Operations and Service Management: A Case Study of Tesco

This report examines the operations and service management practices of Tesco, a leading retail company. It focuses on the supply chain management practice and its impact on efficiency. The report also evaluates the use of technology in the process and discusses the supporting functions that contribute to the success of Tesco's operations.

Operations
and
Service Management

EXECUTIVE SUMMARY
For every company it is essential to conduct analysis of their operations management
because that will help in developing decision related to the business operations and functions.
Tesco is conducting their business in the retail industry at the international level so it is essential
for them to develop conduct effective operations management practices. The main operation
management practices is supply chain management through which they able to deliver products
to customer in successful manner. It is essential for them to adopt new and advance technology
in the process because that will help in conducting operation properly and effectively. It is also
essential for them to understand importance of support activities and conduct work accordingly.

Contents
EXECUTIVE SUMMARY.........................................................................................................................3
INTRODUCTION.......................................................................................................................................5
MAIN BODY..............................................................................................................................................5
Operations...................................................................................................................................................5
Identify one operation management practices within Tesco....................................................................5
Efficiency....................................................................................................................................................7
Critically analyse how that one operation management practices impact Tesco in regards to efficiency.7
Technology..................................................................................................................................................8
Evaluate how technology will embedded in process or evalue how this already achieved......................8
Supporting functions.................................................................................................................................10
What supporting functions are linked with operation management practices and determine how they
assist with succession of business?........................................................................................................10
CONCLUSION.........................................................................................................................................11
REFRENCES............................................................................................................................................13

INTRODUCTION
For every firm it is essential to conduct effective operations and service management
because through that they able to conduct business operations and functions effective which help
in attaining success. Operation management is determine as business practices which help in
creating high level of efficiency possible in an organization as well as it concern with covering
material and labour into the goods and services for maximizing firm’s profit (Atasu and et. al.,
2020). On the other hand service management is considered as customer focused approach with
help in delivering quality services to customers so that their profit get enhanced and market value
get increased. organization selected for this report is Tesco which is founded in 1919 by Jack
Cohen and their head quarter is located at the England, United Kingdom. They offer their
products through supermarket, hypermarket, convenience shop and superstore as well as they
nested in several location such as Malaysia, Thailand, Poland, United Kingdom, India, Slovak
Republic and so on. Topics included in this report are operations, efficiency, technology and
supporting functions of respective company.
MAIN BODY
Operations
Identify one operation management practices within Tesco.
Operation management is determined as business practices which help in creating the
high level of efficiency possible within a company. It is also considered as converting labour as
well as material into the goods and service in effective manner for maximizing profitability and
marketshares. At a workplace operation management functions are concerned with the planning,
directing, organizing, controlling and so on to all activities that help in converting into valuable
goods as well as services in order to satisfy customer’s need and requierement in successful
manner. There are several benefits can be attain through operations management such as help in
gaining better output, gain competitive advanatages, attain high profitability and many more
(Besiou and Van Wassenhove, 2020). There are numbers of operational management practices
which are consudted by a company such as designing of product and services, supply chain

management, quality and innovation management, scheduling, human resource management and
many more. In respect of Tesco they are operating in retail industry and they offer wide range of
groceries products around the world. For this they conduct several operation management
practices which help them in attaining their desire goal as well as objective in effective manner,
these operational management practices include designing and manufacturing production
management, adopting innovation, quality management, management information system,
inventory management, accounting and many more (Caro, Kök and Martínez-de-Albéniz, 2020).
The main operational management practice which is conducted by Tesco is supply chain
management which helps them in supply products to the desire customers in effective manner.
Supply chain management is considered as process of managing the flow of products and
services as well as it also include process which transform raw material into the final goods. The
effective supply chain management will help in maximizing customer’s value through which
they can gain high competitive advantage at the potential marketplace. There are several
components of the supply chain management such as planning, information, source, inventory,
production, location, transportation and many more. The main role of supply chain management
operation is to manage movement of inventory and deliver products and services to the
customers according to their demand or requirement. In respect of Tesco, there are several
members are included such as customers, store, supplier and warehouse; this is conducted on the
continuous basis. This will include ongoing stages like sales scanned at checkout, sales updated
at the store forecast, then store demand get generated, purchase order generate, supplier deliver
to depot, goods received and unloaded, goods picked, then loading or dispatched will done
(Supply chain of tesco, 2020). After this store replenishment will be done and then again first
process i.e. sales scanned at checkout will be done.
Through this supply chain management, Tesco able to deliver grocery products and
services at the effective manner which help in fulfilling customer’s need and demand in effective
way around the world. There are four major terms which are considered by respective company
in order to maintain its supply chain system such as conduct development and blueprint team,
suppliers ordering team, the store ordering team and last are security and loss prevention team.
Through these teams respective company able to conduct their supply operations management in

