Global Supply Chain Management

Running head: GLOBAL SUPPLY CHAIN MANAGEMENT
Global Supply Chain Management

GLOBAL SUPPLY CHAIN MANAGEMENT 2
Table of Contents
Task 1: Portfolio..........................................................................................................................................3
Four key contemporary problems and challenges facing Tesco organization in operating a global
supply chain and logistics network..........................................................................................................3
Current global Supply Chain Management best theories and practice.....................................................4
Practices of supply chain management....................................................................................................6
Strategies to manage the supply chain challenges....................................................................................8
Operational deployment of its supply chain strategy in relation to transportation, inventory, resource
scheduling, and data flow activities.......................................................................................................11
Task 2: Reflective Commentary................................................................................................................14
Organization ́s different ranges of relationships, both internally and externally with suppliers, partners,
and outsourcing providers......................................................................................................................14
References.................................................................................................................................................18

GLOBAL SUPPLY CHAIN MANAGEMENT 3
Task 1: Portfolio
Four key contemporary problems and challenges facing Tesco organization in operating a
global supply chain and logistics network
Limited Online Potential:
It is a potential issue for Tesco. The new development system of Tesco is a key market player for
home delivery shopping but it was failed because of less availability of potential in online.
Because of the older IT system and low understanding regarding the IT staff, Tesco is unable to
demonstrate their entire facility and products to the customers by online. However, the limited
online potential was not competent to encourage the customers in buying the products through
Tesco Plc (Mangan, Lalwani, and Lalwani, 2016).
High Costs of Delivery:
Tesco is the largest grocery supermarket in the UK. In addition, the market share of the company
covers a higher part in the global grocery sector. Hence, Tesco focuses on online purchasing
services for its consumers and offers home delivery for shopping. This logistic structure was not
adequately implemented because of high delivery expenses, particularly for unbound logistics.
Tesco can pay more for delivering the purchasing products while the item is delivered from
outside of London (Cosimato, and Troisi, 2015).
Tesco is the largest grocery corporations in the UK. But, the market share of a company involves
a major part in the grocery store at the international level. Hence, Tesco adopts the online
purchasing services for their consumers and facilitates home delivery for shopping. This logistic
system was not adequately implementing because of high delivery expenses, particularly for
liberated logistics. Tesco had to pay more for delivering the purchasing products while the item
is delivered from the external environment of London. It generates several complexities in the

GLOBAL SUPPLY CHAIN MANAGEMENT 4
process of operation management. Because of high delivery expenses in an outbound logistic
system, Tesco is unable to execute the new logistics system in operation channel (Geng,
Mansouri, and Aktas, 2017).
Choice of different tradeoffs: Demand of individual and customer changes promptly. Hence,
new adopted logistics system associated with Tesco was initiated for home delivery of products
that purchased through online. But, there are a different individual who demands cash on
delivery regarding purchasing products and high amount of customer demand is related to online
payment of purchasing products. High range related to trade-offs generates difficulty for new
logistics system of Tesco (Lai, and Cheng, 2016).
Presenting the well-established Competition:
The key challenge is related to Tesco in the logistic system is available higher competition.
Previously, the company practices the physical logistics system from the viewpoint regarding
products and services. Tesco has adopted home shopping delivery services unlike to their rivalry.
But, the current rivalry of Tesco is ASDA, Aldi, and Lidl as they have already created their
business successfully in the grocery retail channels (Chae, 2015).
Along with this, higher categories of logistic services like e-logistics that permits the company to
facilitate the customer for online payment and cash on delivery for purchasing the product very
effectively. ASDA uses PayPal system in an e-logistic procedure that permits the customers for
securing the online trisection for buying products. It may develop the loyalty of consumers as
well as directly affected the market share of Tesco (Wild, 2017).
Current global Supply Chain Management best theories and practice
Agency theory

GLOBAL SUPPLY CHAIN MANAGEMENT 5
Under supply management, the agency theory defines that the retail chain is a series of
agreement among shareholders. This agency relationship creates when a set of owners is known
as principals and hires another group that is called agent for day to day operation of supply
outlets. There are some services, which delegates to new decision-making authority. Along with
this, agency relationships show the relationship in supply chain management such as the
association between buyers and suppliers as well as between management and suppliers
(Christopher, 2016). The distinguishing feature of the theory is to separate the ownership
regarding the supply chain of a company from the control of the supply chain. The ownership of
the supply chain is focused by shareholders of the company as well as controlling the day to day
operation is in hand of professional managers, which is illustrated as the agents. Along with this,
the agent can take action whose results are largely performed by shareholders of the company.
Shareholders also focus on ratification, monitoring and sanctioning in the way of compensation
as well as involves the discipline measure (Yu, et. al., 2017).
Network theory in global supply chain management
The network theory is one of theory used in purchasing and supply management that can be
introduced at the time of last decades. Along with this, network theory can be involved to assess
the association in which customers, suppliers, and buyers are engaged. In addition, this strategy
involves the collaboration between other parties in the network to serve the demand. It can be
generated from the market and industry where they are operating in (Wang, et. al., 2016).
Along with this, when the purchasing department in one company focuses on no opportunity to
develop the particular item in-house as well as the outsourcing and purchasing procedure of these
items can be favored by network strategy. This theory supports to understand the demand

GLOBAL SUPPLY CHAIN MANAGEMENT 6
planning through which simplification of resource allocation can be reached by the settlement of
strategic long-term partnership (Hsu, Tan, and Mohamad Zailani, 2016).
In addition, corporations implanted the network as it defines the competency to choose from a
higher set of suppliers and through which, it can supply of critical commodities. In addition, the
relationship between corporations is assumed to be trustworthy and also contributing to value
addition on both sides as well as further simplifies the decision regarding the choice of supply
strategy. This theory can give contribution in fourth decision point such as negotiation because
corporation in the network aims to engage in long-term contracts through which strong
partnership among counterparts is structured at the workplace (Ferguson, and Souza, 2016).
Social exchange theory
Social exchange theory is implemented to model the results of distributive and procedural justice
regarding supply chain associations. SET illustrated that attitude as well as behavior can be
assessed by rewards of interaction excluding the penalty and cost of that interactions. For
example, in the context of supply chain association, a supplier can give their contribution in
distributors through its policies regarding supply chain management (Prajogo, Oke, and Olhager,
2016) Due to the participation of its distribution, an expected return can be determined for a
longer period. The distributor can receive the value contribution for creating a sense of
obligation as well as reciprocated the behavior and attitudinal response. SET is the integration of
serried regarding propositions that outlines the system of social exchange. A fundamental
proposition regarding SET is an integration of more action for a member to perform within the
organization accordingly. It would be beneficial for attaining the success (Kaur, et. al., 2018).
Practices of supply chain management
Establish Relationships with Main Suppliers