Operations and Service Management

This report discusses the concepts of operations and service management in context to Tesco. It identifies one operation management practice within Tesco, critically analyses how supply chain management practice impacts the efficiency of Tesco, evaluates how technology could be embedded in supply chain management process or evaluate how this has already been achieved, and what supporting functions are linked to this operation management practice and evaluate how can they assist with ensuring organisational success.

Operations and Service
Management
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Table of Contents
Introduction ....................................................................................................................................3
Main body .......................................................................................................................................3
Task 1 Identifying one operation management practice within the Tesco.................................3
Task 2 Critically analysing how supply chain management practice impacts the efficiency of
Tesco...........................................................................................................................................4
Task 3 Evaluating how technology could be embedded in supply chain management process
or evaluate how this has already been achieved.........................................................................6
Task 4 What supporting functions are linked to this operation management practice and
evaluate how can they assist with ensuring organisational success?..........................................8
Conclusion ......................................................................................................................................8
References.......................................................................................................................................9
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Introduction
Operations management is associated with the processes involved in transformation of
inputs into outputs which creates value for consumers. It refers to the administration of practices
involved within a business organisation in order to attain high productivity and efficiency in
outcomes. Operations management is a broader term including various aspects and undertakes
different approaches for improving operations and thus performance of an enterprise. In this
report, the concepts of operations and service management are discussed in context to an
organisation. The chosen organisation for this purpose is Tesco, which is a leading supermarket
brand headquartered in Welwyn city, United kingdom. Tesco is a renowned retailer operating
globally indicating its high market presence in various countries and is highly reputed brand of
United Kingdom. The following report focus upon one specific practice of operations
management and discuss the impact of the practice on enhancing efficiency of the company. It
further discuss the implications of using technology in managing practice of operations
management.
Main body
Task 1 Identifying one operation management practice within the Tesco
Operations management is a concept which is associated with various practices used in
the transformation process of inputs into outputs to create value and provide services to the
consumers. The process of operations management is a continuous ongoing process and there are
certain practices which are to be executed in effective manner for the purpose of accomplishing
efficiency and high productivity within the enterprise (SPARKS, 2018). In context to Tesco, its
operations management is a multi-faceted process which involves a number of practices and
these are overviewed and monitoring constantly in order to deliver high quality goods and
services to its customers. One of the major practice that has identified in relation with Tesco is
supply chain management which is a crucial aspect of managing operations within an enterprise.
Supply chain management is incorporated with various activities linked with the process of
procuring and delivering commodities to individuals. The global operations of Tesco implies that
the management of supply chain has a high magnitude and the brand maintained a wide network
of suppliers and partners for the purpose of its effective supply chain processes(Bilińska-
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Reformat and et.al., 2018). The major components of supply chain management in context to
Tesco are discussed below: Planning: It refers to the set of actions and strategies that the firm decides in order to
deliver consumers with high value and utility. The management of Tesco plans on how to
procure supplies and planning is associated with determining quantity and type of inputs
that are required (Pham, Darabi and Wilmot, 2020). As planning is an essential
component of every process, it outlines the major needs and also develop contingency
plans in case of uncertain events. Sourcing: It refers to the actual processes involved in the procurement of supplies and
this component of supply chain management mainly monitors the whole process of
transportation and delivery of commodities. Tesco is operating worldwide and owns
numerous warehouses to store its sourced materials and also it has developed strong
alliances and has network of global suppliers for the purpose of procurement. The
company has well established network of suppliers and it ensures timely sourcing of
goods to provide consumers with best services. Inventory management: It refers to the process of constant monitoring and reviewing
stock and maintains right amount of in hand inventory in order to comply with
availability of commodities at the numerous stores of Tesco. The company manage its
stock through inventory control software and thus it assist the company in evaluating
requirements of commodities and also it enable the managers to know when to clear extra
inventory.
 Transportation and logistics: It refers to the processes which are involved in the
distribution of goods to the warehouses and relevant stores of Tesco, which are located
worldwide in numerous locations. The logistic department of the company ensures the
availability of commodities in various stores of Tesco in order to improve the approach
and accessibility of goods and services to potential buyers (Avittathur and Ghosh, 2020).
The company use trucks to supply goods to their warehouses at local level and take sea
routes in order maintain its logistics operations at global level.
