BUS020N570S Retail Purchasing And Supply Chain Management


The retail landscape is changing faster than ever before. It’s driven by uncertainty in global economics and the emergence new technologies. Customers are increasingly demanding more from companies […]. The best companies to increase their market share will be those that provide what customers want, when they need it, and how they wish to purchase it.

It means providing seamless customer service and an optimised supply chain.

Examine critically the ways in which supermarkets meet the needs and wants of the market.

You should evaluate the factors that contribute to their success such as their assortment planning and own brand.

You should pay particular attention to purchasing decisions and distribution systems, as well as inventory management, customer service and customer service.



With thousands of stores, microapps, commerce networks and micro-suits across multiple geopolitical areas, retailing has become more complex.

All retailers must stay in touch with consumers.

To better tailor merchandise offerings to market demand, it was necessary to develop local markets that are regularly refreshed.

This essay will examine the role that purchasing and supply play in the Sainsbury supermarket.

It will cover the key components of the purchasing & supplying chains, and briefly discuss the implications of management.

This essay will discuss the financial consequences of Sainsbury’s supply and purchasing decisions.

Sainsbury is considered the third largest supermarket chain and the longest-standing food retailing company in the United Kingdom (Baines 2014.

It is responsible for approximately 16.9% of all the UK’s supermarket sector.

Sir John James Sainsbury, Sebora et. al. founded Sainsbury in the year 1869.

It was noticed to benefit from a certain constancy of management which evolved from family control.

The brand’s aim is to be the most trusted retailer within the retail industry. This will allow people to love to shop, and work.

They aim to make everyday life easier for their customers by providing great services and quality at fair prices.

The brand is focused on creating a strategy that reflects the changing market in shopping patterns.

It has five key pillars. They are: great products at fair pricing, staffs who make the difference, people who know their customers better than anyone, customer service that is unmatched, being there for customers and their values making them different.

Sainsburys is one of the largest and most trusted food retailing companies. The very first Sainsbury store opened in London 148 years ago.

This retail giant serves around 16 million customers every week.

In the United Kingdom, there are over 400 supermarkets and 301 Sainsbury’s stores (Metzger 2014.

Nearly 148,000 people work hard to deliver great products at fair prices.

Sainsbury has enjoyed a healthy growth over the past few years.

Sainsbury is a retailer of food and other goods. It also offers services in banking, insurance, and electronic sectors.

It is committed in creating different types of strategies to meet consumer demands.

The strategy for marketers serves as a guide to position the products and performs tasks related to the marketing mix.

Making Purchasing Decisions

When making buying decisions, the consumer is seen to have narrowed his considerations while taking into account the opinions of others.

In this stage, unforeseen circumstances could be valued.

According to Maslow’s Hierarchy of Needs, customer decision-making involves many factors.

It has been observed that customers prefer to buy products that are meaningful to them. While considering their esteem needs (Niemela, Kim 2014), it is clear that they will also choose products that reflect their status.

Sometimes the support for purchasing such products is provided by family members or peers of Sainsbury.

Sainsbury consumers also feel a sense belonging. This is why they are more inclined to buy these products. The safety need is also for their reliability and security.

The psychological needs of consumers are the most fundamental. In order to purchase basic necessities, they cannot be influenced. Buying what a person needs is not possible.

Their attitudes are determined by their beliefs and they have an impact on how much they purchase.

Sainsbury’s customers make decisions about whether or not to purchase the product. They also decide whether or not to purchase it again based on its quality. If they do, are they more likely to be loyal customers.

Accordingly, consumers’ purchase decisions are often affected by the opinions, beliefs and attitudes of reference groups (Ladhari & Michaud 2015).

The assortment management tools make it easier to plan local assortments.

Sainsbury’s local customer demand and the planned local assortment allow for mass customization (Polak and Suel 2017).

Although the automated analysis may use smaller assortments to meet local demand, they can be a tremendous help when trading with mid-sized suppliers, particularly in planning for excellent shelf space.

Due to their small volumes, small suppliers may not have the same local assortments as large, centrally managed chains. Also, it might be more difficult for them to meet the quality requirements and seek procedures.

Sainsbury offers an end-to-end visual workflow that allows you to plan and implement local market and micro-suite selections. This helps increase customer satisfaction and improves traffic to your website.

Sainsbury supports local suppliers by providing a Supplier Development Program to help them develop their business. This ensures that both the supplier’s procedures and product quality are in line with Sainsbury’s requirements (Ramanathan Bentley and Pang 2014).

