Performance objectives of Wegmans Today I decided to do my presentation about Wegmans main performance objectives, first of all I will describe what exactly Wegmans Company is and what are 5 objectives of operations. Wegmans Food Markets, Inc. is a privately-held, family owned company that was founded in 1916 by the Wegman family. Based in Rochester, NY, they have raised the bar on the customer shopping experience. The company prides itself on offering exceptional customer service, high quality goods, an abundance of choice, restaurant-quality prepared foods, and beautiful stores and displays.
Wegmans has appeared on Fortune’s annual “100 Best Companies to Work For” list since its inception in 1998, and has ranked among the top 10 for eight consecutive years. And about performance objectives I can say that it is a generic set of performance and indicators that can be used to set the objectives or judge the performance of any type of operation. There are 5 main performance objectives: Quality – “Doing things right”. Quality is very important aspect for customer satisfaction or dissatisfaction, it’s all about providing error free goods and services.
Speed – “Doing things fast” to minimize the time between the order and the availability of the product or service that gives the customer a speed advantage. Dependability –“Being on time”, means that customers will get their goods and services when they are promised. Flexibility – “Changing what they do”. It’s about that organizations can change their products and services and change the way they do business. Cost – “Doing things cheaply”. Low price is a universal attractive objective to customers, which can be achieved by producing goods at lower costs.
If a supplier is making a product for Wegmans lebel, they must either be inspected by Wegmans’ own Quality Assurance Auditors or must be certified against one of seven “Global Food Safety Initiative (GFSI)” endorsed manufacturing standards. The first shipment of any new Wegmans brand product is scrutinized by company’s Quality Assurance staff to be sure it meets product specifications and food safety requirements. Tests are conducted in Wegmans Test Kitchen lab, or if necessary, by independent laboratories. Additional sampling and testing is done periodically, sometimes prompted by customer or employee comments.
Company also pays attention on friendly environment. Each store manager sets the tone for the warm, friendly work environment that employees expect when they work for Wegmans. And in turn, employees greet their customers with warm, friendly, helpful attitudes, which is crucial for any business whose employees regularly interact with customers. So as we can see Company cares much about safety and high quality of products, because the owners of the business know well that high quality can influence customer satisfaction and lead to stable and efficient processes.
For Wegmans Company it is very important to produce services and goods as fast as possible, and for this they are doing their best. As we know for fast production it’s important to have very good, qualified employees and good, modern technologies. So Wegmans company cares much about staff which works there, Wegmans’ Chairman Robert Wegman state that: “Respect, fairness, honesty, and concern are what’s important to people. To my way of thinking, the only way to achieve great customer service is by treating employees right.
They have qualified employees in technic and production departments and also they have different training programs for providing better performance of the staff. Wegmans puts a huge emphasis on being an innovator in retail technology. In 1974, Wegmans was one of the first companies to introduce bar-code scanning, and in 1990 Wegmans introduced electronic discounts. The company launched its web site, wegmans. com in 1996. The site not only helps customers save time and money through its on-line ad, but also offers meal solutions, recipes, and even provides the ability to apply for jobs within the company.
According to all these company is providing fast production and this is a huge way for the company success. Dependability is extremely important factor for customer trust and satisfaction, as i checked Wegman’s has strong position in it too. Customers are much satisfied how fast the company delivers its products, they love to go for shopping in Wegmans, some of them even said that: “A trip to Wegman’s is better than a trip to an amusement park”. All these is caused because firm provides additional ervices such as internet shops, which means that you can check out Wegmans products and services online, and even buy there, so save time by this, they also have recipes how to cook many different type and delicious food, they even provide these service by internet, if you go on their online page you can see many videos, about how to cook different foods, so as one Wegmaniac put it, “Shopping at Wegman’s is an experience. ” In addition to a unique shopping experience, including one-third of the space devoted to prepared foods, with another 15,000 sq. ft. or a liquor department, a 300-seat cafe, 70,000 products and some 30 checkout lanes, Wegmans brought relocated 75 Rochester employees to Massachusetts to ensure customers are treated the way Wegmans wants them to be treated. As an addition i would like to say that company managers said that for them it’s very important to know their consumer base and understand the demand. There’s so much diversity in Wegman’s markets these days, they need to know who their customers are and give them what they want. They said they have to give them not only what they are familiar with, but also explore other products that might not be a mainstream item.
And in their case, that’s unique vegetables and fruits. Flexibility helps the firm to change over between tasks quickly and without wasting time and capacity. Wegmans provide good flexibility, as the firm is changing over time, they are doing researches and are changing by customer needs, they can change techniques, operations, they are producing new products, are offering many different services. For example last year they did a research and find out that they can be successful in growing certain varieties of organic produce in the northeast.
CEO of the firm also said that last year they explored new techniques called a hoop house. It’s a metal frame with a plastic cover, and there they grow heirloom tomatoes and it was very successful. Every month they are offering new food products and for special celebration days they have special recipes, for example for thanksgiving day they offer which Turkey to choose, how to cook it, with what ingredients and so on, all these staff is very likable for customers and that’s a another factor why it is so popular.
And the final objective cost is described For Wegmans as follows, they are trying in all ways to keep medium costs and at this time keep all the customers as well. They are doing this very well, because they have many tools for this, for example at a time when commodity and fuel costs are rising dramatically, Wegmans Food Markets announced that it will not increase prices on 40 products that families buy most, to help customers and employees manage their grocery costs. “We considered the importance of an item to a family when choosing our list of 40,” said President Colleen Wegman. Such things as bananas, pasta, frozen vegetables, and laundry detergent are in most shopping carts every week. They are products that families can’t do without, so what they pay for these items really matters. ” The 40 products they selected to hold prices on were those that families buy week in and out. They were mostly Wegmans brand. Why? They have better access to information on the factors that determine costs for their own brand. Their quality makes them already the best value in their categories, and they’re often the top-selling brand.
Another good example of cost leadrship of Wegmans is that, In November of 2008, many families were feeling the economic shock of their lives as the nation’s financial system teetered, jobs melted away, and household budgets shrank. Wegmans announced a decision to lower hundreds of prices on frequently purchased products. If customers and employees were facing leaner times, the company reasoned, Wegmans should also live with leaner times. So by performance objectives described above we can see that Wegmans is successful company and is doing best for its customers.