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Sainsburys The purpose of this report is to find out the faults in the recent project of Sainsbury that led to the expensive fiasco by focusing on the supply chain management and outsourcing which has been used by the organization in the past few years.

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Introduction

Summary The purpose of this report is to find out the faults in the recent project of Sainsbury that led to the expensive fiasco by focusing on the supply chain management and outsourcing which has been used by the organization in the past few years. The main objective of this report is to enable the reader to understand the situation of Sainsbury, what problem that Sainsbury is facing as being the third largest supermarket in the UK, and what mistakes they have made when applying the IT into its business which eventually caused the supermarket has written off � 140 million in IT assets, and a further � 120 million on its distribution system and also reasons of the failed investment which led to a tremendous loss on its sales and market shares will also be stated in this report. After outlining the faults in the recent project, the management faults will also be identified, and a further discussion on what made the management failings that led the first-ever loss. Besides focusing on the failure investment and management, the report will also outline that if there might have been any other reasons leading the loss of market shares, for example, customer, non food ranges, and availability of stocks, supplier-customer relationship, quality, staff turnover, and strategies and so on. ...read more.

Middle

IT failure One of Sainsbury 's biggest problem IT problem areas is the four automated depots , the implementation effort has failed to deliver the anticipated increase in productivity while IT costs continue to eat up more and more of the company's overall budget in proportion to sales. The following are the faults in the failed project which led to a tremendous loss: * The decision to outsource IT to Accenture was an expensive mistake (Accenture is responsible for the supermarket chain's IT transformation program, including some of the supply chain systems, the automated depots were never part of its contract with Sainsbury.) * CIO failed to understand the drivers that affect a business, or were unable to communicate how the IT resources could help organizations manage these factors more effectively, then the credibility and esteem of the IT function would remain low. * A business should never set out on a critical project without giving clear accountability to the key functions * Failing supply chain left its shelves empty and its loyal shoppers frustrated * Introducing sophisticated technology too quickly * Lack of strategy (Teething problems are almost impossible for a business to implement a supply chain program in just 3 years) * The change process has led to a significant reduction in morale at a time when we staffs are needed to be more motivated * Inability to maintain a clear ...read more.

Conclusion

managers and people * To release the potential of people * Survival The benefits of TQM can be summarized as the following: * A greatly improved product or service * A major decrease in wasted resources * A massive leap in productivity * The best opportunity to increase profit * A long-term increase in market share * A sustained competitive advantage * A real release of the potential of people * A motivated workforce * The elimination of much hassle and frustration involved in management By summarizing the benefits of TQM above, it is obvious that TQM is a effective approach to improve Sainsbury's performance, thus, recommendations with justifications for introducing TQM aspect to the company is necessary. Base on TQM aspects, the new project should focus on the following issues: > Sort out store revamps > Bed down a new management > Reduce no. of head office > Rebuild true partnership with supplier > Better clarity of range > creating a new leadership team for the business, drawing on people with an exceptional track record of delivery in food retail > focusing on fresh and own label > reduce cost, focused on sales customers, emphasis on cash flow > restore reputation for innovation and quality > provide choice through focusing on customers > Strong promotions program, carefully targeted, well-executed promotional activity will give the opportunity to maximize the share of customers spend. ...read more.

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