Product details

Velky Potraviny is a discount grocery store chain in the Czech Republic. The firm strives to be the market leader in providing a wide assortment of grocery products at the lowest possible price. The move towards a market economy has prompted rapid expansion, and the Velky distribution centre is nearing capacity for the 37 outlets it presently serves in the greater Prague area. Velky has realised the need for efficiency in its warehouse operations. Velky further recognises that the distribution centre employees are an integral part of the company and critical for efficient warehouse operations. Hence the need to address the performance measurement and bonus pay of the workers. However, Velky cannot independently address the issue of worker performance measurement and bonus pay without addressing issues that effect its entire supply chain. Students can get a better understanding of compensation for workers and flows within the warehouse if they approach Velky's problems from a systems perspective and its overall link to the corporate goal. A useful systems tool is the supply chain framework and the warehouse - its process and people - are an integral part of this framework.