Improving Supply Chain Management at Tesco

This report analyzes the critical issues and problems emerging in the supply chain of Tesco, a leading retail brand. It provides recommendations for improving supply chain management and discusses various supply chain models and principles. The report also suggests implementing just-in-time inventory systems and total quality management strategies to enhance efficiency and customer satisfaction.

Supply chain management

Table of Content
INTRODUCTION................................................................................................................................3
Analysing critical issues and problems emerging in supply chain .................................................3
Managing of issues and resonance by company .............................................................................5
Recommendations by which company can improve supply chain management.............................7
CONCLUSION ...................................................................................................................................9
REFRENCES.....................................................................................................................................10

INTRODUCTION
Supply chain management can be understood as flow of goods and services, which includes
procedures to transform raw materials into final products for customers. SCM maximizes customer
value for pertaining competitive advantage in supply chain, to yield on varied revenue benchmarks
and for evolving towards best quality scenarios. In today’s competitive retail industry SCM has
been dynamically growing towards new aspects related to customers, transportation, and
warehousing along with inventory management. For this report, Tesco has been taken as case
scenario which is leading retail brand having wide number of stores globally serving customers with
best quality products. Research will be done on critical issues and problems emerging in company
which will be analysed based on further diverse future opportunities, within supply chain
management. Further research will be analysing respondance by company towards identified issues
and assessment of best models, concepts for attaining supply chain management efficacy
benchmarks.
Analysing critical issues and problems emerging in supply chain
Tesco being one of the best prominent retail brand with increasing competition has been
facing critical issues and problems, emerging in supply chain where activities among customer
services have been reducing efficiency. Leaders at company must determine new supply chain goals
encompassing measures where executing best resources to articulate best overall purposes, scope is
essential for effective varied supply chain. Issues of supply chain bring on varied range of
complications among business scenarios for impacting productive diversity, and effective global
market reach functionally. Supply chain structure involves inventory control, policy and
information sharing along with customer demand parameters where optimum resource planning
within supply force must be reached.There are various critical issues, faced by organisation in fast
pacing competitive world where following critical issues are emerged in supply chain (Garcia-

Biennia, Moya no-Fuentes and Maqueira-Marín, 2021).
 Risk management: Due to constant change coming in business environment variety of
sources in consumer demandsand global outsourcing causes major issues in operations. Risk
management is widely impacting aspect where Tesco needs to revive operational efficiency
and develop strignent focus for removing disruptions. Cost factor also comes in within this
domain where risk management impacts company goodwill on wider domains, effective
functional synergies advanced transportation should be wroked on Risk management has
been also evolving as widely essential aspect, where best supply chain tools need to be
implemented effectively within longer time frame for attaining targets.
 Fast competitive markets: Supply chain aspects within Tesco also faces challenges due to
fast competitive markets, where various new brands are entering retail industry with large
range of quality products,services. This includes warehousing facilities, customer services
and transportation to be enhanced on varied domains towards innovative business goals
Unforeseen delays must be avoided actively, where best resources must be implemented in
fundamental supply chain for keeping up with benchmarks of global revenue targets. Tesco
with fast evocative supply range in products supply among supermarkets, also needs to hire
qualified personal with foresighted advancement and experience is essential. (Six Top
Supply-Chain Strategies for 2020, 2020).
 Increased costs of supply Chain: Tesco also faces challenge of increased costs in supply
chain within management, where dynamic fundamental flow of innovation demanded
among customers impact supply chain. This can be understood as essential aspect where
varied range of advanced supply chain tools, considerable percentage of sales price within
products and services impact overall costs. Supply chain costs are quite complex to be
analysed, where cost reduction in one area of operation can directly result in cost hike for
customers. It becomes essential for manufacturers to evaluate supply chain and impact of
cutting costs in single area on rest value aspects, heading on productive diversity goals.
 Complexity factor within Quality customer service: Supply chain management is
centralized needs of customers where it is about giving best quality productive services, at
proper right quantity. Perfect time setting supply management, enhances customer’s
satisfaction profoundly on diverse domains , where with high range of competition there are
new scale advancement coming on among preferences. Transportation of goods among
stores must be in speculated time periods, where advanced scale resource planning should be
used, for customers goodwill targets. In fast pacing competitive global world, quality
customer services with best strategic vision comes in as challenge impacting wide range of