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Task 2 Critically analysing how supply chain management practice impacts the efficiency of
Tesco
The practice of supply chain is highly crucial and critical in deciding outcomes and
efficiency of the company as it is associated with various procedures and is directly linked with
managing availability as well as accessibility of commodities to the potential buyers. Any
disruptions and disturbance in management of supply chain is likely to cause massive impacts on
the overall productivity and revenues of the brand. The proper functions and procedures involved
in supply chain helps the company in increasing customer approach to company's commodities
in order to earn high profitability margins (Waters, 2019). Tesco operated in a global
environment and has gained high level of expertise and experience through establishing strong
networks of suppliers and distributors. The company is indulged in proper management of
supply chain and thus it ensures 24/7 availability of services and hence it has been successfully
leading market. The impact of its supply chain practices in relation with enhancing efficiency is
discussed below: Strong control over inventory: The operations manager of the company hired at its
various branches ensures that stock is properly managed. They continuously access and
track record of purchases made in order to know the exact requirements and extra
quantity of stock. The company use highly advanced inventory control software which
saves times and manual efforts of the labour and also enables the managers to accomplish
task with accuracy with reducing risks of error. Moreover the constructive networks with
suppliers and distributors ensures the accomplishment of requirements of commodities as
well as it also ensures that goods are being distributed to stores in time when managers
are required to clear additional stock. Maintaining high quality: Supply chain is a process which ensures high quality of
outputs through ensuring effective procedures in transformation processes of inputs.
Effective supply chain management ensures that the material that is being procured and
sourced is of high quality. In context to Tesco, the brand has formed associations with
highly experienced suppliers and partners in order to ensure high quality of supplies.
Tesco has developed partnership with livestock farmers and thus it is able to enhance
quality of its offered products and provides consumers with fresh produce (Buchan and
Wang, 2018). The organisation has collaborated with 12 banana farms which is located in
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Latin America. The organisation maintains high quality and health standards and thus it
helps the brand in building highly reputed image and increase customer trust in availing
services of the company. Enhancing brand reach: The efficiency in supply chain management ensures the high
availability of goods at stores of Tesco which helps in increasing reach of the company to
maximum number of audience. Through maintaining operations of its supply chain, tesco
has been able to increase awareness among consumers of its services and varieties of
commodities. The strong network of suppliers helps the company in adding varieties to
its product range and it helps the company in attracting new consumers as well as
increase consumption of the prevailing customer base. The brand enhances its reach to
the potential consumers through ensuring high approach of buyers to the produce of the
company (Kshetri, 2021). With interruptions in supply chain and weak network with
suppliers, an organisation is not able to induce customers due to low availability of
product range and varieties. Thus Tesco continuously focus upon improving its
performance and maximising reach to consumers through constructive supply chain
management.
 Risk and cost sharing: The strong alliances of the company with various global partners
helps the company in sharing various risks as well as costs through combining resources
and contribution with relevant partners. There are various costs that are to be shared with
relevant suppliers in relation with shipping and packaging expenses along with highly
fluctuating exchange rates. Through dealing with suppliers and making agreements on
various terms, the firm ensures the integration and pooling of resources and thus it share
various costs as well as risks in case of uncertain events. For instance, Tesco has
collaborated with basmati rice producer, Marbour group which enabled the organisation
in acquiring best quality of branded rice and supply it to European stores while availing
benefits of shared costs.
Task 3 Evaluating how technology could be embedded in supply chain management process or
evaluate how this has already been achieved
The scope and use of technology in maintaining various processes is highly prominent
and significant in supply chain management. It is continuous ongoing practice which requires
various actions to be undertaken and it uses various technology in planning, sourcing,
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transporting and distribution procedures (Carter, Kaufmann and Ketchen, 2020). In context to
Tesco, the company executes its supply chain operations and incorporate them with effective use
of information technologies in order to increase efficiency and improve its overall performance.
The role of technological advancements in the supply chain management of Tesco is discussed
below:
 Internet of things (IOT): In order to manage the communication between various
channels of suppliers and distributors as well as warehouses managers, the role of
technology is of high significance (Tortorella, Giglio and Limon-Romero, 2018). With
the growing use of sensors and improved connectivity of internet, Tesco ensures that
their operations managers track progress and collect data and relevant information at
every checkpoint. Technology allows the company to make use of sensors and thus it
enables the company to check status of commodities to avoid any delay or interruption in
the supply chain.
