Operations and Service Management in TESCO

This report explores the operation management practices in TESCO, focusing on supply chain planning. It discusses the impact of these practices on the company's efficiency and how technology can be embedded in them. It also highlights the supporting functions connected to operation management.

OPERATIONAS AND SERVICE
MANAGMENT

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK...............................................................................................................................................2
One operation management practice within TESCO...................................................................2
Operation management practice Impact Company in regards to efficiency................................4
How technology can be embedded in operation management practice.......................................5
Supporting functions are connected to operation management practice.....................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Operations and service management is the key element of business growth and success.
It helps to increase the operational efficiency of a company and enhance their performance level
even better. Operation management coordinates and carried out procedures and activities needed
to deliver quality services at agreed degrees to consumers. The current study is based on TESCO,
which falls under list of leading supermarket chain and retailers in UK. This report will explain
one specific operation management practice within firm, critically examine how it impacts
business in context of efficiency, and will also justify how technology could be embedded in this
procedure. Furthermore, this assignment will clarify supporting functions like to one operations
management practice and will evaluate how it can assist with assuring business success.
TASK
One operation management practice within TESCO
In company, operations department handles transformation procedure of efforts into
outcomes i.e., services and products (Holweg and et.al., 2018). Operations management is an
area of administration concerned with designing and managing process of manufacture and
redesigning business functions in systematic manner. In TESCO, there are different types of
operation management practices has been completed daily in order to satisfy consumers and
increase profit margin. It include supply network design, products & procedure design, inventory
planning, capacity planning and control, enterprise resource planning, quality management,
operations, layout, etc.
Supply chain planning is one of the operation management practices that are related to
TESCO, it is one of the most important and beneficial practice of OM (Luthra and Mangla,
2018). It is administration of flow of products or services and includes all procedures that
transform raw materials into completed and finished items. It is wide concept which includes
management of while supply chain from raw material suppliers to end-consumers. The elements
activities include purchasing, logistics, physical distribution management, consumer’s
relationship and material management. Supply chain planning aid any operation to comprehend
how it can done effectively within network. It can also aid to determine specific important links

within connection and hence determine long term strategic modifications which may impact
operations. It can be said that supply chain effectiveness has a bearing on inventory management
policies effectiveness that can adopted by the TESCO.
Supply chain planning includes active streaming of company supply side actions to
increase consumer’s value and gain competitive benefits in retail market (Huo, Gu and Wang,
2019). Most of companies experience issues related to operations that can be solved through
introduction of best operations management practices, like SCM. It is forward looking procedure
of coordinating resources to optimize delivery of services, items and information from suppliers
to target market, balancing demand and supply of goods. It TESCO, this operation practice is
really very important as it consider as strategic methods that, when done well, aids optimize
manufacture and supply of things. It can less production costs, increase sales and also help
managing relations with number of Suppliers. It analysed that firm have 80 suppliers who are
able to supply their goods to target consumers in effective manner which in return satisfy people
effectively.
In list of suppliers Booker, Premier Foods, Muller milk and ingredients, Cargill meats
Europe, Allied Bakeries, etc. are included. Supply chain planning suite sits on high level of
transactional system to cater planning. This process almost always start with demand planning,
in which a group consisting of individual from marketing, sales and production creates a sales
forecast based on data and other info such as data arriving from POS terminals. It then examines
data in spreadsheets or data repositories or specialized demand planning to determine patterns
that cater hinds to further demand. It analysed that supply chain planning is completed with a
collection of forecasting & planning software and procedures. There it usually no individual
supply chain planning system, though several app and supply chain management suites are well
designed to facilitate end to end supply chain planning by supporting trading stakeholders to
collaborate.
Supply chain planning within TESCO includes more activities such as sales & operations
planning, material requirements planning, production planning and advanced & scheduling
planning. It provides many benefits to firm in term of many things from sales to profit generate.
Without managing this operation management practice, organization could not be able to deliver
products and satisfy their consumers.

