg that issues such as sustainability and corporate social
responsibility significantly decreased in priority Seren, companies and organizations such trends
and uncertainties far better handling and robust strategies for the future formulate future under
different circumstances bring success. Scenario planning is currently entered in supply chain
management, so it can be derived from several recent well- shins and ongoing research projects.
Supply chain analysis 30
Ernst & Young recently released the report "Transport & Logistics 2015" , while Capgemini
look beyond one year in the report 'The Future Supply Chain 2016 ". The MIT Center for
Transportation Logistics & Yacht in Boston and have each chose to year 2020 with their
respective projects 'Logistics 2020' and "Supply Chain 2020". Ernst & Young outlines three
possible future scenarios for The Dutch Transport & Logistics. After determining the
relationships between the trends from a cross-impact matrix and the weighting of the trends with
an impact uncertainty score, we used a simplified field called anomaly relaxation method to
create the scenarios to come. In the most positive scenario, the position of Rotterdam and Ship
hollow progressed in the other two which deteriorated. In The worst case congestion increased.
Ernst & Young find the 'New Golden Eeuw' scenario (positive) a desired scenario for the year
2015 because it economic activity in general and that of transport and logistics are particularly
encouraged. Road freight, port must somehow still cleaner and more efficient and (sustainable)
earnings of the sector should be better communicated to politicians and public. Ernst & Young
review the scenarios currently in the business. The first comments it seems that most companies
believe in the 'doormod- deren' scenario. The report "The Future Supply Chain 2016" of the
Global Commerce Initiative and Capgemini shows developments which have a major impact on
the supply chain, such as scarce becoming energy, limitations on CO 2 emissions and a
consumer ment that demands more for the same or fewer resources. The narrow, regional links
between producers, suppliers and consumers Euregio Maas-Rhine forms the north-a "logistics
focal Trading fruit and vegetables. The fruit and vegetable sector is still dominated by the
competition rentiefactor and price pressure from retailers on the margins of producers and
trading. Faced with these factors for both entrepreneurs sides of the border of the Euroregion are
increasingly looking for solutions to their costs simultaneously to minimize safety and quality
Supply chain analysis 31
standards to raise themselves positive positioning in the market. Through this tough competition
last veranderingspro- processes as a business specialization, optimization and scaling on. For
these reasons logistics concepts are in the trade of fresh produce from central to optimizing
processes. Companies in the (global) compete to survive, their goods will have to optimize flows
and information flows in such a way that all, caused by borders, obstacles can be taken. More
relationships are more common while institutionalized. With this technology benefits, but also
requires a high degree of trust between trading partners, and that is not taken for granted. The
project "Cross-border integrated quality management systems in the fruit and vegetables "said in
this context for all the companies a flat- available form, in which technical solutions in a publicly
available framework developed, tested and could be implemented. Based on existing trade
relations in 2003 formed a consortium consisting of the main fruit and vegetable traders in the
Euregio Rhine-Meuse north and public and private advisory. Scientific guidance and
coordination of the project was in the hands the universities of Wageningen (NL) and Bonn (D).
Under the authority of the pro- project manager GIQS eV, a research and development project
initiated. The aim of this project was the cross-border harmonization of quality programs and
improve supply chain quality management in production and marketing fruit and vegetables in
the. This is the optimization of information exchange between the program managers on the one
hand and within existing trade and on the other side. During the application period, but also
throughout the duration of the project concentration processes in companies continued, as
expected. This was eventually the number of partners within the consortium. It is precisely these
processes that show how you trade in fruit and vegetables are able to adapt, were clearly
influenced the final content of the project, with some accelerating, but partly retarding effects.
Such developments within the project not only the characterization equalization of the market are
Supply chain analysis 32
written. As in The project partners were brought together to represent the entire, were all
interactions of an integrated chain. This meant coordination and settlement is not always easy,
but the project results show that precisely the completeness of the chain a significant contribution
to the transferable reliability of the results to the entire industry. The total project encompasses
several aspects that result in this report be and the potential for optimization for different users in
different links in the chain offer. Current problems in the project recognized and analyzed are in
the course of the project duration of 40 months to the now widely available lit- re solution. The
demonstrated practical and use-oriented tools to improve the quality should contribute to the
chain partners within the Eugenio Rhine-mamas-north adopt them, sustainable use and further
development throats, and thus itself a long-term competitive advantage. Fruits and vegetables are
highly perishable and delicate; fresh produce significant demands on knowledge, technology and
logistics in a company and the entire chain. Because of production cycles and weather conditions
and the productivity of vegetables Vegetables vary, and goods and quality products cannot be
predicted, especially because of the large number of very different products all have their
specific requirements and risks. For several years the development of industry is increasingly
confronted with an increasing awareness of health consumers thus directly affects the buying
behavior of these consumers and also on the purchasing behavior of small and large stores such
as super- market concerns. Chains are therefore increasingly forced to trade in fresh fruit and
vegetable information on the quality and safety of the products too far- object, or at least
available at the moment that a customer request. A major challenge for the fruit and vegetable
sector, are in this context the implementation of the EU regulation 178/2002 VO. Due to the
increasing demands of consumers, now require all super- certification of companies market their
fruit and vegetable suppliers to ensure that the consumer demands are met. In 2003, all vegetable
Supply chain analysis 33
and ALDI fruit producers called the International Food Standards (IFS) to use. In early 2004
followed Metro AG, and since September 2004 should also suppliers of the EDEKA group these
standards. On the Dutch side was a similar trend place, particularly where Europe GAP
certification was a requirement of the customers. That this have put forth demands are shown by
the additional introduction of a Food Standard exclusively for the logistics industry in the
summer of 2006. Due to the fact that the Most are fruit and vegetable growers at level health
risks arising are standards for this circuit introduced before 2003.
