There is no use denying the fact that the modern age could be characterized by the blistering development of small and large businesses. Having realized the advantages and possibilities of the market driven economy, many people decided to start their own business in order to develop their company and become successful.
It is obvious, that the process of management of a certain business is a very complicated job which demands a great number of various skills from the owner. Thus, one of the first and most important tasks which a manager should accomplish is to align the efficient supply chain in order to provide good products to customers.
Besides, one should also remember the fact that “effective supply chain management has become a potential way nowadays to improve organisational performance” (Singh, Sandhu, Metri, & Kaur, 2010, p. 173). That is why, this issue is given so much attention. The task is also complicated by the fact that the given sphere is regulated by a great number of various laws which should be taken into account.
Speaking about the supply chain, it is possible to analyze it in terms of the functioning of Kroger, one of the greatest US retail companies, which has a great number of various supermarkets in different cities across the USA. Kroger is very popular and is usually associated with the high quality of goods along with their affordability.
One also admits the fact that being one of the greatest grocery supermarket chains in the country, Kroger follows all rules which exist in the given sphere in order to protect its image. That is why, it is possible to take its supply chain strategy as the example for the analysis.
First of all, it should be said that according to Krogers report there is a great number of various goods supplied by its own facilities. Kroger company nowadays owns different food products, dairies, bakeries, cream plant and cheese plants (Our Brands, n.d).
It becomes obvious that the company manufactures a great number of goods which are sold in its supermarkets, that is why it why it could be taken as a self-funding company which is also a great supplier. However, it still needs raw material supply to guarantee the functioning of it facilities. That is why, the company enter into various contracts with the manufacturers of raw materials to align the stable functioning of all its departments.
It is obvious, that the given supply chain strategy could be taken as very efficient because of the pattern according to which it is organized. Being a great manufacturer, Kroger depends only on the raw materials. Moreover, it could control the quality of goods by itself, providing a certain strategy and following some procedures.
Speaking about the quality, it should also be said that the company adheres to all regulations which exist in the given sector. The fact is that according to the federal regulations customers should be provided with quality products with the clear nature and supported by the information about their manufacturers (Circular 962 Rules and Regulations Relating to Retail Food Stores, 2004).
Additionally, storage and transportation requirements should also be met to guarantee the quality of the products. Nevertheless, being a responsible company, Kroger follows these instructions.
With this in mind, it is possible to conclude that Kroger company has a very efficient supply chain strategy which guarantees the high quality of all goods distributed by the company. Additionally, it is organized in accordance with existing federal regulations.
References
Circular 962 Rules and Regulations Relating to Retail Food Stores. (2004). Web.
Our Brands. (n.d.). Web.
Singh, R., Sandhu, H., Metri, A., & Kaur, R. (2010). Relating Organised Retail Supply Chain Management Practices, Competitive Advantage and Organisational Performance. Vision: The Journal of Business Perspective, 14(3), 173-190. doi:10.1177/097226291001400303