The paper 'British Supermarket Supply Chain Examination' is a wonderful example of a Management Case Study. ASDA is one of the largest supermarkets in the United Kingdom with its headquarters in Leeds Yorkshire. Its history dates back in the 1920s when Yorkshire dairy farmers formed Hindell’ s Dairy Farmers Ltd to guard themselves against fluctuations in milk prices. The company went through a series of acquisition and in 1949 it changed its name to Associated Dairies & Farm Stores Ltd. The company merged with Asquith, which was a chain of Associated Dairies and three supermarkets in 1965, and adopted the name ASDA.
ASDA abolished the retail prices to be able to capture a large market by selling their products at low prices in their supermarkets. ASDA was acquired by Wal-Mart stores in 1999 and operates as its subsidiary in Britain. The supply chain is the process it takes to obtain goods from suppliers to the customer. It can also be defined as a system of people, information, resources, activities, and organization involved in moving goods or services from the supplier (s) to the customer (s).
It includes activities such as the conversion of raw materials, natural resources, and other components into finished products that are then delivered to the end consumer (Dam and Skjø tt-Larsen 2005). Operation management is the process that involves overseeing, controlling, and designing the redesigning and production of business operations during the transformation of goods and services into finished products and services. Operation management aims at maximizing efficiency in the production of goods and services that effectively meets the need of the customers (Kamauff 2010). Supply Chain and Operations Management Milk Despite having some connection with Yorkshire farmers during its early years, ASDA does not farm or source milk directly from suppliers.
The company has since diversified from dealing with just milk and now sells a variety of products in its supermarkets (Ilbery and Maye 2005). ASDA, being a subsidiary of the largest store in the world, maintains not only its own value but also the value of its supply chain network partners. ASDA works with a vast range and of milk suppliers to ensure that it satisfies its customers. The policy of the company dictates that it has to maintain a healthy relationship with suppliers and work for mutual benefits. Choosing and Management of Milk Suppliers What ASDA Looks for in Milk Suppliers When choosing a milk supplier, ASDA looks at several major factors.
The first factor is the quality of milk that the supplier can supply and reliability. ASDA ensures that its suppliers provide the best milk for its customers. The company image is important and to ensure that it remains so or better the company has to maintain the quality of its products.
The suppliers have to be reliable to ensure that there is a steady supply of milk. An ASDA supplier must have considerable speed and flexibility. Customers demand keeps on changing from time to time. At times, customers will consume large volumes of milk while they will suddenly lower their consumption at other times. To become an ASDA supplier, you must be able to give a competitive price while at the same maintaining the quality of milk you supply.
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ASDA . 2011 November, 29. ASDA Retail Stores. Retrieved from http://your.asda.com/our-stores
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BOURLAKIS, M. A., & WEIGHTMAN, P. W. H. (2003). Food supply chain management. Ames, IA, Blackwell Pub. http://www.myilibrary.com?id=131207.
DAM JESPERSEN, B., & SKJØTT-LARSEN, T. 2005. Supply chain management: in theory and practice. Copenhagen, Business School Press.
KAMAUFF, J. W. 2010. Manager's guide to operations management. New York, McGraw-Hill.
ILBERY, B., &MAYE, D. 2005. Food supply chains and sustainability: evidence from specialist food producers in the Scottish/English borders. Land Use Policy, 22(4), 331-344.
SELLITTO, C., BURGESS, S., & HAWKING, P. 2007. Information quality attributes associated with RFID-derived benefits in the retail supply chain. International Journal of Retail & Distribution Management, 35(1), 69-87.