Supply chain operations management assignment help: BIDVEST Australia

Background of BIDVEST Australia

BIDVEST Australia is a well known and very much advanced company of Australia which was established in 1958 and has been successful in establishing itself as Australia’s first and true Foodservice distribution network which offers a complete range of food, food related products and the food related services to their customers. The Distribution network which is covered by BIDVEST is Australia. BIDVEST Australia limited was earlier called Manettas Limited but in December 1997 it changed its name to BIDVEST Australia Limited and is based in Pyrmont Australia. It mainly distributes the foodservice products to the hospitality and the foodservice industry

The main services which are covered by BIDVEST include:

BIDVEST Foodservice
BIDVEST Logistics
BIDVEST Hospitality
BIDVEST Meat
BIDVEST Imports
BIDVEST FRESH
Australia Independent Vendors (AIV)

Trust Commitment Theory of Relationships

In case of traditional vendor-retailer relationship vendors are considered to be value creators while retailers are considered to be value appropriators. The best practices of marketing support the enhancement of long-term relationship with the channel partners in order to attain the financial objectives (Bagozzi, 1975) (Houston & Gassenheimer, 1987). But in present global marketplace the relationship between vendor and retailer is considered to be part of supply chain networks which are having a stiff competition with each other using latest technology and data. In today’s scenario value is considered from the viewpoint of network while the vendor-retailer dyad is kept at the hub value co-creation (Ballantyne & Varey, 2006). Commitment and trust are mediatory variables which are very important for understanding relationship marketing and the relational exchange is considered to be the conceptual basis for the C-T Theory (Morgan & Hunt, 1994).

Commitment trust variables to understand and critically evaluate BIDVEST’s relationships

A conceptual model for the BIDVEST where there exists a retailer-vendor relationship on the basis of Commitment Trust (C-T) Theory has been developed called the Relationship Value Creation. This model helps in finding out various main variables which are antecedents and consequences of the Trust and Commitment in BIDVEST. This helps in finding the importance of exchange of relations in not just value creation but also channel functioning. There are seven key variables which have been found in the conceptual model for the retailer-vendor relationship on the basis of Commitment-Trust Theory they are depicted in the diagram below:

Figure 1: Variables of Commitment Trust Theory existing in BIDVEST relationships

Showing confidence in the exchange partners credibility, integrity, benevolence and reliability shows Trust (Morgan & Hunt, 1994) and it becomes strong when it is reciprocal (Anderson & Weitz, 1992). Trust is considered to be a powerful force which stimulates the positive channel relationships and it increases long-term orientation and also influence the relationship commitment (Ganesan, 1994) (Ryu, Park, & Min, 2007).

When any continuous partnership feels that the other partner is important in order to put maximum efforts so that the relationship stays for long and is maintained then Relationship commitment is depicted in such case and long-term orientation along with futuristic goals and results which are beneficial for both exchange partners are very vital feature of this relationship commitment (Ganesan, 1994) (Morgan & Hunt, 1994).

Network and BIDVEST’s participation in network

With the growing importance of information and knowledge in the supply-chain organizations or rather any organization network approach has become a vital part in strategic organization of company so as to gain the advantage from cooperation (Baum & Rowley, 2008). According to Network Theory social actors like groups, firms and individuals along with their actions are supposed to be interdependent and depict various kinds of relational ties amongst each other creating pipes. Through these pipes the resources and influences flow and prisms are also created which help in reflecting the qualities too.

With the networks there evolve patterns of relationships called network structures which lead to shaping of opportunities and constraints.

Bidvest aims to become a total wholesale supply solution to the hospitality as well as foodservice industry in not just Australia but across the globe by offering excellent and quality services at par. It is famously known as the supplier of choice and this is what makes Bidvest Australia Limited the leading Broad line foodservice and hospitality wholesale distributor in Asia and Australia.

The national distribution network of Bidvest helps in providing a comprehensive range of services and products at great economies of scale giving them a competitive edge. The company also operates its own fleet of refrigerated vehicles which are completely modernized. The extensive range of Bidvest includes a range of more than 40,000 products through its 6 hospitality branches and 27 Foodservice branches and this range has been exclusively developed in order to cater to the demands of the customers. Bidvest also has an active and advanced e-commerce website which is known by the name www.findfoodfast.com.au which is available to the customers all through Australia 24×7. This website helps in giving technological edge to its customers so that they can smartly drive their businesses successfully (Bidvest AUstralia limited).

