Global Supply Chain Management & Logistics - Impact on Tesco's Performance

This report analyzes the impact of global supply chain management and logistics on the performance of Tesco, a British multinational company in the retailing industry. It discusses the components of supply chain management, the practices that can improve it, and the impact of supply chain management on Tesco's organization.

Global Supply Chain
Management & Logistics

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analyse the supply chain practices and its Impact on the performance of organisation ...........3
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
The global supply chain management is referred as the science of planning that the
distribution of the goods and services. Logistics is the important component of supply chain
management. Its align the pattern of transportation and traffic, shipping and receiving,
production planning, purchasing and customer services. The supply chain management is defined
as the management of the drive of goods and services with the transform of raw materials to final
goods. Tesco is the brutish multinational company and retailing industry which is located at
united kingdom. The Tesco is the groceries retailing industry and it makes online and in-store
supermarket. This report will discuss the supply chain management practices and their impacts
on the performance of the Tesco company.
MAIN BODY
Analyse the supply chain practices and its Impact on the performance of organisation
The supply chain management is the integrated of planning, coordination and control of
all the organization activities and process in the supply chain to deliver to the consumer at low
cost as well as satisfying the needs of all the stakeholders in the supply chain management. It is
become a valuable way of securing the competitive advantages and improving the organizational
performance. The company create a chain of suppliers that the product move from the suppliers
of raw materials which deals with the users. The supply chain starting from the raw material to
the final product to consumers. There are five components of supply chain management systems
such as planning, sourcing, manufacturing, delivery and logistics as well as returning. The
supply chain management are important for the business to manage the operation of the
organizations with the minimum cost, time and waste in the production system.
In the panning of supply chain logistics to manage the all resources to meet out the
customers needs and demands for products and services of company. Moreover, the supply chain
management is the effective and efficient, deliver the values to the customers and then meet the
goals of the company (Orlando and et.al., 2022). In the context of resourcing is included the
receiving, ordering, inventory managing and supply payments. In the manufacturing process in
include the raw materials to manufacturing the products, quality check, package for shipping and

delivery the schedule. The returning process is to take back the defective products and unwanted
products.
The supply chain management helps in improve the process of analyse the data from the
supply chain partners. The effective supply chain management helps in enhance the value to the
supply chain cycle with identifying the three scenario such as identifying the potential problems,
optimize the price dynamically and improving the allocation of inventory (Liu and et.al., 2021).
The effective and better supply chain management of the company helps in protects the business
reputations as well as develop the long term sustainability.
The supply chain management practices is the set of activities which tackle by the
company to promote the effective supply chain management of their organization supply chain.
Its lead the changes in the organizational structure by the integrating internal functions and
connect with the customers, external suppliers and other stakeholders of the supply chain
management. The practices of the supply chain management is about the inventory, forecasting,
development of warehouses, collaboration, hub, and site factories that all are treating as the
dimensions of the management. The evolution of the supply chain management practices include
the supplier partnership, cycle time compression, information technology sharing, outsourcing
and continuous process flow (Ghadge, Wurtmann and Seuring, 2020). The supply chain
management practices are representing by the purchasing, customers relation and quality
 Establish alliances with suppliers: In the supply chain management , the company built
the strong partnership with the supplier to become a successful supply chain frequently
improving the reliability and saving money. This relationship is equally beneficial for the
suppliers and company. It helps in balance the problems and create the goals for
achieving their goals and objectives.
 Purchase the supplies in the large volume: this practice helps in take advantage of
scale of economics can be a cost effective for the company to purchase the inventory. The
business should purchase the inventory in the volumes to reduce the costs and expenses.
The purchasing the supplies helps in discounts as well s reduce the warehouse labor cost
as compare to multiple supply purchase.
 Improve demand forecasting: the company can face the issues if the products are too
much and not enough because the inventory is not moving because the sale down
(Fonseca and Azevedo, 2020). If the sale are up but the supply is facing shortage and its

