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Resilient Supply Chains and Purchasing Assignment Sample

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Introduction: Resilient Supply Chains and Purchasing

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Organisation strategy

The project report has been going to discuss the topic regarding purchasing and resilient supply chain modules based on the company's perspectives related to ASDA that have located in the UK. The respective organisational strategy has tried to adopt the strategies related to the "Low Price Strategy" that has been developing the cultures of the online supermarket stores by making a wider range of contributions and improving the cultures of brand recognition by attracting a wider range of targeted customers. It has been also developing the cultures regarding e-commerce experienced cultures and making a discounting facility and diminishing the ultimate rates of targeted marketed competitions modules (Asda.com, 2022). For instance, the competitors of ASDA have been Tesco, Waitrose, Sainsbury and Iceland effectively, thus the accurate ranges of adapting cultures of the above-depicted strategies the rates of profit margin can also be sustainably increased. It has been also creating the ability for maintaining distinctive edges through improving the cultures of reputations, and innovations and developing the cultures of relationship modules with its suppliers and improving the ultimate rates of competitive advantages infrastructures. 

Explain the role of the operation function 

Operation strategies have been provided with the ability to develop the cultures of products, processes and services by analysing the effective strategies networks by making flexibility, costing strictures, quality and time management (Asda.com, 2022). The competing priorities have also been developing the cultures of the business functions and mechanisms of the controlling process by facilitating the financial performances and improving the cultures of Human Resources procedures effectively. Thus, organisations can also be getting successful in making efficient as well as improving the cultural attributes regarding profitability by improved capacity rates.

Operation function of the organisation

The above-depicted strategies have also been developing the cultures of long-term determinations and missions by adopting the appropriate decision-making approaches and improving the cultures of forecasting, facilities, planning, management and product management respectively. Thus, ASDA can also be getting successful in developing the cultures of human resources, distributions, customer services, sales, distributions and market segmentations. 

Goods or services 

The adaptations of effective marketing strategies the ASDA have been offering the best ranges of possible values by decreasing the ultimate ranges of cost structures. In addition, with the constant development rates of the supply chain resistance process, the respective organisational sectors can also be getting successfully attract a wider range of targeted customers and increase the rates of selling infrastructures based on the company's perspectives. 

Operations and supply chains 

Figure 1: Supply chain resilience of ASDA

Operations and supply chains

(Source: Semanticscholar.org, 2020)

The above-depicted figure has been considered ASDA can be developing the cultures of the distribution network module by improving the inventory costs. The chances of managing efficiency and rates of responsiveness cultures can also be creating a positive effect by developing the cultures of decision-making approaches. In addition, the data transactions and the improvements of knowledge structures can be also effectively conducted by taking the help of the sustainable technological advancements module related to "Radio Frequency Identification (RFID)".

2. Customer’s preference and operational process

Consumer preferences

Consumer preferences refer to the individual tastes of customers that include predispositions, likes and dislikes. Customer preference is recognised as a notable factor for developing products and services concerning increased sales rate and customer involvement as well as customer satisfaction, which is the main ingredient in marketing strategy for sale forecasting. During building and marketing, a product's proper understanding of customer demands and preferences is required to attract and reach target consumers (Fikar et al. 2021). Considering customer preferences and their requirements, the company leads to delivering the best results with an effective marketing plan. Customers' preference for UK supermarkets is associated with product categories, delivery times, price points, and styles.

Figure 2: Customers preference

Customers preference

(Source: https://www.slideteam.net/powerpoint/Consumer-Preference)

In this digital era customers prefers online delivery service concerning the comfort and time convenience that can be reached through developing a website and encouraging online service in selling and delivery practice. As stated by Tobi et al. (2019), customers of the UK supper market emphasize purchasing quality products at a low price, which is a significant factor in increasing sale rate and reaching customer satisfaction with an effective supply process. Product variability helps to provide a large number of options for customers to purchase products. The existence of different brands in existing UK supermarkets leads to the increasing demand for different category products for customers that can be recognised as a significant element of customers' preference. The price-related factor regarding customer preference includes purchasing grocery and food products at a low price, which signifies the importance of managing the operational processes with cost-effectiveness to deliver products at reasonable prices to reach customers' preferences and requirements significantly.

