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The role of strategic supply chain management in liquor retail

The underlying objective of this research was to assess the extent to which an efficient supply chain can help retail businesses; particularly liquor businesses to manage their business risks. The case study firm for the research was Big Daddy’s Group, one of the leading independent liquor distribution and retailing firms in South Africa. In order to achieve the objective of the research, a review of relevant literature was done. It began with literature review of retailing in general, highlighting on the major roles they play and the modern trends in the industry. Afterwards the literature was narrowed down to liquor retailing. This was done to ascertain the unique characteristics of that aspect of retailing including the regulations guiding the industry and the specific business risks in that business. The final part of the literature review was on specific concepts and management models such as value chain, supply chain as well as business risk and its management. The literature highlighted the means by which the retailer creates value for the customer and the inherent risks in the industry. There was the indication of supply chain being a key component of the value creating activities (value chain) of the business, and serving as a tool in mitigating possible risks. The literature provided the theoretical proposition (hypothesis) for the assessment of the case study findings from the Big Daddy’s Group. The data collection exercise was done by means of a questionnaire complimented by personal interview. Due to the nature of the firm, in terms of structure and operations, two persons, with considerable insight into the business, the director and the sales/area manager were interviewed for the exercise. The questions posed were categorised into seven key areas of retail operations such as product range, imports, customer awareness, marketing and advertising, supply chain and human resource. The findings were compared with the theoretical propositions developed in the literature review, and the pattern matching logic technique was used to determine the existence or not of any similar predictions or differences. The risks identified in the findings were analysed with the logic of an efficient supply chain as the mitigating tool. The conclusion was that supply chain management is key to the value creation activities and hence the survival of the business. The recommendation therefore is that the retailer should ensure the efficient management of the supply chain network since it has the potential to reduce the inherent risks in their operations.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:8723
Date January 2009
CreatorsOppong, George
PublisherNelson Mandela Metropolitan University, Faculty of Business and Economic Sciences
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Masters, MBA
Formatx, 124 leaves ; 31 cm, pdf
RightsNelson Mandela Metropolitan University

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