lead in company loss the opportunity of generate the revenues. The both are the
inaccurate demand. So, the business have to take the improve demand forecasting
because its helps in company can meet the both current and future needs and demands as
well as takes into the seasonality, ales forecast and promotions.
 Inventory management: optimum inventory management is the important part of the
efficient supply chain management. If the business will predict the demands and supply
chain managers than the company needs to calculate the inventory levels for meet the
present and future needs and demands as well as develop the replenishments.
 Invest in social and environmental sustainability: for maintaining the business
reputations and goodwill because the customers are more conscious about the
environments so, the company become more focused on the sustainability of the business
as well as it helps in maintain the good reputations in the competitive marketplace (Choi
and et.al., 2019). The company can expand the involvements in the environmental
regulations as well as making the conscious decisions regarding the environment and
social supply chain. example: the company make sure that they are ding partnership with
the suppliers that hold the high standards for the labor conditions as well as purchasing
the inventories from the eco-friendly and environment friendly resources.
 Focus on TCO: the company needs to focus on the total cost of ownership include the
cost which are related with the every prospect of supply chain. The total cost of
ownership is that the company accounts for each activities cost within the supply chain
including the storage, selling, transportation, currency exchange costs, transportation,
material acquisition, restrictions and trade incentives. For example: the partners can
provide the bulk order in low purchase price but business have not enough space to store
in warehouse, then the cost can be increase with the additional spaces and staff for
needed to manage. In other words, paying cost to their party for holding the inventory
which business purchase.
 Investments in the software and technology: the business have multiple options to
manage the supply chain operations and its include the basic programs such as
applications and spreadsheets which can be integrated with the ERP enterprise resources
planning systems. The systems are use for to perform the supply chain tasks and it can be
costly in the fast forwarding business environment (Aziz and et.al., 2021). The efficient

supply chain management is believed on the approach to supply chain analytics and real
time information to ensure the data driven strategy which are required and necessary. By
the investments in the technology helps in the digital documentation and automation
predictive analysis which helps in making the supply chains cost effective and more
efficient.
 Risk mitigations and compliance: supply chains management are built-in full risk. The
mitigation of risk practices such as raw material's shortage, natural disasters, trade
disputes, port disruptions, theft, cyber securities breaches, reputations damage as well as
non-compliance with the rules and regulations. The risks which is knowns such as
demand fluctuations, distributions limitations and suppliers issues that are directly impact
on the supply chain. While the unknown risk is difficult to control and difficult to predict
that also includes the geopolitical events and natural disasters in the supply chain
management. It can lead in the loss as well as delay in achieve the goals and objectives.
Impact of supply chain management on the organisation
TESCO is one of the leading multinational organization of UK which is offering wide range of
product and services to the different customers in domestic as well as international marketplace
effectively. The aim of the organization is to satisfy large numbers of the customer in effective as
well as efficient manner. In context to that the organization is utilizing supply chain
management for the welfare of the company that allow the company to increase their
profitability and productivity in an appropriate manner. Basically the supply chain play vital role
in the growth of the organization as it create values in the organization (Thürer and et.al., 2020).
The supply chain of Tesco is consist of incorporate establishment of information technology,
inputs, communicating and financial flow. With the assistance of the supply chain management
the organisation is able to collaborate easily and deliver adequate information which provide
various opportunity of increasing the sales of the company. Due to the proper supply chain the
organization is able to determine the problems which the employees are facing in different
department and further resolve them effectively due to that the company is increasing the
potential of the organisation.
Apart from that the company is able to increase the value of the association in domestic as well
as international marketplace. For instance when the delivery of the telco product is delayed the

