Supply Chain Management of Tesco: Analysis and Recommendations

SUPPLY CHAIN
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
SUPPLY CHAIN RELATIONSHIPS.............................................................................................1
SUPPLY INFORMATION SYSTEMS..........................................................................................2
PROCUREMENT AND OUTSOURCING....................................................................................4
SUSTAINABILITY........................................................................................................................5
CONCLUSION AND RECOMMENDATION..............................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Supply chain management also know as SCM can be defined as management of flow of
services (including all kinds of process) and goods that help an organization in transforming their
raw materials into final products (Wieland, 2021). It is one of the most important part of an
organization that further helps a firm in maximizing customer value and also in gaining
competitive advantage that can further help the firm in sustaining within the market. Supply
chain management is also important for an organization because it can help in reducing overall
cost of doing business without needing to lower their price of products and services and further
allows business to deliver products and services to customers quickly as per their needs and
requirements. Tesco is a British general merchandise retailer and multinational grocer. This
assessment will lay emphasis upon critical analysis of supply chain management of Tesco
organization. Tesco was founded in 1919 and its main headquarter is in Welwyn Garden City,
England, UK. If Tesco is measured by its gross revenue and then it is third largest retailer in the
world and if it is measured by its revenue then ninth largest retailer in the world. Tesco is a
market leader in UK where they have maximum market share which is approximately 28.4%.
Tesco has developed their own supply chain management that has helped them to reduce their
supply chain carbon footprint by at least 30% by the end of 2020. This report will analyse supply
chain of Tesco on basis of relationship, information system, procurement/ outsourcing, and
sustainability.
SUPPLY CHAIN RELATIONSHIPS
Supply chain management is all about making sure that all kinds of links within
organizational network are operating in correct manner. Relationship plays a vital and central
role in management of supply chain. If supply chain relations are not focused in an appropriate
and accurate manner by organizations then it can result in negative or unwelcomed consequences
all the way from suppliers to customers because of which their relationship with customers can
get impacted (Koberg and Longoni, 2019). There are various kinds of relationships in supply
chain that can be present within an organization. Tesco has two different types of supply chain
relationships within their organizations. First is strategic relationship and second is internal
relationship. They have developed strategic relationship in supply chain network. They have
developed a strategic alliance with their main suppliers in order to increase overall supply chain
performance. Development of strategic alliance in supply chain helps them in maintaining
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