Productivity Improvement: Evaluating Supply Chain and Current Activities

This document discusses the evaluation of supply chain and current productivity improvement activities in Tesco. It explores the impact of supply chain on productivity and provides recommendations for improvement. The document also covers the strategic performance management framework used by Tesco to enhance productivity.

Productivity
Improvement

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Evaluate the supply chain of the organisation and make recommendations for the
productivity improvement............................................................................................................3
2. Evaluate current productivity improvement activity and then make recommendations for the
improvement................................................................................................................................6
3. Critically evaluate the completed productivity improvement project and then recommended
for the improvement.....................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Productivity improvement is the process of maximising production in an hour by using
same resources. Basically it means, when company reduces their input and in return they get the
maximise output is called productivity improvident (Al-Tahat and Jalham, 2015). There are
various ways of improving productivity such as capital which enhance the infrastructure,
software etc. Formulate effective strategies for the production will helps in improving result from
the same level of input. In addition, company change their business model, tools etc. to enhance
the productivity. Tesco Plc selected for the better understanding of the concepts. This assessment
cover the various topics such as supply chain management in the organization and how
organization improve the overall productivity of the company. In addition, it includes the current
productivity improvement activity such as Tesco told their managers to be nice with the
employees and it will encourage them to be productive for the company. Along with this, it cover
the productivity improvement project along with recommendations that managers could handle
the project in better way.
MAIN BODY
Overview of the company:
Tesco Plc is a multinational British company which deals in groceries & general
merchant items. Its headquarter situated in Welwyn Garden City, Hertfordshire, England, United
Kingdom. Tesco is the 3rd largest retail sector company in the world in terms of gross revenue
and on 9th position in the world on the basis of revenue. In the UK, company has 28.4% market
share and have huge competition and their competitors are ASDA, Sainsbury's, Morrisons, The
co-operative food etc. Tesco Plc founded in 1919 and it was founded by John Cohen.
1. Evaluate the supply chain of the organisation and make recommendations for the productivity
improvement
Supply chain is the process of networking which include the people, resources, activities,
information, product & services, technology etc. All aspects involved in the supply chain from
sales of products to the delivery of goods to the end users. Basically, supply chain include the
process of moving goods & services from the suppliers to the customers (Current productivity
improvement activity, 2020). In the organizational context, it has been analysis that supply chain
management is the practice which help the organization to maintain various activities such as

storage of raw material, work in progress inventory and finished goods transfer from the point of
origin to the point of consumption.
In context of Tesco, they have their own supply chain & distribution network. Every store
of Tesco offer range of products and each products has different operating cost. Tesco distributed
around 3 billion of goods to the worldwide stores and they focus on their customers through
understanding their needs. Tesco's supply chain division co-ordinate with trucks, train, ships and
planes for the global distribution of products. In the UK market, there are around 6500 stores and
more than 475000 employees work in these stores. They offer wide range of products for their
consumers and ensure to meet their expectations.
With the help of effective supply chain, organization improve their productivity (Duran,
Cetindere and Aksu, 2015). Such as Tesco company give their extra efforts to improve supply
chain management which further improve their productivity as well as profitability of the
company. Tesco's excellence based on the following three factors such as:
 Increase the availability of products for their consumers it helps in retaining customers
for the longer period. If people does not find product in the stores then they will shift on
its substitute or their competitors products that is not beneficial for the company because
it affect the profitability of the Tesco. It is the important factors which analyse to improve
supply chain of the company.
 Using business scale, organization able to reduce the waste of food and ensure about
product quality and the freshness. Basically, Tesco have to implement such strategies
which reduce the wastage as well as improve the product quality which satisfy the
customer more as well as occur lower cost of production for the company or improve
supply chain productivity which maximise the profit.
 Improve the efficiency as well as effectiveness with the help of making their business
stable through maintaining partnership with the suppliers. It is very essential for the
business to build strong relationship with suppliers which which provide them long term
sustainability in term of providing raw material. Further it improve the productivity of
supply chain that is beneficial for the organisation.
With the help of above three factors, Tesco able to improve productivity that is beneficial
for the organizations (Kurniawati and Yuliando, 2015). Other than this, company formulate
different teams who manage all the activities and ensure that every function will improve the

