Tesco Supply Chain Management

This assignment examines Tesco's supply chain management practices. It discusses how Tesco effectively manages the supply chain of goods by storing raw materials, producing products according to market demands, and utilizing both offline and online channels for sales. The analysis emphasizes the importance of distribution channels, delivery services, and customer satisfaction in Tesco's overall success.

E-Business
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TABLE OF CONTENTS
INTRODUCTION ...............................................................................................................................3
CASE study overview..........................................................................................................................3
Supply chain management ...................................................................................................................3
Supply and demand management in offline and online context...........................................................5
Compare and collaborate......................................................................................................................6
CONCLUSION ...................................................................................................................................6
REFERENCES.....................................................................................................................................8
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INTRODUCTION
Electronic business is the application wherein company gather the information and adopts
the communicate technology in support of all activities related to the business through the internet.
Organization can trade with the another company which includes the product and services through
the internet network. Under this report, there are various aspects of the electronic business will be
studied in the context Tesco. The present report covers, company applies the supply chain
management which helps to increases the revenue and productivity in the market. The supply chain
based on the efficient and responsive under which company effectively fulfils the demand of the
consumer and suppliers produces the product and services as per the economy, weather. In addition
to this, company effectively manage the demand and supply of the products in the offline and online
context.
CASE STUDY OVERVIEW
According to Fearne and Hughes, 2013, “ Tesco deal the products and services at the large
scale under which many supply chain of this organization”(Fearne and Hughes, 2013).In this way,
It is third largest firm in retail industry which they offers various products and services to the
customers. Company generates the revenue $54.443 billion in a year and total number of the
employees 476,000 working in the organization. Moreover, organization effectively and manage the
supply chain of products and services which helps to generating the high amount of the revenue in
retail industry.
SUPPLY CHAIN MANAGEMENT
According to Janvier-James, 2012, “ supply chain management is the function wherein
company can manage the flow of goods and services across the globe”(Janvier-James, 2012). In
this context, it works in recycle under which includes the movement and storage related to the raw
material and work in progress inventory. It also includes the finished goods under which all these
process are complete and products ready for deliver there after company can communicate with the
other supplier. It involves the chain of purchase process and distribute the products and services is
called the supply chain. In this way, organization can monitoring and controlling the supply chain
that is supply chain management. Furthermore, Tesco effectively uses the management of products
and services which helps to maintains the flow of operation related to the material. The supply
chain management is bases on the efficient and responsive. Christopher, 2016,has stated, “ efficient
supply chain generates the high revenue of the firm and increases the overall
productivity”(Christopher, 2016). However, if company not able to maintains the effective supply
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chain which creates the decline the brand image in the market. In this way, Tesco effective manage
their supply chain under which includes the shipping charges, import and import charges etc.
Efficiency of supply chain includes the optimization, high quality partners, inventory management
and customer satisfaction towards the material which is provides by the company. Moreover,
organization also includes the third party like government in decision making. The government
formulates the rules and policy related to the supply chain under which manager of the Tesco
manage their supply chain as per these norms. It includes the all records wherein company deal the
another party regarding goods and services etc. Apart from this, supply chain directly linked up with
the customer satisfaction under which company adopts the effective supply chain. In this way,
organization deliver the goods and services to the customer who are willing to buy the product
quickly and their needs. They provide the products with the best quality and reasonable prices
which creates the satisfaction of the customer towards the services as well product. Henceforth,
supply chain management plays important role in the organization which helps to maximizing the
profit of the firm. Monczka, Giunipero and Patterson, 2015, “ the responsive supply chain depends
