Presentation by:Sweta║Ranjit║Parishkrit║Sudip

February 24, 2014

CONTENTS

Introduction Company History Achievement Operation Management Superstores Departmentalization Demand & Supply Management Inventory Management Employees Satisfaction Quality Maintain Technology Management Conclusion

INTRODUCTION

Wagmans at a glance:

Name: Wagmans Food Markets Inc.Established date: 1930sHeadquarter: Rochester, NewYorkEmployees: About 37,000Annual Sales: $ 3 billionSales per sq.ft.: 50 % higher than industry

average

INTRODUCTION

Major grocery retail store in U.S Low attrition rates Good customer service High pay & benefits to employees. Positioning for HIGH QUALITY & EXCELLENT

SERVICE

KEY PERSONS:

Danny R. Wegman,CEO

Colleen Wegman,President

HISTORY

1916 •Founded by Wegman Bros•Fruit & Vegetable Company

1920’s •Purchased the Seel Grocery Co•Expanded their operations

1930’s• Store were incorporated as Wegman’s Food

Market• Introduced refrigerated display windows and

vaporized water sprays to keep produce fresh1940’s

• Frozen foods were introduced• Robert Wegman converted stores to self-

service format.

1950’s

• Employee benefits program - more than 350 full-time employees

• Diversified into related businesses

1970’s •Started setting up new stores at 40,000 Sq Ft.•3rd retail chain to use Electronic cash register

1970’s

Opened Home improvement centerPurchased Bilt-Rit Chase-Pitkin IncExpanded Bilt-Rit chainDaniel became the president in 1976Developed private label buying and its brand item chain wide

1980’s

1990’s

1st Pvt. Company offered child care serviceBecame a most popular supermarket chain inNYPositioned it as an advocate of better health and nutritionLaunched ‘Strive for Five’Opened stores outside NY state

Installed ATM’s & provided service Federal credit union for employees were createdFortune Rated best supermarket in US for customer servicesLaunched Work Scholarship Connection

2005 •Ranked #1 for ‘Best company to work for’ •Announced to close its Chase-Pitkin and Home and Garden centers by 2006

2006

• Employed 36,000 people• Ranked #2 in Fortune List of 100

companies to work• Ranked #66 on Forbes list of the

largest Pvt company in the US

2007• Ranked #32 in Supermarket News list• Ranked #3 on Fortune List• Operated 71 stores

2008Ranked #3 on the FortuneCelebrated consecutive 11 years of being on Fortune magazine’s “100 Best Companies to Work For.

OPERATION MANAGEMENT

OPERATION MANAGEMENT

Superstores: About 100,000 Sq.ft. superstores Checkout lanes – 25 to 35 Different in size & features 40-foot displays case 500 sq. ft fisher man’s wharf. Ready made Vs. Made-to-order.

OPERATION MANAGEMENT….

Departmentalization: Produce Department:

Company prides itself on fresh produce. Replenished as often as 12 times a day. Floor space is more than 4-5 times than industry average. Using ‘Farms to Market’ system.(bypassing warehouse)

Display/sales Department: Very convenient display and sale department. Adopt ‘Selling Culture’ inside the department.

OPERATION MANAGEMENT…….

Demand & Supply Management: Each department handles its own ordering. Focus on demand timing- Festival, weather, conditions etc Distance of warehouse & sales dept. is near. Strict control over suppliers on product quality & on time

deliveries. ‘Farm to Markets’ system

OPERATION MANAGEMENT…….

Inventory Management: Decentralize Inventory Management system.

Punishment system

OPERATION MANAGEMENT…….

Human Resource Management T & D program ($7,000 per new employee) High motivation program( Like- Compensation, profit sharing

and benefits) Employee turnover rate is only 6 %. (In industry average –

20 %) Health & Life insurance. Scholarship for both part & full time employee.

OPERATION MANAGEMENT…….

Quality Management Positioning on quality. Established test kitchen. Managers are responsible. Well reporting system. Replacement & refund facility.(In Wagmans’s brand items

only)

OPERATION MANAGEMENT…….

Technology Management Highly experienced IT staffs. Established modern IT department. Continue to adopt new technology.

CONCLUSION:

Very standard operation management practices.

Focus on prompt supply but not compromising quality.

Unique business model.