 Artificial intelligence: The increasing advancements in machine learning, artificial
intelligence has widened the scope of management and has enhanced the magnitude of
efficiency in supply chain management. The advanced analytics and increased
automation in processes helped the company in delivering insights in relation with
making on-the-fly route changes for the purpose of accelerating the process of delivery of
commodities. Artificial intelligence has significantly promoted the automation at every
stage of supply chain management.
 Advanced software: The highly advanced software helps the company in recording of
transactions and thus it ensures high efficiency in management of inventory. There are
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various processes in the supply chain which are embedded with specific software to bring
specialisation and standardisation in the procedures of the supply chain. The inventory
control software improves the performance of operations managers of the company in
checking current status and thus it helps in analysing requirements of commodities which
decides the further course of action need to be taken in supply chain management.
 Block-chain: This is a brilliant technology in relation with supply chain and it assist the
processes ensuring high level of efficiency in management of Tesco. This technology
allows the relevant personnel of the company in tracking all the types of transactions in
more transparent and secure manner (Lohmer and Lasch, 2020). Block-chain helps in
providing information to all the relevant parties involved in procedures and it assist in
accessibility of same data which enables the management reducing constant need of
communication which creates confusion and delay various times. It helps in saving time
which improves quality and management of operations and thus improve overall
performance.
Task 4 What supporting functions are linked to this operation management practice and evaluate
how can they assist with ensuring organisational success?
Operational management consists of different process in a business concern and have
supporting function that are need to understand for implementing the strategies. All these
functions asst the company to produce the quality products at low cost and provide customers
satisfaction which leads to generation of the revenue(Helmold and Terry, 2021). With reference
to Tesco, the functions are describes as under: Operation: In relation to Tesco, it is the base function of the operation management
which involves planning, organising, dirtying and controlling of the all the activities of a
business concern. The company need to monitor the daily task of the production division
by managing and controlling the inventory. It also monitor the performance of the team
members so that they can provide the better outcome by utilising the resources to the
maximum level. Finance: This is a main function of the operational management because without finance
no business can start or prosper. Therefore, a budget is taken into consideration to meet
all the production goals, provide the opportunity of making investments and managing
the resources to the optimum level. In relation to Tesco, this enable the company to
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create its product at the lower cost and attract the customers by offering products at the
reasonable rates. Product design: An organisation needs to ensure that the it is producing the quality
products without any defects according to the market trends which assist in providing the
satisfaction to the customers(Robert, Giuliani and Gurau, 2022). In relation to Tesco, it
introduces the products design keeping in view the demand of the people so that bit may
able to provide the same as they are needed with the available resources. Quality control: Tesco attempts to produce the best quality products to increase the base
of the customers because the Morden customers prefers the quantity instead of quantity
and price. Thus, the company focusses on the process of the production of the products to
ensure the quality and provide flawless items to its customers. It always create the test to
control the quality of the goods and detecting any deficiency occur in this products. Forecasting: By implementing forecasting an organisation get able to know the demand
for a particular products at the marketplace so that it can provide the goods to the
customers in time. In relation to Tesco, it predicts the demand of then products which
may rise in future so that it can produce the right amount of the products which can fulfil
the demand of the customers. This help the company to save itself from the shortage of
the stock and timely delivery of the products.
 Strategy: With reference to Tesco, it makes the different strategies to provide
satisfaction to the customers and increase their experience(Cai, Choi and Zhang, 2021).
The strategies involves the planning, observing, investigating ans assessment of the all
aspects of the business organisation. A good strategy help the concern to make effective
decision regrading the-production of the products.
Conclusion
From the above report, it has been concluded that operations management is the concept
which refers to the monitoring and reviewing of various practices in order to offer high value to
the customers. There are various practices which are conducted for the proper undertaking of
operations in an organisation. It has been analysed that supply chain management is one of the
most crucial practice of operations management as it covers a range of functions which is
directly linked with provision of commodities to consumers. The constructive management of
supply chain ensures high efficiency and productivity in the performance of Tesco as the
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company has established a proper system ensuring timely sourcing and delivery of commodities.
There are various functions that are associated with supply chain including logistics,
transportation and inventory management etc. The role of technology assist in proper and
efficient management of such functions and is used at every stage of supply chain.
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References
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