upon customers needs”(Monczka, Giunipero and Patterson, 2015). In this context, manager of the
Tesco are able to fulfils the consumer demand on time and quick response for demanding of the
consumer. Organization focuses on the supply chain under which they fulfils the requirement at the
work place and responsive to the need of the customer. It includes the order fill accuracy, scalable
fulfilment, communication and customer satisfaction so that all these bases company response to the
supply chain. Under order fill accuracy, company can deliver the quick services and product and
order also arrived quick. However, products is inaccurate and incomplete so that negative impact on
brand of the company. In this way, the employees also wasted the time as well money under which
supply chain should be proper manner. It helps company to provide the products and services on
time and attain the customer satisfaction. It affects performance of the organization because clients
and customer are satisfied his services is provided by the employees on time. Accordingly,
organization increases the sales turn over and overall productivity in retail industry. On the other
hand, manager of the company have experience that ups and down in flow of products and services
due to season. Wolf, 2014 ,has stated, “sales of the company also affected by the season, weather
and economy”(Wolf, 2014). However, suppliers can store the raw material and complete the finish
goods as per the season and weather. It helps company to effectively manage their products so as
result these goods are not damages. They easily deliver the goods on time without wasted material
as well damage. In this way, organization manage the supply chain under which they are able to
deliver the goods whether ups and down of the season and changes of the economy. Henceforth, it
affects the sales volume of the company and image. Moreover, communication plays active role in
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responsive supply chain and Tesco. The consumer have any query and problems which is related to
the products and services. Employees of the corporation are able to solve the issues and take the
quick responses when customer have complain. Organization and customer communicate the open
line communication which creates the interest of the consumer towards the product. According to
Beske, Land and Seuring, 2014, “ consumer wants to the firm for producing the product as a best
quality and sale at the reason price”(Beske, Land and Seuring, 2014). Tesco produces the products
as per the buyers requirement which generates the satisfaction of them towards the company's
products. However, organization not able to response the supply chain that effect the brand image
and decline the sales turnover. Henceforth, efficient and responsive supply chain are interconnected.
The chain efficient need to speed uniform order and efficiency or responsive supply chain need to
the fulfils the demand , customized order etc. All these factor effectively used by the Tesco and
manage their supply chain in the globe.
SUPPLY AND DEMAND MANAGEMENT IN OFFLINE AND ONLINE
CONTEXT
Online Offline
 Tesco manage the demand and supply in
online context under which they focuses
on the delivery of products to the
consumer. Furthermore, company
develops their website which helps to
easily classify the products category.
 According to Fan and Gordon, 2014,
“company advertises the products and
services through social media and online
portal”(Fan and Gordon, 2014). In this
way, manager of the Tesco focuses on the
distributing channels which helps to
manage the demand and supply.
Organization appoints the delivery men
who deliver the food at the home of
consumer. It helps customers to easily
get the product on time and company
easily deliver the goods through the
 According to Zhao, Liang and Dolgui,
2016, “ company manage the data and
supply and demand in offline context
wherein manager take the
feedback”( Zhao, Liang and Dolgui,
2016). In this context, Tesco deals the
products and services under which they
provide the information related to the
quantity and quality to the suppliers.
They uses the offline communication
style which manager identify the demand
of the consumer through the feedback.
By using feedback, manager have idea of
consumer needs and wants accordingly
they fulfils the demand of the buyers.
 Tesco focuses on delivery of the products
to the consumer under which they adopts
the distribute channels. In this way,
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delivery men. Corporation effectively
manage their demand and supply under
which manager respond the demand of
the consumer through the internet.
 Consumer can order of the foods
through the website and online
application of the firm accordingly
employees make the order and deliver
the online. On the other hand, company
provides the e- payment facility to the
customer under which buyers pay the
amount of the products through the debit
and credit card and e- payment. It helps
company easily collect the money and
customer pay the amount without
barriers. Henceforth, all these whether
online and offline which is effectively
used by the firm for managing the
demand and supply of the products and
services in the market.
Tesco opens the number of outlets which
helps to manage the demand and supply.
It also helps consumer easily approach
the outlet of the organization and
purchases the food. Siano,2014, has
stated, “ manager conducts the survey for
identify the demand of the
customer”(Siano, 2014).
