Operations and Service Management: Impact on Efficiency and Supporting Functions

This document discusses the operations and service management practices in Tesco and their impact on organizational efficiency. It also evaluates the role of supporting functions in ensuring organizational success. Topics covered include supply chain management, inventory, transportation, IT, sourcing, and more.

Operations and service
management
1

Table of Contents
Introduction......................................................................................................................................3
Operation management practice within a chosen organisation..............................................3
Analyse how this operation management practice impacts the organisation in regards to
efficiency................................................................................................................................5
Technology could be embedded in this process or evaluate how this has already been achieved
................................................................................................................................................6
Supporting functions are linked to this operation management practice and evaluate how can
they assist with ensuring organisational success....................................................................8
CONCLUSION..............................................................................................................................11
REFERNCE...................................................................................................................................12
2

Introduction
Operations management is basically a process that refers to the administration of different
practices in a business for creation of high level of efficiency that can be embedded in the overall
process in a organisation. Present report is based on operations management practices in Tesco
that is one of the most supermarket change different parts of the world. Operations management
basically is concerned with conversion of serial in services that can be finally offered to
customer so that acceleration of profitability can take place (Meredith and Shafer, 2019). It is a
process that consists of different resources such as materials technology equipment and then
converting of inputs into effective outputs with the help of different strategic practices in a
organization. Tesco was founded by john Edward in the year 1924 one of the huge retailers that
have effective system of information and supply chain management. Present report is based on
how effectively operations management practices are part of Tesco and how this practice impacts
the efficiency in the organisation. Further there are different supporting functions that are linked
with overall operation management practices and evaluation and how it can assist the success of
the organisation.
Operation management practice within a chosen organisation
Supply chain management:
Supply chain management is management and planning of different activities that are part
of procurement and Sourcing. Along with it, conversion and management of all search related
activities (Matthias, and Brown, 2016). Supply chain management basically integrates the
overall demand and supply process across different function department of the organisation. It is
also related to the collaboration and coordination with various channel partners that can be
intermediaries, customer’s third service providers.
The operational Management process in overall supplies in excellence in case of Tesco is based
on three main factors:
1) Increasing the availability of products for their customers.
3

2) Using the business skill introduction of wastage of food for ensuring freshness and high
quality
3) improvement of overall efficiency by building up of a stable business and maintaining
partnership with their suppliers
Inventory: The orders in stores are placed once per week and Tesco is based on reducing food
waste bypassing on the inventory issues to their distribution centres.
Transportation: It is the key area where 30 billion products are delivered worldwide where is
use of a multimodal transport system in ensuring that customers get right product at right time.
There are efforts made for cutting the carbon emission by 14 percent criteria.
IT: Tesco is making use of automated collection of software of data to feed the information
system to servers. Tesco, is making use of Big Data Analytics that are helping them in
understanding the sales attach customer demands and targeting their customers in a more
effective way.
Sourcing: It is Sourcing from different countries that is approximately 70 in number so that our
customers get best quality of products.
Tesco is to maintain their supply chain process to look into the product sources and till
product finally reaches to the distribution centres. Focus is made on reduction of waste and
minimization of the environment impact on Tesco across 12 Global markets that are present in
different parts of world.
There are basically Three Types of team that are supporting the Sourcing role in Tesco:
Planning: They are building end to end process of supply chain with their suppliers for
maintaining the speed, and overall productivity for fast moving products such as food, clothes
and vegetables.
4

Logistics: Is related with integration of third party logistics providers and over distribution
centre in order to deliver efficient services across different markets.
Business efficiency: Helps in improving the internal procedure so that Sourcing can be and fast
at point if time.
Supply chain process in Tesco:
Purchasing process in Tesco: The purchasing process starts from various websites that are
based on budgeted amount request for filling out purchase request approval from quotations from
various suppliers. Particular message or quotation gets approved then it straight away purchasing
managers who are responsible for approving all the purchases and then such message request are
received by suppliers and they start arranging delivery and manufacturing for the organization.
Purchase Manager has the responsibility for approving the message to different inform sources
of decisions then it goes to the requester and for the whole process takes place.
Analyse how this operation management practice impacts the organisation in regards to
efficiency
Impact on Tesco:
The overall practices of operation management efficiency of Tesco in every stage of
performance. This can be understood with the help of value chain analysis of Tesco:
Inbound logistics: It is the start of the process that is part of the supply chain where create
maximum value by the organization. There are several components that are part of the states that
has to be by the working staff of this organization. Tesco has a system to keep a particular level
of consumer choice maintained in their store and they believe in improving the efficiency in their
distribution system by implementation of certain quality control regulation so that damage in
products and goods can be avoided (Annarelli, Battistellaand Nonino, 2019). There is
requirement to implement certain regulations of quality control in concerned with damaged
product and good so that to create effectiveness in there regulation preventing such cost from
being passing on to their customers.
5

