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Wegmans Food Markets, IncIntroductionWegmans Food Markets, Inc., is a family-owned business that began operations in 1916by brothers Walter and John Wegman. Being one of the largest private supermarket chain with89-stores in New York, Pennsylvania, New Jersey, Virginia, Maryland and Massachusetts, it has45,000 employees with annual sales of over $3 billion. Many of the stores are about 10,000-square-foot superstores that triple the size of the average supermarket. Wegmans is known forproviding its customers high product quality and excellent service with sales per square foot 50%higher than the industry average and won many award and distinctions as an employer,community service and retailer. For 19 consecutive years, Fortune magazine has namedWegmans one of the “100 Best Companies to Work For”. (David, 2016) In 2013 Wegmans wasNo. 5 and in 2005, it was No. 1. Wegmans recognition is a perfect example of a company thatoffers the best quality products, beautiful spaces in the stores and exhibitions, at a level that onewould think they know what a customer is wanting before the customer knows what he or shewants.Wegmans may owe its success to the fact that it values its employees as much as itscustomers. Satisfied employees are more likely to be motivated to produce satisfied customers.Wegmans is an exemplary company that has had leaders with vision, values and principles, andconsistency and flexibility compared to other retailers in the supermarket industry. In this casestudy, we will discuss two operation concepts, suggest improvements and provide suggestions onhow to resolve them.
Operations Management ConceptsThe Wegmans case relates to the concepts set forth in William Stevenson’s OperationsManagement in many ways. One such concept relayed in both the text concepts the case study issupply chain management. Companies use supply chain management to control in flow and outflow of supplies used by and stored for the store. According to Stevenson (2015) “Measuringsupply chain ROI, “Greening” the supply chain, reevaluating outsourcing, integrating IT,adopting lean principles, and Managing risks.” (p.673) are goals of supply chain management.Supply chain management helps Wegmans to have the correct number of products coming in andout at the right time, at any of the hundreds of Wegmans stores. A surplus of supplies will costmoney and a lack of needed product will make upset customers. It is necessary for the companyto control who is suppling what, the quality of what is supplied, and the amount supplied.One concept related to supply chain management that Wegmans uses is IT integration.According to Stevenson (2015) “Integrating IT produces real-time data that can enhance strategicplanning and help businesses to control costs, measure quality and productivity, respond quicklyto problems, and improve supply chain operations.” (p.250) For example, Wegmans uses radio-frequency identification (RFID) tags. RFID’s are small microchips. These microchips are placed