Josefina Santambrogio (F7143857)

TMA 03

PART I

REPORT ON ISSUES AFFECTING FOOD PRODUCTS RETAILERS

EXECUTIVE SUMMARY
This report will examine the different issues food products retailers have to take into account when
making supply chain decisions and how this affects them.

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CONTENTS

1. Analysis.

1.1 What a food products retailer should consider when choosing their suppliers.
1.2 Discuss recent changes in the retailer’s supply chain.
1.3 Identify a product category that your food products retailer could sell and then discuss
how you would decide which products to purchase.
1.4 Reflect on whether or not you would like to be responsible for buying the products you
have selected for your answer to Part 1.3

2. References.

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1. ANALYSIS

1.1 What a food products retailer should consider when choosing their suppliers.

One of the most important things for a retailer is to choose the right suppliers that will deliver value
to the customer and also satisfy their needs. Some of the things a retailer should consider when
choosing a new supplier are:

 Product range – the retailer needs to make sure the product supplied is of good quality and
portrays what customers are looking for in the brand.
 Quantity and availability of products – the retailer needs to consider whether the supplier
can produce the right quantity of products at a considerable speed, so they don’t run out.
 Price and conditions – retailers have to decide how much they are willing to pay for
reliability and quality. The lowest price is not always the best value for money and quality is
something customers will always link back to the brand.
 Location of supplier – distance is another important factor. Distant suppliers are highly likely
to mean extra charges and longer delivery times.
 Supplier flexibility – the supplier should be able to respond quickly to sudden customer
demands, rush orders and emergencies.
 Supplier relationship and reliability – building a good working relationship is very important
as retailers need to be able to trust their suppliers. Reliable suppliers will deliver the right
service each retailer is looking for and they will be straight with their retailers in case of any
delays in production.

1.2 Discuss recent changes in the retailer’s supply chain management.

Thirty years ago, manufacturers stored the goods at their factories or warehouses and delivered
them to a large amount of small shops in multiple deliveries. Later on and meaning the first step in
changing the supply of goods, retailers invested in regional distribution centres to break bulk and
store supplies and also to provide an intermediary service in the distribution channel between
producers and consumers. This allowed retailers to take control of the supply chain and also to
reduce lead times, minimise inventory and offer more in store product availability to customer. In
the first part of this century, retailers took over marketing responsibilities that once belonged to the
manufacturer. As retailer–supplier relationships developed, the amount of new technologies
supporting the movement of goods and information throughout the supply chain increased.
Some of the advantages are:

 automatic replenishment of stock

 sharing of sales information
 improvements to sales forecasting and planning
 efficiencies in capital investment in stock moving through the supply chain.

Developing, manufacturing and selling a product can be a challenging task. An inefficient and
poorly operative supply chain can negatively impact every aspect of a business, risking its long-
term performance and success.

To remain successful, companies need to re-evaluate their current processes and performance
with these key elements in mind:

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  Demand planning as an imperative
 Globalization
 Increased competition and price pressures
 Outsourcing
 Shortened and more complex product life cycles
 Collaboration between stakeholders

The current challenges in the logistics of the supply chain are efficiency, transporting products has
suffered a major increase due to the fluctuation in fuel prices and the collapse of the pound that’s
why retailers have to ensure efficiency is achieved by modernising equipment and training staff up
to the correct standards. Also, transparency in the activities and products in the supply chain will
help to avoid mistakes and errors plus it provides a more efficient and effective system; but the
most important of them is sustainability. Retailers have to prove they have done as much as they
could to minimise their environmental impact by reusing components and recycling.

1.3 Identify a product category that your food products retailer could sell and then discuss
how you would decide which products to purchase.

The product category for my food products retailer is ‘Free from’ products. When choosing a
product range, it is essential to know that the products will cater for all the different customer’s
needs as well as being interesting and relevant to them. In addition, these products have to reflect
the image the retailer is trying to portray.
Another important factor for buyers to take into account is how much space is needed for the new
products, that’s why an analysis of the customer’s wants can help out to decide whether it is time to
stop selling some products and to introduce new ones in. In order to choose the right goods, a
product assortment plan can be beneficial as it considers the financial objectives and seasonality of
the product range in a way that both retailer and customer gain from the outcome.

To decide which products to purchase for my food products retailer, I would aim to meet the main
five guiding principles which are:

 The right product - as already mentioned, the new product range needs to deliver the level
of value the customers are looking for which in this case it would be tasty ‘free from’
alternatives that
 The right time – nowadays, more and more people are choosing veggie alternatives, so
these items or similar products need to be available most of the time.
 The right quantity – an analysis of the customer’s needs and how often the product runs out
will help to determine the amount needed. Also, it is important to take into account how
long it takes the supplier to produce the goods.
 The right place – each place that will be selling this range will have different key factors that
can affect sales such as logistical concerns or different customer demands. That’s why some
places will need a wider/smaller range of products on offer.
 The right price – it depends on how the retailer pays the supplier and how much the
customer is willing to pay for the product, again different places will have a slight variation in
price.

In addition, I would take into account the properties and features of the product this being product
quality, packaging and functionality (food to go or ready meals) among others.

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1.4 Reflect on whether or not you would like to be responsible for buying the products you
have selected for your answer to Part 1.3.

In my opinion, I would like to be personally involved in the buying decisions for a ‘’free from’’ range
of products for a retailer as I think it would be quite interesting and enlightening to see what
customers are looking for and expect from the range. I have recently become vegan myself and,
even though there is quite a varied range of meat alternatives out there, a few extra things wouldn’t
be a bad idea, so it doesn’t become too repetitive. The free from range in supermarkets has a
limited amount of sweet options especially, so it would be interesting to find suppliers that can
provide a wider range for that.
In addition, I would enjoy the fact that I would have a say in the process and be the one choosing the
products and not have the products imposed on me.

2. REFERENCES
Ellis-Chadwick, F. and Rafiq, M. (2011) An introduction to retail management and marketing Book 4
Retail planning and supply management, The Open University

https://learn2.open.ac.uk/mod/oucontent/view.php?id=1240341

Fernie, J. (2010) International Journal of Retail & Distribution Management, Heriot-Watt University

PART II

I have definitely found this block the hardest so far without a single doubt and I think that is because
I don’t find the buying process and supply chain management very appealing. However, it has been
interesting to learn about it and all the different things a buyer needs to take into consideration when
introducing a new product that has to represent the brand they work for.
In regards to the TGF activities, I did enjoy watching the video about the impact of the food super
highway as it was quite interesting to find out some products are grown in other countries but the
seeds and materials used for it can come from the country the final product will end up at which is a
bit crazy.

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