Management 212- Essay 1
Word count: 2887
Table of Contents
1. Introduction: 3
2. Checkers Supply Chain network: 3
3. Typology of Checkers: 7
4. Comparison of the Checkers to a smaller retailer 10
5. Conclusion: 12
LIST OF REFERENCES: 13
PLAGIARISM DECLARATION 14
This essay will be focusing of the supply network of checkers supermarket that is operated by the Shoprite holding Ltd is South Africa. Checkers stores target a living standard measurement of 7 to 10 which means that they are targeting people of upper income class (Shoprite Holding Ltd, 2013b). In addition, the supermarkets offer a wide range of products from fresh meat to ...view middle of the document...
, 2010: 139). The Second-tier is defined as either the suppliers or the customers that have interaction only with the first-tier (Pycraft et al., 2010: 139). Downstream integration is defined as the operation that occurs between the focal firm and the end of the customers (Pycraft et al., 2010: 140). Upstream integration is defined as the operation that occurs between the last supplier tiers to the focal firm (Pycraft et al., 2010: 140). In the supply chain network there is a demand side and a supply side. In the supply side, the focal firm which in this case is checkers have their own suppliers for meats, beverage, school accessories which are defined as the first-tier suppliers. (Pycraft et al., 2010: 138). In addition, suppliers that supply checkers have also their own suppliers that supply then which are defined as the second-tiers supplier. The supply chain can go on and on and sometime it can be really difficult to establish it because the products come from different sources. For example, when looking at the horsemeat scandal, government are still trying to establish the supply chain (BBC News UK, 2013). Therefore, establishing a supply chain is not an easy task. Besides on the demand side, checkers sells to customers who are defined as first-tier customers and then consumers consume those goods which are defined as the second-tier customers (Pycraft et al., 2010: 138). However, if the focal firm in this example was another firm such as a sugar manufacturer the company would sell to distributors, retailers and then retailers would sell it to customers which make the demand side of the operation wider.
As showed on the diagram below, the supply chain network of checkers have been established. Two distinct flows were established; one of them which are the flow of information between operations and the other one is the flow of services which is defined as what checkers are providing to customers and what suppliers are providing to checkers (Pycraft et al., 2010: 139). On the first figure, the focal firm is checkers which is situate on the far right hand side of the paper because Checkers sell directly to customers which mean that there is a small downstream integration. On the demand side of the network, we have customers and consumers. They are two distinct categories because the customers are the one that buys and the consumers are the one that consume those goods. However, sometime the customers can be the consumers but not in every situation. For example, a mother that buys a chocolate for her son who going to eat it.
On the supply side, one of the first-tier suppliers is ‘Staedtler’ South Africa which is a manufacturer of stationaries and which is defined as a non-food category (Checkers, 2013c). On the second-tier supplier, Staedlter have mills where pens and pencil are manufactured. Furthermore, on the third-tier supplier, Staedlter have their own suppliers that the supply them with the materials such as the ink and plastic to...