Operations and Service Management: A Case Study of Tesco Plc

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.