efficacy parameters profoundly, on longer stable time period.
 Supply Chain Complexity Due to Multiple Channels: The supply chain complexity in
recent phenomenon’s, due to multiple channels has been impacting productive diversity of
brand.w Multiple channel creates varied range of impact on supply chain volatility, where
this adds to high scale resource planning. There is productive variety demanded among
customers supply chain efficacy towards new perspective horizons where supply chain
specifically needs to be evolved with best technology innovation. . Supply chain costs
increases wide range of determining efficacy for customer’s affordability, as competitive
price range has to be analysed effectively. Supply chain complexity also impacts
onproductive diversity within multiple channels transportation, where Tesco as one of the
biggest retailer aims to extend its global market reach (Six supply chain models you need to
know, 2016).
The above discussed issues and problems arising within supply chain have in detail analysed
Tesco company supply chain management aspects, where varied range of business scale goals
needs practical growth implementation. Issues identified above have analysed customer service,
transportation and warehousing requirements as wide range of effective parameters on which supply
chain concepts need to be focused. Challenges among fast evocative varying retail industry can be
analysed with varied range of new market strength coming on, also to evolve towards new domains
expertise.
Managing of issues and resonance by company
Managing of varied range of supply issues and resonance by Tesco evolves on
implementation best principles, best concepts with innovative models which keeps thresholds active
towards dynamic benchmarks. Supply chain management adds value to inventory aspects within
production domains, enhances brand value among market growth horizons and competitively
expands inuntapped market horizons. Respondance to supply chainman agent has given keen push
to proceedings within Tesco for best supply of products among stores, which enhances business
reach actively. It also aims to keep up diversity benchmarks within retail supply chain management
goals,for procuring high scale innovation and also to enhance business connectivity at global
parameters. New collaborative systems within smart procurement practices such as supplier
prequalification, helps product developers to source right components based on availability, quality
and costs derivatives.
Principles of Supply chain management:

Tesco in today’s fast pacing competitive retail industry aims to keep customers, stakeholders
satisfied with high goodwill benchmarks and best revenue goals by adhering productive services
based on principles which are as follows:
 Segmenting customers based on service needs, preferences for effective diversification
actively (7 Principles of Supply Chain Management, 2019).
 Listening to signals of market demand competitively raising productive benchmarks
 Differentiating products closer to customer
 Sourcing resources and technology strategically
 Developing supply chain wide technology strategy
 Adopting channel spanning performance measures and keeping effective monitoring.
Tesco aims to improve its supply chain management structure by actively working towards
supply chain framework, value proposition aspects and to develop internal supply chain procedures
SCM models will enable structure to be enhanced in resource utilisation effectively, where Tesco to
reach on best quality thresholds aims for evolving on productive benchmarks towards high quality
integration. The brand operations by top management has been informatively expanding towards
new vision oriented scenarios, with best resource planning efficacy domains. There are varied
range of supply chain models which can be analysed based on efficiency aspects and with
responsiveness measures, for keeping up with benchmarks towards functional pathways (Gartner
Top 8 Supply Chain Technology Trends for 2020, 2021)
Supply chain models oriented to efficiency:
 Continuous flow chain model: Tesco by adopting continuous flow chain model has been
constantly raising demand stability fundamentals, generating effective varied flow of
resources. s. Supply chain model enables competitive positioning for brand, as it ensures
high service levels, inventory levels at customer pathways. This can be also understood as
one of the best aspect where continuous flow keeps diversity of products ensured, where
Tesco being one of the biggest retail brand aims to keep customer satisfaction its highest
priority.
 Fast supply chain model: Tesco by using fast chain model in businesses aims finished
products such as fresh grocery to reach customers within stores in best time frame, to attain
revenuebenchmarks (Toorajipour and et.al, 2021). This model is best suited as it enables
employing best strategic planning of resources within high scale services accurately, and
also to program maximised market efficiency. Fast supply chain model enables products to
reach among customers with short lifecycles, where manufactures updates product portfolios