For many suppliers, it is a double-or-nothing solution to engage in operations with large retailers as they become dependent on the volume sold to them.

Create your brand

Sainsbury has revamped their budget range of value products by introducing a new range under its own label “Sainsbury” or “Sainsbury basics” brands.

It is intensifying its battle against German discounter Lidl. (Szmigin and Gee 2017).

It hopes that bright packaging with colour-coded branding in the British style will be attractive to consumers.

This range will be available for a long time on its shelves.

The prices for fruits and vegetables range from 35 Pounds for a lettuce to 1.69 Euro for a punnet full of raspberries. (Lan and Dobson 2017).

Sainsbury’s own-brand products are easy to read and include nutritional and allergen labels.

The UK’s supermarkets have been suffering from rising competition from Lidl, Tesco, and Aldi. There is hope that the next year will bring better results.

Distribution System

The chain now has more than 500 supermarkets, and nearly 300 convenience stores.

Each Sainsbury store sells compatible non-food products and related services (Sogn Grundvag, Larsen and Young 2013).

Some Sainsbury stores offer online home delivery.

Sainsbury used six channels to get from the supplier into the Regional Distribution Centre, but now it uses more than 30 channels, which includes the Primary Consolidations Centres as well as cross docking.

The recent survey revealed that Sainsbury’s supply network was unable meet the demands of the consumers and its store network.

Sainsbury had previously required an advanced supply-chain infrastructure (Gonzalez 2017.

Sainsbury later selected Manhattan’s Warehouse Management after thorough research of the options. This solution allowed them to Open Solutions and a collaborative commerce platform.

It can provide services to all consumer types and has a broad range of products to serve UK consumers.

UK’s retail sector has been at the center of many contentious topics, including global rivalry and corporation presentation. They are also involved in price wars and modifications in plan.

Inventory Management

Sainsbury’s operations are so different that each department has their own operation. This is to ensure that supplies are secure and that inventory management doesn’t compromise cost.

Sainsbury has made procurement a strategic process with the Kraljic procurement model.

Indexing the purchases according to supply risk and the impact profit has on a product is the main factor in ensuring that the purchase is properly classified.

The analysis of the market is the second, and strategic positioning is the third.

It’s all about ensuring the highest profit-impact items are purchased while simultaneously decreasing the risk of inevitable supply excess or shortage.

It is important to note that the success of supply deals hinges on the expansion of buyer power, supply continuity and effective cooperation. This essay also focuses on Sainsbury’s operations (Mantere 2015).

In order to make sure that technology is used at its best, new technology has been developed.

There are many advanced and new systems that have been developed in trade, finance and procurement.

Sainsbury’s IT department has provided support by using the latest hardware and software.

Customer Service

“Excellence,” has been a significant word in customer services (Christopher 2016).

If you add terms such as “customer” and “service” to excellence, it becomes a company who is passionate about satisfying their customer in a remarkable way.

Sainsbury Supermarket offers many products and services.

It offers clothing, gift products, computer peripherals and books as well as kitchen appliances, food products, groceries, and other items.

Its primary goal is to provide great shopping experiences for its customers.

Faulkner et. al. also emphasize the excellence and quality of products for a fair price.

The prices can vary on a daily basis.

They offer safe, fresh, healthy, tasty, and affordable food. This ensures excellent consumer service (Scarborough, et al.

When customers enter the market, they are greeted warmly with a smile.

Sainsbury customers can purchase a trolley for shopping at the supermarket. It costs PS1 at their customer service desk.

For using their bags, the store will also give loyalty points.

The customer service desk offers in-store nutrition and diet advice. Customers can also access their online nutrition advice website.

Sainsbury supermarkets accept cash, credit and debit cards. This makes it easy for customers to shop.

Sainsbury shoppers have great advantages due to their large product range, as well as the increasing number of organic and fair trade products.

The only shopping site they offer is available to their customers for convenient shopping.

Sainsbury shoppers have to be aware that prices change on a daily basis, and can vary from store-to-store.

The online buyer pays the delivery cost only, which is changing daily.


From the largest companies to the smallest stores, there must be a solid system to make it all work.

This analysis shows that Sainsbury’s supply and purchasing functions play a significant role in the company’s business management.

Sainsbury has many products available for customers. It is also focusing on the needs and requirements of its customers.

It’s serving customers better and not making any distinction in their lives.

Sainsbury is also aiming to be a more customer-oriented supermarket.

The strategy is designed to improve the customer service experience by focusing on access to services.

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