Operations and Service Management: A Case Study of Tesco Plc

This report discusses the operational and service management practices of Tesco Plc, including supply chain management, quality control, customer satisfaction, productivity, competitive advantage, and technology integration. It also evaluates the supporting functions of maintenance management, finance and accounting, human resources, information technologies, and facility management.

Operations and Service
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Identify one operation management practice within a chosen organisation...............................3
Critically analyse how this operation management practice impacts the organisation in regards
to efficiency.................................................................................................................................5
Evaluate how technology could be embedded in this process or evaluate how this has already
been achieved..............................................................................................................................6
What supporting functions are linked to this operation management practice and evaluate how
can they assist with ensuring organisational success?................................................................7
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
In this report the following are the matter of discussions, the operational and service
management, operational management is the field of management which deal in the process of
the organisation which is commonly used in the manufacturing sector. Service management is
the management of the service rendering from the point of creation till reaching to customers
(Sodhiand and Tang, 2021). For the following analysis Tesco company is taken into
consideration. How operation management practices impacts the organisation efficiency, new
technologies embedded in the process, evaluate how Tesco achieved operational efficiency.
What all supporting functions are linked to the operational management and evaluate the relation
of the function in ensuring success of organisation.
MAIN BODY
Identify one operation management practice within a chosen organisation
For the following question Tesco Plc is taken into consideration, company deals in the
consumer products as marketing company cover over 30 countries based in United kingdom.
Company uses supply chain management to manages distribution effectively in every country.
Supply chain is the network consists of different intermediators which perform a specific
function which help to distribute the products to the end point of purchases.
Tesco uses different supply networks and hybrid mode of supply chains such as company
uses pure physical distribution it consists of manufacturer, wholesaler, distributors, malls. In this
company firstly purchase the goods from manufacturer then divide it in whole seller then
distributor divide it to malls by this company provide products to customer through mall by
physical visits from customers (Rejeb and et.al., 2020). Employee of mall maintain inventory of
the products and all arrange the racks for customer purchases with tags through which customer
add things into cart and generate bill at counters and pay then take away.
The second way to distribute the products to the customer is through the online ways the
products order through online portal, packaged at the warehouses then distributed by delivery
partners to the homes of customers. Tesco is the company of retail chain so the main operation
for their business is to sell and to procure supply of the products so company diversified the

supply chain as at time of emergency company operation wont be affected. Company owned
many retail outlets to avoid conflicts of interest in the selling.
Tesco company is very serious about the efficiency of the store, they never want to their
store to experience lack of products that's why, their working operation include cleaning, shelves
filling and delivery of goods (Ishfaq, Davis‐Sramek and Gibson, 2022). Tesco uses the stocks
analysis software to record the entry of the goods or products with all the details such as
manufacturing date, expiry date, batch number and brand etc. company management have the
exact information of the goods available in the organisation and are required by the store in near
future to meet the demand.
Company want to establish power of bargain in market as the scale of purchase in much
more than that of competitor manufacturer provide extra facilities in that respect such as credit
limit products can be purchased on credit, this can be scaled more with proper information of the
highest demand time for the products so inventory can be scaled on that particular time. Cost of
substitution for the customer can be increased through the same technique company using scales
of economic to provide product on cheap prices to customer need to pay more when switch to
other competitor (Mitra and Karathanasopoulos, 2019). As this retail shops have the solution to
all the demands of the customer different and divers kind of manufacturer located at distinct part
of world so proper execution provide the best opportunities for expansions.
Tesco deals in eatable such as dairy products which have very low shelf life so company
uses transferring technique in this the products which is about to expire shifted to the high sell
store where the products get sold in very short spans and products with long span is kept with the
store of low demand so products don't get spoiled at the stores.
Company is reducing the delivery time for the products at home so strategic warehouse
chain is established through which products are send to the warehouse closest to the delivery
address so fast and proper delivers can be conducted on right time to the customers. On
cancellation of other company redirect the products to the store so they can be sold before the
spoilage of products.

