Importance of Supply Chain Relationships in Tesco

Supply chain
management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK...............................................................................................................................................3
Supply chain relationships...........................................................................................................3
Supplier information systems......................................................................................................5
Procurement and outsourcing......................................................................................................6
Sustainability...............................................................................................................................8
CONCLUSION AND RECOMMENDATION..............................................................................9
REFERENCES..............................................................................................................................10
Books & Journals:......................................................................................................................10

INTRODUCTION
Supply chain management is an important process of business which manages the flow of
goods and services. It includes all processes which mainly consider transfer of raw materials into
finished products (Wieland, 2021). Supply chain management requires proper control on
production, distribution and shipment of a product. It is identified that supply chain management
becomes important process which helps in order to achieve organisational goals and objectives.
With the effective and efficient supply chain management, company is able to past deliver of the
production services to the consumers. In the present scenario of business environment, customers
are becoming demanding and they want that their needs and want should be fulfilled as soon as
possible. That means they cannot wait per consumption of goods and services. Due to this,
organisations are focuses on improving the supply chain so that they can deliver the product fast.
In this context, Tesco is undertaken for showing the supply chain relationships. Tesco is the
largest supermarket store of UK and that’s why they need an active supply chain management
which assist them to satisfy their customer’s needs and wants as soon as possible. This report
gives emphasis on importance of supply chain relationships with types. It also covers the
importance of integration and collaboration in supply chain relationships. The report will be
discussing on information system of supply chain which helps them to make the process easy
and efficient. It also covers procurement strategy which helps to mitigate the supplier risk in
order to take competitive advantage. All this function should be focusing on sustainability in the
organisation.
MAIN BODY
TASK
Supply chain relationships
Supply chain relationships are very important for the success and growth of organisation as it
helps in to maintaining the relationship with suppliers so that Tesco can not found any difficulty
in order to purchase raw material (Saberi and et. al., 2019). It is identified that suppliers are very
important for Tesco because they provide essential goods in order to convert them into finished

goods. Without suppliers it is not possible for organisation to produce goods which they want to
sell their end users. That’s why company needs to maintain relationships with suppliers. Due to
this purpose, supply chain management is adopted by a Tesco which is the process of
identification of suppliers that are important for organisations. Supplier relationship management
is an important part of supply chain management. It focuses on optimising efficiency so that
every party take benefit from this activity. It is much similar to customer relationship
management but the only difference is the relationship is managed between suppliers and
purchases. There are many types of supply chain relationships in Tesco because it is a large
organisation which needs to be managing their relationship with customers as well as suppliers.
 Vertical relationship: It is the type of supply chain relations which link between retailers,
distributors, raw material suppliers, and manufacturers (Kshetri, 2018). That means it is a
vertical chain which needs to be very efficient and because of that they need to be
maintain a good relationship.
 Horizontal relationship: It refers to a supply chain where the position is parallel. For
example, 2 stores of Tesco in a same city share goods and services. That means it refers
to business arrangement between same positions of firm.
 Full collaboration: This supply chain relationship refers to business arrangement
between both vertical and parallel positions of suppliers. That means it is the combination
of vertical and horizontal where Tesco need to make relationship with retailers as well as
other stores. For example, Tesco set an objective of increasing sales which needs higher
collaboration of employees so that they can increase the distribution of products and
services.
Above mention types of supply chain relationship need integration and collaboration
because with the help of integration and collaboration they can successfully maintain their
relationships. In today's scenario, it is identified that there are many tools and techniques which
helps to integrate and collaborate successfully (Koberg and Longoni, 2019). In pandemic
situation, it becomes more difficult for Tesco that how they can collaborate with other stores and
suppliers. Then they found that technology becomes an important element in collaboration and
integration as it provides some important tools such as zoom, trello, etc. which becomes very
beneficial in the process of integration and collaboration as it provides a meeting even in which