IMS 706 Pandemic Impact on Sainsbury's Retail SCM Case Study

Introduction: Sainsbury's Supply Chain Resilience Evaluation

Title: To critically examine the impact of global events like the pandemic on the supply chain and shipping process. A study in context to the retail sector.

1.1 Background

Supply chain management may be stated as the flow of the material and services required for the production of any product from the supplier to the company. When the raw materials are provided to the company on time then only the production will take place. Hence, for the success of the company, effective supply chain management must be implemented. This is particularly because of the reason that when supply chain management is effective, it will help the company improve their performance and the final product will be provided to the consumers on time. The current study is based on Sainsbury which is a Supermarket chain in the UK founded by John James Sainsbury. The current study will outline the impact of the current pandemic situation created over supply chain management. This will simply outline tissues which the company faced due to the pandemic and its restrictions.

1.2 Aim and objectives

Aim

To analyse the impact of COVID-19 on the supply chain of the company. A study on Sainsbury.

Objectives

• To develop an understanding relating to the concept of the supply chain and its significance.
• To evaluate the different supply chain strategies used by Sainsbury before the pandemic.
• To assess the impact created by the pandemic on the supply chain of the company.
• To recommend some of the suggestions for improving the supply chain post-pandemic.

Research questions

• What is the concept of a supply chain and its different methods?
• What are the different supply chain strategies used by the company before the pandemic hit the environment?
• What was the impact of the pandemic on the working of the company and the management of the supply chain?
• What are the recommendations provided to the company for improving the supply chain post-pandemic?

1.3 Research Significance

For the success of any company, the supply chain must be effectively maintained. This is particularly important because the reason that effective supply chain results in making the product or services of the company. If the supply chain is not effective, then it will impact the overall production process and, ultimately sales of the company. Hence, the current topic is of significance to the company for which the study is being undertaken. In addition, this present study is also of significance to the other competitors because the impact created by Sainsbury will be similar to the other companies working in the retail sector as well. Moreover, current analysis is of importance to the researcher conducting the study for both academic and personal purposes for a similar kind of research topic.

1.4 Research rationale

In this highly competitive environment, it is very necessary for every company they effectively so that the sales of the company increase and competition can be met. Hence, the company must maintain a good supply chain. The reason for the selection of the impact of the pandemic on the supply chain is that in the current global market, the pandemic has affected the working of many businesses (Ronaldo, 2020). Thus, the current study will help in understanding the impact of the pandemic on the supply chain. Hence, with the help of this company, the correct change can be made so that the overall production can be improved. This overall improvement in production will result in increasing sales and ultimately profitability of the company.

Literature Review

2.1 Concept of Supply Chain and Its Significance

In the views of Haiyun et al. (2021), supply chain management is crucial for the successful completion of the research. This is particularly because of the reason that supply chain management is defined as effectively bringing raw materials to the place of production and conducting the production process effectively. For the success of the company, the supply chain must be managed effectively so that the raw materials are brought on time and, ultimately, production will take place effectively. When the supply chain of the company is effective then ultimately it will improve the overall working of the company. On the other hand, Garai and Roy (2020) argued that supply chain management is very helpful for the company because it assists in overseeing the flow of goods and services. This flow of goods and services includes starting from the raw material to the finished product. The supply chain is responsible for managing the whole process of bringing the raw materials into the company and delivering the final product to the customers for use.

In support of this, Craighead, Ketchen J, and Darby (2020) state that supply chain management is very important for the company. The major importance of supply chain management is that it helps in designing and planning the whole chain of the supply process. This supply chain process needs to be simplified because it will help in the on-time delivery of goods to the consumer for final usage. Moreover, Anca, (2019) argues that supply chain management is very important for the company to monitor the overall performance of the company. By evaluating the SCM, the company is in a position to keep tracking and monitoring the production process. This monitoring helps in the effective management of the company and its production. Thus, this effective monitoring helps in effective decision-making as well. Thus, the overall production process is reviewed with the help of the supply chain management.