UK
The four major super markets which include the much famous Tesco, Asda, Sainsbury
and Morrison dominate the UK food retailing Industry. The sales from these units comprise of
two third of UK retail foods. Product rationalization has been accompanied by retail
concentration in the recent years. It is driven by the implementation of the category management
post ECR. In those categories supplier rationalization is dominated by private labels such as
meat, dairy products freshly produced. The transaction cost has been recognized by UK super
markets. They believe that it can reduced by having fewer suppliers. Dealing with fewer,
sophisticated and large suppliers helps in reducing the risk that is associated with food safety and
quality.
On the other hand it is a fact that few supermarkets have the controlled access to
consumer means and thus they influence the buying power of the consumer. It is because For the
manufacturers, suppliers and the entrepreneur the distribution from these outlets is very
important. It is important for the supplier because no other mean of distribution can offer similar
benefits and perk to the supplier.
Supply chain analysis 34
In Nov 99 a retailer made an attempt to pass the cost of an in store promotion to the
farmers and this act highlighted the excessive retailer power. £20,000 donation was asked from
the suppliers and the growers who had direct supply contract for the promotion and that
guaranteed the availability of its key product. Bills excess of several hundred thousand pounds
was filled by few suppliers. NFU criticized the retailers in questions and said that the entire
supply chain demand can’t be met the producer and it should not be expected by him too and it
also said the industry was going through a lot of hardship so the producer should be expected to
meet the demand. NFU was assured by the retailers that supplier funds were taken on their
consent.
According to NFU the smaller growers would come under a lot of pressure to contribute
in this current competitive environment and might even fear commercial reprisals. When this
was reported to the commission of competition, they started to study the market practices which
included the supplier and the supermarket relations. A suggestion was made by the commission
of competition that a defined code of conduct should be introduced in the market to keep a check
and balance in the industry. This initiative would foster the relationship of supplier and retailer in
the UK. It was found by the commission that the renowned retailers were carrying out few
practices which directly affected the supplier competency. These practices included asking the
selected supplier for discounts and imposing charges and changing the original contracts without
the consent of the supplier. According to the commission such practices were influencing the
marketing practices and affecting the competition as well. Hence suppliers would be reluctant to
invest in the market and will not be encouraged to launch new brands which will ultimately
affect the quality of the products and consumer choice as well. Another fact emerged from the
Supply chain analysis 35
study that few of these practices benefitted the major supermarket buyers as compared to smaller
retailers.
In March 2002, a code of practice was introduced in the market and it was imposed on
the four food retailer giants called tesco, sainburry, asda and safeaway. Three key elements were
the part of this code of conduct which included that they giants should study the market and
respond as soon as possible to satisfy the customer, all the supply chain participant of all the
sectors would gain benefit if they would work together and will go for product innovation. The
last statement said that all the partners involved in trading must treat each other fairly and
reasonably.
Thailand
The role of supermarkets on international markets is rapidly expanding, as suppliers of
goods and services to consumers and the building local and international economies. The extent
to which they do this is highly refuted as supermarkets have an array of effects on markets and
economies. Whilst they provide jobs and services to the region, they can also drive pre-existing
markets out of business if they fail to compete or meet supermarket standards. Supermarket
chains influence traditional chains of distribution and production through homogenisation of
services and products.
In the examination of international food chains, it is clearly evident the extent to which
supermarkets can control markets. Dominate international supermarket chains include the United
Kingdoms, Tesco, the United States, Wal-Mart, and French-based, Carrefour. Wal-mart is the
largest company in the US with 496, 857 full-time employees and annual sales of $66, 465, 100
000 (as of 2/04) and is also the world's largest retailer. According to Wikipedia , Carrefour "is
Supply chain analysis 36
the second largest retail group in the world in terms of revenue and sales figures after Wal-Mart".
Tesco, according to one newspaper article , "Is the second-largest retailer in Europe and the third
in the world. It has 2,365 stores around the world and its annual turnover is more than US$68
billion per year." Clearly these three supermarket retailers have a significant role in their
respective countries economies and markets. This dominance also extends internationally.