Operational function

ASDA Stores Ltd is a well-reputed supermarket chain in the UK that is concerned with providing online services for improving the product delivery process for customers. ASDA is concerned with representing value for customers through recognised customers' preferences and requirements to deliver exponential services and products regarding customers' preferences. According to Aramyan et al. (2020), customers prefer the British market regarding the delivery service of the supermarket as well as ASDA is associated with purchasing better quality products at low prices. Customers prefer to purchase local products that signify the importance of acquiring products from local suppliers. Concerning those factors, ASDA has built a business relationship with 300 local suppliers. Customers interact regarding variability in products and the brand is responsible for creating around 2000 product lines by ASDA in the British supermarket chain. The local sourcing process adopted by ASDA involves reaching customers' preferences for local products that contribute to satisfying customers' preferences and requirements with the utilisation of a remarkable supply process with a variable product line.

Figure 3: Operational process of ASDA

Operational process of ASDA

(Source: https://circlebizz.com/management/contemporary-business-environment-of-asda/)

In this aspect, the company emphasises optimising the local range and increasing flexibility in the supply process that is associated with the business expansion program. As researched by Hughes et al. (2021), the operational process regarding the supply chain in ASDA includes using a marking business strategy to develop a partnership relationship with Scotland and Northern Ireland concerning advice of supply-related experts in their management group. Using supply-related campaigns helps to encourage innovation in products with the utilisation of "RangeMe" which helps to introduce products with variable products. Increasing product availability through encouraging the supply process with "RangeMe" as a significant marketing platform and store helps to create a brand reputation. However, buying teams of ASDA has analysed significant issues regarding store management and supply-related factors that are the main reason affecting sales and customer satisfaction. Apart from that, it can be .stated that, ASDA has to improve the supply process as well as the store management process for managing product variability concerning customers' demands and preferences to meet customers' requirements. As opined by Haydock and Smith (2019), the "Nurture program" conducted by ASDA is concerned with reaching the primary needs and preferences of customers through conducting a medium size campaign that helps to increase accessibility for suppliers that is associated with an opportunity of developing business relationships with ASDA as well; as shelf space." Incubator programme" supply related activity conducted by ASDA is concerned to supporting the concept of emerging business with different entrepreneurship that contributes to improving supply chain and product launching activities with enlargement of market size.

Figure 4: Online stick out of ASDA

Online stick out of ASDA

(Source: https://www.statista.com/statistics/1272839/asda-out-of-stock-rate/)s

Nearly 94% of shoppers supported ASDA by developing business relationships for forecasting sales and with a clear dealing process (Asda.com (2021). However, those factors are unable to reach customers' preferences effectively that leads to affecting sales rates and economic conditions well. They have adopted an international procurement strategy for enlarging product lines and product variability regarding customers' requirements to reach customer requirements and satisfaction that is associated with proving food processing business." International Procurement and Logistics" used by ASDA contribute to developing an identical reputation in the existing market. However, the increasing price of fruits and vegetables, as well as nuts due to international supply costs, can be recognized as significant issues of the supply process concerning customers' preference for purchasing processes at low cost. Moreover, "International Procurement and Logistics" leads to increasing food waste and affecting food poverty that leading to a huge loss for ASDA with affecting environmental factors and product quality. In this aspect, they are trying to minimise these issues by identifying and developing an environmental protective supply process as well as covering important areas such as food waste, and the increasing use of plastic to regain brand reputation from 2020. 

According to market research in November 2022 concerning website visits and traffic in the official website and customers engagements, the top 5 competitors of "asda.com" are "sainsburys.co.uk", "tesco.com", "waitrose.com", and "iceland.co.uk" (Similarweb.com, 2022). ASDA has achieved 2nd rank in the UK supply market and 34 rank across the country due to its customer base and economic condition. Concerning current market competition and its operational process, it can be analysed that ASDA has to improve their supply process through improving store management, procurement process, as well as product variability with low cost, contributing to reaching customers' demand and customers requirements in the UK supermarkets. Proper store management with an effective procurements process helps to supply quality products for customers that lead to reaching customers satisfaction and increased sales rate effectively.