organization take instead action after determination of the problem because of that the company
is able to satisfy the large numbers of the potential customers adequately. On the other hand
sometime its lead to lack of coordination among the workers of different department which ids
essential element for the success of the business enterprise (Remko , 2020). Due to the poor
coordination the organization is not able to supply the right product to the right customer in an
appropriate manner. Along with that the company is not able to accomplish the objective of the
association.
The aim of the Tesco is to create and deliver the effective values in the supply chain that allow
the company to deliver the better product and services. Beside this with the utilisation of the
supply chain the company keep Improving the quality of the product and service in effective as
well as efficient manner. Due to better quality offering the company attracting large numbers of
buyers toward the production of the association and generate good amount of revenue from
different market segment (Shen, Xu and Guo, 2019). Supply chain management provide
direction to the suppliers about the minimum quality criteria and the requirement for the better
quality services. Due to that the company is able to monitor the performance of the company
and increase the better outcomes factor. With the supply chain management Tesco allow the
employees to standardize the production for the welfare of the organization as well as customers.
Basically the supplier is able to maintain the valuable production of the association (Kwon,
2020). On the other side it become complicated for the people of the organization as he workers
or the employees are having the issues, and they feel insecure and driven as the supply chain
keep bringing changes in the organization which change the culture of the association. In general
the supply chain management required skilled and experiences candidate for performing the job
role and responsibility in the organization in order to accomplish the objective of the association.
Further which create difficulty for the organization to hire the proper skilled and experienced
candidate from the marketplace and providing training and development programme in adequate
manner. Supply change create difficulty for the organisation in managing different function at
the same time during high demand of the product and services (Qin and et.al., 2021).
Tesco keeping increasing the network of the association in differer parts of the worked with the
assistance of the supply chain management and generating higher revenue from the marketplace.
Furthermore it improve the performance if the employees or the organization in appropriate
manner. Basically it is boosting the capability of the individual person working in the

association and offering better opportunity to the organization and employees for the best career
path. In order to execute the proper supply chain the Tesco hire the trained and professional
employees which have adequate skills and knowledge for performing the tasks of the company.
In context to that the company required to provide the professional training to the workers which
consume time and extra money for being professionalism in the organization (Yadav, Garg and
Luthra, 2020). Therefore The implementation and operation of supply chain management is
expensive in nature which decreases the net profit of the company. Simultaneously due to that
the company is able to deliver the competitive advantages in the marketplace and obtain certain
benefits which is associated with the organization.
With the assistance of supply chain management the company is able to meet the market demand
and satisfy the numbers of the customers. The Tesco organization make sure that the customer
or the buyers of the association received valuable or better quality product for, the organization.
It improve the sales and performance of the company. Due to the management of the supply
chain management the organization is able to prepare for dealing with the forthcoming
challenges as there company form various strategies or plans of action on the basis of supply
chain management analysation. Due to that the company is able to decrease the chain
interruption and improve the reputation of the company. Basically the company is able to control
the activity of the supplier which is not providing values to the organization to increase the scale
of growth (Xu and et.al. 2020). Moreover with the assistance of that the Tesco organization is
improving the customer services and building the trust by offering the transparency of supply
chain. It allow the organization for developing the business relationship with the potential
customer for the long term goal and success. Apart from that the with the help of that
management the company is able to provide adequate information regarding the requirement
taste and preferences of the consumers in appropriate manner. For the satisfaction of the
customer the organisation providing discount, bonuses on the product and services of the
organization as the supply chain management maintain large size orders of the company. On the
other side of the supply chain management the potential customers of the organization shift
toward different brands or the competitors as the management is not proper or having any sort of
issues. Therefore the Tesco organization keep working toward the supply chain management in
order to obtain the benefits and reduces the disadvantages in effective as well as efficient manner
for the well being of the association (Wang, Zhao and Herty, 2018).

CONCLUSION
From the above report it will be concluded that the supply chain management is the
effective process of the association due to which the organisation is able to lead domestic as well
as international marketplace. The present report deliver the brief description of the supply chain
which includes the practices of supply chain management. Furthermore the report highlighted
the critical analysation of the supply chain management with the illustration of the Tesco
organization. The report mentioned that with the assistance of supply chain management the
company is able to accomplish the goal and lead the marketplace successfully. The analysation
indicates that it delivers assistance in increasing the profitability and productivity of the company
which is also satisfying the numbers of the buyers.

REFERENCES
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