Growth of supermarkets is occurring rapidly over the globe, which is affecting the
production and distribution of foodstuffs in numerous ways. The table below clearly outlines the
major global supermarkets across the globe. Carrefour, Ahold and Metro have the greatest
international dominance, yet sales still don't reach the height of Wal-mart. Therefore, it is both
the economic power and global power of supermarkets which affect their ability to restructure
global food production and distribution.
Supermarkets have not had a particularly significant effect on international trade. This is
due to numerous factors, such as consumers favouring local goods and regional tastes or
preferences. This is especially evident in Australia, with the figures below.
The import of processed foodstuffs significantly lower than raw foodstuff as can be seen
in Graph 2.
It is evident that imports are much lower than exports as Australian demand tends to
favour Australian grown and made foodstuffs. Supermarkets also are more inclined to sell locally
produced goods as transportation costs are then minimised and stores can avoid typical
protection barriers, such as tariffs on imported goods.
Most trans-national companies of manufactured goods, such as Nestlé and Kellogg's,
have supermarket plants located worldwide, thus are influencing the patterns of production.
Plants are located near markets in order to supply goods quickly and cost effectively to the
Supply chain analysis 37
consumers. Thus international goods are being produced locally. According to Regmi, A. et. al.
processed goods account for $3.2 trillion, effectively ¾ of all food sales, but only 6% are traded
goods. Such companies contribute to local economies through jobs and the sourcing of resources
locally. However, this can be attributed to the distribution of supermarkets, as these international
goods typically supply to supermarkets. Therefore, the supermarkets and international food
companies are synergistically related in regards to the distribution and sale of international
goods.
Supermarkets tend to have a greater role in the production and distribution of processed
goods, as opposed to fresh groceries , especially in the new markets in developing countries. Sale
of processed goods is proportionally higher than the saw of raw goods. For example in Brazil,
the share of supermarkets is 75% in the retail of foods, however the share of sale of raw
groceries accounts for only 25% in Sao Paulo ' . This is largely due to consumer preferences
favouring traditional street markets and vendors. These smaller retailers are also often able to sell
at lower prices as they typically have lower expenses in regards to wages, rent and taxes .
Therefore, consumers have a greater role in the determination of the success of supermarkets and
food distribution.
Agricultural produce is more widely traded than processed goods. Supermarkets aim to
provide fresh, high quality produce throughout all seasons. Therefore international trade is higher
for fresh produce. Whilst supermarkets do tend to favour locally produced goods, if the item
cannot be supplied at a constant high quality and quantity, supermarkets will source the goods
from elsewhere. Also, trade protection levels tend not to be as high on raw commodities as
processed goods, for example Canada, the European Union, Japan and the United States have no
tariff on the importation of cocoa beans, however chocolate products command tariffs between
Supply chain analysis 38
15-57% accordingly. It is more common for supermarkets to source fresh produce internationally
when necessary. Supermarkets can influence the distribution of goods, through the provision of
raw groceries, when local farmers are unable to provide according to demand. Thus, influencing
demand and supply, and reducing the role of traditional local markets.
In determining the distribution of supermarkets, the brand name and reputation of
supermarkets are important to the success of the company. Consequently, all aspects of
production must reach the same standards of quality and uniformity across all stores. The
demand on producers to supply such products has increased rapidly. An article from the New
York Times discusses the escalating demand on small farmers. These farmers "lacked the
expertise, as well as the money to invest in the modern greenhouses, drip irrigation and pest
control that would have helped them meet supermarket specifications." Therefore it is
increasingly difficult for small farmers from developing nations to enter these markets as they
cannot produce to the same standards as those with greater economic resources.
These small farmers are also loosing control as decisions will be left to supermarkets' on
how and what produce is grown. This dramatically alters the traditional production methods of
farmers. Often supermarkets' have standards on produce to be grown in environmentally
sustainable ways, which can be costly so small, ill-equipped traditional farmers. Also, payment
methods change with supermarkets as goods are paid for through a set contract, as opposed to
cash on delivery, therefore some farmers are left waiting up to 60 days before being paid. Many
small farming enterprises have formed coalitions to exchange with supermarkets' in an effort to
maintain supermarket demands . However, if local farmers cannot compete or achieve quality
and quantity standards set by supermarkets, they are severely damaged economically. This also
Supply chain analysis 39
leads to the importation of goods if local farmers cannot provide according to demand. Methods
of production have changed due to the influence of supermarkets'.
The growth of supermarkets in developing countries has risen rapidly over the recent
decade. Coinciding with the growth of supermarkets is the decline in traditional markets. Small
farmers producing goods of edible quality, but not supermarket quality, are further loosing out to
supermarkets through loss of potential markets and current markets. The popularity of
supermarkets has grown most significantly in developing and lower income countries, as can be
seen in the two diagrams below:
Sources: T. Reardon and J.A. Berdegué, "The Rapid Rise of Supermarkets in Latin
America: Challenges and Opportunities for Development," Development Policy Review, Vol.
