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Category: Business and Industry
Date Submitted: 10/24/2015 12:26 AM
Case Study: Wegman’s Distribution System
Introduction to Operations Management
SAUDDIN RACHELLE
PAPA ALEXANDRE LEE
Sir may book kami pareho .
Wegmans’ Distribution System Case |
The Wegmans’ supermarket chain has been cited as a leader in supply chain management in the grocery industry. Its distribution system provides a number of examples strategies and tactics that contribute to its success in managing its supply chain.Wegmans operates a number of warehouses that are used to supply its stores. Some warehouses stock grocery items, while others stock frozen foods, and still others stock bakery products, seasonal items, and/or produce. Even though all stores and warehouses are owned by Wegmans, the warehouses service the stores on B2B basis.DISTRIBUTIONIndividual stores’ orders are generated automatically on a daily basis. These are directed to the appropriate warehouses. Order fulfillment begins when a warehouse downloads a stores’ order to its information system. There are a variety of methods used to replenish stores’ inventories. Several of these avoid the need for warehouses storage, saving the company storage and Handling costs. Those methods are 1. Cross dock: A full inbound pallet is directed to an outbound shipment. 2. Cross distribution: An inbound pallet is broken down into cases right on the dock, and then the cases are immediately distributed to outbound pallets. 3. Vendor-managed inventory: Vendors of some non-store brand items such as bread and soft drinks handle replenishment, and those items come directly from the vendor’s warehouse to the stores.Warehoused replenishment items are handled as full pallets, or broken down into cases depending on quantities ordered: 1. Block pick: An entire pallet of goods in warehouse is placed on an outbound truck. 2. Case pick: Individual cases or packages are pulled from the inventory, placed on pallets and shrink wrapped, and then placed on outbound trucks.Computerize information on...