OPERATION MANAGEMENT: WEGMANS 4
Wegmanscompany competitive advantage is pegged on the quality of productsthey provide and the presence of well-structured stores that makeshopping both easy and convenient. Nonetheless, while Wegmans hasapplied technology extensively to reduce operational costs, thecompany has not been in a position to sustain its competitiveadvantage in the market (Stevenson,2012).This has mainly been contributed by the fact other stores such asWalmart are able to significantly reduce operational costs and chargerelatively lower prices for their products and services. Othercompanies have been easily reduced their prices hence grind downWegmans competitive advantage.
Wegmanhas opted to compete using the differentiation strategy, which seeksto maintain and augment market share based on value added service toclients (Trifonov,2007).Wegmans can, therefore, design a new loyalty program and othermanagement techniques meant to ensure a close and good relationshipwith customers (Stevenson,2012).In addition, a self-check system can go a long way in improvingoperational efficiency and promoting customer loyalty. This meansthat Wegman should use the right mix, in the right location dependingon what is convenience to customers in the location (Trifonov,2007).
Wegmanscan improve its operations by ensuring that there is a largeselection of products and services within the same store. It isevident that customers are forced to move from part of the store toanother department to access some products and services (Stevenson,2012).This not only increases the time that a customer spends within thecompany’s premise.
Itis also important for Wegmans Company to improve its forecastingsystems and mechanisms to militate against shocks that can impactnegatively on the operations of the company. Analysis of customertrends, current scenario and current and future demand is verypivotal in ensuring the right products and appropriate amount areavailable (Stevenson,2012). This will also go a long way in helping the management to streamlinethe supply chain management and avoiding inefficiencies that mayaffect customer loyalty.
Wegmanscan also employ the new technologies that can help track meat toindividual stores to improve inventory management and traceability.Previous pilot studies have shown that meticulously matching smartlabel printer and media to usage environment can play a huge role increating convenient processes and exceptional read rates (ZIH Corp.2015).
Awareof the fact that meat is not only expensive but also perishable,there is a need for Wegman to improve is tracking system. The companyis experiencing problems with using the current tracking system whichmakes identification of knives, meat, and other equipment used in thepreparation process. A new technology such as RFID has the capacityand ability to overcome these problems. RFID technology is not onlyefficient in meat processing and distribution but is also anexcellent smart media label that marries with the current labelformat used by the company (ZIH Corp. 2015).
Thiswill also be the most appropriate technology in the meat departmentsince the company has been using Zebra printers for barcodecataloging (ZIH Corp. 2015). This form of label format can easily beconverted to prop up the RFID technology. The only major aspect thatWegman Company will add is a command line (ZIH Corp. 2015). This hasdouble advantage to the company like Wegman that seeks to maintainoperational cost down. It will help the company save precious timeand resources needed to develop a new system from scratch.
Stevenson,W. J. (2012). Operations Management (11th ed.). New York:Tata McGraw-Hill Irwin.
Trifonov,G.E. (2007). Distributionand supply chain management analysis for Wegmans and Kroger Co.The Kroger Company. Retrieved from:http://www.nku.edu/~fordmw/memoscm3.pdf
ZIHCorp. (2015). WegmansFood Markets.Retrieved from:https://www.zebra.com/us/en/resource-library/success-stories/wegmans.html