1) Albertson’s has created some positive effects within it’s value chain. Johnston has recognized that it is important to keep prices as low as possible. One thing he has done to achieve this is consolidate distribution centers. They are also using the web to coordinate shipments and reduce billing & invoicing costs. Albertson’s has also upgraded several IT systems including its financial and human resource software. The use of RFID tags on product shipments has also helped to decrease their costs.
While several things have been done to help their value chain, there are still several areas that need updates/changes. Automated check outs seem to be working for Albertson’s as well as others in the industry. Investing in this new technology would be a benefit for Albertson’s. One other area they need to consider updating is how they transmit information & orders to suppliers. By making the ordering & inventory reporting systems faster & more automated, Albertson’s could......
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