Purchasing and Supply Management Issue of Woolworths
Woolworth Ltd. follows a centralized distribution model of supply chain management which means that it has eliminated all traditional problems of sellout, deterioration of products, expense, and loss of time (as well as loss of customers) by having their delivery fleet, suppliers, IT information system, and all parts of their work centralized in one location. The supplier now delivers goods to one central warehouse, rather than to individual stores, so consolidation of all suppliers is achieved and the expense and hassle of trips is reduced. Delivery costs also are reduced, and chance for quantity of product is elevated. Regular, efficient, and reliable distribution results ending in more content customers and in higher business levels. (Musgrave group).