Supply Chain Management and its Impact on Tesco's Business

This document discusses the significance of supply chain management in Tesco's business and its impact on revenue generation and customer satisfaction. It explores various aspects such as supply chain relationships, types of relationships, integration and collaboration, ways to improve supply chain relationships, supply information system, logistics and supply chain's impact on ROI, Tesco's procurement strategy, outsourcing, sustainability, and reverse logistics.

SUPPLY CHAIN
MANAGEMENT
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Table of Contents
Introduction......................................................................................................................................3
Supply chain relationships...............................................................................................................3
Types of supply chain relationships.......................................................................................3
How integrated or collaborative these supply chain relationships and do they employ IT
system to aid integration and collaboration............................................................................4
.Describe ways in which supply chain relationship can be improve......................................4
Supply information system..............................................................................................................5
How have modern information system aided supply chain visibility in business..................5
Impact of logistic and supply chain on ROI...........................................................................5
Procurement and outsourcing..........................................................................................................6
How Tesco procurement strategy mitigates supply risk.........................................................6
Tesco outsourcing in terms of competence and competition.................................................6
Sustainability....................................................................................................................................7
supply chain sustainability.....................................................................................................7
“Reverse logistics”.................................................................................................................7
Conclusion and recommendation.....................................................................................................8
References........................................................................................................................................9
Books and referrals.................................................................................................................9
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Introduction
Supply chain management helps in transforming the raw material into finished duties
with the goal that best services can be given to the buyers. It is significant as it helps in
developing the efficiency of the business so income generating capacity of the business can be
expanded. If the business will enhancing the services then it can affect the demand of the
company in the marketplace due to which revenue of the business will get increased in the
economy. For maintaining the services of the business it is important for the business to increase
it profit in the marketplace. The main objective of every organisation is to increase its goodwill
in the market so that growth chances of the business can be increased. Tesco is the leading
retailer company in UK which was developed by John Cohen in 1919 it helps in providing the
unique quality of retail goods to the customers due to which its customers loyalty is more in the
economy as compared to other business Tesco has maintained healthy relation with the supplier
so that its productivity can be upgraded and more benefit can be procured In this report it will be
observed that how supply chain management helps in increasing the goodwill of the business in
the economy (Muñoz-Torres, 2021).
Supply chain relationships
Types of supply chain relationships
Tesco is best relating company in UK due to services which it provide to the buyers it
maintain healthy supply chain management in the business so that affected. Suppliers helps in
enhancing the services of the company so that its functioning cannot get affected in the
marketplace. if the business will provide unique services to the customers then it will helps in
increasing the demand of the company in the economy.
Manufactures: They helps in business in providing the best of goods and services so that
they can improve their productivity in the market. Tesco has good relationship with the
manufactures due to which it is famous for the services which it provide to the customers if the
company will not develop healthy relationship with the manufacturer then it can affect the profit
of the company because they will not be able to provide better services of the customers as per
their demand.
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Retailers: they helps in supplying the goods to the buyers so that as per their demand
which helps in satisfying the needs and requirement of the customers. If the customers will get
the product as per their requirement it will help in the growth of the business which will further
help in the growth of the economy as well. Providing the basic services to the buyers will helps
the business to develops its strong position in the market (Hajiaghaei-Keshteli, 2019).
Customers: If the company wants to increase its profit in the market then it is important
for the business to provide better services to the customers. Buyers are the main source of
generating income in the business. They help in developing the productivity of the company in
the business. Buyers helps in enhancing the services of the business so that goals of the business
can be achieved effectively in the marketplace. buyers should access the features of the business
so that growth of the company can take place in the marketplace.
How integrated or collaborative these supply chain relationships and do they employ IT system
to aid integration and collaboration.
Supply chain network is executing numbers of activities that are demonstrating need of
connections which comprise of coordination, activities, responsibility and trust which is among
supply chain managements and to guarantee accomplishment of organization. In supply chain
management, there are different node which assume significant part in customers and retailer .
Organization needs individuals for the inventory network to be incorporated towards the
interaction. Supply chain management exercises are likewise considered as a collaborative
because it comprises of different exercises which are to be facilitated by numerous individuals of
the mainstream and workers to accomplish the organisational goals. Supply chain network helps
in accomplishing the goals of the company properly and in the short period of time (Ivanov, ,
2020).
.Describe ways in which supply chain relationship can be improve.
Improving the supply chain network will helps in improving the services of the company in
the economy. If the organisation develops the good relations with the supplier the it will helps
the company to develop its services in the economy. Company should keep track on the
performance of the business so that they can analyse the profit margin of the business and
improve there performance if the services of the business is not satisfying the customers then
company have to check its supply chain management so that quality of the product can be
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identified properly in the business. Tesco should maintain effective communication with the
suppliers so that chances of conflicts can be reduced proper relationship can get developed.
