Assignment title :

Contents
Introduction................................................................................................................ 3
Task -3: Understand the role of information technology in supply chain management
................................................................................................................................... 3
3.1 How information technology could assist integration of different parts of the
supply chain of an organisation..................................................................................3
3.2 How information technology has contributed to the management of the supply
chain of an organisation............................................................................................. 4
3.3 The effectiveness of information technology in managing the supply chain of an
organisation................................................................................................................ 5
Task -4: Understand the role of logistics and procurement in supply chain
management.............................................................................................................. 6
4.1 The role of logistics in supply chain management in an organisation..................6
4.2 Procurement practices in an organisation............................................................7
4.3 Factors that must be considered when improving logistics and procurement
practices in an organisation....................................................................................... 8
Conclusion.................................................................................................................. 9
References.................................................................................................................. 9

Introduction
Any organization whose doing business with the products and services for them understanding
and developing a proper supply chain management is important. On this their success in doing
business is dependent. This report is discussed in terms of Supply chain management and
logistics and procurement management of the UKs largest online grocery shop Waitrose. IT helps
to manage inventory that reduce wastage and also in the process of human resource
requirements. And lastly it helps the management in making strategic planning.

Task -3: Understand the role of information technology in

supply chain management
3.1 How information technology could assist integration of
different parts of the supply chain of an organisation
Supply chain management is the management of goods and services and other related activities
started from the collection of goods or storage house, raw materials, work in process, finished
goods and delivering to the final consumer of the goods and services. Waitrose is a large online
grocery shop in UK(Limited, W. (2015). About Waitrose. [online] Waitrose.com. Available at:
http://www.waitrose.com/home/inspiration/about_waitrose.html [Accessed 20 Jun. 2015]). They
have more than 400 shops in UK for them managing supply chain is very much important.
Waitrose have good reputation in supply chain management. As a result in recognition of their
work British Govt. awarded them Big Tick Award in the Sustainable Supply Chain category at
the Responsible Business Awards 2013. Waitrose believes in relationship with all the related
stakeholders that are directly and indirectly engaged with the firm. Waitroses activities started
with the actual producers of the goods that mean farmers and suppliers, delivery personnel,
consumers etc. To build up a strong relationship with these parties and keep closer look on them
Information Technology could better help to monitor the different part of the supply chain
management. Waitrose online delivery of goods, collection of goods from different location and

different farmers, suppliers, tracking facility, consumers location finder all are possible just
because of developed IT infrastructure of Waitrose. Waitrose use IT to integrate its management
of supply chain procedure that helps in different way.

Reduce cost of delivery, shop for consumers etc

Waitrose Transaction process through online
Increase the volume of sales, direct communication with producers etc

Speedy transfer of information, eliminating human error etc

Supply chain planning of Waitrose

Create a different environment that is unique from conventional way of controlling supply ch

Tracking andMake
orderthe
placing
transit of goods easy, raw materials,finished goods managing wast

Figure: How IT helps in Waitrose

3.2 How information technology has contributed to the

management of the supply chain of an organisation
For Waitrose use of information technology is a must. Its total business is dependent on use of
internet and other technological facilities. Establish communication with the firms target group
that means with consumers for whom the business started it is essential. Placing order by
customer, payment through online, tracking goods by consumer, suppliers order management,
connecting with the farmer from remote distance, online advertisement, for all things use of IT is

a must. Supply chain management concerned with the flow of products and information among
the related stakeholders of the organization. For Waitrose which believes in relationship with the
related groups tags with the firm presence of IT and its proper utilization provides the firm to
achieve efficiency in operation. IT helps them to collect required information about improvement
sector easily. It also helps to analyze data easily(Limited, W. (2015). About Waitrose. [online]
Waitrose.com. Available at: http://www.waitrose.com/home/inspiration/about_waitrose.html
[Accessed 20 Jun. 2015]). To coordinate overall activities of the largest grocery shop the supply
chain management and IT are interrelated with each other. The time required for and the cost
involved in obtaining information has reduced due to the help of Information technology. As
Waitrose is always believes in modernization of their current facility having any better solution
that improves the supply chain process they must gather the input of IT in their organization.
Managers of Waitrose are very much keen to know the benefit of new information technology
just because of they want to know how it facilitates the flow of information among department,
shops, manufacturing process, cost reduction, improved relationship, social needs, customers
need, suppliers information, cheap sources and healthy products acquisition etc(Chopra, S. and
Meindl, P. (2007). Supply chain management. Upper Saddle River, N.J.: Pearson Prentice Hall).

3.3 The effectiveness of information technology in

managing the supply chain of an organisation
If we analyze the history of Waitrose we see that since the beginning of the journey of the largest
grocery shop Waitrose; started as a street shop of selling grocery items. Then it started expands
its shops in different part of the UK (Burt, D., Starling, S. and Dobler, D. (2003). World class
supply management. Boston: McGraw-Hill/Irwin). Now it is the dominator of UKs online
grocery shop. In starting time physical movement of customers, direct contact physically,
producers and buyers presence was essential to make a transaction. In that time all the
transactions were made in paper money and transfer of physical papers were happened. Now all
these procedures are in void just because of increasing the effectiveness of the IT in business
transaction. To maintain standard with competitors use of IT is essential now. Using of

information tech. in firms contribute mainly in three ways(Greeff, G. and Ghoshal, R. (2004).
Practical E-manufacturing and supply chain management. Oxford: Newnes). First, it makes the
customers buying pattern more easy, consumers can easily buy products from Waitrose at home
that helps them to increase their recreational time and save time of shopping. Secondly, IT helps
to manage inventory that reduce wastage and also in the process of human resource
requirements. And lastly it helps the management in making strategic planning.