Operations: Component of production department of Tesco is always service focused. There are
process that is related to upstream opportunities which enable products and services to be
provided everyday according to the shelves, stock and overall trading hours. Achievement of
competitive advantage there is requirement to consider helps in turn of the overall process of
operations according to the period by all the employees and value is added at this particular step.
Outbound Logistics: It is the third part of value chain analysis which is concerned with
delivering of the final product to the customer. Tesco is generally willing to add value for the
home delivery services besides it other concern that have to be improved in order to improve
their logistic such as trolley collector, parking facilities, tell staff and other associated systems
for competitive advantage. These systems are in place then it will lead to adding of a competitive
advantage that will be saving of customers time aren't making such facilities available readily
and a positive response from their present customers.
Marketing and sales: These are also the elements of a value chain made efforts to attract
increasing number of customers by using their competitive factor lower prices in their
advertising campaign and apart from this many attractive offers and discounts are offered to their
customers that can help them in increasing the differentiation factor for brand.
Technology could be embedded in this process or evaluate how this has already been achieved
Integration:
Organisations are growing very fast in the dynamic and the changing environment that is
complex at the same time (Anand and Gray, 2017). It is leading to creation of many difficulties
for making certain forecast and then adapting them according to continuous changes. For
achievement of a competitive advantage and able to survive in the long-term it is very important
to have some innovation at a rapid speed improvement in overall services product and process. In
case Tesco, keep all inventors and order the delivery records and make it proper recording at a
particular point of time. There is a requirement to analyse all the business transactions that are
actually lifelines of any organisation.
6

In case of supply chain process the role of IT has reached beyond traditionally a supportive role
has taken the main Central role in overall strategy related to supply chain operation management
of this organisation.
In case of different software’s it can be said that external system is something that can be used
by Tesco in their activity (Parast, 2017). Apart from this Tesco can also make use of Internet in
creating of customisation flow of information between various business partners and their
company, so that a system of automation can be overall created. The overall communication
system is connecting various business partners across their virtual Firewall that can be more
flexible for the functioning of different stages in the supply chain process. Along with it when
there will be a fast communication system it will lead to scalability and establishment of
integration across all the distribution channels that is the process that starts straight away from
their suppliers and ends with product being delivered successfully to their final customers
(Tiwari, Wee, and Daryanto, 2018). It is something that is actually assisting in expanding of key
information for various business partners through all the process of supply chain and further
facilitation of building the collaborative relationships with other stakeholders.
The exchange system and market share hold the Promises of management with their loyal base
of customers that is related with delivering their buyers from their virtual shopping different
parts of the world. Tesco has actually already established and adopted advancement in
technology the innovative technological advances in their daily business activities can be seen
since a long period of time (Grant, Trautrims, and Wong, 2017). It can be observed by use of
wireless devices that Tesco is already using in functioning of the different functional areas
electronic shelf labelling is another up gradation that has been adopted by Tesco. From this
frequency identification that is the RFID Technology has been used and another technology is
making use of self checkout machines are also being used by Tesco. Also, there is use of
intelligent scales as a part of overall functioning of supply chain activities in Tesco. furthermore,
Tesco is actually make efforts to handle the volume of products and services along with
establishment of Economics of scale with the help of cost controlling that is actually leading to
7

more innovative and a market oriented approach that has been used by Tesco maintaining the
effectiveness in their operations Management process.
Supplier management:
Tesco is operating their sources from different manufacturers who are providing them
competitive prices at higher volumes (Lambert, and Enz, 2017). In recent years Tesco has
realised that there is a need to look different other areas for so that they can build up long
established relationships with search partner. Because of the diverse range of products that Tesco
is offering they are working with different suppliers across parts of the world and employees are
also part of different ethnic groups and cultures at the same point of time. The policy of Tesco
and main approach is creating unique relationships with their suppliers. The use of Advanced
and latest technology in their communication system is a very effective tool that can help them in
enhancement of cooperation with all these suppliers controlling the overall work performed by
their suppliers. Direct market venture is based on many sub contractor suppliers who are actually
selected on the base of their home operating country. Tesco as actually created strong
relationships with all search contractors with the belief that long-term Orders and regular orders
will promote the investment process in improving the overall process of their supply chain
(Schönsleben, 2016). There are various supplier management programs that are building up for
their key suppliers and increasing the satisfaction of their franchise. This organisation has also
various activities that are part of their technical trading initiative and help them in dealing with
all their suppliers to maintain long run relationship with the suppliers by use of advanced
technologies.
Supporting functions are linked to this operation management practice and evaluate how can
they assist with ensuring organisational success
There are various supporting functions that are linked with the overall operation management
practices and further there is evaluation done on how these can be very important in ensuring the
success of the organisation:
1) Infrastructure of the company: All the planning and controlling activities that are providing
and helping in continuous focus on Cost control of the organisation. Profit retaining is a main job
that is for of any anti fraud software and use of new security system that can help in reducing the
8

