Supply Chain issues for the ADM Londis PLC Company
Total Word Count: 4,126
What is a Supply Chain 4
What is Supply Chain Strategy 4
Porters Value Chain 8
Londis Centralised Chilled Distribution facility 11
Just in Time 12
Pareto Law 12
Shop staff 12
Annex A – Typical Londis Store Plan 16
Annex B – Photo of typical Londis shop 17
The best supply chains aren't just fast and cost-effective. They are also agile and adaptable, and they ensure that all their companies' interests stay aligned
This essay will discuss and illustrate the Supply Chain (SC) strategy of the ADM Londis shop in Upavon . The author will make recommendations for the improvement of the SC functions for this shop by evaluating their current SC procedures against academic theory with the aim of improving efficiency.
The UK convenience store market is a large part of the economy and it generated total sales of £35.6bn in the 12 months to April 2013. This equates to a 4.9% year on year increase (IGD Research and William Reed Business Media, 2013). Many of the factors that have fuelled growth in the convenience store sector in recent years continue to play a role. These include structural changes, such as smaller households and longer working hours, which are altering shopper habits and helping drive convenience sales. Many shoppers now favour a ‘little and often’ approach to grocery shopping, which is also increasing the appeal of convenience stores (IGD Research and William Reed Business Media, 2013). Figure 1. Chart showing the number of retailers in the UK in 2013 (Source: IGD Research and William Reed Business Media, 2013).
In the current economic climate, retailers are continuing to focus on building their value for money credentials, improving store standards, and developing ranges to meet the changing needs of consumers. Stores are also looking towards new technologies and additional services such as ‘click and collect’ and parcel pickup to attract shoppers.
Londis is the fastest growing retail symbol group in the UK, with over 2,200 retailers, and it sources goods from over 200 suppliers. All the stores that are currently operating are franchise-owned but are supplied by the Londis ADM Supply Chain (Londis website accessed 6 Jan 14).
As this report is looking at the SC aspects for one particular shop the author will make recommendations for the improvement of the Upavon shop in the following areas:
What is a Supply Chain?
A Supply Chain is a very loose and wide term describing the integrated process or procedures and activities involved with the flow and transformation of goods or services, from obtaining the pure raw materials right through to the delivery to the end user or customer(s). Emmett (2008) defines a Supply Chain as ‘The process, which integrates, coordinates and controls the movement of goods, materials and information from a supplier through a series of customers to the final customer’. Cox (1999) argues that the main concept or factors for the supply chain are operational effectiveness and efficiency. Today, the word Logistics is heavily used and is