Operation management practice Impact Company in regards to efficiency
Tesco as leading retailer in the United Kingdom, with more than 400,000 workers serving
million of target consumer’s every week. With supply chain planning or management as
operations management practice they can obtain several benefits, which define impact on this
activity on business in context of efficiency (Centobelli, Cerchione and Esposito, 2018). It is
well known that SCP or management is an important part of most business and it’s important to
organization success. It can be said that supply chain planning, impact on TESCO and its
operational efficiency in positive manner. It can enhance competitive advantages, it helps firm to
decrease inherent risks of buying raw materials and delivering goods. One of its positive affect is
decrease in costs by improving inventory system, optimizing storage space for finished products,
eliminating damage and deterioration of assets and improving system responsive to consumers
needs.
It increased and improved efficiency in effective manner. Having ability to incorporate
supply chains, creative product tactics and integrated logistics put TESCO in a position to predict
demand and make right actions (Ivanov, 2018). It is one of the biggest benefits of supply chain
planning, because when a strong chain is in place, it can be effectively positioned to adjust
dynamically to fluctuations in requirements, developing markets and short life circle of certain
things. Accurate demand and manufacture plan can help TESCO determine inefficiencies,
including excess inventory and raw material waste. The aims of supply chain planning and
management is to balance supply and demand of items so sales revenue chances are fully
exploited in a systematic manner and at lowest possible cost. Supply chain planning impact
effectively as it help to increase output. Improvement in this practice can lead to upgrading in
communication. It leads to optimized collaboration and coordination with another organizations
that manage transporting and shipping as well as suppliers or vendors.
By increasing operational efficiency, improving inventory management activities and
controlling supply chain practices, TESCO can operate their operational and functional functions
across UK in systematic and effective manner. It helps to increase their profitability and
productivity level even better and makes firm able to gain all competitive advantages within
retail industry (Brandenburg, 2017). With the help of supply chain planning, organization is able
to communicate with their suppliers who are capable to transport and deliver products offered by

TESCO to their consumers, who seek to purchase quality goods or services in market. Supply
chain planning or management influence positively on company by reducing operations cost.
Retailers like Tesco depend on supply chains to effectively and quickly deliver their quality
goods to avoid holding costly inventories in outlets any longer than require.
By delivering products to target consumers on timely manner, company can build their
strong brand position in market where its competitors like ASDA and Sainsbury are operating in
same industry. Supply chain planning improve supply chain network in effective manner, it
consider as its positive impact on firm which is quite beneficial for organization in term of
increasing sales, and consumers base. It can help to improve the performance of company and
make management capable to satisfy people by providing products according to their needs
which is really very important. It can be said that effective supply chain planning practice has
become a potentially valuable term of securing competitive benefits since competition is not long
between companies, but among supply chains.
How technology can be embedded in operation management practice
In recent time, every organization to enhance their performance level and improve
business practices, are adopting and using different types of technologies which is quite
beneficial and important for them. In retail industry, well reputed and most famous brand like
TESCO are using advanced technologies within their operations management practices, which
makes workers able to delivery things on timely manner and satisfy people effectively. It can be
said that advanced technology can embedded in supply chain planning or management as
operation management practice efficiently. There are varied types of new technologies available
in business world that can utilize in this practice by administration of TESCO to get many
benefits and achieve their business objectives & aims.
Radio Frequency identification is a type of wireless communication that incorporates
utilize of electromagnetic coupling in radio frequency areas of electrostatic spectrum to
effectively determine an object or individual. This technology is mostly known as RFID, it is a
tool utilized for tracking things through a supply chain. It uses radio frequency waves to transfer
important data without using any wire and without any physical contact. It assures TESCO to
track every single part it uses in their products, offering visibility over each act in supply chain
planning. Organization can use this technology in their supply chain planning practice that helps

