SAINSBURY CASE STUDIES

SUMMARY:
The report looks at Sainsbury as a mass process, specifying its main characteristics, defines its flow and layout, indicates transforming and transformed resources and identifies recommended changes to the company. Based on the research finds, that top priority for Sainsbury’s is the quality and the cost is something over which Sainsbury’s should work.

INTRODUCTION:
The biggest pride of Sainsbury- the longest standing retailer, is its quality and recognizable brand known for several years since its opening in 1869. Since then supermarket attracts enormous group of 18.5 millions people every week (1.03.2010), what generates great profit each year. Financial report for year 2009 shows that total sales for a year went up by 5.7 per cent. Achieving this kind of success is the result of great operations management. Due to the relatively high prices, Sainsbury declined to the third position among the most popular UK’s supermarkets and is just behind Tesco and ASDA but is on its way to get back on top- partially because introducing new technologies.

REFERENCES:
Greasley, A., 2008.Operations Management. West Sussex: John Wiley and Sons Ltd. Shim J.K., Siegel J.G., 1999. Operations Management. New York: Barron’s Educational Series, Inc. Slack, N., Chambers, S., Johnston, R., 2007. 5th edition. Operations Management. New York: Pearson Education. http://www.j-sainsbury.co.uk/

CHARACTERISTICS OF THE OPERATIONS:
Sainsbury is great example of high volume operation. Sainsbury's shop visits 18.5 million customers and online shop-100.000 buyers every week! Numbers speak for themselves. Sainsbury copes with such a huge crowd of customers by using modern technology- the bar code scanners, self checkouts and offers online shopping. The newest technology was recently introduced to Sainsbury- Scan & Pack or other words Fast Track Scheme, where customer walks around the shop with a handset, scans the barcodes of own-selected products and in the end only pays- what saves him time queuing.

Low variety causes low unit costs and contributes to high efficiency. bakers. Sainsbury’s has mixed. Sainsbury chose the best option for its operations. Staff has clearly defined tasks and fulfills the routine. what services to put in each area. However customization of service is very low and usually limited to advice on range of services available. Easter. Sainsbury’s predicts the number of customers which is based on monthly reports. During the day there is slightly higher demand in the evening. restocking staff. THE LAYOUT AND PROCESS FLOW: Layout considers how much space we have. Variation in demand is generally low. Front office has high visibility due to direct contact with customers that include: cashiers.higher demand around special events.Christmas. how to arrange this space. Most operations are standardized and have a high repetition. Taking all of above problems into consideration.using product layout. and first day of school. The foregoing characteristics clearly demonstrate that supermarket is an example of a mass process. Back office on the other hand has low visibility with no direct contact with customers. cleaners.Sainsbury's variety dimension is low. Variation in demand is mostly based on seasonality . like: suppliers. night staff. Mass because is producing goods in high volume and relatively low variety. Mass process also conduct many transactions per day with little customization. night porters or security guards. how to organize a flow and minimize movements.high and low visibility operations. Figure 1: Layout of Sainsbury’s . pharmacist or staff from customer service desk.

