Porter's 5 Forces For Sainsbury

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The process of identification, short listing and choice of suitable suppliers shall be carried out against criteria that satisfy a set of predetermined key factors. These include location, price, quality, ethics, relationship, financial security, and product range. Ensuring that conditions set by these criteria and its key factors will help in securing a stable and reliable supply line. Each of these factors plays a fundamental role in making the business successful. For example, choosing a supplier located within a reasonable distance from the shop will cut potential logistical problems e.g. delivery costs and time, product damage or loss of quality due to transportation and storage, quick delivery of urgent or short-notice orders, etc.…show more content…
Technology development has helped trading partners to share information used to help customers and competitiveness. “Real time data means less reliance on forecasts and creates a virtual supply chain between trading partners” Harrison et al. retailers have also used the internet to share information which have helped their response times. All this have been possible because of technological developments Although some retailers adopted the changes in technology systems others have found it difficult to transform quickly which has read into shops being out of stocks or customers complaint gone up, resulting into shares on the market gone down. Sainsbury is a good example of bad technology development in the logistics sector. The retailer didn’t invest heavily in the early 80s and 90s in the end when they notice competitors such as TESCO reading the market, they try to play catch-up by introducing high-tech system to the supply chain which caused some confusions like out of stock, and poor shelf availability. Customer satisfaction went down and loss of market…show more content…
In the winter time, the chosen supplier has been able to supply enough quantity of tomato on time. By checking whether the supplier has greenhouses, which support growing of tomato all year round. It can eliminate a process of having to find another supplier from the different location which can increase cost, food transportation and damages. Another alternative is to check with the supplier if they offer tinned tomatoes, which are cheaper and sold in large quantity and they stay longer before they can expire. Price The price customers are willing to pay can influence sales. For example, because tomato gets used in our daily lives, there is a need to negotiate a bargain price with my supplier to make a good margin of profit Part (d) After looking at all the information, personally wouldn’t want responsibility for buying the tomato. There are too many things involved in choosing a supplier. Like making sure, the shop has the right amount of tomato in stock. Having fewer tomato may result into loose of sales and having too much tomato may result in reducing tomato price, to make room for new tomato whereby slashing out the profit. Negotiating the price with a supplier is another responsibility, making sure that good deals and flexible terms and conditions are meet, whereby increasing

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