Sainsbury faces other two major retailer’s competition—Tesco and ASDA, meanwhile, these retailers changed their strategy from bargain to quality retailing and offering increased value, combined with a supply chain system. In 2000, top management of Sainsbury’s group decided to launch the ‘7-in-3’ supply chain management programme, which involved a major overhaul of the firm’s physical infrastructure, systems, processes and skill sets.
Sainsbury’s challenge and risk
* This supply chain project intended to accomplish in three years which was initially to take seven years. In terms of time, as a big project implement in a short time will cause lots of issues; such as rebuild automated fulfilment factories need increase project cost if accelerate processes, need more labour and material. When integrate supply chain systems, Sainsbury needs to ensure the new system satisfy their requirements which need testing system and review feedback. In this situation, Sainsbury needs more to qualify their new system running smoothly, flexible and reliable. On the other hand, replace the existing network of 25 regional distribution centres with automated distribution facilities also require more time to design and more money to support. Assume the project successfully implement, the vendor/supplier and the employee need time and money to understand the new system and to train them. * The change of Sainsbury requires the stakeholder also change in mind. The stakeholder includes the shareholder, top manager, employee, vendor (providing Information system to Sainsbury), supplier (providing food to Sainsbury) and user (customer). These stakeholders need have same picture in mind as Sainsbury. The shareholder and top manager have full support to this project and ensure the project goes on a right way. In addition, the top manager requires to consider that new system is accepted by other stakeholder—vendor, suppliers, users. The...