Major in a profit losses. The next operation

Major Issues

Like all businesses, Wegmans Food Market has a few major issues that need attention. Some of the issues that Wegmans has been experiencing operationally are based on my research:

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•           Not all of their stores are the same

•           Each department does their own ordering, marketing, special promotions and pricing

•           Managers assist in seasonal periods

•           Fully automatic or internet fulfillment

•           Cross docks (Wegmans 2017)

•           Cross circulation (Wegmans 2017)

•           Case picking (Wegmans 2017)

•           More organic food less non-natural products (Burris, 2017).

•           Less genetically modified organisms (Burris, 2017).

•           Recalls of products

•           Longer training sessions for employees

Next, in order to touch on each of the above points a little bit more in depth as it relates to the daily operations that Wegmans Foods has been confronted with since they opened their division.

Initially, let’s look into the cross docks. Cross docks are places or businesses that also carry a product that Wegmans has, however they do not actually ship it.  Their delivery truck driver would have to go and pick up the Velveeta cheese from the actual Kraft Warehouse even though it would be publicized and shown as being picking up from the actual Wegmans dock. Today there are actually more businesses who have switched to cross dock shipping. This type of shipping is less expensive, it saves on storage space and the merchandise last longer.  Conversely, when people choose to use cross docks they characteristically do not keep the trucking companies nor consumers in mind. As a daughter of a truck driver, cross docks are one of the most exasperating situations to deal with. The drivers get actually get very confused because in this situation, there could be 20 bay doors that all belong to one address, however each bay door is assigned to a separate companies cross dock even though it is all the same company.  This also makes it a challenge when Wegmans only orders a small number cases (Weismann’s 2017).  This is apprehension because these small cases are also susceptible to  being damaged or lost, which will result in a profit losses.

The next operation concern that was addressed is Wegmans ordering as it is a fully automated, using internet for fulfillment. Being fully automated or using the internet can be a great tool, nonetheless what happens when the system goes down or the automated product scanners stop working. This untimely situation is a big red flag, in my opinion because I have read about stores who actually get low on stock because of their systems malfunctioning.  It is indicated that the managers do however, step in during the ultimate seasons such as holidays. Managers in these situations do recheck the automatic system, as a standard practice.  This process may sound like a great approach to save on time and money however what will the company do when the system goes completely down without a backup plan.

            Next, Wegmans is looking for a way to cut down on unnaturally modified or artificial foods (Burris, 2017). Wegmans is readily looking for a frugally efficient way to migrate more organic foods into their stores.  Wegmans actually uses more locally grown products in the following states, New York, Massachusetts, Pennsylvania, New Jersey, Maryland, and Virginia (Wegsmans 2017).  Nevertheless these fresh organic products only come in a lesser multiplicity of states compared to all of the 79 stores. These organic produce, unfortunately, are also not available all the time (Wegsmans 2017).

Solutions to some Operational Issues

            Being a smaller private business, as compared to a publically-traded business, the board of directors at Wegmans are able to make judgements especially when it comes to the operations, without being concerned about the actual possibility of displeasing the shareholders.  An otherwise fruitful company, Wegmans does have the ability to make a few changes to its operating configuration to actually create a more competent and successful business.    Even though Wegmans attempts to reach these goals, as does a pretty good job of accomplishing them, the company still, in my opinion, is subject to a lot of unfortunate criticism.  One criticism, in particular and a prospective customer satisfaction issue, originates from the fact that not every Wegmans store, is the same.  Enquiries would need to be taken to see the actual lack of customer satisfaction which may be stemming from different locations having there on unique layouts; but if the adequate evidence existed to prove this, there would need to be a new operational change.  An additional disapproval of Wegmans is the extent of its new hire training program process.  New hire training is very important to the success of this or any organization; however it is also equally as important to ensure the programs being used remain proficient as well as effective.  Reducing these training times may also increase their production by having employees trained sooner.