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Kmart Supply Chain

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Overview of the company Kmart

Kmart is the retail organization in Australia that is owned by Wesfarmers. Australian Kmart store was incorporated in Victoria in 1969. The company employs 40,000 persons by operating in 228 stores in Australia and New Zealand. The headquarter of the company is situated in Mulgrave, Melbourne. The business of Kmart Australia is the joint venture between S.S Kresge and G.J Coles & Coy Limited company. In the year 2006, the plans of Kmart were announced by Coles Group along with BI - LO brands and Coles group liquor. The first re- branded store of Kmart was opened with 40 stores in 2007. It is a discount department stores that involve different types of Merchandise named photographic equipment, entertainment products, sporting products, camping and fishing commodities, toys, storage products, stationery, magazines, confectionery items, lighting, cosmetics, hardware, footwear and clothing. In 2013, Kmart incorporates a new store layout, removed the garden plant sections and expand the floor space for stock and inventory.

Supply chain management

A Supply Chain Management is the flow of products and services that involves the purchasing of raw material, work in process inventory and the finished goods that moves from point of origin to point of consumption. It involves the designing, execution, planning, controlling and monitoring the activities of supply chain with the aim of making net value and building the competitive structure. In other words, SCM involves the integrated planning, execution of the process, optimizing flow of material, effective inventory management. The software of supply chain management includes the tools that execute the supply chain transactions, control associated business process and manage the relationship with suppliers. It is a cross functional approach that manages the movement of raw material in an organization, process the products, moves the finished goods to the final consumers. SCM refers to an effort that are taken by suppliers to implement and develop the supply chains activities.   

Supply chain management of Kmart

The supply chain management of Kmart reduces the cost and optimizing the product collection. SCM of the company focuses to build the strong strategy of leadership which enhance the overall transformation of Australian Kmart and enhance the effectiveness of supply chain process. The company’s SCM manages the prices of the different products.

The aim of SCM of the company is provide the good quality products with the lowest prices while respecting the human rights of the customers. It improves the ethical sourcing process and standard to ensure the better working conditions in the community and country. It also creates a close partnership with trade unions, suppliers, government representatives and non –government organizations. Kmart is committed to conduct the business as per the international obligations and compliance of the country. The company is also committed with the suppliers who follows the high standard obligations in the country. Further, Ethical Source Code (ESC) of the company respects the core labor standards that is established by the International Labor Organization. ESC respects and protects the human rights set out by the United Nations.     

Global Supply Chain Management of the company

Global supply chain management of Kmart provides the products and services to fulfil the needs of the customers. It improves the products & services of the company very quickly in an economical way. The functions of the business have been improved under the diversified environment. Among all the growing number of retailers, Kmart is considered as one of the best growing retailer that improves the supply chain for fulfilling the demand of the consumers across New Zealand and Australia. In August 2015, the company 203 stores across Australia and 18 stores across New Zealand. Due to increase in the global opportunities, Kmart plans to invest more in the country New Zealand. For selling the goods internationally, technology plays an important role and considered as the fruitful device for tracking the goods. Kmart implement a central computerized system for an effective flow of logistics within and outside the country.

Key issues in Global SCM
To manage the key issues related to the global supply chain, the Kmart is facing many difficulties. They have to compete against the cheap brand Aldi, on an international platform. Kmart provides goods at a discounted rate to its customer. Moreover, the company is doing well in the local market, since, it is an acquisition by the Wesfarmers. The supply chain management process is mastered by Walmart through exploring its core values whereas Kmart realized it very late that has created trouble to compete against the renowned brands.

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