Point of improvement

Forecasting

ASDA is a UK-based organisation that considers supermarket chains in its business products and services. This organisation faces a lot of market competition in the country as a list of supermarkets available in that country such as ALDI, LIDL, Sainsbury's and Tesco. Therefore, a quality approach and strategic implementation require continuing a sustainable business process. ASDA faces issues with the supply chain process and forecasts are one of the key reasons behind that issue. Recent news of ASDA shows that the organisation continuously focuses on finding a greater supply chain process. The supply chain director of ASDA d Gavin Chappell warned the organisation that the supply chain issue is affected due to having a worse forecast process in the business. This respected person also included the need for the agility of this supply chain process and delivered information about factors that affect the forecasting of this business (Insightdiy.co.uk, 2022). The organisation, therefore, consider finding out effective ways that can contribute to continuing a quality supply chain process in the country. The forecasting process delivers a prediction of the business process by considering both past and present data to identify the needed possible steps that an organisation can consider to continue development in the business. In addition, risk management can get support from this forecasting as this management considers developing strategies after identifying current and future risks in the business and according to this strategic implementation will continue in the organisation. Therefore, this forecasting data can deliver effective information about the gaps in the business process and risk management can develop strategies to mitigate business gaps.

Figure 5: ASDA brand profile

ASDA brand profile

(Source:https://www.statista.com/forecasts/1304363/asda-online-grocery-delivery-brand-profile-in-the-united-kingdom)

In addition, ASDA also faced an issue regarding the price factor of food processing that started in 2009 and the organisation continued this issue till 2020 without taking any consideration. However, the organisation considered to take initiative to mitigate this issue in 2020. The issue occurred due to considering food transportation from one country to another country to develop product availability in the business. Therefore, a large cost was required to continue this transportation and this raised the price of the product. In addition, the customer of this business got dissatisfied with the product price and this impacted business sales and revenue part. The reason behind this was due to not considering an effective forecasting process in the business and therefore, future trends data got mismatched and unacceptable price factors got placed in the business process and dissatisfied customers. This unconsciousness about sales forecasting impacted business expenses and therefore, business revenue and development could not get a quality form to overcome the market competition of this organisation in the UK. Forecasting theory includes prediction information and considers past and current information while conducting predictions of upcoming business progress. This theory also includes that a pattern of historical values can be used in predicting the future values of the business process. Therefore, this theory can deliver effective support in developing future planning about the production, dispatch and sales process of an organisation. However, this theory does not consider exact predictions about future trends as this only delivers the expected value of a business in some upcoming period. The director of the supply chain process included a list of improvement criteria that the business can consider and those are time management processes for vendors, availability of distribution process at weekends, agility in the manufacturing process through considering capacity utilisation and lean and agile production process and greater transport flexibility.

Lean supply chain 

Other news sources included that ASDA, LIDL and Tesco consider rationing eggs to surpass supply chain issues in their business process. The issue occurs due to the spreading of bird flu d “avian flu” in November 2022 and this impacted the supply chain issues of the business process (Theguardian.com, 2022). The news also disclosed that the supply chain and availability of eggs were good at the previous time and at present this issue occurs. Therefore, three organisations consider the rationing process in the sales of eggs to continue the food marketing process in the business. Another source included that ASDA considers limitations in selling egg boxes to its customer as this supermarket considered selling a maximum of two boxes of eggs per customer to maintain product availability in the supermarket (Retailgazette.co.uk, 2022). This issue impacts Christmas turkeys and therefore, the organisation requires solving the business process and needs to develop strategies to increase product availability and supply chain process. Supply chain management theory considers a resource-based supply chain process that can develop raw materials and product availability of the business. According to this theory, the supply chain process can develop by considering resource availability and identification of future demand for specific products in the business and this identification can count in the forecasting process. Therefore, a quality link between the supply chain process and forecasting can develop overall business productivity and business revenue of the organisation. A list of technology that can consider for developing supply chain processes is cloud-based technology, blockchain technology, robotics, automation, and AI and analytics technology to develop the effectiveness of the business process. 

