Supply Chain Management in Tesco: A Key to Success

Operations and
Service Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
One operation management practice within chosen organization..........................................1
Impact of operation management practice on the efficiency of company..............................2
How technology can be embedded in this process and how this already been achieved.......4
Supportive functions which are linked to this operation management practice and how it can
help in becoming successful...................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Operation management is one of the main area of management of an organization which
is mainly concerned with controlling as well as designing of the process of production business
operations in order to produce qualitative products (Radosavljević, Jevtić and Klimenta, 2016).
There are several operational management practices which play an important role and allow
companies in taking competitive advantages and one of the effective practices which this study is
going to discuss on is supply chain. This present study is based on Tesco which is a British
multinational groceries and merchandise retailer with headquarter in England, UK. It was
founded by Jack Cohen in the year of 1919. This present study will discuss effectiveness of
supply chain management as operational management practice and ways as how it makes Tesco
able to become the market leader and also satisfying its customers. It will also discuss some
functions which are associated with supply chain management and required to be followed by
suppliers in order to help company in accomplishing goals. It will also show importance of
technology and models in success of supply chain management.
MAIN BODY
One operation management practice within chosen organization
Administration of all business practices like sales, HR, marketing and others is called as
operation management which is being done by operation manager in order to create the highest
level of efficiency in an organization. The main function of operation management and its
practices are to convert raw materials as well as labour into final goods and services for
maximizing profit and productivity of the company (Liu and et.al., 2018). There are several
effective operation management practices which play an important role especially in
manufacturing and Service Company and one of the main practices which is key for the success
of an organization is supply chain. Quality management, revenue collection, communication
coordination are some other operation management practice.
Supply chain management: In the context of Tesco, British multinational groceries and
retailers, believes that skilled workforce and an effective supply chain management is one of the
main key of its success as it makes it able to provide value to customers and make them able to
stay with the company for the long run. Supply chain management can be defined as the
1

management of flow of goods as well as services as it includes all those functions which are
required to convert raw materials into finished goods of company which it sells and by delivering
it to customers it increases value and increase customers’ retention rate. For making this supply
chain management successful it is important to control or link production, shipment and
distribution of products. So, overall it can be said that from production to delivery of products all
functions are being covered under supply chain which can allow company in taking competitive
advantages (Hugos, 2018). There are several advantages of making use of supply chain or mainly
focusing on supply chain management as it allows companies: Tesco, Sainsbury’s Morrison and
others to cut excess costs and deliver final goods to customers in a timely and effective manner.
It can be better done when supply chain manager keep an eye or strict control over internal
inventory, internal production as well as sales. It can be said that all finished goods which comes
up in the market and which is being delivered to customers is result from the efforts of supply
chain. So, from this it can be said that supply chain management plays an important role in
making businesses successful and making them able to attract customers as well as taking
competitive advantages. It needs to focus on main parts or areas such as: the strategy, the source
like raw material, manufacturing, delivery and the return system.
Supply chain of Tesco: It is stated that Tesco wants to make sure that all its 75 million weekly
global customers are getting what they want and it can be done with its supply chain. In its
supply chain management, it is passionate about giving whatever and whenever customers want.
By getting out thousands of products from factories around the worlds to the shelf edge in order
to satisfy its millions of customers by putting right products at right place and in right time.
It also believes that for an effective supply chain management it is important to satisfy needs of
suppliers and maintain a good relation with them. So, by hiring hundreds or thousands of
suppliers it focuses on maintaining relation with merely several suppliers. By ordering products
in bulk it orders products at lower price which minimizes its cost. So, overall it can be said that
supply chain management is one of the main an effective operation management practice
(Banerjee and Mishra, 2017).
Impact of operation management practice on the efficiency of company
It is already stated that supply chain management plays an important role but there are
several other reasons which shows its efficiency in the success of Tesco and other organizations.
2