effective as well as appropriate which lead to attainment of goal effectively by satisfying
customer’s need, demand and expectations.
Efficiency
Critically analyse how that one operation management practices impact Tesco in regards to
efficiency.
In every organization operation management practices is necessary because through it
they conduct their conduct their business operations and functions in effective manner. From
which one main operation management practice is supply chain management, through which
company can deliver finish goods and services to the potential customers according to their
requirement and need (Donohue, Özer and Zheng, 2020). In respect of Tesco, the one main
operation management practice is supply chain management by which they able to deliver their
products and services at the desire place as well as to the potential customers. There is several
benefits gain by Tesco through implementing and maintaining effective supply chain
management, from which some main benefits are given below:-
 Enhance quality control – By adopting effective and appropriate supply chain
management an organization able to enhance the quality of their operations. In respect of
Tesco by conducting effective operational management they able to conduct every stage
from manufacturing to delivering of products in effective manner. It will also help them
in delivering quality products to the potential customers in every location according to
market demand. By this they able to increase market value and shares as respective
company able to fulfill all customers demand properly.
 High efficiency rate – By having an effective supply chain management an organization
able to increase their efficiency as they know real time of deliver accordingly which they
conduct their manufacturing operations and functions (8 key benefits of effective supply
chain management, 2020). In respect of Tesco by maintaining effective supply chain
operations they able to conduct their manufacturing operations properly which help in
fulfilling customer’s requirement on time. Along with this, it will also help in ensure that
efficiency of respective company get increased which help in attaining goal successfully.

 Keeping up with demand – Through the implementation of effective supply chain
management an organization able to maintain demand and supply curve. Similarly, in
respect of respective company by developing as well as maintaining effective supply
chain management they always ensure that supply of products are conducted properly
according to market demand. This is so because it will help Tesco in be in demand
always as well as it is also essential for sustaining at marketplace for long period of time
with loyal customers.
 Shipping optimization – By having effective supply chain management a company able to
conduct their shipments in effective manner according to demand and need of market
(Erjavec and Trkman, 2020). In respect of Tesco by having effective supply chain
management they properly known about market demand according to location which help
them in planning about the shipment of products accordingly and effectively.
 Improve risk mitigation – Through developing and maintaining effective supply chain
management an organization able to minimize risk which impact on their business
operations and functions. In respect of Tesco by implementing proper supply chain
management they able to conduct their process properly as well as it will also help in
adopting innovation. In addition to this it will minimize or improve risk which may take
place while conduct business operations and functions.
These are some main benefits of effective supply chain management which is gain by
Tesco which directly lead to attainment of predetermined target in effective manner by fulfilling
customer’s need and requirement successfully.
Technology
Evaluate how technology will embedded in process or evalue how this already achieved.
Technology is very important for respective company as this support in conducting
business task and activates in effective manner. There are different types of technology is
available in external business environment which will support company to effectively manage
supply chain management task in effective manner (Fisher, Olivares and Staats, 2020). It is
important that Tesco use new and advance technology in effective and appropriate manner in

order to conduct attain desired goals and objectives. Different ways through which respective
company technology can embed business process are mention below in detail:-
Increase control – Respective organisation should use new and advance technology in its
business process as this helps in increasing the level of control. Through innovative technology,
company will be able to enhance its production and correctly conduct supply management
activates. There are various issues and problems faced by Tesco while conducting their business
task in order to which they can modified technology which will assist in making sure that all task
are conducted in required manner. Technology support also increases the level of transparency at
the respective company between the whole processes of organisation.
Better inventory management – It is important for respective company to maintain optimum
level of inventory. This is one of the essential parts of supply management process which will
support organization to conduct business process effectively (Hasija, Shen and Teo, 2020). With
the help on innovative as well as advance technology respective company will be able to reduce
the risk of waste that will support in minimizing cost of organisation. It is essential for Tesco to
adapt updated technology for keeping better management of inventory system.
Enhance collaboration among supply chain partners – By adopting effective technology a
company able to develop as well as maintain effective relationship between the supplier as well
as it will also minimize error in the operation. In respect of Tesco by adopting new as well as
advance technology they able to maintain proper relationship with supplier and other connected
member of supply management operations. It is so because through advance technology
members can track as well as communicate each other in effective manner which help in
attaining desire goal successfully.
Improve order tracking and delivering system – By implementing technology at the
workplace of an organization need to improve their tracking as well as delivering system which
enhance the experience quality of customers and employees. In the case of Tesco they are
conducting business at the international level as well as it is essential for them to adopt new and
advance technology based tracking and delivering system as that will help conducting business
operations properly (Lei and Jasin, 2020). Through this they also able to track order as well as
delivering system in proper manner according to which they deliver products.

