Business Operations for Hypermarket - Paper Example

2021-07-08 17:16:30
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Middlebury College
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Hypermarket involves several component entities consisting of retail stores chains, transportation systems, various warehouse distribution centres, several product suppliers under contract and array of repeating customers who are grouped in several areas locally. Hypermarkets exist in the competitive environment, in which it acts as value adding intermediary between suppliers organisations which are dispersed geographically from scattered customers who are the products buyers (Goldratt & Cox, 2014).

Hypermarket business performs acquisition and assembling of a various assortment of goods shipped from suppliers, organises and then distributes the goods to other retail stores as well as sell them (Ross. 2011). The model of hypermarket focuses on physical stock handling while making the journey from the supplier to the potential customers. The model, however, does not consist of the life cycle developing of housing structures which are physical like the warehouses, trucks and stores same as the equipment that hypermarkets employ.

Hypermarket model is involved in identifying the vital parameters to be used; however such generic version does not consist of specifics like the product types specifics in terms of the actual number of the stores, store and warehouse numbers as well as the sizes extra. Such specifics are determined when applying the model to specific hypermarket business. A hypermarket is a business enterprise that offers services and goods (Li, 2009). Hypermarkets are mostly not involved in the production of physical products. However, hypermarket adds value to products and services through acquisition of existing products from suppliers, assembling them mostly in regional warehouses, distributing the products to local stores and selling the goods to customers locally under one roof.

Figure one: shows the flow of stock generally from suppliers through hypermarket to potential customers locally.

Local customers

Local stores

Flow of product

Regional warehouses

Hypermarket stock from

Local suppliers

Businesssupplier to


Customers of hypermarket mostly include residents and small business enterprises who needs household products stocks replenishing periodically. Hypermarket provides a virtual marketplace that connects remote suppliers and customers and conveniently provide customers with a one-stop shopping experience under one roof and on a single trip.

Hypermarket model structure

Hypermarket model portrays its functional system for conducting business. As an operating system, the work sequence done in ensuring products are brought from suppliers to customers locally involves some given business entities that are discrete. Each entity gives a critical link in the hypermarket supply chain(Terwiesch & Cachon, 2012). Figure two illustrates the various business entities identified as subsystem layers of the given model as well as defining the functional activities performed.

Figure two: The Functional Activities

The Customers

Local Stores


Warehouses regionally


Functional activities done

Customers shopping at local store

For household inventories.

businessDisplay and organizing of stock

entitiesat local stores received from


subsystemDelivery of warehouse stock by

layerstransporters to local stores.

Receiving and assembling of

Supplier stock by warehouse

Delivery of suppliers stock by

Transporters to warehouses.


Production and releasing of

product stock by suppliers for


The above business entities sequence provides the first breakdown to defining the structure of hypermarket subsystem layers. To fully complete the hypermarket structure model, the subsystem layers structure if overlaid the core processes sequence, which is a representation of the hypermarket business life cycle. In figure three below the core processes in a sequence of time, overlaid.

Figure three: Core Processes










Constructing core process

Hypermarket core processes

The Customers

Local Stores




Warehouses regionally




The sequence of core processes starts by defining the concept of business in terms of detailed sets of the requirements of the system. Requirement definitions after which transformed into a design that is tangible then construction of the structures follows, which are the procedures and agreements of contracts that constitute the business. In the provisional process, description of how the final structures are used to provide the actual hypermarket service. In order to fully achieve the original concept of the business, all the core processes are implemented over a given period (Li, 2009). The core processes which are four sequence of developmental stages constitutes the life cycle of hypermarkets business enterprise product.

Detailed development of hypermarket model structure

Structures of the core processes require the detailed structure of subsystem to define them. The first step in doing so is translating the functional activities that were to be performed (from figure two) into basic functional steps sequences which will bring product stock from the suppliers to the potential customers. Figure four below describes the vital supply chain of the hypermarket business.

Figure four: The Supply Chain

The functional activities to be STEPS OF BASIC FUNCTIONAL


Customers Shop at the local stores to PurchaseShop for stock

Needed household inventories.Purchase stock

For easy access of the stock received from warehouseStock DisplayS

Local stores Organize and Display it for customersOrganize stockU


Transporters Deliver the stock quantities to the stores in Deliver the stockP

the region of the warehouses.L


Warehouses Receive, Assemble and Distribute the stock Distribute stock

to local stores in the region.Receive stock

Assemble stockC


The transporter then Deliver the supplier stock to Deliver stockA

warehouses in the region.I


The supplier Produces and Releases the stock productRelease the stock

for transportation to warehouses in the regionProduce the stock

As the Basic functional steps side illustrates, the supplier stock physical properties do not change in the entire sub-process steps sequence. The stock is undergoing a series of actions which only affects it assigned properties like its location, level of accessibility, visibility as well as its purchase price(Bozarth & Handfield, 2015).

The step that follows is interpreting the business subsystems of the Basic functional steps which shows the supply chain in terms of the requirements of the business structure. The terminology changes from Actions steps to supplier stock state at each level of the subsystem. In every step in the supply chain, it describes which business entity owns or is in charge of the stock, the physical location of it as well as the means of accessing it.

Figure five: Subsystems


Sequence of detailed subsystem layer

Shopping stock from store to customer


SHOP for stock

PURCHASE stockPurchased stock from store to customer

Shelf stock store

Buffer stock store

Warehouse to store shipment stock

Distribution stock from warehouse

Warehouse pick inventory stock

Buffer stock in warehouse

Stock shipment from supplier to warehouse

Released stock from supplier to warehouse

Supplier to hypermarket stock produced











In figure five above, it provides the needed foundation to identify the main details of the core processes as well as the way they are performed. By connecting the Basic functional steps and subsystem layers structure, it forces the breakdown of the work of the core processes to coincide with the supply chains basic functional steps.

Combining the detailed subsystems and the core processes produce a framework which looks like a grid. Within the framework, every core process/subsystem intersection is described to be the performed and managed Business Function. With regards to work carried out, the final array of the core processes/subsystem intersection shows the whole set of the business function of the hypermarket business enterprise (Ross, 2011).

With the structure of subsystem, every core process is added sequentially to the structure of subsystem to develop a diagram of the hypermarket model. With every core process added, more description is given to show how any new function of business is done. Figure six below shows how the business functions can be identified and be described.

Figure six: Business function




Description of how work

of each business function

is done.


Berry, William, L. & Jacobs, F., Robert et al(2011). Manufacturing Planning and Control for Supply Chain Management. New York, USA: McGraw-Hill Education.

Bozarth, Cecil, C. & Handfield, Robert, B.(2015). Introduction to Operations and Supply Chain Management. London, UK: Pearson Publishers.

Goldratt, Eliyahu, M. & Cox, Jeff(2014). The Goal: A Process of Ongoing Improvement. Barrington, U.S.S: North River Press.

Hugos, Michael, H.(2011). Essentials of Supply Chain Management. Hoboken, New Jersey, USA: Wiley Publishers.

Li, Ling(2007). Supply Chain Management: Concepts, Techniques and Practices: Enhancing the Value Through Collaboration. Athens, Greece: W.S.P.C.

Ross, David, Frederick(2003). Distribution Planning and Control: Managing in the Era of Supply Chain Management. New York, USA: Springer Publisher.

Slack, Nigel & Brandon-Jones, Alistair et al(2015). Operations and Process Management, 4th Edition. Philadelphia, USA: Trans-Atlantic Publications, Inc.

Terwiesch, Christian & Cachon, Gerard(2012). Matching Supply with Demand: An Introduction to Operations Management. New York, USA: McGraw-Hill Education.


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