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Operations management improves Sainsbury''s bottom line?
11 November 2010
Introducing measures that have led to cost efficiencies in its operations have helped Sainsbury's to improve its financial results.
This is according to the company's first half statement for the six months to October 2nd 2010, which show that underlying operating profit rose by 8.2 per cent to £370 million compared with the same period the previous year.
Part of this increase was attributed to efforts to simplify aspects of its running and deliver costs savings throughout the store chain, which are reported to have completely offset any inflationary pressures over the period in question.
Operations management systems that have enhanced the company's profits include self-scan checkouts, optimising the use of trailer space, reducing unnecessary journeys and saving energy in stores.
Additional efforts have been made by the firm to reduce waste and packaging, while new supply chain technology is expected to improve its carbon footprint
In its second quarter trading statement for the financial year to the end of March, Sainsbury's recently revealed that sales rose by 6.6 per cent.
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