As a part of the Woolworths Limited, Woolworths is Australia’s largest and most popular retailer with 3199 stores throughout Australia and New Zealand. The purpose of this report is to introduce Woolworths and how it deals with its suppliers, inventory management and quality.
This report draws attention to one of the Porters’ competitive forces, namely “bargaining power of input suppliers”, and determines the extent to which the organisation’s suppliers have the ability to influence Woolworths. Further evaluation reveals how Woolworths manages its inventory and the effectiveness of its inventory management practices. Moreover, this report describes the management on quality and the effectiveness thereof. Lastly, there are comments on the relevance and usefulness of the information found in relation to theoretical knowledge on suppliers, inventory management and quality.
Executive summary 1
Inventory management 4
Quality management 6
Total Words: 1498
As a great retailer brand, Woolworths is successful for a number of reasons. Not only by strictly controlling the quality, but also takes its inventory management very seriously. Effectively manages its inventories such as launching project Refresh in 1999 saves over $7 billion until now on a $1 billion investment. Better management on inventory and quality has absolutely made enormous contributions to Woolworths’ success today.
Powerful suppliers will result in higher priced inputs. To a company, the larger a supplier is, the higher the dependency on the particular supplier, and leads higher bargaining power of supplier. For a famous company like Coca-Cola, there is no reason for a retailer like Woolworths to refuse its products, which makes Cola Company the strong
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