Supply Chain Management in Tesco: Challenges, RFID Technology, and Sustainable Logistics

Supply Chain
Management

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Background of company and market outlook........................................................................3
Supply chain and logistics management system....................................................................4
Challenges in implementing SCM systems............................................................................5
Role of RFID technology.......................................................................................................6
Embedding sustainable logistics.............................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Introduction
Supply chain management is related with flow of goods and services from the point of their
manufacture to the final point where they are consumed by the customers. It is important that
organisations maintain an efficient supply chain so that the flow of materials, information and
capital can help in effective planning, sourcing, production, inventory management, logistics,
storage and transportation. SCM help the companies in better managing demand in market,
storing the right amount of inventory, managing costs and meeting customer requirements at the
right time, at right place and in right quantity (Mangan and Lalwani, 2016). Thus through an
effective SCM an organisation can achieve a competitive advantage in market. In this report
Tesco plc is taken which is a British supermarket retailer that deals in general merchandise and
groceries and has its headquarters in England, UK. The company has about 6,800 shops all
across the world which needs an effective SCM so that the customer demand can be efficiently
met. In this report the SCM of Tesco, challenges faced in implementing SCM systems, role of
RFID etc. will be discussed.
Main Body
Background of company and market outlook
Tesco is one of the largest supermarket retailers in the world which was founded in the
year 1919 by Jack Cohen when he started selling groceries from a small East End London stall.
In 1924 Jack bought a shipment of tea from Mr. T.E. Stockwell and the brand Tesco first
appeared with in initials of their names. In 1932 Tesco became a private limited company and
continued to rise through the years and apart from groceries the company also deals in insurance,
travel agency and telecom, financial services and variety of other products (Fredendall and Hill,
2016).
The company has a market share of about 28.4% in UK and the revenue of company is
over £63.911 billion in 2019. The number of Tesco stores worldwide is 6,809 and it is the 15th
most valuable retail brand in the world (Meredith and Shafer, 2019). The company sell high
quality products to its customers at reasonable rates so that the living standards of customers can
be raised and high customer satisfaction can be achieved. The company also sell its products
online so that highly convenient services can be provided to its customers.