Supply Chain Management: Enhancing Relationships, Managing Risks, and Improving Sustainability

This report explores supply chain management in the context of Tesco, a British multinational retail company. It covers topics such as enhancing supply chain relationships, managing supply chain risks, reducing supply chain costs, and improving sustainability. Strategies and recommendations are provided to streamline operations and maximize customer value.

Supply Chain
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Supply chain relationships..........................................................................................................1
Supply information system.........................................................................................................2
Procurement and Outsourcing.....................................................................................................3
Sustainability...............................................................................................................................5
CONCLUSION & RECOMMENDATION....................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Supply chain management is referred as a management of flow of product as well as services
along with it includes different processes which could transformation raw materials into final
products. Supply chain management generally consists of present streamlining of business's
supply side operations in order to maximizing their customer value as well as gaining
competitive benefits in marketplace. Supply chain management presents and effort by their
suppliers in order to design or implement supply chain which are efficient as well as economical
in their possible manner. Supply chain management general covers every element from
production to its product enhancement in order to have information system which is required to
direct various undertakings. supply chain management is associated on various ideas which
every product that launches into market results from efforts of different companies could make
up supply chain (Evans and Mason,2018). This report is based on supply chain management of
Tesco which is a British multinational general merchandise as well as groceries retail company.
This report includes various ways that could be used to enhance supply chain relationship, how
does company mitigate supply chain risk along with reducing supply chain cost, various ways
that are carried by company to improve supply chain sustainability along with its conclusion.
MAIN BODY
Supply chain relationships.
As per the viewpoint of David Smith and Leigh Sparks, 2020, Supply chain relationship is an
element in which customers as well as suppliers are get connected in different ways which
allows them to have exchange of information, visibility of their status along with demanding
information and data (Chang, Chen and Lu, 2019). Supply chain relationship is an important
element that could be improved on regular basis by companies so that their supplier relationships
could be maintained effectively in order to sustain in market for longer run. There are different
ways that could be used by companies in order to enhance their supply chain relationship for
maintaining their effectiveness in corporate markets. In terms of Tesco as being a retail company
various ways that could be used by company in order to enhance their supply chain relationships
that are as follows:
 Constantly reviewing performance as well as deliverables: As by having continuously
reviewing performance of suppliers directly promotes accountability in company as well
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as it helps them in reducing their cost along with improving customer satisfaction. By
clearly defining supplier expectation along with sharing their outcome with them along
with that they provide their vendors through continuous feedback which they could use to
exceed expectations as well as delivering additional value. In terms of Tesco company is
carrying continuous review of their deliverables as well as performance of their groceries
product so that their expectations could be identified from suppliers that straight
improves their supply chain relationships towards suppliers and distributors.
 Being a business which businesses requires to do business: As strong relationship
among company with its suppliers is an important advantage for company (Fernie and
Sparks, 2018). As by having a strong relationship among suppliers it state leads to
become a business company that various businesses who wants to collaborate with them
for having more effectiveness. In terms of Tesco company is focused active supply chain
relationships for becoming a business for gaining competitive advantage in terms of
maintaining their positioning in retail sector markets.
Supply information system
There are some ways through modern information systems aided the supply chain visibility
in company and impact on logistics;
 Promoting consistent as well as clear communication: As by having clear as well as
consistent communication in foundational business interlinks. As to generate effective
along with long time relationship with their suppliers, purchasers should communicate
with their suppliers on basis of their equal partnership. As my promoting clear and
assistant communication among supplier’s company could maintain a effective
relationship. In terms of Tesco company is focusing on having clear as well as consistent
communication among their suppliers as well as buyers so that their groceries items or
merchandise product could be retailed in an effective way along with its smooth delivery.
 Leveraging technology for having mutual benefit: As by considering as well as
providing a technology platform which could support or promotes transparency and
efficiency a better supply chain relationship could be maintained (Habib and Hasan,
2019). Leveraging technology for having mutual benefit is said to be an effective way for
generating transparency in supplier’s relationship along with creation of an ordered trial
of operations for helping any misunderstanding that could be occurred between company
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and supplier. In terms of Tesco company is using leveraging technology for having
mutual benefit that could lead in having effective supplier chain relationship between
them so that with the help of technology any misunderstanding or contract could be
solved effectively on time basis in carrying out retail sector markets with motive of
earning profits.
