Tescos Supply Chain Management - Company Reports - Business Insights International

Tesco: Supply Chain Management
Report Code: COMP0004 Period: 2000-05 Industry: Retail Countries: UK Report Length: 19 Pages	Year of Publication: 2006 Price: Electronic Format: Rs. 400 (Approx. 9.3$/ 5.3£ /8.0 €)

...TESCO'S SCM INITIATIVES

Tesco’s SCM relied heavily on the concept of ‘Process Improvement’ and was guided by its core purpose of creating value for customers so as to earn their lifetime loyalty. The key period for Tesco’s supply chain initiatives was between 1983 and 1996; during this time, the company introduced several systems including point of sale scanning, centralized ordering, centralized distribution, automated warehouse control and electronic data interchange (EDI)…

...MANAGING THE SUPPLY CHAIN
As of 2005, Tesco had 2,365 stores across the world, 1,780 of which were in the UK operating on 24.2 million square feet of retail area. In the UK, Tesco operated primarily through four types of stores (Refer Exhibit III for Tesco’s store format). The company’s international operations were spread in 12 countries across the world.

The sheer size of Tesco’s operations called for high efficiency in supply chain. Even if the service level was at 99.9%, it still meant six million service failures…

• Sourcing
• Primary Distribution
• Continuous Replenishment System
• Adopting RFID Technology

…LOOKING AHEAD
In the East European Markets, Tesco’s logistics and supply chain were not well developed and relied heavily on deliveries from suppliers. This was a viable proportion for the large stores but not for the smaller ones. As Tesco planned to expand smaller stores in Eastern Europe, developments in the supply chain became necessary. In Thailand and Korea automated DCs have been operational. For Tesco to gain an edge over other multinational retailers entering these markets, it was necessary to build viable supply chain solutions…

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Tesco: Supply Chain Management