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  • Essay / Associated Wholesale Grocers: Leviathan of logistics

    Associated Wholesale Grocers: Logistics Leviathan Associated Wholesale Grocers (AWG) began more than eight decades ago when several independent retailers decided that the power of one cooperative far exceeded the influence of any other. private grocer. AWG provides distribution services to independent grocers in more than 30 states with nine distribution centers in the South and Southeast regions of the country. In addition to its wholesale grocery department, AWG offers a myriad of services ranging from new store design, construction, marketing, product placement and “world-class” logistics consulting (cite 11 ). AWG faces the same logistical challenges as other similar wholesalers, including rising fuel costs, inclement weather, strict deadlines and an ever-changing need for exacting quality. One method for exploiting a company's positive and negative attributes is to use a Strength-Weakness-Opportunity-Threat analysis, or SWOT analysis (Quote 11). If used correctly, the analysis results can provide insight into potential areas for market expansion and expose vulnerabilities to senior management so that they can be mitigated. AWG views its supply chain management (SCM) as an integral part of its core business, offering multiple services such as logistics to new cooperative members. AWG team members are positioning themselves for lasting success, today and in the future. AWG faces similar logistical challenges as others in the industry. The biggest daily logistics challenge at AWG is the limited time between replenishment and outbound shipments to retailers. Any deviation from the schedule due to an extenuating circumstance (strike, weather event, ...... middle of paper ...... The Middle East continues to play a major role in the fluctuation of fuel prices which directly impacts the cost of doing business. “Throughput” must be based on customer demand in the order fulfillment process with a primary focus on quality (SCM, 2014). main objective of business in a capitalist business The most profitable elements for AWG are. overall customer satisfaction Applying a SWOT analysis demonstrates that AWG's attributes far exceed its limits as of the end of 2012. , AWG achieved sales reaching approximately $8 billion (AWG, 2014). Walmart leads the grocery retail market, but as AWG erodes that ranking, it will become a logistics giant in the future..