Factors to Improve Supply Chain Relationship

Supply chain
management

Contents
INTRODUCTION................................................................................................................................3
TASK.................................................................................................................................................3
Factors that improve supply chain relationship..........................................................................3
How does the organisation mitigate supply chain risk and reduce supply chain costs?............5
How organisation can enhance its supply chain sustainability?.................................................6
CONCLUSION...................................................................................................................................8
REFERENCES.....................................................................................................................................9

INTRODUCTION
Supply chain management is defined as the activity which is important for the management of
flow of product, services, information and money between organisations as well as various
location. It also includes movement of raw material, finished goods and work in process
inventories to end user and the place of consumption. It the broad range of functions such as
planning, monitoring and implementing proper flow of products from material to production to
distribution in most efficient manner. In this report the chosen organisation is Tesco which a
British multinational groceries organisation founded in 1919 by the Jack Cohen. Headquarter is
situated in England, United Kingdom. It serves its products and services at 7,005 locations
across the world. In this report methods of supply chain relationship improvement, various
factors to reduce cost of supply chain is discussed. Apart form that organisational activities to
improve supply chain sustainability is covered in this project report.
TASK
Factors that improve supply chain relationship
Supply chain relationship: It is defined as the relationship between customers and
suppliers that facilitate them to connect in effective and efficient manner in order to exchange
relative information as well as ensure demand data and visibility of material status. Effective
relationship of supply chain management facilitates the Tesco to reduce cost, help in assess all
supply capacities and capabilities to enhance the quality of supply procedure (Agi, Faramarzi-
Oghani and Hazır, 2020). Respective organisation improves various factors that facilitates them
to improve the relationship of suppliers and customers in order to enhance overall
performance of organisation. These factors are discussed below:
Ensure frequent communication with suppliers: Tesco implement various communication
channels in with organisation in order to communicate and share important information with
respective suppliers in effective manner. Transparent communication builds the understanding
and trust among all organisational partners (Foo, 2018). Effective relation facilitates respective
organisation to understand its suppliers as well as help in avoiding communication breakdown
to ensure smooth running of business. Better relationship with suppliers help business to gain
materials and other resources on time with affordable prices.

Maintain proper agreements: Proper agreement of suppliers are maintained by the Tesco
that facilitates the organisation to resolve all problems and build effective relationship as well.
As Tesco develop clear written contract that includes all terms and condition that help business
to maintain effective relationship. It facilitates the organisation through resolving conflicts,
disagreement and problems in effective manner.
Resolve issues efficiently: Suppliers and organisation perform all activities according to
their defined goals and objectives. The main objective of supplier is to sale materials at high
price and business want to buy quality material at affordable prices that generates the conflicts
among them. Tesco solves all problems and issues in effectives manner that enhance the trust
level of suppliers.
Execution of latest technologies: Tesco implements various latest technologies, innovations and
automations in effective manner to track all relative information suppliers. Supply management
and order management software are executed by the respective organisation to maintain
proper information in order to reduce conflicts and problems (Gao, 2020). All software
simplifies the work of organisation and suppliers as well and builds effective relationship. It
provides higher visibility to the suppliers about the organisational functions to create effective
bond that help in attaining all organisation goals in efficient manner.
Supply chain management programmes: Tesco conducts various supply chain
management programmes in order to maintain effective relationship with respective
organisational suppliers. As organisation is establishes to complete specific goals and objectives
within defined period of time and these goals are achieved with the help of suppliers. Suppliers
provides the raw materials to the organisation and distribute the final products to customers
so, success of organisation depends upon the efficient contribution of suppliers that facilitates
it to accomplish all objectives with efficiency.
All these factors are implemented by the Tesco to maintain effective relationship with
suppliers. Effective relation with suppliers facilitates the organisation to attain quality materials
on affordable prices that reduces the overall operation as well as production cost of
organisation (Ge, 2019). If organisation has supportive suppliers that provides material on time
and distributes final products to the customers in efficient manner facilitates to gain various