The Co-operative Group developed over 165 years from the merger of co-operative wholesale societies and many independent retail societies, changing from a wholesale operation to a major retailer. The group's roots can be traced beyond the Rochdale Society of Equitable Pioneers established 1844. The eight Rochdale Principles included distributing a share of profits according to purchases that came to be known as 'the divi'. The Co-operative Group Ltd. is a United Kingdom consumer cooperative with a diverse range of business interests. It is co-operatively run and owned by its members. It is the largest organization of this type in the world, with over 6 million members, who have a say in how the business is run and how its social goals are achieved. The group comprises a family of businesses, including: Food, Travel, Financial Services, Healthcare, and Funeral care, Legal Services, Motors and Online Electricals. The Co-operative Group acquires Somerfield, adding over 800 outlets to the Food store portfolio. Combined with Somerfield the business now operates more than 3,000 grocery stores as the fifth largest food retailer in the UK with a market share of approximately 8%. Their aims are * To be a commercially successful business
* To meet the needs of our customers and the communities we serve * To respond to our members and share our profits
* To be an ethical leader
* To be an exemplary employer
* To inspire others through co-operation
After successful merges Somerfield it more focus on improvement on it inventory management system. Because one of major complain from customer was poor availability. So they come up with new information system called supply management at.
HOW THEIR ORDERING SYSTEM WORK
Before get into new system I would like to give brief idea about how co-operation food business their ordering system works out previously. It was mainly depend on three basic figures. 1. Minimum shelf requirement ; this is the no of quantity must be on shelf at any time 2. Average sale per week ; average no of quantity sold in a week 3. Stock figure ; no of item have in the shop
This was called as SBO (sale base order). Unlike before the manager did not want to order manually, that what he think he can sale in what quantity. But after SBO information System introduce it make easier to manager to order the stock what he needed. It saves much valuable time of manager. So he can more concentration on other accept of business. Through it is an improvement of ordering system there were lot loop hole. One of that point was manager has to adjust the average sale figure manually. When he adjust average sale figure he has to consider weather forecast, seasonal tread, local event. And sudden change in store order made difficult for ware house to match with demand. Because of that most of the time delivery notes come up with out of stock notice. Another area of problem was managing allocation stock. Allocation stock is which head office allocates some of the product which store must sell (promotion and seasonal product). All the allocation delivered to the store in bulk stock without considering demand and sales. Store faced difficulties when come to ware house management, because most of store does not have lot of storing capacity. Also labour hours waste in handling lot of stock. And lot of stock result in lot of waste. And system will not give any indication to make stock figure correction when there is problem in stock figure (e.g., when the stock figure goes on negative stock). It is manager interest to do stock count. Stock figure can be vary due to waste without proper counting, shop lifting, shortage in delivery and etc. Using pocket held gun manager can scan all the gaps (out of stock line). He can print out gap check report. It is only give book stock figure only. It was not giving reason for the out of stock. As an example, it may be out of stock in...
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