Productivity Improvement: Evaluating the Supply Chain and Making Recommendations

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
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

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 (Chaturvedi, Thakkarand Shankar, 2018).
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 covers 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. It further
helps Tesco’s managers to improve their productivity as well as profitability. Along with this,
there are some recommendations to improve their operational activities in order to enhance
overall performance and profit margin.
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 (Tesco Plc, 2020). 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 offers 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 (Dave and Sohani, 2019).
Above bar graph is indicating the number of TESCO stores worldwoide. In 2008 there
was 3751 stores of tesco around the globe. This number increases as the time passes and in 2014,
there was more than 7000 stores of tesco around the world. As per the updated information, in
2019 tesco has more than 6900 stores around the world.