Supply information system
How have modern information system aided supply chain visibility in business.
Supply chain management is getting complex in the company because it is involving huge
numbers of suppliers which is 1,00,000 due to which it has become difficult for the managers
and leaders of the business to maintain visibility in production network organization. Supply
chain management helps in increasing the image of the company. supply chain management
helps in maintaining the growth chances in the businesses due to which high numbers of
suppliers companies are not able to maintain visibility in the business which can create loss in
the company. with the help of IOT solution company can keep an track on the shipment and
maintain its profit there are various advance technologies which can be used to increment the
benefit of the business. in the event that the association will utilize advance innovations in the
business, it helps in keep up the record of the business it will likewise helps in keep up the store
network the board in the organization which will helps in keeping up the coordination in the
business. tesco is using various technologies to maintain the effective supply chain network they
are using many software which helps in keeping the track on the product and services of the
business so that it can reach effectively to the customers and customers can also get good quality
of goods from the company (Taschner, 2020).
Impact of logistic and supply chain on ROI
Logistics and supply chain helps in providing the items and administrations to the economy
of the inventory network organization because of profit of the company can get enhanced. Tesco
is keeping a track on the inventory network of exercises so misfortune can't occur in the business
and more benefit can be procured inventory network helps in giving the labuor and products to
the economy so development of the economy can happen viably. There are various changes
which is done by the tesco in the supply chain network so that effective functioning of the
business can het developed and future goals can be achieved properly by increasing the profit of
the business. .
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Procurement and outsourcing
How Tesco procurement strategy mitigates supply risk.
Analysing the supply risk in the business will helps in keeping up the benefit of the business in
the market it will likewise helps in fostering the administrations of the organization by incraesing
its income in the marketplace. there are different techniques which is utilized by the tesco in the
business which are given below:
Risk analysis: It is done by the business to identify the risk factors so that it can analysis
on the numeric scale so that effect of the risk can be evaluated proper and various steps can be
taken.
Risk identification: there are various risk which is related to the key suppliers of the
business which can affect the profit of the business due to which tesco has used the technology to
identify the risk in the company so that productivity of the business can be enhanced.
Risk mitigation: after the analyses and identification of the risk it is responsibility of the
stakeholders and the business to develop a plan so that risk chances can be eliminated from the
business because risk can affect the performance of the business and can provide competitive
advantage to the other companies in the marketplace.
Tesco is using the modern technology like procurement software which will helps in
keeping the track of the data related to the purchase so that proper management can take place in
the business and various risk factors can be removed from the business so that services can get
developed in the market (Luthra, 2018).
Tesco outsourcing in terms of competence and competition.
The main aim of Tesco is to develops is services as so that more satisfaction can be
provide to the customers. Tesco provides various variety of goods to the customers which helps
in increasing the profitability of the business. Competence is basically the skills or quality which
is used by the company so that competitive advantage can be gained. There are various skills
which used by the business so that better services can be given to the buyers they are using in
innovative skills in the business so that more people can get attracted towards the services of the
business. if the buyer will find the products better and unique as compared to other business then
it will develop the demand of the business my gaining the competitive advantage in the
marketplace. Customer focused strategy is the core competence of tesco because it wants to
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provide the product as per the demand of the customers so that customer loyalty of the business
can get developed in the market if the organisation will gain the trust of the customers then it will
helps in the long term survival of the company in marketplace due to which targets of the
organisation will get achieved easily in the short period of time.
Sustainability
supply chain sustainability.
With the helps of procurement professional company can identify its sustainability issue in
the business can resolve it easily so that performance of the business cannot get impacted. Loop
is the first scheme which is used by the company which work with the FMCG companies so that
effective packaging can be done of the product so that it can reach safely to the customers. This
strategy is used by the Tesco so that proper packaging can take place without the use of plastic so
that environment can also not get affected by the services of the business so that sustainability of
the business can also take place (Runkler, 2019). As loop provides the best packaging products
with the durability people are preferred to use the website of loop for their purchase. Packaging
of the product attracts the attracts the attention of the customers if the packaging of the product
will not be goods and it will not attract the customers due to which tesco is more focused on the
packaging and quality of the product so that positive image of the business can be created in the
business without affecting the demand of the business in the economy. Tesco is the big brand
which has many stores around the world it is responsibility of the company to maintain its
position in the market so that best services can be given to the clients and development
opportunities of the organization can be increased in the economy.
“Reverse logistics”.
It enhances the quality of the products and services of the companies so that better quality
can be provided to the customers there are various feedback which is taken from the customers
according to which improvement is done in the product of the business. it involves the operation
related to the reuse of the product so that it quality can be improved. Tesco is replacing the faulty
products from the business so that its can improved and reuse it helps in maintain the demand of
the organisation because if the buyers will get the waste product from the company then it will
create the negative image of the company due to which its images in the economy will get
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destroyed with the help of reverse logistics company can easily reuse the product by adding
value to the service of the company (Kumar, 2019).
