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Changes to supply chain help Sainsbury's profit boost

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Changes to supply chain help Sainsbury's profit boost

Wednesday, 13/5/2009 02:29
British supermarket giant Sainsbury's has made savings thanks to new initiatives in its supply chain management.

Continued investment in produce quality, a cost efficiency programme and a new transport management system have all been noted as reasons why the supermarket's profits have continued to rise.

Preliminary figures from the year to March 21st show that sales were up 5.7 per cent, with underlying profit increasing by 15.1 per cent to £616 million.

Justin King, chief executive of Sainsbury's, said: "Our business is growing because we have responded quickly and effectively to a rapidly changing environment.

"Our universal customer appeal and continued investment in price and quality have been fundamental to our growth."

Like-for-like sales at the company have gone up 4.5 per cent in the last year, marking the fourth year of consecutive growth.

Sainsbury's has more than 18 million customer transactions every week and its 120,000 employees will share a bonus of £60 million this year.
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