OPEMANA - Wegman's Case

Wegman’s Case
Background
Wegmans is one of the premier grocery chains in the USA
and it’s headquarters is located in Rochester, New York.
They have annual sales of Rs. 2 billion. In addition, they
operate over 80 stores and all of the superstores are giant
in size. Each store is different from one another and have
separate order systems.
Wegman’s Case
Background
Wegmans have annual sales of Rs. 2 billion. The company
employs over 23,000 people. They also have a separate
department for every product and takes care of customer
feedback well. There is one truck of goods that come to
the store on regular days while two trucks on peak days.
How do customers judge the quality
of a supermarket?
- Prices are considered low but quality is high in comparison
to its competitors.
- Employees of Wegmans are well-trained about customer
service. They are friendly and knowledgeable about the
store and its products.
- Good customer service
- Wegmans is well-maintained and well presented.
- Customers of Wegmans perceive the brand to be of great
quality.
- Inventory of goods and assortment of brands are
satisfactory.
- Presence of return policies and refunds provide leeway for
the customers.
Factors important to the successful
operations of a supermarket
Customer Satisfaction
Customer satisfaction is an important internal factor because it is a way for the

management to know how well their strategies are working. Depending on how well
their customers are satisfied, the management can work on how to improve their
services. In addition, there are more brands to choose from, from 50,000 to 70,000
unique products.
Forecasting
2 It prepares the business ahead for potential risks and future opportunities.
Through accurate forecasting, the management builds flexibility in order to permit rapid
response to changing demands for the different products and services that they offer.
Also, the management during seasonal periods (like holidays) checks scanner records in
order to determine and forecast the demand during that season so that they would be
able to act accordingly and meet the needs of the consumers.
Capacity Planning
Quality and customer satisfaction are the top priorities of Wegman’s

Supermarket. Therefore they bank on good employees, training them on how to provide
good customer service and on how to respond to them immediately.
Factors important to the successful
operations of a supermarket
Location
Wegmans is a superstore located near residential and commercial areas,
wherein they are promoting sustainability within its proximity. In addition, Wegmans
is expanding towards northeast and mid-Atlantic regions. They support local growers
as well, benefitting the community and life of the people around it thus improving
sales. Their stores’ footprints range from 75,000 to 140,000 sq ft, they are one of the
largest stores in the US.
Inventory Management
Through proper inventory management and the stores’ ability to turn over
inventory for at least 18-20 times a year, Wegmans’ Supermarket would obtain the
proper inventory on hand in order to reduce storage costs and avoid shortages.
Wegmans management of its inventory is crucial in order to maintain its competitive
edge that goes hand-in-hand with its competitive pricing strategy.
Layout of the Store

Wegmans encourages a layout that maximizes customer service and provide
efficient operations. They separated the perishable goods from the packaged ones.
Checkouts are accessible and are located by the entrance. Customer Service,
promotional goods and restrooms are located near the entrance.
(Cont.) Factors
Scheduling
There are three major divisions in Wegmans workforce: inventory, HR
and transport. They are scheduled at different times in a day. Scheduling
concerns their produce as well. Wegmans uses “farm to market” system
where local growers provide supply for individual stores. This connotes
that they have seasonal scheduling of goods as well.
Additional Information
Wegmans superstore supply chain management is vertically
Integrated. They control, select, distribute and transport their own products
allowing them to control costs and
How does Wegmans rise
above its competition?
Wegmans’ management sees the importance of continuously
improving their technology through adapting new ones in order to
maintain its competitive edge over its competitors. The management
3
developed a company wide system to keep track of inventory. They
also find new ways in order to maintain the freshness of products in
the meat and produce department.
Wegmans superstore tries its best to personalize their
customers’ shopping experience by creating a website and an
application. This connects their customer to more promotional offers
and makes shopping transactions easier and faster.
Summary
Wegmans superstore has been in the industry since 1916, giving
them enough experience on how to satisfy their customers whose
concerns are price, quality and the best grocery shopping
experience (the experience comes with the people, the place and
promotions as well.). Wegmans superstore is able to provide all of
3 those through their applauded successful operations management.
Through time, they have adapted customer feedback and needs to

a digital level – creating a website and a mobile application to
personalize the shopping experience. They are offering more than
what meets the eye. They also have catering services, a pharmacy,
a shoppers’ club, a business program, Upromise and floral services.

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Wegman’s Case

Customer satisfaction is an important internal factor because it is a way for the

Quality and customer satisfaction are the top priorities of Wegman’s

Layout of the Store

3 those through their applauded successful operations management.

Through time, they have adapted customer feedback and needs to

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