Aaron Lum Woolworths Graduate Presentation to Gilroy College

Aaron Lum – Woolworths Graduate Presentation to Gilroy College October 2011

My Career • Gilroy College – 2007 – College Captain • University of Western Sydney – 2007 – 2011 – Bachelor of Business and Commerce (Marketing/Property) • Norwest Mc. Donald’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 2

Woolworths Limited as a Business Selling goods or providing a service? • Goods – Example: Supermarkets & Big W • Services – Example: Everyday Mobile, Insurance, Everyday Money 3

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 4

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. 5

Promotional Mix Advertising • Television, Billboard, Print ads, catalogues, in-store displays, radio 6

Promotional Mix Public Relations/ Corporate Image Online/Technology 7

Business Functions of Woolworths Supermarkets Marketing/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 8

Business Functions of Woolworths Supermarkets Operations • 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 9

Business Functions of Woolworths Supermarkets Human 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 10

Focus on 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 11

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 12

Focus on Operations Getting products to the stores 13 Vendor and Business Teams negotiate Store systems use forecasts to order for stores DC’s send out stock to stores VRP/DCP & Replenishment Teams set up to order DC’s put stock away ready for dispatch Stores receive stock and present it on shelves Systems use forecasts to order for DC’s Vendor delivers stock to DC’s Customer buys product

Questions