1. Waitrose Mission 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 1

2. 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. 2

3. 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]. 3 20122013% Change Group SalesGBP 5,072.31mGBP 5,416.10m6.78% Number of stores2722906.62% Sales Area sq.m455,071477,5664.94%

4. The Waitrose History - Progression 4 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] …

5. 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. 5 Supply chain mission To deliver 'market leading availability at minimum cost'

6. 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. 6

7. 7 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

8. SWOT Analysis 8 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]

9. 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

10. Conclusion “we will see more automation or semi automation in the future” [11] Rob Thompson, Head of Supply Chain Development, Waitrose 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% 10

11. 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 -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 11