in order to help customers find them. where scanning machine (transforming resource) is scanning our products (transformed resource). self checkout machines. bar code scanners. rice.the customer satisfaction! THE FIVE PERFORMANCE OBJECTIVES: Five basic operations performance objectives are: quality.” (Slack. Process technology improves the speed of the processes. dependability and flexibility. They have been chosen in a similar group which ensures maximum efficiency. both: fast loading of products on the shelves by employees and purchases by customers. increases flexibility and improves effectiveness and thus. speed.) are located at the back. Constant arrangement improves the speed of processes. welcoming and attractive atmosphere but also signals freshness of the products. 2007 p. In many of above processes. through well- . These five characteristics are used to measure the production efficiency of the company.what improves flow. KVI. We are informed about special bargains and available discounts (process) where leaflets and posters are transformed resources and advertisement specialist is transforming resource. Within the product layout there is a special order which defines how products are distributed all around the store. On the entrance. cost. often is reducing costs. sugar. technology is highly involved. When we are shopping (process) shop assistant (transforming resource) is helping us to find needed products (transformed resource). to make customer pass through all aisles (pick up more things). to help customers easily find the needed products. Flowers. In case we do not have enough cash (transformed resource) we can always withdraw it (process) from ATM (transforming resource) available in Sainsbury. saves time. However. ATMs and security cameras. etc. 193) It provides convenience for the movement of products and customers. Wide aisles between shelves make it easier to move between the aisles. and make products more visible. Use of technologies is extensive and helps with transforming various information and processes. the routes are not predetermined. p.known value items (pasta. which allows for maximum flexibility to customers and does not restrict their movements. Constantly we are dealing with the flow of transforming and transformed resources.39). credit card machines. for example by keeping up high quality of its products-including fair trade products. we need to pay (process) at the checkout point. Above the shelves are large subtitles.From figure 1 we can observe a well-thought-out strategy of distribution of all products. “Product layout involves locating the transforming resources entirely for the convenience of the transformed resources. Therefore checkouts are located near the exit and next to the entrance are small counters with ready-made sandwiches and snacks-for those in a hurry. On many different levels Sainsbury maintain high quality of its services. fruits and vegetables are displayed on the entrance what is providing nice. Technology is used in retail scanners. 2008. When we are done with our shopping. Product layout requires a specific product distribution. shop/ trolley patrol (transforming resource) is providing us with trolley (process) and with a trolley (transformed resource) we are starting our shopping. “Technology is an important aspect of operations as it has led t a large growth in productivity” (Greasley.

Still we can come across queues. they go out to meet the expectations of customers for a healthy. They also introduced many attractive promotions and also suggest to customers interesting ideas for tasty and healthy meals in their cookery book -all in order to reach greater number of customers and to meet needs of every one of them. . Online Shopping at Sainsbury's is also a great advantage. Sainsbury's team is trying to reduce queues through the recent introduction of baskets tills. especially in the evenings. This is one of the main objectives of Sainsbury. Sainsbury has different prices. I would describe the speed of Sainsbury's as a moderately. during the peak time. Sainsbury also offers home delivery which can be obtained for the very next day. 7) and this is what Sainsbury's is doing. RECOMMENDED CHANGES: As a significant change I would suggest to a Sainsbury's to introduce some products which will give to a company a comparative advantage over their competitors. fresh and tasty food. On the market have appeared newer and newer products. Dependability is about keeping the word to customers. 1999. safe. Therefore I would describe Sainsbury’s prices. and this makes the Sainsbury differs from its competitors. as fair prices. who eat less at restaurants and eat more at home. however to adapt to the needs of less wealthy clients also offers a wide selection of 'basic' products at low prices. there was a huge technological revolution-Sainsbury had to adapt. self checkouts as well as the introduction of the newest Scan and Pack system. Sainsbury have high prices. since 141 years! What else. Sainsbury also took into account the recent change the behavior of customers. which are suited to different kinds of customers. They launched a wide range of new products and new sections to its stores such as electronics and household goods. In order to improve the speed.Sainsbury's had to adapt. p. All the above provide a high level of dependability and are the reason why the Sainsbury's brand remains on the market for 141 years. They are providing customers with quality products at fair prices. Another key performance objective is speed. Queuing time is reasonable and deliveries are on time. My second recommendation to Sainsbury's would be an opening of local shops located in the city center rather than on the outskirts of the city. “Flexibility refers to the ability of a company to offer a wide variety of products to its customers” (Shim.kept rooms with an attractive appearance to a fast service and a friendly-oriented staff. Customers often if do not need to do large purchases are choosing local shops rather than supermarkets to save time and money. but Sainsbury has undertaken major steps to solve this problem. Sainsbury respects environment by using environmentally friendly packaging.high. Goods are kept in magazines in case of necessity of quick restocking. Sainsbury ensure that all suppliers have been evaluated by the Quality Attribute System (QAS) in order to provide constant quality of the products throughout the store. if not a great flexibility allowed Sainsbury's to survive so long on the market? During this time. Through the implementation of high quality products. because undoubtedly in large stores often they acquire more than actually have planned.

Good idea. where the customers immediately after purchase could pay their bills without spending extra time to reach these places elsewhere in the city. which would attract additional customers to the Sainsbury's would be the introduction of pay point or post office to the store. WORD COUNT: 1572 .

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