with latest demanded factors. Tesco employees best skilled employees for heading towards
best supply chain parameters, technical innovation goals and to yield on productive
diversity.
Supply chain models oriented to responsiveness: Agile supply chain model: The brand aims to focus on agile model, where it enables
manufacturer products under unique specialization by their customers. It also enables
effective continuous stretch to be evolved within unpredictable demand among retail
industry domains, where customers purchase orders are maintained effectively. Agile model
specifically is oriented with responsiveness towards retail market competitiveness where it
involves manufacturing items after analysis of customers purchase orders (Xiao, Yuan, and
Sun, 2021).
 Custom-configured model: This model is ideal where products with varied range of
multiple and potentially unlimited configurations are required, where high degree of
correlation between asset cost and total cost are analysed. Tesco by using this model aims to
assemble large range of varied products services as per customer’s specifications, also where
supply chain brings on varied range of connective targets. Tesco plans to achieve best
efficiency by optimising best technology usage, and improved storage technology.
It can be understood that above discussed models and principles of supply chain
management brings on evocative push to dynamic market presence effectively, innovate resources
variably. Tesco for heading on customer brand satisfaction and best assets investments to be
returned, has scope to work on yielding productive diversity among supply chain domains. In order
to reach towards varied competitive scenarios, Tesco has been also recently investing towards
artificial intelligence and robots for keeping up quality delivery, within inventory and warehouse
services development (Tsai and et.al, 2021).
Recommendations by which company can improve supply chain management
Tesco with fast pacing competitive businesses in retail industry aims to keep supply chain
varied with best effective supply chain management concepts, functionally deliver higher scale
targets and to yield innovation. Supply chain strategies should be formed as per latest
responsiveness required among customers preferences, for enlarge productivity and to meet
dynamic demands actively. Tesco needs to align supply chain with best business goals, for
integrating sales and best operations planning within corporate business planning scenarios. SCM
adds positive push to complexity of firm’s strategy development efforts, by being particular towards
customer’s market preferences towards advanced scale priorities and competitive functional
scenarios (Shao and et.al, 2021).

 Just in time inventory system: Tesco by evolving on Just in Time inventory system is one of
the most effective supply chain management strategy that aligns raw materials orders from
suppliers. Avanced production schedule needs to be formed on for enricihing productive
goals. It enhances inventory strategy to increase efficiency on diverse phenomenons, where
with reduced inventory costs overall supply chain management cost is improved. It will
enable manufacturers to forecast demand accurately on competitive scenarios, where
accuracy measures enhances functional work growth priorities.
 Total quality management: The TQM supply chain management concept can be understood
as customer focused strategy which enhances productive diversity in continual
improvement. It uses strategy, data and effective communications for integration of best
quality strength, disciple to retain optimum profitable revenue and also to enhance quality
management. TQM works with customer focus, employee commitment, process approach
and integrated system, strategic and systematic approach, continual improvement, fact based
decision making and effective communications as main principles. By using this strategy
advanced sufficient capabilities across multiple functional areas can be acknowledged
actively. (Sarkar, Sarkar and Cárdenas-Barron, 2021).
Supply chain management strategies for TESCO:
 Adopting demand driven planning and business operating model based on real time
demand insights: Tesco by evolving on latest demand driven planning aspects and heading
on best operations will be able to potentially enrich competent scale growth. Demand
prediction capabilities continue to mature as supply management teams utilize new powerful
digital tools. Tesco by implementing best intelligence technologies and Internet of things
(IOT) will be able to take action more quickly on automatic determinants, for matching
expected demands. Demand cycle has to be analysed effectively, for operating best supply
models in real time insights for competitive advancement and technical innovation.
 Building an agile supply chain with rapid planning and integrated production techniques:
Agility aspect has shaped competitive brand supply chain structural goals where companies
are heading towards aligning manufacturing with planning, driving best operational speed
with flexibility. Tesco by introduction of cloud based platforms that link financial and
materials planning tasks to business execution activities, will be able to reach on varied
advanced benchmarks. This also opens up path to create zero error plan, produce
procedures enabling brand to act faster and adapt seamless in dynamics of retail industry
(Harland, 2021).
 Optimizing product design and management for supply, manufacturing and sustainable

