Giant Food Store Supply Chain

Posted: August 6th, 2013

Giant Food Store Supply Chain

Introduction

Supply chains frequently change due to the rapid changes in the business environment (Hugos, 2011).

Therefore, companies need to monitor daily operations of these chains for them to achieve the desired objectives.

This could only be done by measuring the performance of each function separately and the whole supply chain in general.

The supply functions are transportation, inventory, production, location and information (Bhagwat & Sharma, 2007).

Rationale and pros and cons

Warehousing and storage ensures there is continuous supply of products to production as well as to distributors through timely management

The use of the metrics ensures that operations within the warehouse are timely and organized for ease of operations

The metrics focus more on time and organization but disregard the costs

Example

Giant Food Store Supply Chain cannot rely on everyday supplies, and requires a warehouse for storing foods

Through custom clearing cycle, the company is able to find out the performance of the warehouse in terms of time

Using the floor space utilization, the company knows the amount of space that is under utilized

Moving of units per person hour determines the organization of goods in the store, whether everything is at the right place