Critically Evaluate the Network and Interactions of Bidvest

Bidvest stocks 56,000 items throughout the foodservice branch network and the product range included are:

Dry Products
Frozen Food ( inclusive of seafood and meat)
Cleaning materials, disposables and consumables, chemicals and packaging
Chilled Products( meat)

The major brands are being carried by Bidvest along with their own specially created label range and the customer base of Bidvest is:

Pubs
Hotels
Bars
Clubs
Restaurants
Correction Facilities
Cafes
Aged Care Facilities
Schools
Hospitals
Retirement Villages
Resorts
Theme Parks
Resorts

It serves all the suppliers ranging from small cafes to the large national business chains in Australia. Some of the leading trade partners or suppliers of Bidvest are listed below:

Fonterra
B.E. Campbell Pty Ltd.
HANS
Ingham
Integro Foods
Junee Gold
Mars
Kraft Foods
McCain
Nestle
Patties Foods
Rangers Valley
Simplot
SPC Ardmona Foodservice
Unilever Food Solutions
Alfina’s
Emerald Valley
Swift Premium
Seacrest
Seafrost
Snochef
Sopra

The national customers of Bidvest are:

Source: http://www.bidvest.com.au/foodservice/product-range.aspx

Major suppliers in Hospitality range are:

And

Arcoroc Professionals
Trenton International
Moffat
Tomkin
Robot Coupe

The main customers of Bidvest in the hospitality segment are major companies like:

Dreamy Donuts
Jamaica Blue
The Coffee Club and
Muffin Break

Some of its trading partners or suppliers in the Freshfood range of Bidvest are:

Export Fresh
Murphy’s Produce
S&B Produce
Temdell

Some of its bigger logistics customers are corporate giants like KFC, Hungry Jacks and Pizza Hut.

Recommendations on Improving Relationships and Extending Network to Be More Effective

Networking is all about connecting with the people effectively by building relationships it is not just selling all the time. So few recommendations regarding improving relationships and extending network are:

Try to create dyadic competitive advantage (Rowley & A.C., 2008)
Bring stability as well as closure to the network positions and strictures (Baum, Rwoley, Shipilov, & Chuang, 2005).
In developing the relationship the partnering strategies should be focussed not just on partnering with old suppliers but new customers should also be approached.
Try to get more referrals in closed networking.
- Develop positive networking where focus should be on long-term relationships (Develop Your Business Networking Skills, 2012).
- Network and networking assets are supposed to be assets because networks are more about relationships with people and network of relationships is social capital (Pulcrano, SHaner, & Fischer, 2008).

Market Segmentation Strategy of BIDVEST

The manner in which the organization finds out the prospective markets in which it should concentrate its marketing efforts is called market segmentation and is considered to be vital part of any marketing strategy (Jenkins & McDonald, 1996). The organizations use the STP process for dividing the whole market into various segments STP involves Segmentation, Targeting and Positioning.

Figure 2: STP Process (McDonald & Dunbar, 2004)

The Relevant Theory and Classify the Strategies and Bases Used By Your Organization in Their Segmentation Strategy

IN case of B2B segmentation there is always an issue of how to ‘populate’ the segments for the direct sales approach? And that is why market segmentation is very less used in case of B2B organisations. Mostly the market segmentation in B2B is based on demographics that cover the industrial classifications like company size, industry (verticals), geography and technology. In B2B organizations like Bidvest too the market segmentations is not based upon more competitive bases for example needs, motivations or consumer behaviour (Paul., 2008).

B2B market Segmentation follows 5 key market segmentation dimensions (Weinstein & Jameison)

Figure 3: B2B Market Segmentation

Bidvest being an opportunistic and acquisitive company makes an acquisition only if it finds the price right. It follows the theory of diversification where oat acquires low—tech companies and which are often underperforming. That is why Bidvest is very much famous for correcting the underperformers, by improving and turning them into profitable ventures after takeover. This is done in Bidvest through regular performance measurement. The business model followed by Bidvest asks its managers to run every business as a separate business unit with clear cut competitive advantage, decentralised units with a niche of activity. It follows the discipline of constant measurement. The key metrics used for measuring the performance are the Profit and Return on Funds (ROFE). Thus improving profits and ROFE is very vital in Bidvest (Kenny, 2009).

Bidvest have few but large customers which are corporate biggies like Bidvest also has customers like Pizza Hut, KFC etc.It delas with not just single client but a range of gatekeepers, infleuncers, suppliers, financiers and buyers at the same time. That is why traditional market segmentation would not work in case of Bidvest because they do not have very large customer base to ‘self-select’ themselves in or out of segments on the basis of market communications. Moreover the product and services offered by B2B are a bit complex so they have to use sizeable direct sales force to handle this complexity problem. Another challenge is that the sales force can only split the market on the basis of visible demographics and cant split on the basis of emotional measures like customer needs, motivation etc. the reason being all the customers are the same for Bidvest. Thus motivation based segmentation is not possible in B2B.

