Woolworths Limited
Executive summary
As a part of the Woolworths Limited, Woolworths is Australia’s largest and most popular retailer with 3199 stores throughout Australia and New Zealand. The purpose of this report is to introduce Woolworths and how it deals with its suppliers, inventory management and quality.
This report draws attention to one of the Porters’ competitive forces, namely “bargaining power of input suppliers”, and determines the extent to which the organisation’s suppliers have the ability to influence Woolworths. Further evaluation reveals how Woolworths manages its inventory and the effectiveness of its inventory management practices. Moreover, this report describes the management on quality and the effectiveness thereof. Lastly, there are comments on the relevance and usefulness of the information found in relation to theoretical knowledge on suppliers, inventory management and quality.
CONTENTS
Executive summary 1
Introduction 3
Suppliers 3
Inventory management 4
Quality management 6
Comments 8
Conclusion 8
Recommendations 9
References 10
Total Words: 1498
Introduction
As a great retailer brand, Woolworths is successful for a number of reasons. Not only by strictly controlling the quality, but also takes its inventory management very seriously. Effectively manages its inventories such as launching project Refresh in 1999 saves over $7 billion until now on a $1 billion investment. Better management on inventory and quality has absolutely made enormous contributions to Woolworths’ success today.
Suppliers
Powerful suppliers will result in higher priced inputs. To a company, the larger a supplier is, the higher the dependency on the particular supplier, and leads higher bargaining power of supplier. For a famous company like Coca-Cola, there is no reason for a retailer like Woolworths to refuse its products, which makes Cola Company the strong
As a part of the Woolworths Limited, Woolworths is Australia’s largest and most popular retailer with 3199 stores throughout Australia and New Zealand. The purpose of this report is to introduce Woolworths and how it deals with its suppliers, inventory management and quality.
This report draws attention to one of the Porters’ competitive forces, namely “bargaining power of input suppliers”, and determines the extent to which the organisation’s suppliers have the ability to influence Woolworths. Further evaluation reveals how Woolworths manages its inventory and the effectiveness of its inventory management practices. Moreover, this report describes the management on quality and the effectiveness thereof. Lastly, there are comments on the relevance and usefulness of the information found in relation to theoretical knowledge on suppliers, inventory management and quality.
CONTENTS
Executive summary 1
Introduction 3
Suppliers 3
Inventory management 4
Quality management 6
Comments 8
Conclusion 8
Recommendations 9
References 10
Total Words: 1498
Introduction
As a great retailer brand, Woolworths is successful for a number of reasons. Not only by strictly controlling the quality, but also takes its inventory management very seriously. Effectively manages its inventories such as launching project Refresh in 1999 saves over $7 billion until now on a $1 billion investment. Better management on inventory and quality has absolutely made enormous contributions to Woolworths’ success today.
Suppliers
Powerful suppliers will result in higher priced inputs. To a company, the larger a supplier is, the higher the dependency on the particular supplier, and leads higher bargaining power of supplier. For a famous company like Coca-Cola, there is no reason for a retailer like Woolworths to refuse its products, which makes Cola Company the strong
References: RFID association Australia, 2007, Communicate, Facilitate, Collaborate& Represent, viewed 16 May 2011, http://www.rfidaa.org/apply | MuzInk, August 23 2004, ‘Woolworths drives $2.5bn out of the supply chain’, viewed 16 May 2011,http://www.muzink.com/afrn?articleid=232 | Woolworths Limited 2007, Woolworths limited, viewed 14 May 2011, http://www.woolworthslimited.com.au/phoenix.zhtml?c=144044&p=society-quality | Foran, G 2009, “Woolworths quality assurance standard: protecting customer trust”, viewed 14 May 2011, http://www.wowlink.com.au/cmgt/wcm/connect/092cd680433d399f8aa79aa521a80a40/WQA_Standard_Version6_June09.pdf?MOD=AJPERES | Woolworths Home Brand, Woolworths, viewed 13 May 2011,http://www.woolworths.com.au/wps/wcm/connect/website/woolworths/about+us/our-brands/home-brand/woolworths+home+brand | Program and benefit, Everyday Rewards Card, viewed 13 May 2011,https://www.everydayrewards.com.au/edr/wps/portal/rewards/root/aboutcard/benefits/!ut/p/b1/04_Sj7Q0MDUwM7U0N9CP0I_KSyzLTE8syczPS8wB8aPM4t0NzZ1MXExNDNwtLQwMPEMDnM29fc0M3QOM9P088nNT9XOjHBUBg8X-cw!!/dl4/d5/L2dBISEvZ0FBIS9nQSEh/ | Woolworths Limited annual report 2010, viewed 17 May 2011,http://media.corporate-ir.net/media_files/irol/14/144044/agm_2010/Annual%20Report%20FINAL.pdf |