The Faults in the Recent Project of Sainsbury :: Sainsbury Business Management Essays

The Faults in the Recent Project of SainsburyIn 2000, Sainsburys began its blood line transformation programme.The grand plan includes what is arguably the largest and most driven retail supply chain project in Europe. The main device driver wasthe need to cut costs. However, internal research found that thecompanys cost-per-case was significantly higher than its nearestrivals.Sainsburys had been managing scattering in the comparable way for morethan 40 years, which is mainframe-based warehouse management system, Its typical distribution center was almost as old. Compared to the ageof the average Tesco depot septette-spot yearsSainsburys depots were nearingthe end of their useful life. The old system of depots was designedfor the purposes, such as packing for meat and own-brand goods.However, it means that bingle store could be receiving goods from five orsix different depots in any one day, which was highly inefficient.The old delivery system was also ill-suited to changes in nodetastes, habits and store locations. Supermarkets have to offer a widerrange of products, in small volumes and at lower prices, than in thepast, to people who shop when they need to instead than stocking uponce a week.Today, Sainsburys carries 2.5 million cases per week from nigh2,000 suppliers. It also has to deliver them to 500 outlets every day,ranging from traditional large stores to smaller shops on previouslyuntapped territories, such as railway terminals and rebuke petrolstations. Given this diversity, daily waves of restocking arerequired from 5am onwards. (http//www.supplymanagement.com/archiveitem.asp?id=8784,4/4/2005)In order to service this need, Sainsbury revamped its supply chain andcreated a get laid end to end supply management system.The initial timeline for the project was seven years, as thestruggling chain set about pruning a network of 25 distributioncentres to just nine facilities in eightsome regions around the UK.Another part of the plan was to bui ld four giant star warehouses, two ofthem fully automated, for 400 million each.(http//www.supplymanagement.com/archiveitem.asp?id=8784, 4/4/2005)Sainsbury did it in three years, to catch up with, in some cases, andsome cases have the best its rivals. Sainsburys uses a number of ITsystems to manage its supply chain, mostly within the Accentureoutsourcing deal. scattering warehouse management systems areprovided by Manhattan Associates. Eqos has built an alerts system to purify stock availability in store, based on Microsoft .nettechnology. And Retek has supplied software to enter product demandin Sainsburys stores. By implementing automation, Sainsbury washoping also to avoid adult male errors so that errors were right at thefirst time Although, Sainsbury has been working touchy to improve itssupply chain, however, the operation of its four new automated depots