Critically analyse how this operation management practice impacts the organisation in
regards to efficiency
 Help to improve the quality of product and service:- operational management includes
process review in which quality checking is also performed so regular monitoring lead to
same quality standard products. Company can charge more price for better quality
product, the quality help in establishing brand image (Vasiliev and et.al.,2019). Also
provide marketing through the word of mouth, company can use such information in
advertisements through highlighting different features of the products. It provide
company with the ability to retain the customer as quality influence people to purchase
the products, it also helps in avoiding the conflict between company and customer and
reduce the workload of customer care department.
 Help to improve customer satisfaction:- As proper supply is able to meet the demand
of any products of customer provide satisfactions, products are value for money create
continuos purchasing behaviour in customers (Jawabreh, Abdelrazaq, and Jahmani,
2021). As customer is the main party contributing in the achievement of organisation
objectives, providing satisfaction to the customer lead to increase in sales resulting in low
requirement of warehouse, low maintenance cost and high profit margin for the company.
Company can be benefited through high cash flow and low working capital requirement
provide interest on the cash flow acts as extra income, company can get loan very easily
due to high cash flows.
 Increasing Productivity of the organisation:- All the resources are monitored with
processes so any unexpected wastage is reduce to the level zero which make room for
more products from same amount of raw material (Volkova and Troian, 2021). As
operational management provides with the information of productive employee and
unproductive staff so management can drive the maximum potential output from the
human resources. Management take many measures to improve the process such that
time consumed in the manufacturing process come to minimum, operational efficiency is
the key factor in the success of the organisation goals as it is in favour of the interest of
employees, management, stakeholder and board of directors etc.
 Enhance the competitive advantage:- If company track is good in respect of the
commitments all parties trust them, company can easily expand their business as they

already posses operational efficiency ( Yu and et.al., 2018). Company transfer the
benefits of operational management to the customers so better management lead to
reduction in cost both the company and consumer benefits from it. It enable the
businesses to have advantages over other the competitor with low pricing and high
quality of products in comparison to the other competitor of the company. Tesco can
arrange the funds in a way that economic of scale can be achieved through which
products have high quality in respect to the performance much more accurate than
availability in market.
 Reduce the working capital requirement:- Operation management keep track of all the
activities including capital invested, waiting time for return on investment, cost of fiance
to the company and rate of return from outside all this help management to channelise
funds into right direction to achieve the organisation goals (Cao and et.al., 2019). As the
span of operation became small so holding time of money is reduced so internal
transaction can be done with internal funds so requirement of credits turns to low. No
need to pay the interest of borrowed capital the costing turn to be low than normal
addition profits for the company.
 Enhance operational efficiency:- management is the art to organise the resource in a
way to achieve predetermined goals in most efficient and effective manner. Operational
management provide all the efforts in the direction of reducing the cost of operation with
achievement of highest possible outcome. When company have operational efficiency
their commitment have values to the customer and other related parties. The brand value
enhance as the result of the operational efficient control. Customer accepts their new
brand with ease as existing brand satisfied their need, company able to raise capital very
easily as public trusts the management of the company.
Evaluate how technology could be embedded in this process or evaluate how this has
already been achieved
Supply chain management is adopted by Tesco Plc as their main course of action is to
provide with the all consumer products to the customers, So supply management is important
management field so dedicated to meet the demand of the markets. All the process engaged in
the production of goods and services to distribute to the outlets which is the end pint of the sale.

 Planning:- Tesco firstly planned the objectives of the organisation which are, all round
target market means every things required by any age group of the customer is needed to
available on the outlet of the organisation (Osei and Kagnicioglu, 2018). Company
recorded the demand trends according to the time and environment conditions. Such as
summer clothing is demanded in the only three months of summer but woollen clothing
have all year demands, Company control the supply accordingly.
 Sourcing:- It is the most important part of all the operational here the raw material and
labour being outsourced in-concordance to the requirement of product type and finished
output, considering the uninterrupted regular cheap and high quality raw material and
finished goods to the consumer.
 Manufacturing:- In is the engine of the the supply management system as products
needed to be produced according to the demands of the market with the quality, quantity
and price competitive to the other players. It includes transformation of the raw material
into finished goods, assembly, testing, inspection, or package ( Rajaguru and Matanda,
2019). Here many problem is faced such as the wastage of raw materials or the worker
are not trained to make that standard products, these deviation also managed in the
process of supply chain management.
 Delivering:- The products which are produce in the factories need to supply to the outlet
from where the consumer can purchase their products or these products can directly
deliver to the customers houses, This is where consumer and company deals or interact so
experience should be pleasing to the customer so their preference can be your company
for further dealing, different modes to transports are used for delivering to the stores and
outlet trucks is used to deliver at home mini pickup and bike riders is economical.
 Returning:- In most cases the product in fitted in the mind of the customers but by any
chance the product is not accepted by the customer company need to take it back and
return to the warehouse so it can be sold if no defects in the products (Munir and et.al.,
2020). Refunding should be quick and secured as most frauds cause in this only. Secured
payment server should be adopted so people don't have any insecurity regarding
payments and refunds.

