Productivity Improvement in Supply Chain Management of Tesco

This report discusses the importance of productivity improvement in supply chain management, focusing on Tesco. It provides an overview of Tesco's entity, examines its supply chain, and makes recommendations for productivity improvement. The report also discusses the Agile supply chain model used by Tesco and the issues faced in supply chain management.

Productivity
improvement

Table of Contents
INTRODUCTION ...............................................................................................................................3
MAIN BODY.......................................................................................................................................3
Overview of entity .........................................................................................................................3
Examine supply chain of the organisation and make recommendations for productivity
improvement....................................................................................................................................3
CONCLUSION..................................................................................................................................10

INTRODUCTION
Business sector is wider and broader and focuses on maximising of profit through enhanced
productivity. It is essential within business to have efficient resources, employees on basis of which
goals are achieved in proper manner. Productivity improvement is to be defined as process of
increasing productivity through more achieving of more output from hour of work (Arunachalam,
D,. (2018). It is determined as level of efficiency in production. Main aim of this report is to
understand the importance of productivity improvement in enterprise. Tesco, a largest
supermarket headquartered in U.K. It is located at global scale & has number of subsidiaries such
as Tesco Bank, Tesco Mobile etc. This report comprises of overview of company, concept of supply
chain & recommendations.
MAIN BODY
Overview of entity
Tesco, a multinational organisation and chain of supermarket located in United Kingdom
which deals in groceries products, food items etc. It has number of competitors such as Sainsbury,
Walmart, ASDA & many more. It was founded in 1919 by John Cohen. Organisation offers wide
range of items which are easily consumed by consumers. Furthermore, it is family friendly, loyalty
scheme, offers & deals etc. Enterprise is enhancing their supply chain network by increasing their
business activities and operations at higher scale. Company is expanding their business activities
with purpose of increasing customers ratio. Moreover, they are being also focusing on
improvement of supply chain processes with adapting of partnerships with other suppliers.
Examine supply chain of the organisation and make recommendations for productivity
improvement
Supply chain refers to interconnection or network between entity & suppliers to produce &
distribute a particular product within market. In this network chain, it includes people, entities,
credentials & resources. It is essential to focus on supply chain as it helps in accessing to customers
easily. Carrying out supply chain is time consuming procedure but is effective to use. In relevance
of Tesco, they are operated at global level which reflects their large network distribution chain.
Supply chain also comprises of process of transferring of goods from one place to another.
Focusing on supply chain is crucial as it help in carrying out several activities like inventory,
managing of raw materials, finished goods Goker, (2019, July). Improvement in productivity is

necessary as it makes business effective & increases survival period of firm for longer time interval.
Tesco have their own distribution network on basis which they are able to distribute their
product as well as services in correct way. Also, it has been analysed that company distributes over
3 billion of goods at global scale. Moreover, they are focusing on making their supply chain more
simple with purpose of achieve of goals and objectives in proper manner. Then, it is too examined
that enterprise is being reducing their waste over food supply so that environmental friendly
activities are carried out. By improving productivity level, company is able to use resources
efficiently, low operational costs, improves competitiveness & reduces workforce burnout. With
presence of effective supply chain, it is easy to achieve productivity at higher scale. In context of
Tesco, three factors are being focused which are discussed as follows-
Enhance presence of products- This factor states that it chosen firm is make assure that
their products are available every time in stores as it assist them in increasing retaining period
customers for longer time interval. It is essential factor because if customers or individual do not
find it what they are looking for then chances of shift increases. Moreover, it is examined that this
factor too impact on supply chain and productivity. Availability of products need to be checked
with correct way so that more customer are attracted towards brand (Irani, (2017).
Adopting business scale- It is another element in which it depicts that enterprise has
capability to reduce food wastage or not & produce fresh products to its customers. Moreover, it is
too analysed that accessing to business scale is crucial as assist in development of productivity in
easy way. Through reduce wastage in process, it improves product quality at higher scale. This is
duty of manager to make assure that high quality of products are delivered to customers which has
positive impact on goodwill.
Improve efficiency- This is too critical factor in which it depicts improving efficiency
level of firm, work and production. This can be done by improving business stability as well as
managing relations with suppliers within market. Also, it is necessary to ensure that through
improving level of efficiency productivity of firm is likely to be increased at higher scale.
(Katemukda,. (2018). Furthermore, improved efficiency leads to enhanced productivity which is
beneficial for growth of firm in effective manner.
Thus, from above stated matter it is analysed that appropriate type of decisions are to be
carried out which also assists in improving of productivity effectively. It is duty of manager to
make ensure that these factors are adopted with proper considerations.
In relation of Tesco, they have effective supply chain system through which they are able to
produce efficient output within business. The marketing as well as research & development team