usage of resources: Tesco by focusing on new optimizedbest product designs,
management strategies for supply plans will be able to deliver best brand value actively.
Sustainability development within supply chain management requires procurement
procedures to be competently active quality scenarios. Integrating design and supply chain
planning procedures leads on10-20% faster time to market, 10-2% of greater product
revenue and 1-25% reduced scrap and rework expenses. Embedding sustainability in
business operations is the most essential factor for enriching productive scale growth, highly
evolving towards diverse benchmarks and technical goodwill.
 Adopting new emerging technologies to ensure reliable and productive supply: Businesses
need to buffer on actively with varied range of unexpected shifts in demand, where demand
accuracy is also an essential aspect. By heading towardsbest technology scenarios and
stable demand supply parameters new technology can reduce inventory requirements,
creating reliable supply network. Tesco for bringing on best products and services
benchmarks strategically has to invest in best technologies, in order to minimize costs for
ensuring compliance goals. This factor also holds importance for keeping up competent
surging pace of proceedings with smart accuracy, to raise productive diversity on varied
grounds and up sale quality standards (Cheung, Bell and Bhattacharyya, 2021).
CONCLUSION
From the above discussed report it can be concluded that Tesco as one of the biggest retail
company faces issues such as risk management, fast competitive markets, quality customer service
and supply chain complexity as main challenges emerging in recent time. Further study has
concluded supply chain models related to efficiency and responsiveness towards market, as new
steps taken by Tesco to respond with customers’ demands. The report has further concluded TQM
and just in time inventory as some of the main supply management concepts, where Tesco has
varied scope. Strategies such as adopting to agile movement, customer oriented demand drives and
implementing new technologies for ensuring competitive productive supply will enable Tesco to
generate best revenue growth.

REFRENCES
Books and Journals
Cheung, K. F., Bell, M. G. and Bhattacharyya, J., 2021. Cybersecurity in logistics and supply chain
management: An overview and future research directions. Transportation Research Part
E: Logistics and Transportation Review. 146. P.102217.
Garcia-Buendia, N., Moyano-Fuentes, J. and Maqueira-Marín, J.M., 2021. Lean supply chain
management and performance relationships: what has been done and what is left to
do. CIRP Journal of Manufacturing Science and Technology. 32. pp.405-423.
Harland, C., 2021. Discontinuous wefts: Weaving a more interconnected supply chain management
tapestry. Journal of Supply Chain Management.
Sarkar, B., Sarkar, M., and Cárdenas-Barrón, L. E., 2021. Combined effects of carbon emission
and production quality improvement for fixed lifetime products in a sustainable supply
chain management. International Journal of Production Economics. 231. p.107867.
Shao, X.F.,and et.al, 2021. Multistage implementation framework for smart supply chain
management under industry 4.0. Technological Forecasting and Social Change. 162.
p.120354.
Toorajipour, R., and et.al, 2021. Artificial intelligence in supply chain management: A systematic
literature review. Journal of Business Research. 122. pp.502-517.
Tsai, F.M., and etl.al, 2021. Sustainable supply chain management trends in world regions: A data-
driven analysis. Resources, Conservation and Recycling. 167. p.105421.
Xiao, Z., Yuan, Q., Sun, Y. and Sun, X., 2021. New paradigm of logistics space reorganization: E-
commerce, land use, and supply chain management. Transportation Research
Interdisciplinary Perspectives. 9. p.100300.
Online
7 Principles of Supply Chain Management. 2019. [Online]. Available Through :
<https://blog.mitsde.com/7-principles-of-supply-chain-management/>
Gartner Top 8 Supply Chain Technology Trends for 2020. 2021. [Online]. Available Through :
<https://www.gartner.com/smarterwithgartner/gartner-top-8-supply-chain-technology-
trends-for-2020/>
Six supply chain models you need to know. 2016. [Online]. Available through :
<https://info.magaya.com/blog/the-6-degrees-of-supply-chain-connections>
Six Top Supply-Chain Strategies for 2020. 2020. [Online]. Available Through :
<https://www.supplychainbrain.com/blogs/1-think-tank/post/30958-six-top-supply-
chain-strategies-for-2020>