Econsave Cash & Carry SDN BHD

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GROUP 6 ASSIGNMENT

Assignment Topic Econsave


Name Student ID Programme

DOUGLAS ANAK BONIFACE B23010041 BBA


MUHAMMAD NURALIF BIN KAMARUZAMAN B23010002 BBA
MOHAMMAD AZRIN BIN ISMAIL B23010008 BBA
RAJA MD ADZNUR SHAH BIN RAJA MD B22120018 BBA
Members Name KEPOL

FATIMAWATI BINTI MD ZIN B22120026 BBA


MUHAMAD SHAHRIMAN BIN B23010006 BBA
SHAHARUDDIN

VICTORIA MULIS B22110031 BBA


SHIELA BINTI TAULANI
B22090044 BBA

Programme: Bachelor of Business Administration

Course Code & Title BBA2023 Operations Management


Lecturer Name Pandiyan Vadivelu
Date of Submission

Semester

Total Mark and


Comments

Reviewer
Comments

1. Introduction to the Assignment:


In this assignment, we will delve into the operations management aspects of Econsave Cash &
Carry Sdn. Bhd in Malaysia. Econsave is a supermarket chain in Malaysia owned by Econsave
Cash & Carry Sdn. Bhd. Specifically, we will focus on optimizing one of the critical elements of
operations management, which is supply chain management.

2. Introduction to Econsave:

Econsave is a prominent retail chain in Malaysia, specializing in providing affordable groceries


and household items to consumers. Established with the aim of offering quality products at
competitive prices, Econsave has garnered a strong reputation for its commitment to customer
satisfaction and value.

 Background and History of Econsave:

Econsave Cash & Carry Sdn. Bhd was founded in 01 st January 1955 by the Lai family.
The history of Econsave began with a wooden sundry shop in Port Klang in 1955 named
Rong. Through years of hard work and perseverance, while constantly adapting to
changes in the retail scene, Econsave has emerged as one of the largest grocery retailers
in Malaysia. As of 2021, Econsave is the largest chain of supermarket/ hyper market in
Malaysia with over 90 branches peninsula Malaysia, Sabah and Sarawak. A significant
portion of the locations are located in peninsula Malaysia with growing presence in
Sabah and Sarawak. The company's success can be attributed to its emphasis on
delivering a diverse range of goods and services tailored to meet the evolving needs of
Malaysian consumers. Through continuous innovation and a customer-centric approach,
Econsave has established itself as a trusted brand synonymous with affordability and
quality.

 Supply Chain Management at Econsave:

Supply chain management plays a pivotal role in ensuring the seamless flow of goods
from suppliers to end consumers. At Econsave, optimizing the supply chain is essential
for maintaining competitiveness and meeting customer demand efficiently.

Key Aspects of Supply Chain Management at Econsave:


a. Supplier Collaboration: Econsave collaborates closely with a network of suppliers to
ensure the timely availability of products. By fostering strong relationships with
suppliers, Econsave can negotiate favorable terms, optimize procurement processes,
and minimize supply chain disruptions.

b. Inventory Optimization: Effective inventory management is crucial for balancing


supply and demand. Econsave employs advanced inventory management techniques
to prevent stockouts while minimizing excess inventory. This involves leveraging
technology, such as inventory management software, to track inventory levels
accurately and forecast demand more effectively.

c. Distribution and Logistics: Econsave operates a sophisticated distribution network to


streamline the movement of goods from distribution centers to retail outlets. By
investing in efficient logistics infrastructure and transportation systems, Econsave
can reduce lead times and enhance overall supply chain efficiency.

d. Demand Forecasting: Anticipating customer demand is essential for optimizing


inventory levels and avoiding stockouts. Econsave utilizes data analytics and market
research to forecast demand accurately, allowing the company to adjust inventory
levels and procurement plans accordingly.

e. Continuous Improvement: Econsave is committed to continuous improvement in its


supply chain operations. By regularly monitoring key performance indicators and
soliciting feedback from stakeholders, Econsave can identify areas for improvement
and implement strategic initiatives to enhance supply chain performance.

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