Unit 29 D1

Topics: Logistics, Supply chain, Supply chain management Pages: 5 (1525 words) Published: December 14, 2014
Unit 29 D1 ADEEBA KIRAN D1 – Evaluate the distribution systems in delivering goods and services for a selected Organisation

Introduction

In this assignment I am going to evaluate the distribution systems in delivering goods and services for one of the well-known food sector business and that is ASDA. I am going to look at both the positive and the negative aspects of the distribution systems used and make recommendations for improvement with justified reasons

Asda gets its products straight from the manufacturers and then sells them directly to the customers they don’t need to involve a third party in this process and they always get stock direct. They reason that ASDA are able to get the products straight from the suppliers is because they are one of the largest supermarkets in the UK, and therefore can provide suppliers with a lot of business, ASDA also have suppliers who only work for them to create the own brand label i.e. George. This can work against the suppliers as if they begin to rely on the ASDA orders then it can be easy for ASDA to renegotiate the terms in their favour.

Asda has four key supplier areas:

1. Food, Household, Health & Beauty - This area covers off the key FMCG core of the business.

2. General Merchandise - non-food range

3. Clothing - ASDA George clothing business is one of the largest clothing retailers in the UK by volume this area is ASDAs own brand the George supply chain - the companies that manufacture garments on ASDA’s behalf - stretches across 19 countries, using around 600 primary, product making factories, with two thirds of our production coming from China, Bangladesh, Sri Lanka, Turkey and India.

4. Central Buying - This is the team who makes purchasing decisions on goods not for resale (GNFR) – from capital expenditure on contracts for building, through to carrier bags and colleague uniforms. hwww.asdasupplier.com/about-us/how-we-work-with-suppliers

Local Products
Local sourcing Asda define local products as those that are made locally, grown locally and reared locally; are a local taste or delicacy and recognised by customers as local and for which there is significant customer demand. They will source and stock several local businesses goods in their local stores the individual businesses will deliver the goods to the stores or depot.

Asda have over 400 stores and depots all around the UK including chilled distribution depots, Asda were one of the first retailers to switch to rail in our distribution network. Rail is a better option than road freight because it can be shared by several retailers or suppliers, helping to maximise each journey. They use 245 new double-deck trailers to save over 10 million road miles every year by doubling the amount they carry in each journey.

International Suppliers
19 countries are used to source ASDA’s goods. They use aeroplanes and lorries for ships and trains where we can. For Ethical reasons they have a set of standards for these suppliers

ASDAS Suppliers standards

1. Employment is freely chosen
2. Freedom of association and the right to collective bargaining are respected 3. Working conditions are safe and hygienic
4. Child labour
5. Compensation
6. Working hours are not excessive
7. No discrimination is practised
8. Regular employment is provided
9. No harsh or inhumane treatment is allowed
10. Immigration law and compliance

Asda international suppliers- Kenyan suppliers
Kenyan suppliers are asda’s international suppliers. They introduced Passion fruit to the UK in 19th Century. The Kenyan variety is larger, yellow in colour, with much sweeter seeds so it can be enjoyed straight from the fruit bowl or added to fruit salad, jellies or mousse.

“Our Kenyan smallholder suppliers are supported by the...
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