Inventory management

ASDA also faced the issue of shipping in worldwide business and this delivered impact on their supply chain process and inventory management. Logistics and supply chain part faced shipping issues and this developed shipping prices and issues of product availability in the business process (Retailgazette.co.uk, 2022). Therefore, warehouse management faces a large gap in controlling business inventory and the organisation faces issues in business sales and revenue. Another issue occurred in ASDA as the international food processing faced issues of overpricing due to raises in transportation costs and this affected their business sales. The business faced issues of product wastage due to having fewer sales of products in the business process. Inventory theory includes information about stock levels of business goods and this stock consider a value of product demand in the business and as per that, maintenance of stock level is done in the organisation. Radiofrequency identification (RFID) can deliver effective support in continuing effective inventory management in the business process. Therefore, this can support ASDA to maintain goods stock level in the business and can deliver development in product sales and revenue part of the organisation.

3. Recommendations on issues 

Taking the necessary action plan, the chances of the distribution model can be effective by attracting a wider range of targeted audiences as well as increasing the rates of costing modules. 

  • Developments of technological advancements

With the constant development rates of the inventory module infrastructures, the chance of hacking rate has been also sustainably reduced. In addition, the adaptations of effective strategies have improved the cultural attribute regarding digitalisation, made a changing culture, and created working flexibilities so the chances of hacking opportunities rates can be sustainably diminished (Jones and Comfort, 2020). Thus, it can be recommended that the proportion of technological advancements can be a much more effective side for the developments of retail industries' future growths around the UK. 

  • Improve forecasting and predictive analytics

Using the information for understanding the future supply and demand growths and making effective patterns, the chances of efficiency can also be effectively developed. In this regard, the implementation of AI and machine-learning approaches can also be analytics the future growth and learning about the detailed requirements of each region (Jones and Comfort, 2019). The chances of planning and production scheduling can be optimised for the obtained products and remove the disruptions that have already been created in the organisational sectors. Therefore, it can be suggested that the implementation of AI techniques could be beneficial aspects for ASDA by making a resilient in the situation of Covid-19. 

  • Development of inventory management

The developments of supply chain resistances have helped the retail industry by making a fluctuation and improving the safety and security rates by predicting future demand rates. For instance, working with multiple ranges of suppliers the chances of competitive advantage rates can also be creating effective collaborations by improving the rates of efficiency s well as the prosperity of the worker's sustainability (Wilshaw, 2018). Thus, it can be advised that demand forecasting and improvements in collecting information can also be making ability by removing the disruptions and increasing the selling rates. 

Conclusion 

Throughout the above analysis, it can be analysed that the entire discussions have been creating a precise concept regarding the topic related to supply chain and resistances of ASDA that have been located in the UK. Besides that, effective strategies, issues identification, supply chain resistance, technological implementations and the role of operational strategies have also been briefly elaborated here. In this regard, identified the effective issues of the strategic recommendations have also been analysed in this discussion. Proving the valuable information based on the company's perspectives the chances of development activities can also be easily getting accessed, thus it can be creating a positive impact by improving the future demand rates and net income statement modules by developing the cultures of the company's welfare and attracting the targeted audiences by taking the helping of the suitable strategies. In this context, described the supply chain resistances process as well as developments of future growth rates procedures have also been effectively discussed in this entire context. 

