Unit 29 D1 
Unit 29 D1 ADEEBA KIRAN
D1 – Evaluate the distribution systems in delivering goods and services for a selected
Organisation
Introduction
In this assignment I am going to evaluate the distribution systems in delivering goods and services for one of the well-known food sector business and that is ASDA. I am going to look at both the positive and the negative aspects of the distribution systems used and make recommendations for improvement with justified reasons
Asda gets its products straight from the manufacturers and then sells them directly to the customers they don’t need to involve a third party in this process and they always get stock direct.
They reason that ASDA are able to get the products straight from the suppliers is because they are one of the largest supermarkets in the UK, and therefore can provide suppliers with a lot of business, ASDA also have suppliers who only work for them to create the own brand label i.e. George. This can work against the suppliers as if they begin to rely on the ASDA orders then it can be easy for ASDA to renegotiate the terms in their favour.
Asda has four key supplier areas: 1. Food, Household, Health & Beauty - This area covers off the key FMCG core of the business.
2. General Merchandise - non-food range
3. Clothing - ASDA George clothing business is one of the largest clothing retailers in the UK by volume this area is ASDAs own brand the George supply chain - the companies that manufacture garments on ASDA’s behalf - stretches across 19 countries, using around 600 primary, product making factories, with two thirds of our production coming from China, Bangladesh, Sri Lanka, Turkey and India.
4. Central Buying - This is the team who makes purchasing decisions on goods not for resale (GNFR) – from capital expenditure on contracts for building, through to
D1 – Evaluate the distribution systems in delivering goods and services for a selected
Organisation
Introduction
In this assignment I am going to evaluate the distribution systems in delivering goods and services for one of the well-known food sector business and that is ASDA. I am going to look at both the positive and the negative aspects of the distribution systems used and make recommendations for improvement with justified reasons
Asda gets its products straight from the manufacturers and then sells them directly to the customers they don’t need to involve a third party in this process and they always get stock direct.
They reason that ASDA are able to get the products straight from the suppliers is because they are one of the largest supermarkets in the UK, and therefore can provide suppliers with a lot of business, ASDA also have suppliers who only work for them to create the own brand label i.e. George. This can work against the suppliers as if they begin to rely on the ASDA orders then it can be easy for ASDA to renegotiate the terms in their favour.
Asda has four key supplier areas: 1. Food, Household, Health & Beauty - This area covers off the key FMCG core of the business.
2. General Merchandise - non-food range
3. Clothing - ASDA George clothing business is one of the largest clothing retailers in the UK by volume this area is ASDAs own brand the George supply chain - the companies that manufacture garments on ASDA’s behalf - stretches across 19 countries, using around 600 primary, product making factories, with two thirds of our production coming from China, Bangladesh, Sri Lanka, Turkey and India.
4. Central Buying - This is the team who makes purchasing decisions on goods not for resale (GNFR) – from capital expenditure on contracts for building, through to