Task -4: Understand the role of logistics and procurement

in supply chain management

4.1 The role of logistics in supply chain management in an

organisation
In the business of manufacturing and selling goods the role of logistics is immense. Before going
to the in depth description of logistics support first we need to understand what is logistics. The
overall management of resources of an organization such as obtaining resources, stored and
creating location need is called logistics. For Waitrose as a online grocery shop management of
this type of logistics support is important. For Waitrose the logistics would be giving instructions
to the farmer of producing quality products, providing training, collecting agricultural products
from the farmers, communication with the suppliers, market makers, delivery transportation and
mechanism , providing facilities of tracking goods, stores some goods for immediate large
number of quantity order placed, convenient online order processing, maintaining quality etc. By
having an efficient supply chain and proper logistical procedures, a company can cut costs and
increase efficiency(Bowersox, D., Closs, D. and Cooper, M. (2002). Supply chain logistics
management. Boston, Mass.: McGraw-Hill). On the other hand, a company with poor logistics
will fail to meet customers' expectations and see its business suffer. But it is a matter of good
news that Waitrose has modern logistics and procurement facilities dedicated to the customers.
Proper management of logistics helps Waitrose to determine the level of quantity of goods that
are demanded by the consumers over a specified time thats why the company needs not to hold

extra inventory and reduce the cost of holding inventory and obsolescence(Chopra, S. and
Meindl, P. (2007). Supply chain management. Upper Saddle River, N.J.: Pearson Prentice Hall).
So logistics support of Waitrose want to provide a relationship from the production process to the
ultimate consumers of the goods and services. So having proper logistics and procurement
facility helps to buy products at a reasonable cost, proper quantity, reduce storage cost of
materials of Waitrose.

4.2 Procurement practices in an organisation

For any organization management of procurement means specially for Waitrose is the acquisition
of products from those farmers and producers at a reasonable price that would be beneficial for
both the producers and also for the grocery shop. It is very much essential for Waitrose because
their philosophy is to provide quality product to the consumers doors at minimum price
compared to the other competitor prevailing in the market, so in terms of collecting products
location also creates a factor in terms of product pricing. Many developing country produces
same products like Bangladesh but to ensure the quality of products in case of collecting from
outside the UK source (Bowersox, D., Closs, D. and Cooper, M. (2002). Supply chain logistics
management. Boston, Mass.: McGraw-Hill) . Although Waitrose concern about healthy, fresh
food and want to retain the confidence of all stakeholders it seems to increase the cost of
procurement but strategic management helps them to do it with at a frame cost that doesnt affect
the purchase price of the final consumers. To make the procurement process convenient Waitrose
management need to consider two sides both consumer and the producers. How easily a
consumer can purchase a product at a reasonable cost with a minimum time spending. To do so
the company needs to establish shops in different important locations because most of the online
shoppers are located in urban area(Bowersox, D., Closs, D. and Cooper, M. (2002). Supply chain
logistics management. Boston, Mass.: McGraw-Hill). Payment process should be eased use of
ATM card, credit card, bank checks should be acceptable way of medium of exchange. On the
other hand to the producer Waitrose can provide financing to them in the early stage so that they
can produce at a cheaper rate and Waitrose gets their product a cheap price compare to market
price.

4.3 Factors that must be considered when improving

logistics and procurement practices in an organisation
For a business organization the terms logistics and procurement stands at the same path can be
said interrelated. Procurement is a key activity in supply chain management activities of Waitrose
the largest UK based online grocery shop. Both have significant effect on the pricing of the
product, delivery timeline of goods to the customers(Chopra, S. and Meindl, P. (2007). Supply
chain management. Upper Saddle River, N.J.: Pearson Prentice Hall ). Because any delay due to
lack of logistics and procurement consumers will not get the desired product in time. That
increase the cost of the consumers and also for the Waitrose because of loosing customer by
further he or she might not be interested to buy from Waitrose. But consumers have faith on
Waitrose they are providing service with near to zero probability of making mistakes.
Procurement work likes a pivot in the internal supply chain management with a view to making
the consumers need to a need fulfilling consumable goods and satisfy customers and earn profit
from that product. Logistic and procurement facilities serve
Central storage roomInternal users of the goods
Internal users of the goods
Procurement sourcing of Waitrose
Response to the emergency need

Stock replenishment

Response to the emergency need

Farmers warehouse

Stock replenishment

Figure: Relationship of logistics and procurement of Waitrose Online shop

Conclusion
From the above analysis of Waitrose the online grocery shop in terms use of information
technology in supply chain management the company makes the best use of it to make a good
return by lowering cost and time. Other grocery shops in UK and outside the UK can follow the
strategy developed in logistics and procurement system of Waitrose.

References
Bowersox, D., Closs, D. and Cooper, M. (2002). Supply chain logistics management. Boston,
Mass.: McGraw-Hill.
Burt, D., Starling, S. and Dobler, D. (2003). World class supply management. Boston: McGrawHill/Irwin.
Chopra, S. and Meindl, P. (2007). Supply chain management. Upper Saddle River, N.J.: Pearson
Prentice Hall.
Greeff, G. and Ghoshal, R. (2004). Practical E-manufacturing and supply chain management.
Oxford: Newnes.
Hugos, M. (2003). Essentials of supply chain management. Hoboken, N.J.: John Wiley & Sons.
Limited, W. (2015). About Waitrose. [online] Waitrose.com. Available at:
http://www.waitrose.com/home/inspiration/about_waitrose.html [Accessed 20 Jun. 2015].
Mentzer, J. (2001). Supply chain management. Thousand Oaks, Calif.: Sage Publications.