Productivity Improvement: Evaluating Supply Chain and Current Activities

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