20, No. 4, September 2002, pp. 317-334. D. Hu, T. Reardon, S. Rozelle, P. Timmer and H.
Wang, "The Emergence of Supermarkets with Chinese Characteristics: Challenges and
Opportunities for China's Agricultural Development," Development Policy Review, Vol. 22, No.
5, September 2004, pp. 557-586
It is clear from these two tables that the highest growth of supermarkets is in lower
income countries, such as Latin America and Asia. According to the IFPRI, "In Brazil...
supermarkets' share of food sales went from 30% in 1990, to 75% in 2000" and "between 1999
and 2001 supermarkets' share of retail food sales rose from 35 to 43% in Thailand" . It is clear
that developing countries are seeing a rise in supermarket dominance according to demand from
these regions. This demand for supermarkets in this region affects the production and distribution
of foodstuffs.
These multi-national supermarket chains have the greatest influence on world agricultural
trade, as these companies typically determine where goods come from and their distribution.
Supply chain analysis 40
Popularity of supermarkets can be attributed to their ability to produce high quality goods at
lower costs. This is due to the ability of these companies to use their buying power to force down
prices and impose difficult quality and safety standards on local producers. Whilst this does
benefit the consumer as they have greater market choice more affordably, this can severely
disadvantage existing markets by undercutting prices to such an extent they can no longer
compete. Consumer rights can then be threatened by the undermining of traditional food
markets, limiting them to supermarkets. However, it is the consumer that determines the
distribution of supermarkets according to demand; therefore the consumer plays a superior role
in the determination of production and distribution of foodstuffs.
Due to the economic power of international supermarkets, they can influence national
governments in order to influence patterns of production. Supermarkets have large control over
poorer countries economically, as often these global corporations net profits exceed the total
revenue of developing countries. This leads to corporations having increasing control over
governments. According to 1 World Communication , "In 1998, total government revenues in
Bangladesh amounted to $3.872 billion... Wal-Mart's sales in 1998 amounted to $137.6 billion",
whilst this figure is only a crude analogy, it highlights the differences in monetary power
between countries and corporations. In this example, the economic gain Bangladesh is in a
position to receive due to cooperating with such companies is seen as a driving force in
restricting labour laws. By insuring wages are kept low in these countries, foreign investment
grows due to cheap resources. This however leads to the exploitation of labour markets in the
production of food for supermarkets and the changes in production methods.
Supermarkets are also able to exploit farmers, as competition to supply for supermarkets
is stiff, thus affecting traditional methods of production. As the raw cost of goods does not
Supply chain analysis 41
increase as quickly as the retail cost of goods many farmers do tend to loose out to these multi-
billion dollar supermarkets. According to a parliamentary report from Australia , with the
example of frozen peas, "In 2000 farmers were receiving 40 cents a kilogram for their frozen
peas and in 2003, three years later, they were receiving the same 40c a kilo... although their costs
of production had gone up significantly over those three years. The retailers though, were getting
$2.60 in 2000 and their price went up to $3.10 for the same kilo in 2003." It is evident from this
example that supermarkets have greater market control over producers, therefore significantly
affecting production and prices. The growth of international supermarket chains are effecting the
production and sale of goods theough the imense economic power they command.
These international supermarket chains influence what produce is grown and bought in a
country. According to Corporate Watch the influence on Asia markets is changing traditional
dynamics. Previously Asian farmers sold directly to customers at the markets, whereas now, new
procedures and restrictions are being introduced in order for farmers to sell in these
supermarkets. Traditionally farms were small individual enterprises, whereas now they are being
forced into acting as conglomerates in order to negotiate more effectively with supermarkets.
These corporations also influence what is grown, as farmers will change their crop in order to
make money according to what is in demand. Therefore, supermarket corporations affect
economies and agriculture on a local scale, internationally.
Consumers, however, are embracing the choice, quality and variety offered by
supermarkets. The following table shows the percentage of retail food sales through
supermarkets, with most continents over 50% (Asia and Africa have lower sales as supermarkets
are less concentrated in these regions). There are typically a greater number of stores where
supermarket sales are higher. Such as in Europe, there are over 100, 000 stores and 80% of
Supply chain analysis 42
foodstuffs purchased in them, compared to Southern Africa with just over 3, 000 stores, and only
20% of foodstuffs are purchased from these stores. Therefore, the distribution of foodstuffs is
determined by consumer tastes and demand and dictate to supermarket companies the locations
of stores.
The growth in international supermarkets' has resulted in greater choice and quality for
consumers. It has also led to greater economic investment in areas through retail and production
of foodstuffs. Whilst some farmers are forced out of the food production market, others are
benefiting extensively through greater market access and a constant demand for goods. Whilst
farmers can loose some power in decision making by working with supermarkets, their economic
positions are improved through these connections. The production of goods is determined by
location and availability of goods. Therefore regardless of a stores location, local producers
benefit from supermarkets providing they can supply to specified supermarket standards and
quality levels. Whilst not all people benefit from the breakdown of traditional markets to
supermarket chains, supermarkets typically bring foreign investment into the area and provide
new opportunities to communities. Therefore, whilst the role supermarkets play in the world can
be seen as imperialism, through their dominance and impact on production, it is the consumers
however, that determine what is sold and where stores are located. Supermarkets empower
consumers and provide new opportunities, especially in developing nations.
