Productivity Improvement in Supply Chain Management of Tesco

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