Procurement Strategy And Stakeholder Information of Woolworths

Question: Discuss about the Woolworths Procurement Strategy And Stakeholder Information. Answer: Wool worths were founded in 1927 with a bargain basement retail store in Sydney and presently it is has become Australian largest retailer providing services to approximately twenty million customers. It has been facing many issues with comprises inventory, pricing of the product, customer loyalty programs, slowing market growth, marketing discount,etc (Humayun, 2016). Presently, Wool Worth's have taken decisive action with an objective to stem the bleeding in its core super market division, but still higher risk have been analysed by the company regarding same. However, one of the main issues with which Wool worths has to deal with is slowing of market growth and due to increasing competition as supermarket giant has to struggle for growing sales. The company which acts as a threat to Wool worths is its currently ascendant rival Coles and another international rival such as German retailer Lidl. Even though, it was a challenging year for shareholders as well as customer, but with strategy of gaining good momentum and continuing investing in growth initiatives company was able to increase shareholder value to possible extent. A fully franked dividend of 67 cents was declared, which was higher than previous declared dividend of 65 cents and lifted the dividends per share to 3.3%. In order to maximize the shareholder value of company has revised the manner of participating in Consumer Electronics category and accelerated in consideration of BIG W offer to new consumer and competitive reality. Project refresh has been applied by the company since 1999, which was developed with an objective of cost reduction program is still enhanced on a continuing basis and applied with an objective of cost saving in the product and services provided by the company (Feigin, 2016). It has been stated by the CEO of Woolworths that the company has been focusing on service and cost both in an appropriate manner rather than any one variant. The procurement management system which has been introduced by the company has successfully provided coordination in among the retailers key suppliers. Woolworths has received a mixed response relating to the new program pilot scheme with a dozen of suppliers. It believes that the issues relating to customer development relationship will be improved with this new program. For the same, it has aimed at accomplishing the objective of common interest building a better customer relationship. Woolworths has beaten Australian Competition and Consumer Commission in a case relating to the accusation of conduct over its Mind the gap scheme (Mitchell, 2017). Further, efforts have been made by Mr Banducci to transform the image of company and relationship with key suppliers so that groceries which are in demand can be provided to the customers For resolving the issues relating to building a better relationship with supplier and customers it has provided a new portal in order to develop enhanced solutions to the demographics, habits and mission of customers and suppliers who shop at their stores. Improved transparency has been provided through this new portal to the customers as well as suppliers. Loyalty programs have a major impact on the decision of shopper, and the same is rated as a fourth most important variant for taking a decision relating to shopping and thus the company is making efforts to improve the same. In accordance with views of Michael(2017), presently efficient efforts are made by the company to regain the previous image of the company and to reap the rewards for delivering relevant communications in a place where brand loyalty is still trumped by price and convenience. References Feigin, L. M. (2016). The effects of protests and boycotts on a brand and its reputation: a case study on Woolworths and boycott, divestment and sanctions (BDS) (Doctoral dissertation, The IIE). Humayun, S. H. (2016). Merchandising operation of Woolworths Global Sourcing. Janda, M., (2016) Woolworths supermarket struggle not over yet: UBS Available through https://www.abc.net.au/news/2016-07-26/woolworths-supermarket-struggle-not-over-yet-ubs . [Accessed on 9th August 2017] Sue, M., (2016) Woolies woos back suppliers, The Australian Financial review. [Online]. Available through https://www.afr.com/business/retail/woolworths-connects-with-suppliers-to-win-back-customers-20170307-gusemv. [Accessed on 9th August 2017]