All the ten people interviewed suggested that their names should be kept confidential.
Hence only the respondents names have been kept confidential and their responses have also
been presented in the researchers own words. The questions along with the answers have been
presented below:
Supply chain analysis 43
Q. Please briefly describe the services provided by your company?
According to most of the respondents, the services which were provided by their
company included supply chain and logistics
Q. Do u believe that supply chain is one of you are company core competency? How?
The respondents believed that yes the supply chain is one of their core competencies as it
ensured customer satisfaction. Being only in the logistics business the respondents answered that
there company uses the critical path method when distributing their products into the market.
And many of them also answered that their company follows the cost saving and time saving
method. Some of the respondents also said that they have their own store in the major areas of
the city.
Q. Are you aware of your competitors supply chain activities and what is your organization
doing in this regard?
The respondents said that they were aware of the competitor’s activities of supply chain
and they were changing their strategies to sustain in the market for a long term. They are
planning to open up new stores in the near future to become the biggest retail industry giant.
Q. In your opinion how company can improve its supply chain process?
A company can improve its supply chain process only through coordination with the
suppliers and with effective management. If the management of any business is done properly
then it can compete with anyone in the market.
Supply chain analysis 44
Q. Do you consult before the changes in any of the activities of supply chain and logistics
activities?
The people who are experienced in the field are consulted before any change in process
takes place. Before making any change, feasibility report is presented to the board and only when
they approve of it the strategy is implemented.
Q. What are the performance drivers and desired outcomes of your company on a day to day
basis?
The basic aim of the company is to become the largest retail industry giant and in order to
achieve this goal the company employees and the management is working day and night to make
that dream come true. The only thing that gets the management going is the efficiency of the
employee without which the company is nothing.
Q. How much time does it take for a product or service to be delivered or distributed from point
of production to point of consumption?
It takes maximum 48 hours for a product to reach to the point of consumption in case of
fast moving consumer goods and in case of durable goods the time can extend up to 1 week.
Q. By what ways do you gather the need of timely distribution?
Through effective coordination with the supplier, the objective of timely distribution is
achieved.
Q. What strategies will u implement in the supply chain process in the near future?
Supply chain analysis 45
In the near future, the process of supply chain will be done with the help of more
innovative software’s which will reduce the time factor and increase the efficiency factor
positively.
Q. Are you a regular visitor to the Tesco store? If so how many days in a week do you go for
shopping.
Most of the customer said that they were the regular customer of Tesco. They said that
they were satisfied with the Tesco facilities and usually they visited Tesco supermarket more
than two times for grocery purpose. Few of the respondents said that they visited once in two
weeks. The overall response of the respondents was that they were satisfied with the services and
usually opted for Tesco when they wanted to buy grocery.
Q. Are you able to find all the products and items required by you at all the times in the store?
The regular customers of the supermarket said that they found all their required goods
from Tesco whenever they visited. Only few said that once in a while they found goods missing
which is acceptable due to uncertainties.
Q. Are you satisfied with the overall service provided in the store?
The regular customers of the supermarket were of the opinion that Tesco services are
excellent and they were satisfied with the services. According to the majority of the respondents,
they found all the required goods under one roof which actually helped them in saving their time.
Q. Any further comment
Supply chain analysis 46
According to customers, the services of Tesco are excellent. They said that they were
content with the services. For the customers, Tesco is name of quality and excellence. They said
that Tesco provided them opportunity to get all the basic items under one roof.
Supply chain analysis 47
Chapter 5: Conclusion
Overall, Tesco's operations strategy is its long-term goal. It is important for Tesco to have
an operational strategy because it establishes the types of goods and services the company will
offer its target market, and how Tesco are going to get advantages over its competitors. Tesco
made good planning and control in its capacity, supply chain and quality. Besides, in order to
make improvements in operation, Tesco measures quality, speed, dependability, flexibility and
cost. Although they have made some improvements, there are still some disadvantages in its
operation.
Critical appraisal and Recommendation
Advantages
Tesco is in a rapidly changing dynamics of the retail industry, there are two order-
winning factors that made Tesco win over other supermarkets in U.K.: cost and flexibility.
For an operation such as Tesco, firstly, the cost objective can be seen as the most
important objective, because all of the other performance objectives affect cost. According to
Tesco PLC Profile (2004), around 60% of Tesco's costs are the cost of buying materials and
services, around 15% are staff costs and 30% are technology and facilities costs. Therefore,
Tesco's costs are dominated by the cost of buying its supplies. Tesco makes use of information
technology running an effective supply chain to reduce cost.
Secondly, flexibility is Tesco aims to be better than its competitors at this area.
