Pathmark

Pathmark

Thursday, November 20, 2008

Supply Chain Management


C&S->Pathmark->Customer

The supplier for pathmark is a company called C&S Wholesale Grocers; they supply pathmark with all the necessary raw materials. C&S wholesale grocers purchase goods directly from the manufacturer, they store stock in secure warehouse facilities, and then they distribute the products. Pathmark has a highly computerized inventory and sales tracking system; a pair of distribution centers, one for perishable items and one for nonperishable, together serving stores in a relatively small region, and focus on nonfoods items, because they generate a 30% average profit rather than groceries’ average profit at 3%.

Step 1: C&S wholesale Grocers delivers pathmark with all the necessary raw materials to stock their shelves with.

Step 2: Pathmark uses UCCnet which enables suppliers and their retail partners to reduce costly administrative errors in invoice pricing, purchase orders, product delivery and scanning accuracy. UCCnet synchronizes services to enhance relationships with suppliers and improve supply chain efficiencies.

Steps 3: Customer

Pathmark supply chain could best be described as a business to business supply chain. Companies supply Pathmark with finished goods that follow a downstream flow going straight to company warehouses, then to the retail locations and are later purchased by the customers. Pathmark also has its own brand of goods similar to some of the ones provided by other suppliers that start in Pathmark factories, go through the warehouses, and end up into retail stores where they are also purchased by customers. Anytime products are damaged in the store by employees or by customers or if an item is damaged through delivery a record book is kept to later contact the companies that supplied the product and providing an upstream flow facilitating the return of defective units, recyclables, and information for planning purposes. Each Pathmark has a small in store warehouse that has a temporary supply of products to restock shelves with but inventory checks are done regularly by management, and order forms are sent to Pathmark’s main company location and then those requests are sent to the suppliers when restocking is necessary.

Recommend new ideas

Pathmark should really consider putting more of an emphasis s and better advertising efforts into their own Pathmark brand. Many times some of the company’s private brands like Sears Black and Decker brand take off and become popular amongst consumers and become high selling items. If Pathmark can establish itself as a high quality brand it won’t have to be so reliant on other companies for providing it with the products it needs for sales, and profits will increase within the company since it will be in control of its own creation and production of its line.