Sainsbury’s Supply Chain Strategies
Arghavan Keivani 6150405
March 2011
A brief introduction to Sainsbury’s and its background J Sainsbury plc (Sainsbury’s) was founded in 1869 and is considered as a top UK-based food retailer having around 150,000 employees. It drives a chain consist of 500 supermarkets and 290 smaller format stores through the country which offer groceries, electricals, clothing, homewares, DVD rentals and financial services. There is an Online-channel making customers able to shop online, which is nearly 3% of the grocer's sales. [1] By having almost 150,000 employees in the United Kingdom, Sainsbury’s is providing customer-facing team, having members in 785 stores backed up by a network of logistics and other support staff. To make the employee engagement and motivation task a special challenge, 60% of these people work part-time. [2] Competitive strategy describes the set of needs of the customer which the company looks for in order to satisfy. Competitive strategy (mission) can be defined as an area of primary concern to managers, critically depending on a delicate understanding of industries and competitors. It is a combination of ends (goals/objectives) for which the firm is attempting and the means (policies) by which it is seeking to get there. [3] The spirit of creating competitive strategy is relating a company to its environment. Even though the related environment is very wide surrounding social as well as economic forces, the main element of the firm’s environment is the industry formatting the competitive rules of the games in addition to tactics likely available to the firm. [3]
Sainsbury’s Supply Chain
In 2004, Justin King started on a new strategy focused on supply-chain service to attempt stock availability, increased competitiveness on price and improving customer relationships. By dividing the customer base into 10 sectors, Sainsbury’s is focusing on customer/market sector