That means Tesco could offer their customers a wide range of goods, Tesco has an own team
who works on creating new products and they do market research, decide the most appropriate
form of packaging for a product, and test the new product.
Supply chain analysis 48
Fully employed new technologies are also the advantages of Tesco, which has
revolutionized Tesco's operations management. For example, "Computer controls ordering form
the suppliers to distribution and store design. CAD (computer aided design) is used to plan both
the stores and how they fit in to their environment and also inside the store, so no space is wasted
and products are all placed in the right position"(Infoconomy Ltd, 2005). This makes the
customers' shopping experience easier and less stressful as all of one type of product in the same
place.
Disadvantages
Although Tesco has two factors superior to other competitors, the rest of performance
objectives still need to be improved. The quality inside the operation is important. If someone
makes a mistake within the operation, time and money must be spent correcting this makes. For
instance, a customer went to Tesco, there was special offer for the plums, the original prices was
77p, that day was 36p, so the customer bought them and check out, but the receipt showed the
plums is 98p, so the staff made the mistake and they put plums in the wrong place where sold the
oranges. These kinds of mistakes people found a lot in Tesco, which can lead to irritated
customers and lower revenue for the operation.
Speed is also important inside the operation. According to the customers, in Tesco metro,
some products are often sold out but it is not as quickly as possible to deliver the materials, so
made customer disappointed about the service and go to other supermarkets. Tesco's
dependability objective is not satisfactory, in Tesco metro, it is not open 24 hours a day and
customers often can not buy the expected food in the evening.
Supply chain analysis 49
There is some drawbacks of capacity planning and control, for example, "they keep
output on one level, which means that the same number of staff would operate all the time, so
that they produce the same output period" (Krajewski & Ritzman,2002). For instance, many
people are shopping in the store on Friday and weekend, customers are waiting in the long queue
and 6 staff serving them, however, Sometimes there are few people in the store, it still have the
same number of staff, it would be a waste of resource and influence efficiency of service.
Recommendation
Tesco has a wide of operation and wants everyone to buy their products. Tesco's aim is to
get full time loyalty from their customers and to carry on increasing the value of their goods.
Therefore, they should perceived and applied the five performance objectives properly, not only
pay more attention to cost and speed, but also quality, speed and dependability. To increase the
values and improve service, Tesco should improve and train staffs at all levels. This helps them
run operations more efficiently as all staff is fully trained and therefore they will do their best to
do their jobs.
Tesco should utilize capacity planning and control appropriately, when the operations
managers are going to make their inventory decisions, there are three factors they must
considerate: 1) how much they order 2) when to order 3) how they are going to control the
system (Slack, 2001). The most common model used to figure out when the stock needs
replenishment, are the Economic Order Quantity Model (EOQ):
"EOQ= (2CoD/Ch) ^1/2,
Co=ordering costs, D=units per year, Ch=holding costs" (Slack, 2001)
Supply chain analysis 50
Technology is also another important aspect, as we know technology is developing day
by day, so keeping up to date and using new and efficient technology helps Tesco act more
efficient on its operation.
Supply chain analysis 51
References
Casher, J. D. and R. H. Metzger. 1998. Leverage your vendor relationships and enhance your
bottom line. Management Accounting (March): 51-54.
Chakraborty, P. S., G. Majumder and B. Sarkar. 2010. Analytic network process for supermarket
supplier selection. Cost Management (January/February): 18-23.
Chopra, S. and M. S. Sodhi. 2004. Managing risk to avoid supply-chain breakdown. MIT Sloan
Management Review (Fall): 53-62.
Clinton, B. D. 2004. Supply chain development for the lean enterprise by Robin Cooper and
Regine Slagmulder. Cost Management (January/February): 45-46.
Clinton, B. D. and A.H. Graves. 1999. Product value analysis: Strategic analysis over the entire
product life cycle. Journal of Cost Management (May/June): 22-29. (Summary).
Clinton, B. D. and S. C. Del Vecchio. 2002. Cosourcing in supermarket. Journal of Cost
Management (September/October): 5-12. (Summary).
Clinton, B. D. and S. C. Del Vecchio. 2002. Cosourcing in supermarket - Just in time. Journal of
Cost Management (November/December): 30-37. (Summary).
Cloud, R. J. 2000. Supply chain management: New role for finance professions. Strategic
Finance (August): 28-32.
Cokins, G. 2003. Measuring profits and costs across the supply chain for collaboration. Cost
Management (September/October): 22-29.
Collins, K. 2003. The CFO's wish list. Strategic Finance (April): 42-45. (Software for enterprise
contract management of vendors).
Cooper, R. and R. Slagmulder. 1999. Supply Chain Development for the Lean Enterprise:
Interorganizational Cost Management. Productivity Press.
Supply chain analysis 52
Cooper, R. and R. Slagmulder. 2003. Interorganizational costing, Part 1. Cost Management
(September/October): 14-21. (Summary).