manages all activities of supply chain in efficient way. There are various types of teams in supply
chain which is further explained below-
Development & Blueprint team- These are those type of team which focuses on reducing
of wastage and increasing availability of product within all areas. Through developing of blueprint,
it is easy for them to make assures that supply chain problems are identified in appropriate manner.
Furthermore, they carry out their work systems and procedures with other departments & team too.
In relevance of selected organisation, in year of 2011-2012, firm was working with 2degree network
with aim to establish a hub-spot with accessing internet Lim, (2017).
Supplier ordering team- It is too crucial team which assist in managing and maintaining
order through supply chain of company. Supply ordering team are responsible for delivering of
products within marketplace. The manufacturing as well as production team assures that suppliers
are able to manage every order to a particular individual. Chosen company has wide range of
supply ordering team on different locations which allows them to fulfil needs or demands of
customers. Supply offering team has crucial role in running activities of supply chain.
Store ordering team- This is team who's main work is to maintain the availability or
presence of products within store. Further, it is also seen that it is essential for stage-managers of
selected company to check the stock of every single product so that customers get what they want in
effective way. To implement this, managers adopts appropriate and relevant strategies on basis of
which it is easy to track availability of products. It is essential for firm to store products for longer
time interval.
Loss & security task team- Uncertain situations in business are occur at any time
depending upon event. So, chosen firm also has loss & security preventive team which are present
for ensuring the loss events or providing security to customers details, bills etc. Such type of team
are needed at all level because through these it is easy to increase trust of customers towards a brand
Liu, (2020).
After evaluation of stated paragraph, this is analysed that supply chain management team
have different roles & which are performed by them in effective manner. So, different types of
teams has been discussed which reflects their chosen firm has appropriate workforce which has
capability to deliver positive results & increase productivity within organisation.
Issues in supply chain management of Tesco
As chosen entity has wide range of supply chain network, there are also some issues which
are being encountered by company widely. It is necessary to solve them effectively so that set
objectives are achieved appropriately. Issues occur in supply chain because of external and internal

factors depending upon situations. It is necessary for managers to be aware about these issues to
carry out work appropriately. So, different issues are given below-
No innovation- From lasts 3 years, Tesco has failed to produce something innovative in
market. Due to this, they find it difficult to carry out their business activities in appropriate manner.
It is necessary to use new techniques and methods of supply chain management so that market
situations are faced in proper manner Marche, (2019). Firm is following old methods and
technology of supply chain. It is essential to develop innovation in supply chain management so
that higher productivity is achieved.
Online- lack of stock- This is another issue of supply chain management of Tesco. In this,
firm is unable to provide customers of every product instead they are more focused towards their
physical stores. Their activeness in digital sales is flexible which depicts their supply chain
activities. In this ongoing pandemic situation, customers often demands for more often products
online with new flavours, add ons options etc.
Supply chain management model-
In business perspective there are various types of supply chain models which adopted by
firm. Every business has heterogeneous supply chain on basis of which they adopts models for
further processes & procedures. The management of Tesco follow Agile supply chain model & is
further discussed as follows-
Agile supple chain model
According to this model, it states that goods and products are moved depending on
information centric rather than inventory centric. This model is adopted by chosen company
because they faces considerable demand uncertainty. Through this model, it is easy for entity to
manage their supply process appropriately. Benefit of this model is that it helps in distribution of
products in correct way. Further, it easily help in meeting up with competency, flexibility, quickness
in managing production processes Oxford Analytica. (2020).