2.2 Various Supply Chain Methods Used by Companies Before the Pandemic

According to the views of Lisitsa, Levina and Lepekhin (2019) it is evident that there are different kinds of methods which can be used to record to supply chain management system. This is very necessary for the companies to use because when effective supply chain management is used it will result in effective management of a whole production process. Concerning the retail sector, effective supply chain management must be followed. It is particularly because the reason that it guides the companies to manage the supply chain effectively. In support of this Choudhary et al. (2020) stated that for the writer, supply chain management is very necessary for a proper procurement management system. This procurement management brings the raw material to the place on time and of good quality. This is very necessary because if the raw material is not good, then the overall production will not take place. The prime responsibility of the companies within the details sector is that they ensure the raw material is of good quality and the best prices.

Along with this, Tasnim et al. (2022) argued that effective views of inventory management are also very necessary. This is particularly necessary because in case the inventory will not be available on time, then the production process will be impacted. It is the prime responsibility of the retail companies that they must effectively comply with inventory management and the order values system so that the inventory is always available on time. Along with this, the inventory must be of good quality. This is particularly necessary for companies when the inventory will not be effective and of good quality; then it will impact the whole production and the finished goods will not be good.

Moreover, Di Vaio and Varriale (2020) state that ensuring effective warehousing strategies is also very necessary for effective supply chain management for a job, particularly because when the warehouse is not affected then the product will not be stored effectively. For the successful working of supply chain management, effective warehousing strategies must be used by the company. The warehouse is a facility where the company stores all the raw materials and inventory, and the finished products as well. Hence, for the success of the company, the warehouse must also be maintained defectively so that the overall working can be improved. When the raw material and the inventory are stored effectively then they will be available for production. Thus, ultimately, it will result in on-time production, and the finished products will also be stored within the warehouse till they are provided to the customers for their final use.

In addition to this, Izdebski et al. (2020) stated that there are different supply chain strategies as well which need to be followed by the company for the effective management of the supply chain. These strategies mainly included a client-centric strategy. This is a type of strategy which is mainly focused on the requirements of the client and their demand. It is a significant function of supply chain management that the needs and demands of the client must be fulfilled effectively. This is particularly because of the reason that when the requirement of the client will not be fulfilled then the supply chain management is of no use. So retail companies must have an effective client-centring approach to supply management. This client-centric approach will help the companies ensure that all the requirements of the clients are being fulfilled and effectively managed for the success of the business.

2.3 Impact of the Pandemic on the Supply Chain Post-Pandemic

In the views of Hwihanus, Wijaya and Nartasari (2022), the pandemic has affected CM to a great extent. This is because the pandemic was a global event, and as a result of this, the overall economic development and the working of the companies were impacted. The pandemic was a significant challenge for the supply chain at the global level for all companies of this is particularly because of the reason that the major outcome of the pandemic was the economic shutdown. With this economic shutdown, the companies were not allowed to do their business and the working was impacted to a great extent. As a result of this, the overall working of the company was negatively impacted because the businesses were shut and as a result of this, the working was impacted (How COVID-19 impacted supply chains and what comes next, 2023). Along with this, Marbun et al. (2020) stated that the pandemic hurts the performance of the company as well. The production was shut down, and as a result of this, the sales of the business were reduced. This ultimately results in a loss for the companies within the retail sector and other sectors of the economy as well. For this, it is very necessary for the companies that they must effectively ensure that all the working of the companies improved. This is very necessary for the companies to recover from the pandemic and its negative impact.

On the other hand, Ronaldo (2020) said the pandemic also resulted in some positive impacts as well. The major positive impact created by the pandemic on the working of the company was that the pandemic provided a basis for companies to grow and develop. For improving the working of the company, it is evident that SCM must be well managed so that the whole working is improved. In case the working of the supply chain is improved, then resultantly the business operations will be effective and profitability will be attained.

