Whole Foods Supply Chain Analysis
Distribution For Whole Foods Markets in Australia will be difficult at first, with costs and technical issues decreasing as a reliable supplier network is established. Development of the Australian Market supply chain will be an ongoing focus and cost as supply choices and methods are established.
Because Whole Foods is a grocer, many products need to be delivered just in time to be sold in order to minimize costs due to spoilage and damage. Over 66% of Whole Foods products are perishable (Whole Foods, 25). Whole Foods product distribution to stores in Australia will work almost identically to the methods used in American and United Kingdom stores. A central good acquisition warehouse will truck products to each chain as they are needed,
and as fresh produce arrives. The center will consist of bakehouse facilities, commissary kitchens, seafood-processing facilities, and a meat and produce procurement center. All other inventory will be distributed through this center as well. Whole Foods places an emphasis on the sale of perishable goods; this will have to be managed carefully. Products under Whole Foods’ private labels, 365 Everyday Value and 365 Organic, as well as all coffee and tea products, will be imported from the United States.
In order to minimize startup costs, Whole Foods will operate on a smaller product inventory baseline than stores in the United States. All distribution costs will be similar to those in the American Market, but on a smaller scale. Most organic produce Whole foods Markets receives are already imported through United Natural Foods, Incorporated (Whole Foods, 12). For distribution in Australia, Whole Foods Markets will contract with KADAC Limited. Pricing and goods carried by KADAC are similar to United Natural Foods incorporated in the United States.
All fresh foods will be delivered through KADAC from organic farms in Australia when possible, and from various countries when necessary. KADAC will be the importer of all goods; therefore Whole Foods Markets will not deal with import and shipping costs to the distribution center. Using KADAC as a distributor and wholesaler will allow Whole Foods Markets, Incorporated to tailor its product selection to the Australian Market.
From the distribution center, the process of delivering products to the store will work exactly like the distribution center in the United States. Products will be sent from the procurement center to each whole foods store via Whole Foods leased tractor-trailers.
The pricing of food in Australia is largely similar to the United States, and the food products consumed are comparable to most Western countries. Therefore, the pricing strategy Whole Foods will implement will be standard across the U.S. and Australian markets. Any products that need to be imported from the United States will be duty free because of the US-Australia Free Trade Agreement. As stated earlier, all packaged private label goods including 365 Everyday Value and 365 Organic, will be imported from the United States. This will increase the price of these products in order to cover the necessary costs of shipping these products from the United States to our distribution center in Australia.
Because Whole Foods is a grocer, many products need to be delivered just in time to be sold in order to minimize costs due to spoilage and damage. Over 66% of Whole Foods products are perishable (Whole Foods, 25). Whole Foods product distribution to stores in Australia will work almost identically to the methods used in American and United Kingdom stores. A central good acquisition warehouse will truck products to each chain as they are needed,
and as fresh produce arrives. The center will consist of bakehouse facilities, commissary kitchens, seafood-processing facilities, and a meat and produce procurement center. All other inventory will be distributed through this center as well. Whole Foods places an emphasis on the sale of perishable goods; this will have to be managed carefully. Products under Whole Foods’ private labels, 365 Everyday Value and 365 Organic, as well as all coffee and tea products, will be imported from the United States.
In order to minimize startup costs, Whole Foods will operate on a smaller product inventory baseline than stores in the United States. All distribution costs will be similar to those in the American Market, but on a smaller scale. Most organic produce Whole foods Markets receives are already imported through United Natural Foods, Incorporated (Whole Foods, 12). For distribution in Australia, Whole Foods Markets will contract with KADAC Limited. Pricing and goods carried by KADAC are similar to United Natural Foods incorporated in the United States.
All fresh foods will be delivered through KADAC from organic farms in Australia when possible, and from various countries when necessary. KADAC will be the importer of all goods; therefore Whole Foods Markets will not deal with import and shipping costs to the distribution center. Using KADAC as a distributor and wholesaler will allow Whole Foods Markets, Incorporated to tailor its product selection to the Australian Market.
From the distribution center, the process of delivering products to the store will work exactly like the distribution center in the United States. Products will be sent from the procurement center to each whole foods store via Whole Foods leased tractor-trailers.
The pricing of food in Australia is largely similar to the United States, and the food products consumed are comparable to most Western countries. Therefore, the pricing strategy Whole Foods will implement will be standard across the U.S. and Australian markets. Any products that need to be imported from the United States will be duty free because of the US-Australia Free Trade Agreement. As stated earlier, all packaged private label goods including 365 Everyday Value and 365 Organic, will be imported from the United States. This will increase the price of these products in order to cover the necessary costs of shipping these products from the United States to our distribution center in Australia.