to manage their every activity in effective manner. With this wireless technology company can
track their supply chain movement without using human intervention. This device help firm to
make their specific practice more efficient.
It analysed that technology has led way, making supply chain of TESCO able to become
faster and more effective (da Silva, Kovaleski and Pagani, 2019). With this factor, through ware
house & transport system, company are capable to cater data capture, improve workers
management, reduce stock losses and monitor resources with effectively. Regarding, above
operation management practice, technology has changes whole structure in which people work,
from internal communication or interaction to physical process. Along with above technology,
more element can be embedded in supply chain planning.
Internet of things (IoT), is another technology that can embedded in practice of TESCO
in effective manner, that is quite beneficial for growth and long term success of company within
retail industry (Manavalan and Jayakrishna, 2019). Adopting of this tool is increasing in select
supply chain domains, but mostly as part of complete end to end supply chain procedure. It hold
actual potential for optimizing practice especially in firm need to gather a lot of data from across
million of techniques about current market trends and consumers preferences and measure
performance of supply chain planning practice in real time. This technology caters real time
visibility of operation throughout production procedures, from manufacturing through
distribution. Tesco can embed internet of things sensors in most their goods moving through
their supply chain, obtaining unprecedented visibility & traceability of section for assembly,
complete products and more, so that make it easy for management to track everything.
It can be said that there are more technologies accessible in market that can be embedded
in supply chain planning or management practice of Tesco. Effective SCP can be termed as one
of the key factors that helped chosen company emerge as market leader in retailing sector in
United Kingdom. Firm to enhance their supply chain activities adopt and use varied types of
technologies like Radio frequency identification, continuous replenishment and other, which
make their operational efficiency better than before.

Supporting functions are connected to operation management practice
Tesco is one of the most popular and leading general as well as groceries manufacturers
in UK. To improve and increase their operational efficiencies, organization uses different kinds
of techniques in their operations management practices like supply chain planning. With this OM
practice, financing and promotion functions of TESCO are connected that help to obtain better
success and help in achieving organizational aims in effective manner. An organization is
consisting with varied functional and operational functions. Finance is one of the most important
and supporting function that are closely connected with supply chain planning or management.
For example, finance is the only department in company who is accountable for managing sales
and accounts of business and also responsible for allocating money to another section for running
their activities efficiently (Langenwalter, 2019).
Supporting ventures functions are ancillary activities carried out by Tesco in order to
allow or to facilitate core business functions and production act. The outcomes of support
functions are not itself intended directly for third parties or for market. Finance function of
chosen company includes obtaining and using of funds important for effective operations
management practices such as supply chain planning, which require money to accomplish their
activities in effective manner. It is supporting act of organization without it things management
would not be able to run business practices smoothly. Finance department and its team members
identify the needs of money in context of supply chain planning or management and then allot
money accordingly, which make OM practice able to achieve greater success of business by
offering products on timely manner.
Finance function and controller are critical links in Tesco supply chain planning. As such,
they can play a effective role in assuring cost effective SCP. Value of supply chain initiatives can
measure in terms of affect on cash flow and on key internal financial performance metrics such
as return on capital, working, return on equity and economic profit.
Product production is another supporting function of Tesco that help and support supply
chain planning in systematic manner. By manufacturing and packaging products faster, this
function aid SCP or management to deliver items to target market effectively. Production
department is accountable for converting raw materials into final items by considering the needs
of consumers. It closely connected to supply chain planning, because after packaging and

producing items, SCP or administration deliver it customers and enhance their satisfaction level
even better. Production department assist with ensuring Tesco success by producing quality
products or services, which satisfied clients needs and make them happy. It can be said that this
function is a unit of activities within Tesco that is accountable for production of things.
Marketing is the most beneficial, effective, useful and important supporting function
within a selected company that help to enhance supply chain planning and its activities in
effective way (Haulder, Kumar and Shiwakoti, 2019). This department is responsible for
promoting brand or products of organization in chosen market where millions of consumers are
seeking to buy quality and appropriate items. It increase supply chain planning efficiency even
better, by selling goods through digital marketing tools that help to generate brand awareness in
market and gain attention of more consumers towards purchasing TESCO items. This function is
linked to this operation management practice by supporting for increasing demand and supply
things. Marketing function effectively assist with ensuring success of company by maximizing
their consumers base.
CONCLUSION
From above analysis, it has been concluded that supply chain management or planning is
key operation management practice of Tesco that helping to increase profitability and
productivity of company by selling products according to market demand. By using Iot and
Radio Frequency identification as digital technologies, company gain many benefits as they
increasing operational efficiency in effective manner and generating more profit than it’s
competitors in retailing industry who wants to obtain all benefits.

REFERENCES
Book and Journals
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Ivanov, D., 2018. Structural dynamics and resilience in supply chain risk management (Vol.
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