The Supply Chain Set Up and Delivery of Products to Supermarkets

Abstract

The research paper contains the structure of the supply-chain for the grocery store, including the ways by which the supply is delivered to the retail outlets. The cost effective ways are highlighted along with the means by which the lead-time can be reduces.

Table of Content

Abstracti

Table of Contentii

The Supply Chain Set Up and Delivery of Products to Supermarkets Introduction2

Discussion2

Structure2

Inventory Management4

Vendor Managed Inventory4

Channel Collaboration and Information Partnership5

Conclusion5

References6

Appendix7

The Supply Chain Set Up and Delivery of Products to SupermarketsIntroduction

A supply-chain is moving or shifting the product or services to customer from the supplier by involving, organization, technology, people, resources, activities and information. The activities of supply-chain are to convert a raw material, natural resource, and components into the finished product that are to be delivered to the end user or consumer. Supply-chain links value chains.

There are two types of supply-chain internal functions including upstream (supplier network) and downstream (distributors network). The upstream function that is supplier network includes the whole organization that supplies the services or material directly or indirectly. Whereas the downstream, functions include the distributors network where the materials are moved between the locations (Groenevelt, Rudi, et.al, 2006).

It has been noted that synchronizing the upstream and downstream function, that is supplier network, handling cost, consolidation of transport, eliminates time pressure and facilitates network design. In Retail supply-chain, four major stages were used that are: (1) supplier control; (2) centralization; (3) just-in-time; and (4) relationship.

Discussion

Structure

The structure of supply-chain today encompass of multi-echelon structure, which has interconnected stock points. The multi-echelon structure is complicated to administer in the case when they are within the area of the company like in the case of retail distribution along with the complications of assorting 30,000 items that are within the supermarket. All grocery retailers follow a supply-chain structure provided in the appendix fig.1. There are lots of warehouses in the region of the manufacturer. The figure demonstrates the efficient and effective operation with FTL (full truckloads) and full plates. The forecast is made the manufacturer regarding the demand and the supply along with the production of the product. The distribution of the product is done by the warehouse of the company in the area near the retail store, which is the primary distribution. Then the retail store controls the replenishment of their store, which is the secondary distribution. Sometimes this process is not efficient since it is a demand determined by the retail store orders. Sometimes it might run out of the FTL (full truckload) with pallets or might even be the case where the rolling cages cannot meet and assemble on demand.

The supply-chain has four structures on which the products are delivered to the retail outlets, which are (1) traditional; (2) Pick to Zero; (3) Cross Docking; and (4) Direct Store Delivery. Most of the retailers operate on the traditional supply-chain structure, where the manufacturer and the retailer keep the stocks at the distribution networks. This structure is beneficial when the retail outlet is near the distribution center. This leads to the less ...