Whole Foods Market is based on a system of decentralized buying (Whole Foods Market). There is no professional
supply chain; everything is unique to each region, employing local businesses. Control is maintained through a
multidivisional administration, which creates partnership with local vendors.[122] Each store has freedom to tailor
their product offering to the local community. Although there is a high level of store autonomy, each product must
adhere to Whole Foods Market high quality standards.
Given the decentralized infrastructure, vendors and product offerings are approached from the regional level due to
the diversity of each geographical region (Whole Foods Market). A new vendor must submit an application to the
regional office, where product demand and quality is determined (Whole Foods Market). Because there isn’t a
singular supply chain, Whole Foods Market receives an overwhelming amount of vendor applications in each region.
This multidivisional approach allows Whole Foods Market to control product demand and competition.[122] The
transaction costs of outsourcing and creating these partnerships are necessary to achieve the product quality and
ideal Whole Foods Market strives for.
Whole Foods Market is based on a system of decentralized buying (Whole Foods Market). There is no professional
supply chain; everything is unique to each region, employing local businesses. Control is maintained through a
multidivisional administration, which creates partnership with local vendors.[122] Each store has freedom to tailor
their product offering to the local community. Although there is a high level of store autonomy, each product must
adhere to Whole Foods Market high quality standards.
Given the decentralized infrastructure, vendors and product offerings are approached from the regional level due to
the diversity of each geographical region (Whole Foods Market). A new vendor must submit an application to the
regional office, where product demand and quality is determined (Whole Foods Market). Because there isn’t a
singular supply chain, Whole Foods Market receives an overwhelming amount of vendor applications in each region.
This multidivisional approach allows Whole Foods Market to control product demand and competition.[122] The
transaction costs of outsourcing and creating these partnerships are necessary to achieve the product quality and
ideal Whole Foods Market strives for.
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