Aaron Lum – Woolworths Graduate
Presentation to Gilroy College October 2011
My Career
• Gilroy College – 2007
– College Captain
• University of Western Sydney – 2007 – 2011
– Bachelor of Business and Commerce (Marketing/Property)
• Norwest McDonald’s – 2004 - 2010
– Started @ 14 years 9 months
– Did management while at university
• Woolworths Kings Langley – 2010
• Woolworths Limited – Present
– Logistics
 Store Replenishment
 DC Replenishment
• Woolworths Graduate – 2012 - 2014
2
Woolworths Limited as a Business
Selling goods or providing a service?
• Goods
– Example: Supermarkets & Big W
• Services
– Example: Everyday Mobile, Insurance, Everyday Money
3
Woolworths Limited as a Business
Type of industry
• Retail
Private or Public Company
• Publically listed company
• ASX Code: WOW
Employees
• Total – 188,065
• Australia – 168,721
• New Zealand – 19,167
• Hong Kong and India – 177
4
The Woolworths Consumer
Our main purchaser/consumer
•Woolworths Limited has a diverse business mix which including
supermarkets, liquor, fuel, general merchandise, consumer electronics,
hotels, home improvement and financial services
•Each of the companies brands has its own target market
– Example: Big W targets young families and offers discounted
everyday items.
– Example: Dan Murphy’s caters for consumers who are price
conscious and who may need a specific product. Woolworths Liquor
on the other hand targets those who prefer the convenience of
shopping for their groceries and liquor needs in the one place.
5
Promotional Mix
Advertising
• Television, Billboard, Print ads, catalogues, in-store displays, radio
6
Promotional Mix
Public Relations/ Corporate Image
Online/Technology
7
Business Functions of Woolworths
Supermarkets
Marketing/Sales
• Buying and Marketing teams
• Separated into categories such as produce, fresh, private label
• Each of these teams is responsible for their promotions, shelfing,
variants of products etc.
• Each team liaises with vendors
• Each team works closely with the marketing department to organise
advertising
• Data is analysed by each team to look into things like effectiveness of a
certain sale or the sale of a certain product in a certain area
8
Business Functions of Woolworths
Supermarkets
Operations
• Replenishment teams
– Look after the store replenishment and warehouse replenishment
• Store operation teams
– Look after the day to day running of stores and the procedures
behind them
• More on this later
Finance
• Much of this is done in store and with area managers around the
country
• The company itself has its own large finance department which controls
the finance auditing and reporting of the company
9
Business Functions of Woolworths
Supermarkets
Human Resources
• $63 Million was spent in 2010 on training and development
– Includes things like actual training, in-house courses, further tertiary
education and graduate programs
• Human Resource teams are very large
– Scattered locally throughout Australia and then in the corporate
offices
• Source employees internationally but also hirer within
10
Focus on Operations
Operations Strategy
• To deliver to customers the best shopping experience each and every
time
• To be as efficient as possible and to ensure it is done safely
Quality Management
• At every stage of the operations product quality is kept at its highest
• Quality is checked before the Woolworths buyer decides the product is
right for our store
• Checks are made on sample products as they arrive in our warehouses
and stores. Example: Tin can’s are weighed at random in store to
ensure they weigh what they are supposed to weigh
11
Focus on Operations
Key Operations Functions
• Buying
– Decides which products to sell in our stores
– Organises which promotions will be on which lines
– Decides the price point of the product and shelving location
• Replenishment
– Maintains the ordering and stock levels
• Marketing
– Ensures that the correct promotions are given higher exposure
– Puts together the catalogues
– Coordinates local marketing
• Logistics
– Ensures DC’s are operating as efficiently as possible
– Organises transportation
12
Focus on Operations
Getting products to the stores
13
Vendor and
Business Teams
negotiate
Store systems
use forecasts to
order for stores
DC’s send out
stock to stores
VRP/DCP &
Replenishment
Teams set up to
order
DC’s put stock
away ready for
dispatch
Stores receive
stock and
present it on
shelves
Systems use
forecasts to order
for DC’s
Vendor delivers
stock to DC’s
Customer buys
product
Questions