In this, it requires forecasting of demand so that supply is done accordingly. Main benefit
of this is that it entity find it easy to deal with uncertain market situations & respond to market
demands in quicker manner. Furthermore, in context of chosen firm they can carry out
manufacturing activities with proper considerations of market situations.
It comprises of four components & are mentioned as follows-
Virtual integration-
In this component, information is being carried out within connected departments for
demand from or customers. When credentials are gathered, planning is implemented effectively
with concerned departments. Being virtually leads to clear visibility of everything & which helps
firm in building network. In context of chosen corporation, they are virtual to their suppliers. So,
proper information are to carried out Pu, (2017).
Process alignment-
It is component in which things which are focused which are co managed inventory, vendor
managed inventory. In this process alignment, product design is done with collaborative planing &
activities. Processes & procedures are needed to be aligned in systematic manner Sutcliffe, (2020).
Network based-
Network play essential role in development of supply chain process. It is human workforce
which are responsible for building up effective network within market organisations. It is necessary

to establish network which assist Tesco in reducing on work load of a particular individual.
Furthermore, once network is established maintaining is also crucial.
Market sensitive-
In this, it states that market is flexible in nature & it it is crucial to understand it in proper
manner. The demand of customers changes from time to time So, accessing to market sensitiveness
is beneficial for growth & development productivity Arunachalam, D,. (2018).
In viewpoint of chosen corporation, they want to enhance their productivity level by 25% in
next three years. Trevor Bacon who is director of Tesco has stated that they have been into
collaboration & managing their partnership contracts with retailers on basis of which they are able
to improve their effectiveness of supply chain. With adapting of Agile supply chain, processes and
procedures between suppliers are carried out in most efficient manner.
Therefore, it is analysed that manager need to be aware about such models which are used or
can be adopted in order to improve efficiency & productivity level within enterprise. It is too
examined that effective strategies are required to adopted by organisation when focusing on such
models Goker, (2019, July).
Recommendations-
From above analysed matter it is seen that there are various types of weak and strong spots
which needs improvements to achieve goals. To access to customers, effective supply chain is
required to distribute products at appropriate level. In relation of chosen company, they need to
improve their productivity level & below are some recommendations given-
Company should change adopt two different models of supply chain as it will help them to
make distribution more simple and reduce time of suppliers. Further, adaption of two different
models leads to achieving of higher output.
Another recommendation is that company should change their suppliers & renew their
contractual or agreements between their subordinates or suppliers.
Moreover, keeping record is being done with proper considerations so that measurement &
checking is performed.
Tesco can also improve their relations with United Kingdom government as it will assist
them in managing their supply chain costs. It is necessary for them to reduce their cost so that other
operations can be carried out appropriately.
Online inventory stock checking is required to be improved so that customers can access to
their products in easier way. Further, they need to update their level of strategy on basis of which

better results are achieved.
Then, to access to market situations they need to scan environment which will allows them
to understand market & make decisions in proper manner.
So, it has been evaluated that appropriate type of tactics should be used which results in
accomplishing of organisational objectives in efficient way. This is crucial for firm to states that by
focusing on these suggestions will help them to access to new opportunities in effective manner.

CONCLUSION
After a brief analysis of above examined report, it has been concluded that it is important to
understand the importance of productivity so that it is easy to increase effectiveness of workplace.
So, discussions have been made about supply chain, different teams, flaws in supply chain and
recommendations. This has been evaluated that with ensuring of productivity in company has wider
effect on business operations & profit scale. In this competitive market, it is necessary for company
to have efficient suppliers so that it is easy for them to access to customers at larger scale &
competitive benefits are achieved accordingly. Further, it is too evaluated that with accessing of
higher skilled employees, productivity increases in proper manner.

REFERENCES
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