These are some of the main benefits gain by Tesco by embed new as well as advance
technology at the workplace and it will also help them in increasing their profit and market
shares because operations are conducted properly.
Supporting functions
What supporting functions are linked with operation management practices and determine how
they assist with succession of business?
Support functions are considered as functions which directly or indirectly support the
business operations and functions. There are several types of support activities such as human
resource, training and development, salaries, information technology, marketing, legal,
accounting, credit control and many more. Through these support activities an organization able
to conduct their operations properly as well as it also helps in accomplishment of work properly
as well as on time (Mišić and Perakis, 2020). Moreover, these support functions also help in
conducting operation management practices in effective manner which lead to attainment of
desire goal as well as objective successfully. In respect of Tesco their main operations
management practice is supply chain management and according to that effective supportive
activities are information technology, training and development, marketing, legal and many
more. Below explanation of some main supporting functions are given in respect of supply chain
management:-
 Training and development – According to this support function company will provide
training to employees so that their skills and abilities get enhanced. In respect of Tesco
they are operating their business in retail industry and their main operation function is
supply chain management. In respect of this, they can provide training to employees so
that they conduct operations in effective manner. This will also help in minimizing error
while conducting functions related to supply chain.
 Information Technology – It is one of the main support activities which improve each and
every operations of a company. This is so because through new and advance technology a
company able to conduct their operations successfully and effectively. Similarly, when
Tesco management implements information technology in their supply chain
management they able to conduct their operations properly as well as it also make whole

process simple (Olsen and Tomlin, 2020). Through new and advance technology
respective company able to increase track as well as deliver products effectively by
minimizing errors.
These are main support functions which help Tesco in conducting their supply chain
management in effective manner. In addition to this, it will also assist business of Tesco in
attaining succession in effective manner. Below some effectiveness of support functions are
given:-
 By implementing effective support functions respective company able to ensure that their
supply chain management are conducted properly, which help in delivering quality
products and services to customers (Razalli, 2020). Through this company able to
increase their sales as well as enhance market value and profit.
 Through implementing training and development support function employees able to
increase their skills, abilities and knowledge which help in conducting supply chain
management work in effective manner. This will also help in minimizing error while
functioning related function at workplace.
 By implementing advance technology respective company able to conduct their supply
chain management in effective manner with minimum error (Song, van Houtum and Van
Mieghem, 2020). Advance technology help in conducting all operations easily as well as
more effectively at the workplace.
These are main benefits gain by Tesco through the implementation of support activities or
function while conduct supply chain management.
CONCLUSION
By analysing above mentioned point it can be summarized that for every company it is
essential to adopt and maintain effective operations management at their workplace because
through it they able to conduct their business effectively. There are several operational
management practices which a company need to adopt so that they can attain their desire goal
and objectives. That will include quality management, supply chain management, designing
products and services, inventory management, service management, accounting, human resource

management and many more. There are several benefits gain by a company through
implementing operations management practices in effective manner such as increase
productivity, minimize risk and so on. While implementing this technology also play essential
role as that make numbers of work easy as well as more effective which help in improving
company effectiveness.

REFRENCES
Books and Journals
Atasu, A. and et. al., 2020. Sustainable Operations Management Through the Perspective of
Manufacturing & Service Operations Management. Manufacturing & Service
Operations Management. 22(1). pp.146-157.
Besiou, M. and Van Wassenhove, L. N., 2020. Humanitarian operations: A world of opportunity
for relevant and impactful research. Manufacturing & Service Operations
Management. 22(1). pp.135-145.
Caro, F., Kök, A. G. and Martínez-de-Albéniz, V., 2020. The future of retail
operations. Manufacturing & Service Operations Management. 22(1). pp.47-58.
Donohue, K., Özer, Ö. and Zheng, Y., 2020. Behavioral operations: Past, present, and
future. Manufacturing & Service Operations Management. 22(1). pp.191-202.
Erjavec, J. and Trkman, P., 2020. Behavioural operations management-identification of its
research program. International Journal of Services and Operations
Management. 36(1). pp.42-71.
Fisher, M., Olivares, M. and Staats, B. R., 2020. Why empirical research is good for operations
management, and what is good empirical operations management?. Manufacturing &
Service Operations Management. 22(1). pp.170-178.
Hasija, S., Shen, Z. J. M. and Teo, C. P., 2020. Smart city operations: Modeling challenges and
opportunities. Manufacturing & Service Operations Management.
Lei, Y. and Jasin, S., 2020. Real-time dynamic pricing for revenue management with reusable
resources, advance reservation, and deterministic service time requirements. Operations
Research.
Mišić, V.V. and Perakis, G., 2020. Data analytics in operations management: A
review. Manufacturing & Service Operations Management. 22(1). pp.158-169.
Olsen, T. L. and Tomlin, B., 2020. Industry 4.0: Opportunities and Challenges for Operations
Management. Manufacturing & Service Operations Management. 22(1). pp.113-122.
Razalli, M. R., 2020. Service delivery system practices in Malaysian hotel operations: An
exploratory study. Malaysian Management Journal. 12(1-2). pp.103-115.
Song, J. S., van Houtum, G. J. and Van Mieghem, J. A., 2020. Capacity and inventory
management: Review, trends, and projections. Manufacturing & Service Operations
Management. 22(1). pp.36-46.
Online
8 key benefits of effective supply chain management. 2020. [Online]. Available through:<
https://6river.com/8-key-benefits-of-effective-supply-chain-management/>.
Supply chain of tesco. 2020. [Online]. Available through:<
https://www.slideshare.net/PraneethPrabodhaDiss/supply-chain-of-tesco>.