SUPPLY CHAIN MANAGEMENT

Supply Chain Management

Supply Chain Management at Grocery Retailers

Introduction

The critical goal of strategic thinking is to align the purposes of an organization or institution with the world around it. This fundamental statement masks a number of telling assumptions that apply to every form of social organization, from nations to corporations. First, it suggests that the aim of strategic thinking is to understand and integrate the purposes of institutions with the realities of the surrounding environment. Strategic thinking assumes that the world is filled with constant change and external challenges to which groups have to respond effectively to be true to their purposes and to flourish, (Cox 1999, pp-167- 175). This is the reason; supply chain management has gain rapid reputation and adoption throughout the world and in most of the organization. This paper will focus on how grocery retailers in United Kingdom had adopted supply chain and for what reasons. Earlier, retail stores focused on formulating cutting edge pricing strategies. Retail firms competed on the basis of prices. Other drivers were brand and category level. Promotion and other strategies of them used to influence retail stores' competition. Consumers were more sensitive to such changes and responded favourably to them. This was the time when consumers' purchasing patterns were simple.

Retailing business was not much developed, and no research to improve the firm's profitability was undertaken. Increased demand, mushrooming retail stores and growing competition in the retail industry led retail stores to improve their services in order to offer convenience to customers (Curtis & Corsi 2003, pp. 95-121). Diversified stores, expansion in business and globalization raised the need for more efficient and effective supply chain management to deliver high-quality products at a greater speed in comparison to their competitors (Accenture 2010). This approach is gaining popularity in all sectors of business, but retailing is particularly known for its supply chain as it is considered the most important function of retailing; greater efficiency of which helps them stand out in the industry.

Supply Chain Trend in UK

The basis of competition in UK retail industry has been shifting towards supply chain (Hughes, Merton 1996). The UK industry of grocery retail is very competitive and as many big names in the industry are competing to grab more customers. However, firms like Tesco, Sainsbury, ASDA and others have incorporated their supply chains into their business strategies. They are no longer concerned about cost reduction and other strategies rather supply chain is the most paramount concern to them. Companies are striving for having differentiated processes and capabilities that are supposed to be the support of supply chain (Accenture 2010). Retailers are focusing on having better communication with their suppliers with greater and effective information sharing (Zairi 1998). This system works best when whole supply chain operates as a team instead of utmost effort of a single unit. Firms are supposed to be flexible and open to allow free communication and cooperation among different departments. A trend in UK retail industry is a quick response (QR), supply chain partnership ...