Supply Chain Management:
Wegmans and Grocery Store Supply Chains
When managing a large company or corporation, having firm control and efficient use of the supply chain is key to success. Supply chain management as defined by Stevenson (2011), “is the strategic coordination of business functions within a business organization and throughout its supply chain for the purpose of integrating supply and demand management” (p. 664). Having an efficient supply chain will decrease costs and increase revenues in your business as well as cement and secure the position of your company in the industry with the formation of good long term supplier relationships. There are many different components of the supply chain that must be analyzed and tweaked to achieve near-maximum efficiency. Once this is done, the next step that needs to be taken in order to improve the supply chain's efficiency is to look at different strategies or methods that could be applied to the companies processes as a whole to optimize effectiveness, reliability, quality, or whatever is currently lacking. Other than having an overall Lean or Agile strategy for your supply chain, there are other things that can be added to a companies processes to optimize performance such as the introduction of new technologies or the central or decentralization of different departments. With so many different methods, options, and strategies to contend with on this matter, a business that has a large quantity of products along with a large number of suppliers would be ideal to see how these things impact not only a business, but an entire industry. An examination of the Wegman's grocery chain will also show the significance of maintaining an efficient supply chain. An in depth look and understanding of the supply chain components is essential for all of these improvements to be implemented successfully.
Supply chain management includes the logistics of sending and receiving products, supplier relationships and contracts, outsourcing of certain tasks and responsibilities, and procurement expertise not only in the companies purchasing department itself, but in individual departments as well. The supply chain management area of expertise is becoming increasingly sought after due to the large effects it can have companies costs and overall revenues. The Massachusetts Institute of Technology's website stated that its 2012 Supply Chain Management bachelors program had 97% of its students receive job offers by graduation with 100% accepting job offers within 3 months of graduation at a median salary of $115,000 ("Placement Statistics MIT Supply Chain Management", 2012). All of these things are crucial for a business with even a modestly sized supply chain to be successful. The purchasing or procurement department is essential in business dealings and also has a great deal of reponsibility due to the great influence that some companies wield with their large purchasing power. Many communities have been built up as well as shattered by a companies procurement departments decisions. When a buyer decides to change from a domestic to an international supplier, he is both helping and hurting the economy with his decision. Although the domestically based company will have lower costs and thus be more competitive and efficient in the economy which will raise profits, it is also taking away jobs from domestic workers which is detrimental to our economy. While both parties will be affected by the decision of the buyer regardless of what it is. It is the duty of the buyer to not only decide what will be more beneficial for the businesses bottom line, but also how his decision will affect the community and economy as a whole. Outsourcing plays a similar role by having both a beneficial and detrimental effect on both our economy as well as our community. Although these aspects of SCM show how it can affect many areas...
References: Awards | Wegmans. (2013, January). Retrieved from http://www.wegmans.com/webapp/wcs/stores/servlet/ProductDisplay? storeId=10052&partNumber=UNIVERSAL_3407
Garry, M. (2009, May 18). Wegmans Looks to Its Role in Supply Chain Snafus Supplier News content from Supermarket News. Retrieved from http://supermarketnews.com/supplier- news/wegmans-looks-its-role-supply-chain-snafus
Placement Statistics | MIT Supply Chain Management. (2012). Retrieved from Massachusetts Institute of Technology website: http://scm.mit.edu/recruitment/placement_statistics
Shrink rapped America 's food retailers should wage a tougher war on waste. (2008, May 18). The Economist. Retrieved from http://www.economist.com/node/11376872
Stevenson, W. (2011). Operations management. (11 ed., Vol. 148). New York: McGraw- Hill/Irwin.
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