 Manager get the idea as per this they
require to available of the food at the
store which helps buyers easily find out
the products and buy it. On the other
hand, organization appoints the
employees for maintaining the order
which is allotted by the customers and
deliver to the them. It helps manager to
easily manage their supply of the
products on time. It affects performance
of the firm because customers are
satisfied his services is provided by the
employees on time. As per this, it helps
corporation to increases the market share
in retail industry and maximizing the
profit of the firm.
COMPARE AND COLLABORATE
According to Richards, 2015, “ all these methods like online and offline which is used for
Tesco of manage the demand and supply”( Richards, 2015).In this context, company uses both the
method but improves in the offline method of managing the demand. They deliver the goods and
services via offline under which individual approach the company and wants the foods.
Accordingly, employees require to quickly responds the demand of the consumer which positive
affect the brand of the corporation. They are able to deliver the quick services and solve the
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customer issues which creates the satisfaction of buyers towards the products. Moreover, in case
they not able to provide the goods on time to the customer and not solve the query of them which
generates the dissatisfaction of the buyers. It affects performance of the Tesco and decreases the
overall productivity in UK market as well sales turnover. On the other hand, Yao, 2015, has stated, “
online methods is also good for managing the demand and supply in the market”(Yao, 2015). Tesco
requires to improves the online method under which employees quickly manage the demand of the
buyers. In this way, manager reduces the barrier which occur at the work place and while making
the order of the consumer. It helps workers to easily make the order and manage the supply of
goods. They need to identify the proper number of order and delivery address of the consumer.
Henceforth, offline method is good for the Tesco under which they easily manage the supply and
demand. It also helps company to increases the market share and maximizing the profit of the firm.
CONCLUSION
Summing up the whole report, it can be concluded that, supply chain management plays
important role in the firm and suppliers. Company effectively manage the supply chain of the goods
and they store the raw material in safe place. Manager produces the products and services as per the
economy and season. In this way, manager of the Tesco effectively response the demand of the
supply chain and efficiently. It helps to increases the high amount of revenue and maximizing the
profit. With the help of offline and online, company manage the demand and supply of the goods
and services under which employees are able to quick response of the consumer. It creates the
satisfaction of the customer towards the product. In addition to this, manager focuses on the
distribution channel and delivery of the goods to the buyers.
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REFERENCES
Books and Journals
Beske, P., Land, A. and Seuring, S., 2014. Sustainable supply chain management practices and
dynamic capabilities in the food industry: A critical analysis of the literature. International
Journal of Production Economics. 152. pp.131-143.
Christopher, M., 2016. Logistics & supply chain management. Pearson Higher Ed.
Fan, W. and Gordon, M. D., 2014. The power of social media analytics. Communications of the
ACM. 57(6). pp.74-81.
Fearne, A. and Hughes, D., 2013. Success factors in the fresh produce supply chain. British food
journal.
Janvier-James, A. M., 2012. A new introduction to supply chains and supply chain management:
Definitions and theories perspective. International Business Research, 5(1), p.194.
Monczka, R. M., Giunipero, L.C. and Patterson, J. L., 2015. Purchasing and supply chain
management. Cengage Learning.
Richards, M., 2015. Supply Chain Implications In Regards To Consumer Behavior In Online Retail:
Site-To-Store Versus Direct Shipping (Doctoral dissertation, Texas Christian University
Fort Worth, Texas).
Siano, P., 2014. Demand response and smart grids—A survey. Renewable and Sustainable Energy
Reviews. 30. pp.461-478.
Wolf, J., 2014. The relationship between sustainable supply chain management, stakeholder
pressure and corporate sustainability performance. Journal of business ethics. 119(3).
pp.317-328.
Yao, J. M., 2015. Supply chain resources integration optimisation in B2C online shopping.
International Journal of Production Research. pp.1-16.
Zhao, F., Liang, L. and Dolgui, A., 2016. Lateral inventory transshipment problem in online-to-
offline supply chain. International Journal of Production Research. 54(7). pp.1951-1963.
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