Research Methodology

3.1 Research Type

The research type may be stated as the various methods which help attain the objectives of the study. In general, the research type can be of two ways: qualitative and quantitative. The qualitative study is the one which includes only the use of non-numeric information attributes and behaviour (Snyder, 2019). On the other hand, the quantitative study includes the use of numeric information and facts and figures. To analyse the impact of the pandemic on the supply chain of the company the researcher will use the qualitative study. The qualitative study will be used by the researcher because it includes the use of theoretical information and data which will help develop the detailed knowledge of the topic of research.

3.2 Research Approach

The approach of research is defined as the different ways through which any study can be attained. The approach of the research is of two types that is, Inductive and deductive. Out of both, the inductive approach is the one which includes setting up the aim and objectives for the study. On the other hand, the deductive approach focuses on the framing of a hypothesis relating to the study area. In the current case of evaluation of the impact of COVID-19 on the supply chain, the use of an inductive approach will be made. The reason underlying the selection of the inductive approach is that it will help in setting up the aim and objective. These aims and objectives will help the researcher to complete the study well and will provide effective guidance for the successful completion of the study.

3.3 Research Philosophy

Research philosophy is referred to as the beliefs through which the different methods are selected. Interpretivism and positivism are two different kinds of philosophies which can be used by the researcher. Out of the two, interpretivism will be used by the researcher to complete the objective of the current study based on the evaluation of the impact of the pandemic on the supply chain of the company. The reason for using interpretivism as a philosophy of research is that for any kind of qualitative study, interpretivism must be used as it includes the evaluation of existing theories and practices.

3.4 Data Collection

For successful attainment of objectives of study, accurate information and data must be used. This data collection includes two different sources which are primary and secondary. The primary data is the one where first-hand information is used as in the case of secondary data existing information is used relating to the research topic. For the successful completion of the objectives of the current study based on the pandemic's impact on SCM, a combination of both data sources is used (Newman and Gough, 2020). This combination will be used by the researcher because it will provide in-depth data relating to the research topic. For the primary data, a questionnaire will be made. Further, for the secondary data, different books, articles, and journals relating to the research topic will be used.

3.5 Sampling

The selection of some of the respondents from the whole population is defined as the process of sampling. For the success of the study, not every person within the population needs to be used for gathering the data. Thus, for this, some of the sample is being selected. In the current case of evaluating the COVID-19 impact on the SCM of Sainsbury, we will make use of a random sampling technique (Al-Ababneh, 2020). A total of 30 respondents will be selected using the random sampling technique for the collection of the data. This data will be evaluated to attain the objectives of the study.

3.6 Data Analysis

For the success of the study, the collected data must be evaluated effectively. This is particularly necessary because if the gathered data will not be analysed properly then the objectives will not be attained. This data can be evaluated by making use of two techniques, which include SPSS and thematic analysis. For examining the data based on the impact of the pandemic on the supply chain of the company use of thematic analysis will be made. Within this technique, the questions gathered will be converted into themes and then evaluation will take place with the help of secondary data.

3.7 Ethical Consideration

For attaining the objectives and making the study successful effective ethical considerations must be followed while conducting the study. The most common consideration while making the study was taking the informed consent of the participants. Before using the personal information of the respondents it is very necessary for the researcher that they take the informed written consent (Mahuika and Mahuika, 2020). This consent ensures that the respondent is authenticating that the researcher can use this information within the study. Along with this, another ethical consideration made during the study was to use all the data from the copyright sources only. This is particularly necessary because the secondary information available is many and all the authentic information must be used within the study.

3.8 Research Limitation

During the study, there are some limitations which are faced by the researcher which can impact the success of the study as well. The limitation of time for completion is the major limitation faced by the researcher while conducting the study. The time for completion of the objectives was very short. However, with the help of good time management skills, the researcher tried to manage the study and accomplish the objectives on time (Greening, 2019). In addition to this, having limited resources for the accomplishment of the study objective is another limitation faced by the researcher. The resources provided for the study were very limited and it impacted the study. However with the help of good allocation skills, the researcher tries to provide resources to every step of the study and makes the study successful.

