Question

in practical term, what is the supply chain strategy for Whole Food's organic veggie supply chain? describe what factors should be taken into account during the formulation of its supply chain strategies.

Answer 1

Strategy is the long-term decisions that a company takes to achieve long term advantage and survive in market. The whole Food’s organic veggie supply chain’s strategy is to create differentiation by providing fresh and organic food products the customer directly from the fields. This will provide the differentiation needed in the market and help the company to increase market share.

The factors should be taken into account are:

1. Daily demand,
2. Perishability of the food items,
3. Availability of the organic food items for sourcing from the nearby fields,
4. Variety and volume of the items,
5. Supply chain lead time and transportation costs.