1. Explain three different ways where Lulu can be more collaborative when dealing with Barakat. Then create a simple GANTT chart with four activities which Lulu would carry out when developing the new fridge (10 marks)

CASE STUDY: Inside Lulu Hypermarket's supply chain Lulu Hypermarket already operates one of the largest supply chains in the region with more than 100,000 SKUs in each store, but it has its sights set much higher, as Namitha Madhu reports... In spite of the volume of goods handled and the number of outlets in the distribution chain, the growp has beon able to run its supply chain manogoment in the country like a well-oiled machine. by 05 May 2017 09:36 AM Lulu is also one of the UAE's fastest growing brands at present. What began as a small supermarket in Abu Dhabi in 1995 is now one of the largest retail chains in the Middle East. With the parent company EMKE Group headquartered in Abu Dhabi, Lulu Hypermarket has over 120 outlets worldwide, of which 50 are in the UAE. In spite of the volume of goods handled and the number of outlets in the distribution chain, the group has been able to run its supply chain management in the country like a well-oled machine, and most of it comes down to a well-thought out distribution channel and warehouse management system. For ease of operations, Lulu group has divided the UAE region into three parts: Dubai and Northern Emirates, Abu Dhabi and Al Ain. Manoj, who takes care of the logistic operations in Dubai and Northern Emirates, takes us through the group's supply chain process: Lulu has four warehouses in the UAE, the one in Abu Dhabi being the largest with 1mn sq ft, followed by the warehouse in Dubai Investments Park with 400,000 sq ft. At the warehouses, goods are managed with the help of a warehouse management system. "Ordering from store to warehouse is completely automated. We practice computerised reordering of products for the store everyday depending on sales data from point of sale, seasonal changes, actual inventory levels, product receipts and acceptable safety stock levels. Inventory data integrity is maintained by cycle-counting," says Manoj. "The benefits of auto ordering include lower out-of-stocks and higher sales, lower inventory costs and higher margins, and lower labor costs by cycle-counting. The WMS also alerts us about goods that are going to expire two months in advance, so that we can take the necessary steps to sell off our stocks," says Manoj. In the beginning of 2016, the company's first transit warehouse in Jebel Ali Free Zone (Jafza) began operations, enhancing the group's import and export operations. The warehouse covers Thanks to the now warehouse at Jatza, we have been able to increase our frequency of shipments," Mancj explains. The warehouse at Jebel All, which mainly houses iterns such as textiles, home fumishing and electronics, employs around 100 stail, while those at Abu Dhabi and Dubai employ 700 and 500 respectively. Perhaps the group's biggest supply chain challenge lies in its distribution system. All Lulu cuttets have back stores, albeit with limited space as the majorify of the stock is held at the warehouse. "Because we have a big warehouse with ample space we dont need targe back stores. Our warehouses always hold stock for 15 to 20 days. Even it the supplier nuns out of an item, it is still available at our warehouse. And suppose an item does go out of stock at a store, it is replenished within three hours." Lulu currently sources items trom about 400 local suppliers and sources 75% of its truits and vegetables through direct imports from more than 25 countries. We import around 275 containers of fruits and vegetables a month.. The group has also signed contacts with local farms as part of a CSR initative to support local organic farmers. Products with a short shell life. such as tresh juice, chicken, fish milk, yoghurt and other beverages are directly sent to the stores by the suppliers. "They are sent twice a dayy, in the moenings and evenings." The group's retail wasehouse in Dubai has another specialty of sorts, says Manoj. "it is the only one with a kithen. We have over 100 chefs, and we produce around 3 tonnes of food every day." Keeping up with the times. Lutu expanded into online shopping in the first quarter of 2016 . Lulu's e- commetce division (y-5) currently sells grocenes and degartment. products. Stuart Davidge, head of e-commerce, Lula Group, said, While e-commerce oflers a world of opportunity, success is delined by how well customers ate satistied. Our logistics team places umpteen importanoe on the quality of the delivery process to ensure that Lulu meets the expectations of cur customers. All our delivery vehicles have special compartments for chiled and frozen food as welt as groceries to ensure that their qualify is maintained during the delivery process. + The group has ambitions plans for the future, focusing on expansion in Asia and the GCC. The company recently opened hypermarkets in Malaysia and Indooesia. We plan to open around 35 new stores in the fegion in the next three years. "Manoj telis Logistics Middle East. Suppliers One of Lulu's suppliers is Barakat. Barakat Vegetables \& Fruits Co (BVFC) supplies whole fresh truits 8 vegetables to premium establishments while Barakat Quality Plus (BQP), produces treshly squeezed juices. cut fruts 8 vegetables. salads, ice cream. 8 ice pops and a variefy of hot kitchen items - all with to additives or preservatives - to hotels, airlines, restaurants and retail. In 2018, Barakat introduced barakatfresh.ae, an online ordering b home defivery portal bringing together all the fresh Barakat Group peopositions under ane umbrella. Weh just a few clicks, consumers can have their Barakal fresh produce deliveted straight to their doonsteps in as little as 3 hours from placing the order. In addition, Barakat has over 100 vending machines and 5 Barakat-manned kiosks, all serving convenient fresh produce in multiple locations within the UAE. 5. Explain three different ways where Lulu can be more collaborative when dealing with Barakat. Then create a simple GANTT chart with four activities which Lulu would carry out when developing the new fridge (10 marks)