performance. In the Tesco, there are four types of teams in the supply chain and it is discussed
below:
Development & Blueprint team: This team focus on the ensuring product availability at
the time of reducing wastage of food. In the Tesco, innovation is the competitive advantage for
the company where they use supply chain analytical as a problem solving method. Company use
the 100 million British pound for the supply chain analytics. This team work with the other
supply chain teams in order to develop the supply chain of Tesco at global level. In 2011,
company was working with 2degree network in order to develop online hub and they target to
reduce the supplu chain carbon footprint by 30% in 2020.
Supplier ordering team: Tesco order around 30 million cases of food on weekly basis
from their suppliers. Suppliers and purchasing team plan to manufacture or supply products to
the Tesco in order to target the group. It is one of the largest retail sector company of UK which
generate huge revenue due to its effective or owned supply or distribution channel.
Store ordering team: Main purpose of forming this group is to order store items and
ensure that product availability always maintain (Papay and Kraft, 2015). Store managers of
Tesco build strategies and it was based on the demand of customers and they ensure that
customers are satisfy with the products and they get everything from the stores which they want.
Security & loss preventing team: In this team, members ensure that all the safety
standard have to followed by the company which provide safe working environment. Theft in
supermarket are the main aspect of targeting which managed by the security & loss preventing
team.
Flaw in supply chain:
There are some common problems which faced by the supply chain of Tesco company
such as lack of traceability, difficulties to maintain the safety as well as quality of goods. In
addition, increase in the cost of supply chain also affect the productivity of the company along
with profitability.
Above mention teams help the Tesco to supply chain of the company ans ensure that they
manage each activity which helps in maximising productivity as well as profitability.
Recommendations:

There are various ways to improve productivity of the Tesco that is beneficial as well as
profitable for the organization. From the above discussion, it has been recommended that
company have to take necessary steps which mentioned below:
 Tesco has to improve their strength such as technology advancement to minimise the
traceability problems. They have to more focus on online shopping and make it more
easier for the customers which increases the demand.
 Company can negotiate with the UK government regarding subsidies which helps in
covering supply chain cost because Tesco provide the huge employment opportunity to
the UK's citizens.
 Open stores in the other countries will minimise the dependency on UK's market and it
will be possible through effective supply chain strategies (Wu and Zhao, 2015).
2. Evaluate current productivity improvement activity and then make recommendations for the
improvement
In the Tesco, productivity of organization decreases due to lower performance of
employees and it will happen due to rude behaviour of managers towards their employees or
staff members. So Tesco asked their managers to have some basic courtesies and be nice with
staff members (Current productivity improvement activity, 2020). Employees are the main assets
of the company which helps the business to achieve their goals & objectivities through
maximising productivity as well as individual performance. Management encourage managers to
say thank you, please and praise them when they done good work.
Managers have to encourage employees for better customer service which further
motivate people to enhance productivity of the company (Andersson and Bellgran, 2015) . Tesco
take this initiative and implement this activity in the organization and ensure that managers will
follow it.
According to matt Davies, chief executive of Tesco said that celebrating success and
appreciate others is the power where spotting someone for doing great job. Communication
change the culture through conference and staff workshop. Senior management have to deal with
lower staff members and increase the interaction which maintain coordination or make them able
to share issues if they occur at the time of performing their task.
This activity is not a training program but it is developing working culture which is very
important to appreciate others. Davies said that, taking initiatives is the part of rebuilding trust

that is aim of Tesco company. Dave Lewis reveals the multimillion pound of scandal and it was
investigated by the serious fraud officer and grocery industry regulator.
Rebuilding trust between the colleges and consumers are essential because it will take
enough time of build trust and perform their business activities in right way. Matt Davies wanted
that Tesco follow the appropriation culture which encourage staff members to boost the customer
service which improve their productivity. Tesco use this activity for the cultural improvement
and encourage Tesco's managers to use please and Thank you words to appreciate their
employees. It is the current productivity improvement activity which adopt by the chief
executive of the company.
From the above discussion it has been critically evaluated that, current productivity
improvement activity is that Tesco told their managers or bosses to be nice with workers and
other staff members who contributed in the organization to achieve its business goals &
objectives. As per chief executive officer of Tesco, customer service is most important as
product price or quality important. Customer service will effective when employees satisfy with
their work or working culture (Kobayashi, 2018). Due to this reason, Tesco take initiative and
motivate managers to appreciate or praise their staff members regarding their work and it will
encourage them to boost customer services.
Recommendations:
 In order to improve working culture in the organization, Tesco has to share assumptions,
values and beliefs which provide guidance to the employees. It affected by many factors
such as nature of business, owner's value etc.
 Working culture define the success or failure, so management need to ensure that staff
members are satisfy with the company (Nallusamy, 2016). It will be possible when
managers appropriate employees and praise them.
 In order to improve productivity of the company, managers have to change their
behaviour regarding staff and need to be concerned and nice towards people.
 Company should treats their human resource as assets of the company because they are
the essential part of the business. Without them, Tesco unable to perform or achieve
organizational goals & objectives.