Cooper, R. and R. Slagmulder. 2003. Interorganizational costing, Part 2. Cost Management
(November/December): 12-24. (Summary).
Copacino W. C. 1997. Supply Chain Management: The Basics and Beyond. Boca Raton FL: St.
Lucie Press.
Davis, T. 1993. Effective supply chain management. Sloan Management Review (Summer): 35-
46.
Dekker, H. C. 2003. Value chain analysis in interfirm relationships: A field study. Management
Accounting Research (March): 1-23.
Den Butter, F. A. G. and K. A. Linse. 2008. Rethinking procurement in the era of globalization.
MIT Sloan Management Review (Fall): 76-80.
Donelan, J. G. and E. A. Kaplan. 1998. Value chain analysis: A strategic approach to cost
management. Journal of Cost Management (March/April): 7-15.(Summary).
Dressler, S. and K. Muller. 2003. Competitive advantage for integrated vertical value chains.
Cost Management (September/October): 5-13.
Dyer, J. H. and N. W. Hatch. 2004. Using supplier networks to learn faster. MIT Sloan
Management Review (Spring): 57-63.
Ferdows, K., M. A. Lewis and J. A. D. Machuca. 2004. Rapid-fire fulfillment. Harvard Business
Review (November): 104-110. ("Spanish clothier Zara turns the rules of supply chain
management on their head. The result? A superresponsive network and profit margins
that are the envy of the industry.").
Supply chain analysis 53
Feuss, W. J., J. Harmon, J. Wirtenberg and J. Wides. 2004. Linking employees, customers, and
financial performance in organizations. Cost Management (January/February): 12-22.
Fine, C. H., R. Vardan, R. Pethick and J. El-Hout. 2002. Rapid-response capability in value-
chain design. MIT Sloan Management Review (Winter): 69-75.
Fink, R. L., J. W. Gillett and G. Grezeskiewicz. 2007. Will RFID change inventory assumptions?
Strategic Finance (October): 34-39. (Using radio frequency identification technology to
track goods throughout the supply chain).
Free, C. 2008. Walking the talk? Supply chain accounting and trust among UK supermarkets and
suppliers. Accounting, Organizations and Society 33(6): 629-662.
Gourdin, K. 2000. Global Logistics Management: A Competitive Advantage for the New
Millennium. Blackwell Publishing.
Govindarajan, V. and J. K. Shank 1989. Strategic cost analysis: The Crown Cork and Seal Case.
Journal of Cost Management (Winter): 5-15. (Modified version of Chapter 3 - Concepts
in value chain analysis: The famous Crown Cork and Seal company case, Shank, J. K.
and V. Govindarajan. 1989. Strategic Cost Analysis: The Evolution from Managerial to
Strategic Accounting. McGraw Hill Professional Publishing).
Gulati, R. and M. Sytch. 2007. Dependence asymmetry and joint dependence in
interorganizational relationships: Effects of embeddedness on a manufacturer's
performance in procurement relationships. Administrative Science Quarterly 52(1): 32-
69. (JSTOR link).
Gunn, R. W., D. P. Carberry and S. Behrens. 1993. Shared services. Management Accounting
(November): 22-28.
Supply chain analysis 54
Hadley, S. 2004. Making the supply chain management business case. Strategic Finance (April):
28-34.
Hall, D. and J. Jackson. 1992. Speeding up new product development. Management Accounting
(October): 32-36. (Extending JIT techniques to the entire value chain).
Hammer, M. 2001. The superefficient company. Harvard Business Review (September): 82-91.
Hansen, M. T. and J. Birkinshaw. 2007. The innovation value chain. Harvard Business Review
(June): 121-130. (A framework for assessing a company's innovation processes).
Harvard Business Review. 2003. Supply chain challenges: Building relationships. A
conversation with Scott Beth, David N. Burt, William Copacino, Chris Gopal, Hau L.
Lee, Robert Porter Lynch, and Sandra Morris. Harvard Business Review (July): 64-73.
Henke, J. W. Jr. and C. Zhang. 2010. Increasing supplier-driven innovation. MIT Sloan
Management Review (Winter): 41-46.
Heskett, J. L., T. O. Jones, G. W. Loveman, W. E. Sasser Jr. and L. A. Schlesinger. 2008. Putting
the service-profit chain to work. Harvard Business Review (July-August): 118, 120-129.
(Reprint from 1994).
Hines, P. 2000. Value Stream Management: Strategy and Excellence in the Supply Chain.
Financial Times Prentice-Hall.
Hoffjan, A. and H. Kruse. 2006. Open book accounting in supply chains - When and how is it
used in practice? Cost Management (November/December): 40-47.
Hogue, Z. 2001. Strategic management accounting in the value-chain framework: A case study.
Journal of Cost Management (March/April): 21-27.
Supply chain analysis 55
Holmstrom, J. 1998. Implementing vendor-managed inventory the efficient way: A case study of
partnership in the supply chain. Production and Inventory Management Journal (3rd
Quarter): 1-5.
