Critically analyse the logistical changes that Morrisons would have to Essay

Critically analyse the logistical changes that Morrisons would have to make if it was to address one of the three suggested caus - Essay Example The company has a vertical supply chain consisting of manufacturing units, packaging and processing units, procurement units and distribution centers. All these units are integrated and managed by latest technological devices. The major areas where Morrison operates are Netherlands and UK. Headquarter of the company is located at Bradford, UK. Tesco, Asda and Sainsbury are the major competitors of Morrison. Traditional supermarkets have been a major destination for grocery shopping. However, because of the strict economic scenario, the competition in the UK grocery market has become intense and tough (Hackney, 2006). Hence the companies need more effective and sustainable tools to compete in this environment. Considering the present crisis which Morrisions is facing, excellently managed strategic operations and diversifications in the new market are needed by the company to retain its profitability and grow in the market. Morrision’s current operations consist of supermarket c hains and convenience stores, dominated by supermarkets. The brand’s current distribution centre follows a vertical integration approach. The logistics and supply chain is privately monitored by the company. The major advantage of this model is that there are no middlemen in the distribution system and customers are provided with value for money products and fresh fruits at lower prices. This also helps in quicker response to changing customer trends. The major rationale behind choosing this model is operating in ownership. Morrisions is a family owned business and the company promoters expect an ownership in majority of operations executed in the Company. The brand claims cost leadership and reasonable turnaround from the current business operations. The company is involved in both production and retailing of food products. The supermarket chain has collaborated with Scottish Agriculture College to carry out research in the field of agriculture and farming. The company is en gaged in two forms of production; just in time which includes preparing food products like sandwiches, burger or salads inside the store and readymade and fresh food products which are supplied on a daily basis. According to the recent report from Telegraph, 2013, the sale of Morrisions dropped continuously for six weeks till December 2012. This loss of sales was more than the loss accrued by its major competitors. The possible cause resulting in this loss was expected to be small number of convenient stores and no online presence. The supermarket is not into online food selling despite its biggest competitors, Tesco launching its online website in the year 2000. The company has only 12 convenience stores in the country. Apart from this, the majority of Morrisions’ supermarkets are positioned outside the affluent areas of London. Most of the revenue generated from the supermarket stores is from those areas which are less popular and sparsely inhabited. This shows a clear lack in the placement of strategies in the UK market. The company’s revenue from the affluent parts of UK such as London is only 6 percent, compared to 12 percent from the rest of the UK. A data from the British Retail Consortium throws some light on the significant changes in the operations of the food retail industry. There has been a significant rise in