 Understanding contractual obligation: By understanding and maintaining a contractual
obligation company e could maintain their supply chain relationship with their suppliers
well. As company requires to have confidence that supplier is delivering for their work
what they are being paid and supplier requires confidence that they will be paid equally
and fairly on time basis for their product or services which they provide to customers. As
an effective positive contract relationship both parties uphold as well as understand their
obligations along with there is an effective way to check this is to utilise vendor contract
which clearly identifies purchase relationship. In terms of Tesco company is focused at
building their contractual obligations among their suppliers and keeping faith on them
that their groceries product is to be supplied to customer on time scale so that customer
satisfaction in terms of retail sector could be enhanced in higher terms.
Procurement and Outsourcing
Supply chain risk management refers to "the operation of business strategies to maintain
both everyday as well incomparable risks in business along with supply chain which is based on
constant risk evaluation with motive of reducing the vulnerability or ensuring the continuity".
External based supply chain risks consider those caused by the: changeable and misunderstood
consumers demand or needs. Interruptions to flow of goods, considering the raw materials or
resources or finished products. Social, economic factors and governmental, considering threat of
violence. The improvement of supply chain risk in company is ability to track overall
performance of the main suppliers as well proactively recognize or control those at risk decisive
to preserve permanence of the supply, strategic objectives delivering as well outperforming
other competitors. Falling the costs is a wide operation which is each industry is managing
particularly when it is comes to company’s supply chain process (Pham, Darabi and Wilmot,
2020). It is essential to reminder that trying for save amount as the firm calls for a focused or
knowledgeable based leadership that is understands finish goal when it is considering the supply
chain management
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There are various ways to identify the supply chain risk and manage them in TESCO in
terms of procurement as well as outsourcing that is explained below as;
First, company have to examine their existing risk management in business. Pay close
concentration to their supply chain procedures to explore out which field need to attention (Butt,
Sohal and Prajogo, 2019). They shouldn’t leave any kind of loopholes that are unaddressed as
this is might the lead to severe issues in the further time. Research all areas within their supply
chain that are the service provider, commodity, supplier, destination industry’s geographical
framework and logistics infrastructure. Since they cannot do each the job alone, ask for support
from their staffs to watch the every section or location linked with supply chain. TESCO can ask
them to provide reports or updates the probable risks in supply chain, so company can manage
all risk better in better manner.
Second, company have to assess the data. When industry have evidently defined areas
that are should be tracked along with their reports gathered from their group, the second better
thing to carry out is to examine data available of company. Build the risk in business scorecard to
gauge insecurity phases of specific procedures in supply chain management. Through this
concept, company can join priorities concerning areas that should be the examined first (Zhang,
Huang and Wan, 2018). Make sure TESCO understand root cause of issues, since possible risks
in the specific areas might bring domino to impact another departments of industry as well.
Third, industry has to utilize automation. The supply chain risk management in
business is not the something that they can be complete only at once, since the tracking
requirements to be conducted the continuously. Provides the width of a observation sector that is
should be experiential, firm can adopt automation to examine data collection. Thus, company can
recognize supply chain risk instantly.
Fourth, firm have to put together supply chain risk based management in the
company. Assign staff with the high willpower and describe their responsibilities and roles in
clearly in the procedures (Bui, 2020). Management of Risk is a must-have business strategy for
workplace occupied in the supply chain and logistics. By analysing and observing gaps between
the procedures, root causes that can be established as well as preventive process can thus be
occupied.
There are some steps that can help to TESCO in reducing the supply chain cost and steps are
explained below as;
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 Focus on the consumers.
 Supply Chain business Strategy.
 Make best Use of the Space.
 Operations and Sales Planning.
 Supply Chain based Network framework.
 Move Supplies quicker.
 Automation.
 Outsourcing the Supply Chain Management.
Sustainability
Supply-chain sustainability refers to the business problem that is affecting a company’s
supply chain and logistics based network in order of the environmental, waste costs and risk.
There is a rising requirements for the integrating an environmentally sound their choices in the
supply-chain management in company. To attain the sustainable based supply chain, the industry
has to analyse an environmental, economic, legal and social concerns crosswise its
overall supply chain management. By attractive the holistic concept, this can reduces the waste
or environmental based footprint, while the getting better workforce situation as well health or
safety, also stopping the staff exploitation (Cole, Stevenson and Aitken, 2019). The sustainable
based supply chain management also support to improve overall productivity while they are
saving expenses at same time period. By utilizing the sustainable tools, resources and techniques
that company enhance their efficiency of the resources, vehicles or machinery at a important
expense savings. Tesco is the major example of the sustainability at company. The Sustainable
based supply chain begin with the being alert of their business environmental, economic and
social impact as well the most significantly, making essential changes to reduce it. The
procedures can engage in everything from the warehouse's basis of the power to carrying of
products or beyond.