However a solution which the B2B markets like the Bidvest can follow are the two statistical methods which are (Paul., 2008):

CHAID ( Chi squared Automatic Interaction Detection) Analysis
DISCRIMINANT Analysis

Using segmentation theory and knowledge of the organisation we can identify more market segments which they could target like the other target segments could be School canteens, and developing more eco-friendly warehouses across Australia would also help in gaining more market share for organisation. Introduction of green fleet will help in reducing carbon footprints and thus more customers will try to develop association with eco-friendly Company like Bidvest.

The Demand Analysis Determining Bidvest’s Production

Good performance is being shown by Bidvest Australia as the sales increased by 5% and the trading profit also rose by 10%. Technology has been really a helpful source in continuing the sustainability practices in Bidvest Australia. The demand of the customers has been fulfilled quickly through the e-commerce tool called the FindFoodFast. The rolling of paperless warehousing, trace technology, dynamic routing and the tracks of Bidvest ahs further helped in fostering further energy and cost savings at the same time.

To cater to the demand of portion-control market of meat and to enter the area of production Bidvest launched the Bidfresh Range. Bidfresh was started in October 2009 by acquisition of small underperforming business unit which was further rebranded as the starter for the Bidfresh operations.

The growing demand for frozen foods lead Bidvest Fresh to open a new facility in Hobart in September and in next year January Bidfresh had to open a new freezer complex which was commissioned at Adelaide, John n Lewis. In April 2012, in central Queensland Kele the wholesaler of foodservices was acquired to cater to the demands of its customers in freshfoods section. To fulfil the demands Bidvest has done expansion in Cairns and planning expansion in Perth too (Operational review, 2010).

Analysis of Existing market Channels of BIDVEST

The existing market channels identified in the foodservice segment of Australia are:

Figure 4: Channels in Foodservice in Australia (Spencer & Kneebone, 2007)

It has been found that the share of foodservice sector in retail food market in 2005-06 was 35%. AS per the foodservice definition the food consumed outside the home is the real market for foodservice segment but it is actually much larger than estimated because speciality realtors and FSS play vital role in supplying to the dining out outlets, takeaways the beverages and food. Moreover the large amount of food sales in retails done in the defence sector, health care and other channels which contribute to the institutional sales is not being recorded

Analyse the Effectiveness of These Channels

The channels currently catered by Bidvest are the Dining out and takeaways, almost all the sections of Event / leisure in the form of Bidvest Hospitality. Major eateries of international repute and the family chain restaurants the only segment which it lacks tapping is the institutional channel which requires extensive marketing in Bidvest. Like it can take up foodservice supplies in Defence Sector too. So Bidvest needs to follow a different approach form the traditional one as it is B2B segment to successfully service the current segments and to cater to new market channels.Other untapped segment or channel is the events and travel like it should try to cater to the airlines, airports and various events like Tennis Australian Open Tennis Tournament, Football events like Rugby and Soccer can also be sponsored by Bidvest.

Understanding of Pricing Considerations faced by BIDVEST

Bidvest Australia always delivers the right product at right time and is the best low cost and efficient logistics solution for the large scale food providers as well as the Quick service Restaurants in Australia.

BIDVEST’s Communication Strategy and Relevant Communication Theory

Bidvest Australia mainly believes in building relationships, through improving lives and empowering people and the two main keys which are implemented to achieve successful communication strategy in Bidvest are “Decentralized Management” and “Incentivization”. It believes in that the people are wealthy creators and the organizations simply do the job of reporting that wealth. Integrity is the main key which for the success of Bidvest which helps it in moving forward. Bidvest implies the Diversification strategy of corporate communication (Kenny, 2009).

They believe in making profits in ethical and responsible manner ensuring that employees work in safe workplace and get proper opportunities to enhance. Thus treating the whole environment with full respect. They deal with both suppliers and customers in appropriate manner. They support, and make it beneficial for the communities in which they operate. Integrity being the central part of Communication Theory they believe that it helps company to sustain in medium to long-term.

They can use latest technology to develop their communication like they have implemented paperless warehousing. They can communicate with the supplier as well as the customers through internet via e-mails (Lubbe, 2003). Since Bidvest is B2B Company so it should opt for Push Communication Strategy for profits and success (Dahlen, Lange, & Smith, 2010).

If you want Company strategy management Assignment Help study samples to help you write professional custom essay’s and essay writing hel p.

Receive assured help from our talented and expert writers! Did you buy assignment and assignment writing services from our experts in a very affordable price.

To get more information, please contact us or visit www.myassignmenthelp.Com

chat-new (1)