3. Critically evaluate the completed productivity improvement project and then recommended for
the improvement
Tesco is the multinational grocery and general merchant based retail sector company
which is very popular among the customers. In order to improve the productivity of the business
as well as performance, Tesco develop the strategic performance management framework
that is called Corporate Steering Wheel (Recent productivity improvement strategic framework,
2019). It is the powerful tool which is used to accomplish the single vision and allow
organizations to ensure that strategies will delivered and it will be managed and monitored in
well manner.
Tesco's original Steering Wheel include four perspective such as finance, operations,
customer and people. Every perspective of the organization include some strategic goals and they
all are set on the high priories of the business. For example operations perspective include
some strategic goals such as work is easier for the staff members, shopping is better for the
consumers, the way company operate is cheaper, safe and responsible for the Tesco.
(Source: Steering Wheel, 2020)
Above mention Steering Wheel shows the different perspective that is beneficial for the
organisation and these strategic goals implement by the organization in order to improve the
Illustration 1: Steering Wheel, 2020.

productivity as well as profitability. Remaining perspectives are customer, people and finance
that are essential to focus and implement in well manner.
Evolving the performance framework:
Tesco company able to change their Steering wheel strategy into line with change in the
strategic objectives. It includes the additional perspective that is community and it discussed the
issues regarding climate change and what was the impact of climate on local community (Pheng
and Meng, 2018). It required more focus and strategic emphasis which help the Tesco to concern
about the community. Community perspective include the two following strategic goals which
mentioned below:
With the help of above mention picture, it is clearly mentioned that community
perspective include the following goals such as be responsible, honest & fair and be a good
neighbour. It means, Tesco has to be responsible regarding their work and they need to be fair
and honest towards society and offer quality products along with the true information which they
have to share with customer.
Tesco implement new community perspective where they take initiatives by reducing
carrier bags around 50 percentage. Company reduce the carbon footprint and it will be reduced
by 30 % by 2050. In addition, company add some new framework such as individual gaols which
changes and refined. Revised operations perspective contain the new goals such as try to get it

right first time, basically it means innovate something which Tesco has their patent. Deliver
consistency on regular basis that improve production as well as performance. Adopt technology
which make daily work easier for the employees and know about how critical job they perform.
Along with this, another strategic goals is to save time as well as money which reduce the overall
cost of the company and maximise the profit margin.
Tesco update their performance framework not only by using individual goals but entire
perspectives. Most of the organizations develop strategic framework but fail to change and then
reflect the changes. So Tesco have to ensure that, company does not follow the same mistake and
keep update their strategic performance framework all the time.
Recommendation:
 Tesco keep update their strategies in order to improve the performance as well as
productivity.
 Management need to focus on every perspective and monitor the performance regularly
which maximise the efficiency as well as effectiveness.
 Company has to focus on community perspective more because it further affect the
people who live in the society and it include the customers and people.
CONCLUSION
From the above discussion it has been concluded that organization has to follow various
strategies and implement it in well manner to improve the productivity of the company. By using
supply chain, organization able to manage their resources and delivered from the point of origin
to the point of consumption. Steering wheel include the four perspective which further include
the additional one that is community perspective. Organization have to update their stargates and
build their goals accordingly. It is also observed that, for the productivity improvement, company
not only focus on community but have to focus on financial, operations, customer and people
perspective.

REFERENCES
Books & Journals
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study technique for earth energy-glass manufacturing company. Procedia Economics
and Finance. 26. pp.109-113.
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enterprises (SMEs) on food products: case at Yogyakarta province,
Indonesia. Agriculture and Agricultural Science Procedia. 3. pp.189-194.
Papay, J. P. and Kraft, M. A., 2015. Productivity returns to experience in the teacher labor
market: Methodological challenges and new evidence on long-term career
improvement. Journal of Public Economics. 130. pp.105-119.
Wu, K. and Zhao, N., 2015. Dependence among single stations in series and its applications in
productivity improvement. European Journal of Operational Research. 247(1). pp.245-
258.
Andersson, C. and Bellgran, M., 2015. On the complexity of using performance measures:
Enhancing sustained production improvement capability by combining OEE and
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Kobayashi, I., 2018. 20 Keys to workplace improvement. Routledge.
Nallusamy, S., 2016. Enhancement of productivity and efficiency of CNC machines in a small
scale industry using total productive maintenance. In International Journal of
Engineering Research in Africa (Vol. 25, pp. 119-126). Trans Tech Publications.
Pheng, L. S. and Meng, C. Y., 2018. Managing productivity in construction: JIT operations and
measurements. Routledge.
Online
Current productivity improvement activity. 2020. [Online]. Available Through:
<https://www.theguardian.com/business/2016/mar/16/tesco-managers-polite-new-
initiative>
Recent productivity improvement strategic framework. 2019. [Online]. Available Through:
<https://bernardmarr.com/default.asp?contentID=1054>