Conclusion and recommendation
As per the above report it has been seen that supply chain management helps in developing the
benefit of the business in the market by developing the labour and products of the business.
present day data framework is utilized by the business with the goal that visibility in the store
network organization can occur. Supply chain management helps in identifying the risk factors in
the business so that various safety measures can be taken accordingly. It help in demonstrating
the benefit as far as contenders by improving the administrations of the business it helps giving
the new way of the business so objectives of the business can be accomplished can be
accomplished effectively in the market without influencing the benefit of the organization in the
commercial centre. For the better inventory network the executives in the business it is
significant for the business to utilize better advances in the business so that smooth working of
the organization can happen in the economy. Use of various technologies in the business will
helps in developing the services of the customers so that better can be given to the customers
innovation in the business will helps in increasing the services. In every organisation it is
important that to innovate their services so that growth of the company can take place in the
economy. Proper management in the business helps in enhancing the services of the company so
that competitive advantage can be gained in the marketplace. Tesco needs to investigate the need
and requirement of the buyers so that they develop their services accordingly and can enhance
the productivity of the company.
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References
Books and referrals
Muñoz-Torres, M.J., Fernández-Izquierdo, M.Á., Rivera-Lirio, J.M., Ferrero-Ferrero, I. and
Escrig-Olmedo, E., 2021. Sustainable supply chain management in a global context: a
consistency analysis in the textile industry between environmental management
practices at company level and sectoral and global environmental
challenges. Environment, Development and Sustainability, 23, pp.3883-3916.
Hajiaghaei-Keshteli, M. and Fard, A.M.F., 2019. Sustainable closed-loop supply chain network
design with discount supposition. Neural Computing and Applications, 31(9), pp.5343-
5377.
Namdar, J., Li, X., Sawhney, R. and Pradhan, N., 2018. Supply chain resilience for single and
multiple sourcing in the presence of disruption risks. International Journal of
Production Research, 56(6), pp.2339-2360.
Ivanov, D. and Dolgui, A., 2020. Viability of intertwined supply networks: extending the supply
chain resilience angles towards survivability. A position paper motivated by COVID-19
outbreak. International Journal of Production Research, 58(10), pp.2904-2915.
Abdel-Basset, M., Gunasekaran, M., Mohamed, M. and Chilamkurti, N., 2019. A framework for
risk assessment, management and evaluation: Economic tool for quantifying risks in
supply chain. Future Generation Computer Systems, 90, pp.489-502.
Luthra, S. and Mangla, S.K., 2018. Evaluating challenges to Industry 4.0 initiatives for supply
chain sustainability in emerging economies. Process Safety and Environmental
Protection, 117, pp.168-179.
Taschner, A. and Charifzadeh, M., 2020. Challenges in Supply Chain Management and Supply
Chain Management Accounting. In Management Accounting in Supply Chains (pp. 39-
70). Springer Gabler, Wiesbaden.
Runkler, T.A., Chen, C., Coupland, S. and John, R., 2019, June. Just–in–time supply chain
management using interval type–2 fuzzy decision making. In 2019 IEEE International
Conference on Fuzzy Systems (FUZZ-IEEE) (pp. 1-6). IEEE.
Porter, M., 2019. Supply chain integration: Does organizational culture matter?. Operations and
Supply Chain Management: An International Journal, 12(1), pp.49-59.
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Wu, K.J., Liao, C.J., Tseng, M.L., Lim, M.K., Hu, J. and Tan, K., 2017. Toward sustainability:
using big data to explore the decisive attributes of supply chain risks and
uncertainties. Journal of Cleaner Production, 142, pp.663-676.
Miraz, M.H., Majumder, M.I., Commander, B.N., Chowdhury, A.Y. and Habib, M.M., 2018. A
Study on Sustainable Supply Chain Governance for Successful
Investment. governance, 12, p.13.
Mishra, D., Gunasekaran, A., Papadopoulos, T. and Dubey, R., 2018. Supply chain performance
measures and metrics: a bibliometric study. Benchmarking: An International Journal.
Kumar, A., Zavadskas, E.K., Mangla, S.K., Agrawal, V., Sharma, K. and Gupta, D., 2019. When
risks need attention: adoption of green supply chain initiatives in the pharmaceutical
industry. International Journal of Production Research, 57(11), pp.3554-3576.
Hu, W., Shou, Y., Kang, M. and Park, Y., 2019. Risk management of manufacturing
multinational corporations: the moderating effects of international asset dispersion and
supply chain integration. Supply Chain Management: An International Journal.
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