What supporting functions are linked to this operation management practice and evaluate
how can they assist with ensuring organisational success?
 Maintenance management:- is the supporting function to the operational management
as all the process need to be regularly maintain as damages causes the delays in operation
and if not maintained failure of operation happen leads to the stopping of the business
activities. Company make a maintenance department which maintain the proper
functioning of the devices and machinery is used in the business such as in Tesco the bill
machines, weighing machines, computers and bar code readers, server, webcam,
websites, distribution trucks and delivery vehicles. All the machines are regular reviewed
and repair and maintenance is done, So no problem arise due to the non working of the
machines.
 Finance and accounting:- As company need funds for all kinds of activities, it is also
important to the operational management, Operational manager need salaries, other staff
need wages and all the activities undertaken by operational department are funded by
finance department (Mangla And et.al., 2020). Huge funds transaction are needed to be
recorded such recording are done by the accounts department all the financial activities
needed to be verified by the accounts that provides the information regarding any frauds
or help to analysis the requirement of funds. Tracking supporting activities help to
calculate the profitability of the business operations over the cost of supporting activities.
 Human Resources:-All activities need human personal which are trained in particular
related fields, company have a separate department with the name of Human resource
department their first and foremost work is to analysis the requirement of the skills in
humans to perform that function, drafting of advertisement for the job, interview
conduction, finding the best match for the job, orientation and induction and maintenance
( Rajaguru and Matanda, 2019). Human conflict resolution, employees retention and
training & development is another part of job of human resource department.
Organisation is of the people so human resources are most important resources in respect
of successful operations, this furcation provide support to all the department by recruiting
best talent in minimum cost.
 Information Technologies:- All the technological requirement is fulfilled by this
department, operations are performed on the machinery a so providing for the required

technology is the part of the job of IT ( Thongrawd and et.al., 2019). Server are regularly
maintained by IT persons, attendance of the personal is done through the electronics
finger print registration of all the staff through which human resource department make
the pay scales of the employees. Through websites the order collection is done and
payment security is the matters of IT department. IT sector provides the updated versions
of the machinery which can improve the productivity of the firms.
 Facility management:- All the business need to have the registered address to get mails
and notices of courts. Some of the facilities are the office, factories and malls etc. These
facilities need proper management in order to continue uninterrupted work flow, all the
facilities consists of the machinery, furnitures, electronics and buildings such things
experience damages with the course of action or with passage of time (Azadegan, Modi
and Lucianetti, 2021). So regular maintenance of lighting, fixture, computers, furniture
and other categories of items .
In Tesco Plc company the main focus should be on transportation and distribution of
goods and services from facilities to warehouses to retailers, one outlets to other outlets, as these
company is the retail chain so to survive in the market for the longest need to have alternative
ways to distribute products from one country to another.
CONCLUSION
From the above report it can be clear seen that operational and service management is the
best tools of management to achieve efficiency in businesses Such as in Tesco adopted the
supply chain management in order to ensure the supply of goods and products to the consumer in
low prices with high quality. As Tesco is multi-nation retail chain they enjoy competitive edge
over competitors with the help of SCM. No business management work alone all the activities
need support of the resource and services such service are the human resource
management,facility management, information technologies, finance and accounting and
maintenance management all these provide back end support to the operational management.

REFERENCES
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