Service Operations Management

Group 1

Wegmans Food Supermarket

 Tin Kyi Min
 Aye Aye Aung
 Phyo Theingar
 Arkar Soe Yin
 Zaw Bo Bo
 Sithu Tun
Page 33-35
Super Stores

 A major regional supermarket chain and largest privately held

company in USA founded by John Wegman and Walter Wegman.

 Consistently ranked high on Fortune Magazine’s list of the 100

best companies a decade ago survey.

 In 2005, Wegmans was ranked NO 1 and rank NO 2 in 2018.

 Premier grocery chains and Headquartered in Rochester, New

York . Operates overs 70 stores. (99 stores as of 2019 currently)

 The company employs over 45,000 and annual sales of over US$
3 billions.

 Strong reputation and very successful organization.

Super Stores

 Many stores are giant 100,000 square feet , double or triple size of
average supermarket.
 25 and 35 checkout lanes and typically employs from 500 to 600
people.
 Generally have full-service Deli , Fresh fish , its Own Large bakery
section , film processing , a complete pharmacy , card shop, video
rental , an Olde world cheese section.
 In store floral shop range in size up to 800 square feet & a wide
variety of fresh-cut flower , flower arrangement , vases & plants ,
also sell birdseed & pet food.
 Pizza , Italian specialties , oriental food , still another chicken or
fish & also sandwich bar , a salad bar , a dessert station.
 Coffee shop & variety of pastries , wine shop & freshly prepared
dinner (beef with herb butter , chicken marsala & stuffed flank
seed with mushrooms , grilled vegetable.
Product Department

Pride on Fresh produce

Replenish 12 times a day

The larger stores have four to fives times of average

supermarket

Uses ‘’farm to markets” system by local growers

Reduce inventory holding costs

Growers use designed containers

Reducing labor to transfer to shelves and damages

Meat Department

Large display cases of both fresh and frozen meats

Full service butcher shop to provide customized cuts
Employees attend Wegmans ‘’Meat University’’
Employee learn pairing meats with other items
Suggest side dishes, breads, and wine
Selling culture and often spend 75% of time talking with
customers
Packaging to using centralized meat processing facility
and vacuum packaging to reduce staff, costs and extend
shelf life for improved product
Ordering

 Each department handles its own ordering

 Considering other factors such as pricing, special promotions,
and local circumstances ( festivals, weather conditions)
 During the seasonal period, check scanner records
 One truckload of goods per day
 During peak period, two truckloads from the warehouse
 Exercises strict control over suppliers, insisting on product
quality and on-time deliveries
Inventory Management

 Some store carry as many as 70,000 individual units

 Companywide system to keep track of inventory
 Departments take a monthly inventory
 Departments receive a periodic report indicating
stock on hand
 Appropriate amount on hand is important to
department manager
Employees

 The value of good employees

 Invest $7,000 to train each employee

 New comers learn good customer service

 Employees are motivated through a combination of

compensation, profit sharing, and benefits.

 Employee turnover is about 6% compared to the industry

average about 20%

Quality

 Quality and customer satisfaction are utmost in the

minds of Wedmans’ management and employees.
 New brands are evaluated in test kitchen first.
 Managers are responsible for checking and maintaining
product and service quality.
 Employees are encouraged to report problems to the
managers.
 Grantee for “Replace or Refund”.
Technology

 Wegmans continue to adopt new technologies to

maintain its competitive edge, including new
approaches to tracking inventory and managing its
supply chain and new ways to maintain freshness in
the meat and produce departments.
Sustainability

 Replacing incandescent light bulbs with compact

fluorescent bulbs in 2007.
 Installed sensors in its dairy cases.
Service Operations Management

Q 1: How do customers judge the quality of supermarket?

Customers judge the quality of supermarket (Wegmans Food Markets) in the following
mentioned ways:
 Large selection of choices. If customers can find everything they want under one roof.
 Systematic way to placing products the supermarket offers. For example, a shelf of biscuits
in one place whereas the shelf of edible oil in the other.
 Timely/ scheduled checking of products whether they are okay or not, and if any issues
found, reporting to the managers.
 Maintained counter for payment of bills. Customers find no lines or queues to pay the
bills.
 Higher quality products in comparatively low price than any other supermarkets.
 The neat and tidiness of the supermarket too adds quality of it.
 Timely/ scheduled checking of products whether they are okay or not, and if any issues
found, reporting to the managers (Stevenson, 2012).
Service Operations Management

Q2: Indicate how and why each of these factors is important to the
successful operation of a supermarket:
 
a) Customer Satisfaction
b) Forecasting
c) Capacity Planning
d) Location
e) Inventory Management
f) Layout of the Store
g) Scheduling
Service Operations Management

Q 3: What are some of the ways Wegmans uses technology to gain an edge over its competition?
 
 The inventory system is to help keep the inventory in balance. Having too much inventory will add to the
departments costs while having too little inventory will causes shortages and loss of sales.
 Another way that Wegmans maintains its technological edge over its competition is that it breaks down its
products into specific departments. These departments include produce and meat. Each department is
responsible for ordering their own products.
 The produce section uses a system called “farm to market” this approach goes straight to the farmer for
their produce and cuts out the warehouse middle man.
 The meat department also has its own edge. Wegman employees that work within the meat department
go through a “meat university” where they learn about different cuts of meat and what they’re best paired
with.  
Service Operations Management

Thank You!