References List

Journals

  • Aramyan, L., Grainger, M., Logatcheva, K., Piras, S., Setti, M., Stewart, G. and Vittuari, M., 2020. Food waste reduction in supply chains through innovations: a review. Measuring Business Excellence. DOI: https://doi.org/10.1108/MBE-11-2019-0105
  • Fikar, C., Mild, A. and Waitz, M., 2021. Facilitating consumer preferences and product shelf life data in the design of e-grocery deliveries. European Journal of Operational Research294(3), pp.976-986. DOI: https://doi.org/10.1016/j.ejor.2019.09.039
  • Haydock, J. and Smith, T., 2019. No magic dust: The relationship between the national and local assessments in Sainsbury’s/Asda. Journal of Competition Law & Economics15(4), pp.538-558. DOI: https://doi.org/10.1093/joclec/nhz022
  • Hughes, A., Roe, E. and Hocknell, S., 2021. Food supply chains and the antimicrobial resistance challenge: On the framing, accomplishments and limitations of corporate responsibility. Environment and Planning A: Economy and Space53(6), pp.1373-1390. DOI: https://doi.org/10.1177/0308518X2110152
  • Jones, P. and Comfort, D., 2019. An exploratory case study of resilience and the leading retailers in the UK. International Journal of Management Cases21(4), pp.5-18. DOI: https://www.circleinternational.co.uk/wp-content/uploads/2021/01/21.4.pdf#page=5
  • Jones, P. and Comfort, D., 2020. A commentary on the United Kingdom's leading food retailers' resilience plans in the face of climate change. Journal of Public Affairs20(2), p.e2047. DOI: https://doi.org/10.1002/pa.2047
  • Petropoulos, F., Apiletti, D., Assimakopoulos, V., Babai, M.Z., Barrow, D.K., Taieb, S.B., Bergmeir, C., Bessa, R.J., Bijak, J., Boylan, J.E. and Browell, J., 2022. Forecasting: theory and practice. International Journal of Forecasting. https://www.sciencedirect.com/science/article/pii/S0169207021001758
  • Tobi, R.C., Harris, F., Rana, R., Brown, K.A., Quaife, M. and Green, R., 2019. Sustainable diet dimensions. Comparing consumer preference for nutrition, environmental and social responsibility food labelling: a systematic review. Sustainability11(23), p.6575. DOI: https://doi.org/10.3390/su11236575
  • Wilshaw, R., 2018. UK Supermarket Supply Chains: Ending the human suffering behind our food. DOI: http://dx.doi.org/10.21201/2018.1640
  • Websites
  • Asda.com (2021), Better Business, Available from: https://www.asda.com/creating-change-for-better/better-business/supplier-relations Accessed on 14/12/2022
  • Asda.com (2022). ASDA. Available from: https://www.asda.com/ Accessed on 14/12/2022
  • Insightdiy.co.uk, 2022. Asda looks for greater supply chain agility Available at: https://www.insightdiy.co.uk/news/asda-looks-for-greater-supply-chain-agility/750.htm [Accessed on: 13/12/2022]
  • Retailgazette.co.uk, 2022. ‘Worldwide shipping problems will continue for years’, warns Asda and Sainsbury’s supply chain provider Available at: https://www.retailgazette.co.uk/blog/2022/08/asda-sainsburys-supply/ [Accessed on: 13/12/2022]
  • Retailgazette.co.uk, 2022. Asda rations eggs following supply chain issues Available at: https://www.retailgazette.co.uk/blog/2022/11/asda-eggs/ [Accessed on: 13/12/2022]
  • Semanticscholar.org (2022). Information technologies in retail supply chains: a comparison of Tesco and Asda. Available from: https://www.semanticscholar.org/paper/Information-technologies-in-retail-supply-chains%3A-a-Xie-Allen/5cdd3367f6e2a189b3ae8a65f1e02c1a7e1786e3/ Accessed on 14/12/2022
  • Similarweb.com (2022), asda.com, Available from: https://www.similarweb.com/website/asda.com/competitors/#:~:text=asda.com's%20top%205%20competitors,com%20with%2032.4M%20visits Accessed on 14/12/2022
  • Theguardian.com, 2022. Tesco joins Asda and Lidl in rationing eggs over supply issues Available at: https://www.theguardian.com/food/2022/nov/21/tesco-joins-asda-and-lidl-in-rationing-eggs-over-supply-issues [Accessed on: 13/12/2022]
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