WaitroseMission Statement “The Partnership aims to deal honestly with its customers and secure their loyalty and trust by

providing outstanding choice, value and service. [1]”

A Supply Chain Management Presentation – Supply chain integration

By Faizan Khan

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Who is Waitrose?• Upmarket food retail division of UK department - Subsidiary of the

John-Lewis Partnership

• Influential brand ambassadors - Heston Blumenthal & Delia Smith

• Operates a range of supermarkets, convince stores and online retailing [2].

• The Waitrose main competitor in the same segments are M&S and Sainsbury.

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The Key Facts and Figures

• Countries of operation : UK, Channel Islands, Bahrain, United Arab Emirates.

• 4 grocery formats : 1) Hypermarkets 2)Supermarkets 3) Convenience stores 4) Online. Biggest Y-Y store and sales % change is in convince stores with 28.6 % [3].

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2012 2013 % Change

Group Sales GBP 5,072.31m GBP 5,416.10m 6.78%

Number of stores 272 290 6.62%

Sales Area sq.m 455,071 477,566 4.94%

The Waitrose History - Progression

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2011 2012 2013 2014

In October, opens a 3,400 sq. m fulfilment centre in Acton (London) for online orders.

Launches myWaitrose loyalty card offering members tailored benefits, such as free coffee and newspapers.

In May, extends its price-matching to Tesco from an original 1,000 lines to around 7,000 products

In July, opens its first store in Abu Dhabi (UAE), bringing the total of franchised Middle East stores to five

Opens a new distribution centre in Leyland to boost capacity in the North of England and Scotland.

Plans trial of click-and-collect service at London Underground stations.

Second dotcom fulfilment centred scheduled to open at Coulsdon in autumn 2011

Teamed up with Eurostar

[4]

…

The Strategy

Key areas

• Expand network to support business growth: Changes to infrastructure to ensure network is fit-for purpose

• Online fulfilment: Diversification strategy and backing online business.

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Supply chain missionTo deliver 'market leading availability at

minimum cost'

The Integration Process – Collaboration Stepping up vertical integration

• Waitrose, built its own production facility for frozen beef to ensure full traceability of the meat.

• Run by its beef supplier - This extends the suppliers responsibility from just handling Waitrose’s fresh beef

Benefits • Generates forecasts with retailers to mitigate the Forrester Effect, as

the forecasts are made available down the Supply Chain.

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The Integration Process Cont.Multichannel picking

• Waitrose’s strategy - adapt their network to service all formats through the distribution centers.

• Waitrose has modified warehouse layout to reduce the travel time per picking mission and improve productivity [7]

Benefits • Full Integration, provides the most potential for improvements in

a Supply Chain

SWOT Analysis

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Strengths

• Waitrose owns brand and farm

• Having a high quality foods• Having a high quality

service

Weaknesses

• Quite dependent on its own label performance

• Waitrose always present itself only high price and quality

Opportunities

• Improvement of online shopping. Partnership with shell

• Store expansion plan• Launch of “Essential

Waitrose

Threats

• Decrease of the sales for• economic crisis• Growth of competitors• Loss of customer’s

confidence• New entrants in this

market

[8]

Recommendations • Break away from Ocado

• Ocado’s partnership with rival Morrison's[10].

• Waitrose will need to ramp up its own direct delivery service and click & collect operations

• If it is to rival the likes of Tesco, which has been running substantial own delivery services for years

Looking to the future• Push with new click and collect temp controlled lockers. 9

Conclusion• “we will see more automation or semi automation in the

future” [11] Rob Thompson, Head of Supply Chain Development, Waitrose

• To conclude the integration of this supermarket via its many divisions allows it to be a front runner in its oligopolistic competition – resulting in a making increases in its percentage share of the market – an increase by 0.3% since last fiscal year from 4.8% to 5.1%

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28.8

17.416.2

10.9

6.4

5.1 4.83.51.90.7 2.1

Percentage share of Market.

Any questions?• References• - Supply Chain Analysis. (2012). Waitrose. Available:

http://0-supplychainanalysis.igd.com.pugwash.lib.warwick.ac.uk/Hub.aspx?id=12&tid=1&rid=42. Last accessed 05/11/2014• -Mintel Oxygen. (2013). Food and Drink Retailing. Available: http://academic.mintel.com/display/699724/?highlight#hit1.

Last accessed 05/11/2014.• - Supply Chain Analysis. (2012). Waitrose. Available:

http://0-supplychainanalysis.igd.com.pugwash.lib.warwick.ac.uk/Hub.aspx?id=12&tid=1&rid=42. Last accessed 05/11/2014 • - Supply Chain Analysis. (2012). Waitrose. Available:

http://0-supplychainanalysis.igd.com.pugwash.lib.warwick.ac.uk/Hub.aspx?id=12&tid=1&rid=42. Last accessed 05/11/2014• - Supply Chain Analysis. (2012). Waitrose. Available:

http://0-supplychainanalysis.igd.com.pugwash.lib.warwick.ac.uk/Hub.aspx?id=12&tid=1&rid=42. Last accessed 05/11/2014• -Mintel Oxygen. (2013). Food and Drink Retailing. Available: http://academic.mintel.com/display/699724/?highlight#hit1.

Last accessed 05/11/2014.• - Supply Chain Analysis. (2012). Waitrose. Available:

http://0-supplychainanalysis.igd.com.pugwash.lib.warwick.ac.uk/Hub.aspx?id=12&tid=1&rid=42. Last accessed 05/11/2014• - Supply Chain Analysis. (2012). Waitrose. Available:

http://0-supplychainanalysis.igd.com.pugwash.lib.warwick.ac.uk/Hub.aspx?id=12&tid=1&rid=42. Last accessed 05/11/2014

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