The Kroger Company : An Organization

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The Kroger Company Back in 1883 an individual named Barney Kroger opened his first grocery store in downtown Cincinnati with his life savings of $372 (Kroger, 2015). Barney Kroger just like many other business owners was passionate about his business and had his own motto “Be particular. Never sell anything you would not want yourself” (Kroger, 2015). Fast forward to present day and the Kroger Company has grown into one of the world’s largest retailers. One would be hard pressed to find someone living in the United States who has not heard of a Kroger Supermarket chain since Kroger has stores spread all across the country from coast to coast. The Kroger Company has grown to include more than 2600 stores and operates in almost…show more content…
Kroger Management has excelled at growing a company that started as a single grocery store in downtown Cincinnati into the giant and successful corporation it is today. The Structure of Kroger’s Supply Chain The profit margins in the grocery business are extremely thin, so the Kroger Company’s supply change management continually works on improving its supply chain to increase efficiency and reduce costs. Kroger utilizes a program of lean process engineering to constantly improve its supply chain. This process involves examining each individual step of the supply chain from its suppliers to product delivery at its stores and furthermore, this process has been proven to drive down waste and reduce cost (Kroger, 2008). Kroger’s supply chain management is located near the top of the organization structure since the company as a whole has a strong emphasis on improving the supply chain to reduce cost and increase profit margins. Therefore the further up the organizational structure the supply chain management team is located the more optimally it will function and the greater the influence it will have on the decision making process (Burt, Petcavage, and Pinkerton, 2010). Kroger has done a good job of getting all internal departments on board in regards to streamlining its supply chain processes and identifying areas where waste can be cut to
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