Timeplan

References

Books and Journals

• Al-Ababneh, M., 2020. Linking ontology, epistemology and research methodology. Science & Philosophy, 8(1), pp.75-91.
• Anca, V., 2019. Logistics and supply chain management: an overview. Studies in Business and Economics, 14(2), pp.209-215.
• Choudhary, S., Kumar, A., Luthra, S., Garza?Reyes, J.A. and Nadeem, S.P., 2020. The adoption of environmentally sustainable supply chain management: Measuring the relative effectiveness of hard dimensions. Business Strategy and the Environment, 29(8), pp.3104-3122.
• Craighead, C.W., Ketchen Jr, D.J. and Darby, J.L., 2020. Pandemics and supply chain management research: toward a theoretical toolbox. Decision Sciences, 51(4), pp.838-866.
• Di Vaio, A. and Varriale, L., 2020. Blockchain technology in supply chain management for sustainable performance: Evidence from the airport industry. International Journal of Information Management, 52, p.102014.
• Garai, A. and Roy, T.K., 2020. Multi-objective optimization of cost-effective and customer-centric closed-loop supply chain management model in T-environment. Soft Computing, 24(1), pp.155-178.
• Greening, N., 2019. Phenomenological research methodology. Scientific Research Journal, 7(5), pp.88-92.
• Haiyun, C., Zhixiong, H., Yüksel, S. and Dinçer, H., 2021. Analysis of the innovation strategies for green supply chain management in the energy industry using the QFD-based hybrid interval valued intuitionistic fuzzy decision approach. Renewable and Sustainable Energy Reviews, 143, p.110844.
• Hwihanus, H., Wijaya, O. and Nartasari, D., 2022. The role of supply chain management on Indonesian small and medium enterprise competitiveness and performance. Uncertain Supply Chain Management, 10(1), pp.109-116.
• Izdebski, M., Jacyna-Go?da, I., Go??biowski, P. and Plandor, J., 2020. The optmization tool supporting supply chain management in the multi-criteria approach. Archives of Civil Engineering, 66(3), pp.505-524.
• Lisitsa, S., Levina, A. and Lepekhin, A., 2019. Supply-chain management in the oil industry. In E3S Web of Conferences (Vol. 110). EDP Sciences.
• Mahuika, N. and Mahuika, R., 2020. W?nanga as a research methodology. ALTERNATIVE: An international journal of indigenous peoples, 16(4), pp.369-377.
• Marbun, D.S., Effendi, S., Lubis, H.Z. and Pratama, I., 2020. Role of education management to expediate supply chain management: a case of Indonesian Higher Educational Institutions. International Journal of Supply Chain Management (IJSCM), 9(1), pp.89-96.
• Newman, M. and Gough, D., 2020. Systematic reviews in educational research: Methodology, perspectives and application. Systematic reviews in educational research: Methodology, perspectives and application, pp.3-22.
• Ronaldo, R., 2020. Measuring the performance of poultry business through effective supply chain management skills. Uncertain Supply Chain Management, 8(1), pp.55-66.
• Snyder, H., 2019. Literature review as a research methodology: An overview and guidelines. Journal of business research, 104, pp.333-339.
• Tasnim, Z., Hamid, A.B.A., Dwivedi, Y.K. and Shareef, M.A., 2022. Sustainable disaster supply chain management for relief operations in Bangladesh. Journal of Humanitarian Logistics and Supply Chain Management, 12(2), pp.285-304.

Online

• How COVID-19 impacted supply chains and what comes next. 2023. [Online]. Available through: <https://www.ey.com/en_gl/supply-chain/how-covid-19-impacted-supply-chains-and-what-comes-next>