Business logistics

Topics: Inventory, Hong Kong, Supply chain management Pages: 5 (2542 words) Published: November 1, 2014

Group Project Report
Lecturer: Matthew Chow
Target: WellcomeTotal: 2,501 words

Group members:Lau Tsz Hang 53111868
Ho man Lung53015520
Au Ho Shing 53015567
Chan Wing Chun 53013168

TOC \o "1-3" \h \z \u Background PAGEREF _Toc341707402 \h 3Procurement PAGEREF _Toc341707403 \h 4Procurement process PAGEREF _Toc341707404 \h 4Hong Kong Merchandizing System PAGEREF _Toc341707405 \h 5Information System PAGEREF _Toc341707406 \h 6Electronic Data Interchange (EDI) PAGEREF _Toc341707407 \h 6Points of Sale System (POS) PAGEREF _Toc341707408 \h 6Replenishment buying process PAGEREF _Toc341707409 \h 7Warehouse PAGEREF _Toc341707410 \h 8Advantages of warehouse PAGEREF _Toc341707411 \h 10Location of warhouse PAGEREF _Toc341707412 \h 10Customer service of Wellcome PAGEREF _Toc341707413 \h 11Money back reward point program PAGEREF _Toc341707414 \h 11Refund guarantee PAGEREF _Toc341707415 \h 11Free Delivery Service PAGEREF _Toc341707416 \h 11Quality Assurance PAGEREF _Toc341707417 \h 12Competitive Advantage PAGEREF _Toc341707418 \h 12Recommendations PAGEREF _Toc341707419 \h 13References PAGEREF _Toc341707420 \h 13 BackgroundWellcome is established in 1945 as a small grocery shop, it has grown into the largest supermarket chain with the oldest heritage in Hong Kong in just a little over 60 years. With a network of over 270 stores and over 5000 employees, Wellcome has attracted over 14 million customers per month, which means on average, 6 in every 10 Hong Kong citizens will shop at Wellcome at least once per week. Having served the people of Hong Kong for over 60 years, Wellcome is committed to be a preferred supermarket chain by listening to its customers, providing a one-stop shopping convenience for the people of Hong Kong and consistently delivering value for money through friendly service and low prices. On average, each Wellcome store stocks at least 6000 to 7000 products, while bigger stores have stocks of well over 20,000 products. In order to handle such large quantity of products, it is believed that the logistics management of Wellcome must be well managed. They plan, implement and control the efficient, effective forward and reverse flow and storage of goods from the point of origin to the point of consumption in order to meet the customers’ requirement. ProcurementProcurement is a business process that every retailer needs to study (including wellcome) in order to make sure customers can get the product they want, at a price they can afford, when and where they want it. When sourcing for products, Wellcome follows the 4R strategy: Find the Right products at the Right time at the Right place for the Right customers. With years of retail experience, Wellcome offers the following products to its customers: Fresh products Household products

Basic groceries Chilled and frozen food products
Hot and cold beverages Beer, wine and spirits
Health, beauty and baby products Biscuits, confectionery and snacks Magazines Bread and cakes
Office Supplies Other groceries
Procurement process
Hong Kong Merchandizing SystemHong Kong Merchandizing system is a system that enables “Wellcome” to have better manage, control and perform on critical day by day merchandising activities from new product introduction to automated replenishment to financial inventory valuation. This system facilitates the ability of Wellcome to expand new channels and provides the foundation for cross channel management. This system provides “Wellcome” with a complete application to manage the fundamental elements of their business such as organization and level of inventory, locations and suppliers. The entire sale items are input and can be classified within the Merchandise Hierarchy, which facilitates Wellcome’ operational processing and reporting. For example, the locations, along with their specific nature, they are organized for reporting and efficiency purposes in the Organizational Hierarchy. Suppliers are typically sourced from the...

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