Howell, R. A. and S. R. Soucy. 1990. Customer profitability: As critical as product profitability.
Management Accounting (October): 43-47. (Summary).
Hult, G. T. M., D. J. Ketchen Jr. and E. L. Nichols Jr. 2002. An examination of cultural
competitiveness and order fulfillment cycle time within supply chains. The Academy of
Management Journal 45(3): 577-586. (JSTOR link).
Hult, G. T. M., D. J. Ketchen Jr. and S. F. Slater. 2004. Information processing, knowledge
development, and strategic supply chain performance. The Academy of Management
Journal 47(2): 241-253. (JSTOR link).
Iansiti, M. and R. Levien. 2004. Strategy as ecology. Harvard Business Review (March): 68-78.
(Summary).
Institute of Management Accountants. 1996. Value Chain Analysis for Assessing Competitive
Advantage. Institute of Management Accountants.
Institute of Management Accountants. 1999. Implementing Integrated Supply Chain
Management for Competitive Advantage. Institute of Management Accountants.
Institute of Management Accountants. 1999. Tools and Techniques for Implementing Integrated
Supply Chain Management. Institute of Management Accountants.
Joseph, G. 2006. Understanding developments in the management information value chain from
a structuration theory framework. International Journal of Accounting Information
Systems 7(4): 319-341.
Supply chain analysis 56
Juran, D. C. and H. Dershin. 2002. Real world supply chain assessment and improvement.
Journal of Cost Management (September/October): 13-25.
Kanodia, C. 2002. Discussion of the role of information and opportunism in the choice of buyer-
supplier relationships. Studies on Accounting, Entrepreneurship and E-Commerce.
Journal of Accounting Research (May): 279-287. (JSTOR link).
Kennedy, F. A. and J. Huntzinger. 2005. Lean accounting: Measuring and managing the value
stream. Cost Management (September/October): 31-38.
Keyte, B. and D. Locher. 2004. The Complete Lean Enterprise: Value Stream Mapping For
Administrative And Office Processes . Productivity Press.
Kopczak, L. R. and M. E. Johnson. 2003. The supply-chain management effect. MIT Sloan
Management Review (Spring): 27-34.
Lambert, D. M and A. M. Knemeyer. 2004. We're in this together. Harvard Business Review
(December): 114-122. (The Global Supply Chain Forum's partnership model).
Lawrence, T. B., E. A. Morse and S. W. Fowler. 2005. Managing your portfolio of connections.
MIT Sloan Management Review (Winter): 59-65.
Lee, H. L. 2004. The triple-A supply chain. Harvard Business Review (October): 102-112.
("Only supply chains that are agile, adaptable, and aligned provide companies with
sustainable competitive advantage.").
Lee, H. L. 2010. Don't tweak your supply chain - Rethink it end to end. Harvard Business
Review (October): 62-69.
Liker, J. K. and T. Y. Choi. 2004. Building deep supplier relationships. Harvard Business
Review (December): 104-113.
Supply chain analysis 57
Locke, R. and M. Romis. 2007. Improving work conditions in a global supply chain. MIT Sloan
Management Review (Winter): 54-62.
Loeb, M. P. and K. Sunrysekar. 1994. On the optimality of cost-based contracts in sole source
procurement. Management Accounting Research (March): 31-44.
Supply chain analysis 58
APPENDICES
Proposed Questionnaire for Suppliers, Employees and Customers (interview)
An Exploratory study corporate comparison of Supply Chain Analysis for Tesco
supermarket in U.K. and Thailand and ways to improve on it so that Tesco occupies top position
in retail sector
A research is being conducted out as a requirement for the degree of “Masters in
Business Administration” at Birmingham City University. Your responses on the following
questions will help the researcher to compare and improve the supply chain for TESCO
supermarket.
Name: Company Name:
Designation: Department:
Contact Email Address: Date:
Q1. Do you want the researcher to disclose your name in his research?
No YES
Q2. Please briefly describe the services provided by your company?
Q3. Do u believe that supply chain is one of you are company core competency? How?
Q4. Are you aware of your competitors supply chain activities and what is your
organisation doing in this regard?
Q5. In your opinion how company can improve its supply chain process?
Supply chain analysis 59
Q6. Do you consult before the changes in any of the activities of supply chain and
logistics activities?
Q7. What are the performance drivers and desired outcomes of ur company on a day to
day basis?
Q8. How much time does it take for a product or service to be delivered or distributed
from point of production to point of consumption?
Q9. By what ways do you gather the need of timely distribution?
Q10. What strategies will u implement in the supply chain process in the near future?
Q11. Any further comments?
Thank you for your time and comments.
( THIS QUESTIONNAIRE WAS GIVEN TO RECEPTION OF THE COMPANY AND
THEN THE ANSWERS OF THE RESPONDENTS WERE ANALYZED INDIVIDUALLY.
THE MOST REPEATED ANWERS WERE THEN FORMULATED AND PRESENTED IN
THE REPORT.)
Supply chain analysis 60