Pick N Pay Case Study Solution

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One of the most important issues for Sonnendal is that the initiation of centralization by Pick n Pay should lead to more efficiency, but in reality the supply chain is became less efficient. This literature study focuses on the distribution of perishable products in general and it highlights the best practices, software and tools that may help solving the individual problems. The subsequent sections describe possible scenarios for Sonnendal, based on the information found in this literature study. Distribution Management First is examined what the basics of distribution management within supply chain management are, to understand what principles are important for the development of a good distribution channel. A study by Sadler (2007) states that the total supply chain is the physical movement of materials and products from each partner firm along the chain to the consumer in the right form on the right time. Information exchange between partners enables them to work closely in line with end consumer needs, even though the firm may be several…show more content…
The objective is to organise an efficient production and distribution based on the demand at the Point-of-Sale (POS). The POS is the time and place where a retail transaction is completed, in this case at the till in the Pick n Pay store. In order to make Efficient replenishment a success, it is of great importance that that Sonnendal gets access to the original, non-biased POS data. When this is done properly the “bullwhip” effect, which may cause the large demand spikes, can be avoided. The retailer could start up so-called extranet, allowing suppliers to see the inventories of their products down to article and outlet level. The highest level of cooperation between retailer and manufacturer is Vendor Managed Inventory (VMI), in which the manufacturer becomes responsible of
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