There are some ways through TESCO can improve their supply chain sustainability;
Map Company’s supply chain: Lots of firms are doing not has a complete understanding
about the sustainability effect of firm’s supply chain. An initial stage is to the inventory
suppliers, analysing the key social and environmental challenges that they have as well as
prioritize entire efforts with potentials suppliers in groceries.
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Communicate outlook: Focusing on the sustainability in their supply chain management is a
best way to interact the corporate values as well culture to their suppliers or consumer (Tran, Du
Nguyen and Thomassey, 2019). Establishing or interacting the expectations via a supplier’s code
of conduct, it is a significant stage in consisting the suppliers in their sustainability based efforts.
Baseline of supplier measurement: Once TESCO understand who their target than
suppliers have set of compliance values, gathering the data from suppliers via the easy
benchmarking survey and self-assessment will gives to company an better understanding of their
initial point.
Design training as well as ability to building programs: It is an essential phase in the
getting better sustainability or motivating behavioural based changes throughout the company’s
supply chain management (Jiang, Zhou and Xu, 2019). Lots of external based resources are
obtainable to help these efforts as well some are the modified to particular area requirements in
retail sectors.
Make performance improvement in supply chain: Once the baseline of supplier
performance is understand, a review program can gauge performance improvement in better
manner over the time. While in lots of scenario, the self-tasks are finished by the corporate team,
that are EHS, marketing, procurement, onsite programs of audits can disclose the local business
practices, behavioural based challenges as well as realistic opportunities for better improvement
which are tricky to analyse via the questionnaires by own basis.
Join company collaboration: Lots of industries identify that are complex in supply chain
based challenges that are cannot be resolved by the individual hard work or that company broad
collaboration is needed (Dujak and Sajter, 2019). Working in the pre-competitive sector, peer
industry that can share the similar supply based chains can put common values as well as
effective practices for the performance of sustainability, it also allow to suppliers to more
evaluated at similar metrics or tools. These collaborations are helps in prevent the audit fatigue,
mountains and training unemployment of the official procedure for a suppliers working for meet
same needs from their consumers. Working with their industry aristocracy is a best way to
transfer knowledge about performance of sustainability in terms of their suppliers.
CONCLUSION & RECOMMENDATION
It is concluded the above report, supply chain relationship management is play huge role in
business and its growth. It assists in managing the relations between the customers and suppliers
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so that they can transfer data of demands or needs and exchange other information in easy
manner. This helps to business in developing the effective strategies for better achievements and
success rate. Through the supply chain relationship management the company can create the
collaborative and effective dynamic. There are various steps are explained in above report to
identify the supply chain risk and to mitigate those risk as well as reduce the supply chain cost. It
is essential to mitigate the supply chain risk and supply chain cost. Through this company can
improve their relationships and management of industry. There are various ways improve supply
chain sustainability and all factors are explained in above report which are helps to business in
improve their brand image in market and better development. Through effective management
company can sustain for longer period of time. Company need to focus on adopting more
technology as well as exploring new marketplaces.
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REFERENCES
Books and Journals
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Butt, A.S., Sohal, A. and Prajogo, D., 2019. Personal relationships and loyalty in supply
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technology: A case of smart contract based tracking process. Technological Forecasting
and Social Change .144. pp.1-11.
Cole, R., Stevenson, M. and Aitken, J., 2019. Blockchain technology: implications for operations
and supply chain management. Supply Chain Management: An International Journal.
Dujak, D. and Sajter, D., 2019. Blockchain applications in supply chain. In SMART supply
network (pp. 21-46). Springer, Cham.
Evans, B. and Mason, R., 2018. The lean supply chain: managing the challenge at Tesco. Kogan
Page Publishers.
Fernie, J. and Sparks, L. eds., 2018. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Habib, M.M. and Hasan, I., 2019, May. Supply Chain Management (SCM)–Is it Value Addition
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Engineering (Vol. 528, No. 1, p. 012090). IOP Publishing.
Jiang, Y., Zhou, X. and Xu, Q., 2019. Scenario Analysis–Based Decision and Coordination in
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Pham, T.S.H., Darabi, F. and Wilmot, N.V., 2020. International supply chain case study.
In Supply Chain and Logistics Management: Concepts, Methodologies, Tools, and
Applications (pp. 1183-1204). IGI Global.
Singh, A., Shukla, N. and Mishra, N., 2018. Social media data analytics to improve supply chain
management in food industries. Transportation Research Part E: Logistics and
Transportation Review, 114, pp.398-415.
Tran, K.P., Du Nguyen, H. and Thomassey, S., 2019. Anomaly detection using long short term
memory networks and its applications in supply chain management. IFAC-
PapersOnLine .52 (13). pp.2408-2412.
Zhang, X., Huang, S. and Wan, Z., 2018. Stochastic programming approach to global supply
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