Aaron Lum – Woolworths GraduatePresentation to Gilroy College October 2011

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My Career

• Gilroy College – 2007

– College Captain

• University of Western Sydney – 2007 – 2011

– Bachelor of Business and Commerce (Marketing/Property)

• Norwest McDonald’s – 2004 - 2010

– Started @ 14 years 9 months

– Did management while at university

• Woolworths Kings Langley – 2010

• Woolworths Limited – Present

– Logistics Store Replenishment DC Replenishment

• Woolworths Graduate – 2012 - 2014

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Woolworths Limited as a Business

Selling goods or providing a service?

• Goods

– Example: Supermarkets & Big W

• Services

– Example: Everyday Mobile, Insurance, Everyday Money

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Woolworths Limited as a Business

Type of industry

• Retail

Private or Public Company

• Publically listed company

• ASX Code: WOW

Employees

• Total – 188,065

• Australia – 168,721

• New Zealand – 19,167

• Hong Kong and India – 177

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The Woolworths Consumer

Our main purchaser/consumer

•Woolworths Limited has a diverse business mix which including supermarkets, liquor, fuel, general merchandise, consumer electronics, hotels, home improvement and financial services

•Each of the companies brands has its own target market

– Example: Big W targets young families and offers discounted everyday items.

– Example: Dan Murphy’s caters for consumers who are price conscious and who may need a specific product. Woolworths Liquor on the other hand targets those who prefer the convenience of shopping for their groceries and liquor needs in the one place.

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Promotional Mix

Advertising

• Television, Billboard, Print ads, catalogues, in-store displays, radio

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Promotional MixPublic Relations/ Corporate Image

Online/Technology

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Business Functions of Woolworths SupermarketsMarketing/Sales

• Buying and Marketing teams

• Separated into categories such as produce, fresh, private label

• Each of these teams is responsible for their promotions, shelfing, variants of products etc.

• Each team liaises with vendors

• Each team works closely with the marketing department to organise advertising

• Data is analysed by each team to look into things like effectiveness of a certain sale or the sale of a certain product in a certain area

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Business Functions of Woolworths SupermarketsOperations

• Replenishment teams

– Look after the store replenishment and warehouse replenishment

• Store operation teams

– Look after the day to day running of stores and the procedures behind them

• More on this later

Finance

• Much of this is done in store and with area managers around the country

• The company itself has its own large finance department which controls the finance auditing and reporting of the company

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Business Functions of Woolworths SupermarketsHuman Resources

• $63 Million was spent in 2010 on training and development

– Includes things like actual training, in-house courses, further tertiary education and graduate programs

• Human Resource teams are very large

– Scattered locally throughout Australia and then in the corporate offices

• Source employees internationally but also hirer within

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Focus on Operations

Operations Strategy

• To deliver to customers the best shopping experience each and every time

• To be as efficient as possible and to ensure it is done safely

Quality Management

• At every stage of the operations product quality is kept at its highest

• Quality is checked before the Woolworths buyer decides the product is right for our store

• Checks are made on sample products as they arrive in our warehouses and stores. Example: Tin can’s are weighed at random in store to ensure they weigh what they are supposed to weigh

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Focus on Operations

Key Operations Functions

• Buying

– Decides which products to sell in our stores

– Organises which promotions will be on which lines

– Decides the price point of the product and shelving location

• Replenishment

– Maintains the ordering and stock levels

• Marketing

– Ensures that the correct promotions are given higher exposure

– Puts together the catalogues

– Coordinates local marketing

• Logistics

– Ensures DC’s are operating as efficiently as possible

– Organises transportation

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Focus on OperationsGetting products to the stores

Questions