chances of internal theft (Pettit, Croxton, and Fiksel, 2019). All these leads to high cost of
company that actually leads to increase in burden for their customers as that cost is added in the
prices paid by such customers for final product but at same time it is very important to have
proper maintenance of operations in the company for reducing any probability of theft or loss of
secured information.
2) Human resources management: It is a function that is regarded as downstream and upstream
in the overall process and is covering all the activities from the recruitment process to
development of Management (Kshetri, 2018). The organisation is willing to increase the
programs of their organisation and enhancement of the recruitment programs so that customer
can get benefits from a well recruited and trained staff in Tesco.
3) Technological development: Requirement to add new innovative range of products and
solutions anticipate the demand it will help in adding value to the brand name of Tesco and
increasing competitive advantage for this organisation. Instalment and capital investing are for
the two most important long-term strategies that a part of total process and require High
commitment from their staff.
4) Critical success factor: Another one of the most important critical factors in success of the
organisation is increasing the selling of brands before the product. It is basically a brand that is
they are having a course strategic advantage the organisation is reading their changes from
generic to brand specific because of the packaging and promotion campaigns that they use to
promote the brand. They have a belief that every penny accounts and for this they are making
efforts in providing excellent value to their customers that is according to the overall
Expectations which customers possess. In recent years Tesco has been able to facilitate better
management of lifestyle of products and creation of efficient system of deliveries enhancement
of core range and introduction of product quality (Hugos, ., 2018). System of Tesco is full of
innovation and helping in improvement of the shopping experience of their customers we can
help in capitalising the strong reputation of their brand.
5) Customer loyalty: Tesco has been involved in providing customers and they have many
9

efforts for increasing the loyalty of their customers such as different loyalty card and
customisation of services are being provided to customers. It is evident for fast growth of online
sales that has been experienced by this organisation and development of their revenue stream.
Tesco, has also used online system and has become one of the biggest online change across
different parts of the world where they are operating in comparison with their other major
competitors who are also having online presence.
10

CONCLUSION
From the above discussion of different aspects of supply chain management process as a
part of nature operational strategy sector it can be said that punishment is one of the biggest most
important aspect of every retail sector organisation. There are various different activities that are
part of overall operation Strategies for organisation that can be understood with the help of value
chain analysis that consists of two basic parts that is major activities of primary activities and
other part consists of supporting activities help in smooth functioning of the primary activities.
Apart from this operation management practices has a major impact on affecting the efficiency in
all the functions taking place in different functional departments and Technology has become a
very important part that can be embedded in this process of operations management and help
Organisation in achievement of High competitive advantage that is very necessary for their long-
term survival in the dynamic and complex environment. Apart from this there are several
supporting functions that are having link with practices of operations management and helping in
evaluation how these can assist in success of any organisation.
11

REFERNCE
Books and Journals
Anand, G. and Gray, J.V., 2017. Strategy and organization research in operations
management. Journal of Operations Management, 53, pp.1-8.
Annarelli, A., Battistella, C. and Nonino, F., 2019. Translating PSS Strategy into Operations.
In The Road to Servitization (pp. 143-173). Springer, Cham.
Grant, D.B., Trautrims, A. and Wong, C.Y., 2017. Sustainable logistics and supply chain
management: principles and practices for sustainable operations and management.
Kogan Page Publishers.
Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
Kshetri, N., 2018. 1 Blockchain’s roles in meeting key supply chain management
objectives. International Journal of Information Management, 39, pp.80-89.
Lambert, D.M. and Enz, M.G., 2017. Issues in supply chain management: Progress and
potential. Industrial Marketing Management, 62, pp.1-16.
Matthias, O. and Brown, S., 2016. Implementing operations strategy through Lean processes
within health care. International Journal of Operations & Production Management.
Meredith, J.R. and Shafer, S.M., 2019. Operations and supply chain management for MBAs.
Wiley.
Meredith, J.R. and Shafer, S.M., 2019. Operations and supply chain management for MBAs.
Wiley.
Parast, M., 2017. Linking Operations Strategy to Competitive Priorities and Firm Performance.
In Academy of Management Proceedings (Vol. 2017, No. 1, p. 16316). Briarcliff Manor,
NY 10510: Academy of Management.
Pettit, T.J., Croxton, K.L. and Fiksel, J., 2019. The evolution of resilience in supply chain
management: a retrospective on ensuring supply chain resilience. Journal of Business
Logistics, 40(1), pp.56-65.
Schönsleben, P., 2016. Integral logistics management: operations and supply chain
management within and across companies. CRC Press.
Tiwari, S., Wee, H.M. and Daryanto, Y., 2018. Big data analytics in supply chain management
between 2010 and 2016: Insights to industries. Computers & Industrial Engineering, 115,
pp.319-330.
12