Supply Chain and Quality Management in Tesco plc

This report assesses the supply chain management practices in Tesco plc, including lean vs agile supply networks and quality management theory and characteristics. It covers the supply chain of Tesco, supply networks, de-coupling point, selecting a supplier, and the bullwhip effect. It also discusses quality management theory, dimensions of quality, tools of quality management, and the GAP theory.

Operational and Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Supply Chain Management..............................................................................................................3
Supply chain of TESCO.........................................................................................................4
Supply Networks....................................................................................................................5
Lean vs Agile..........................................................................................................................6
De-coupling point...................................................................................................................7
Selecting a supplier.................................................................................................................8
Bullwhip Effect......................................................................................................................8
Quality Management........................................................................................................................8
Quality Management theory...................................................................................................8
Quality Characteristics...........................................................................................................9
Total Quality Management...................................................................................................10
GAP Theory..........................................................................................................................10
Quality Costs........................................................................................................................11
Six Sigma Concept...............................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Supply Chain management is referred to managing the flow of goods and services in
order to serve customers with final goods for consumption. For instance, it includes both inflow
as well as outflow of input and output in order to meet consumer demands in the market. The
significant and meaningful procedure of Supply Chain Management is inclusive of planning,
Sourcing, Operations, Delivering, and Returns. In addition to that, all these components and
elements further facilitate in carrying out effective Supply Chain Management. Tesco plc is
among leading business organisation operating in retail industry with immense number of
supermarkets engaged in serving groceries and general merchandise to their customers in the
market (Copacino, 2019).
Quality Management could be determined tasks and activities raised in a workplace in
order to improvise and enhance quality of existing elements of business. In order to be precise,
these elements or components of business include products, procedures, operations, etc. which
further contributes additional values towards accomplishment of organisational goals and
objectives. For instance, the determined process is generally comprised of quality planning,
assurance, controlling, and improvisation. The determined process is generally taken into
consideration by management representatives in respective business organisation in order to
improvise and enhance quality of final products as well as other business elements.
This report assessment will be comprised of understanding of two meaningful procedures
including Supply Chain Management and Quality Management in context of Tesco plc.
Moreover, the respected report will analyse the supply chain management practices in the
context of the mentioned organisation. In addition to this, lean vs agile supply network will be
highlight which include practises that adopted by the organization to create the more innovative
practice. Moreover, the report will derive the quality management theory as well as also evaluate
the quality characteristics that assist the respected organisation in order to improvise their
operational function in the target market.
MAIN BODY
Supply Chain Management
The supply chain management theory was initially addressed by the consultant (Oliver
and webber, 1982). moreover, according to the Mentzer et. al. (2001, p. 18). supply chain

management is the practice that involved the strategic coordination of traditional business which
is the inclusion of business functions of the organisation. Supply chain management plays one of
the vital role in enhancing the long term performance of the organisation in the competitive
market by integrate and managing the workflow sources (Nunes, Causer, and Ciolkosz, 2020).
Supply chain of TESCO
Supply chain is the process that highlight the integrated organisation process which
includes from production to product development, and distribution in the operational market in
order to fulfil the market demand. In addition to this, TESCO uses the effective collaborative to
SCM in their operational function to create the effective relationship initiative.
 Customer satisfaction- The respected organisation has the vast number of customer
involvement in their operational functions. Hence, it is important for the organisation
to understand the customer spending journey. In regard to this, the mentioned
organisation created the club card system that analyse the customer spending. It offers
the screen client data that further utilized in developing the effective supply chain
procedure in distribution for services and product to the client.
 supplier relationship- The respected business uses the EDI system which is
electronic data interchange to form the effective mode of operational transparency
with their supplier. In addition to this the mentioned organisation indulged with high
performer supplier in order to form the great flow of supplies in order to fulfil their
client demand. Moreover, the respected business has the effective feedback program
in which all the deliveries are completed by the inclusion of instant questions that
indulged in the complete process. It assist them to create the more smooth flow of
work by identifying key concerns. By solving these issues creates strong supplier
relationship with the mentioned firm that further facilitate them in order to get the
great deals in their bulk orders (Langley, and et. al., 2020).
 Delivery and Logistics- In order to fulfil the customer demand the mentioned
organisation has the diverse logistic system that focuses on delivering the goods in all
the stores in the UK. In addition to this the respected business uses the AI tools and
techniques that assist them in order to reduce the errors in the whole process. Th
respected business creates the production schedule plan in order to create the timely
delivery according to the prepared charts.

Supply Networks
There are various different types of supply chain undertakes by respective business
organisation in order to supply their products to customers all around the world. These supply
networks are as follows:
 Virtual Supply Chain: This supply network is basically referred to virtual or digital
supply network of respective business organisation which provides a brief overview
of actual supply chain. For instance, it generally includes all the relating elements
and components of a supply chain including operational workplaces, warehouses,
customers, suppliers, etc. which further facilitates in ensuring effective supply chain
management of company in providing their products to different business units.
Furthermore, primary and major advantage associated with this supply network lies
in upright collaboration, flexibility, computer centric approach, business intelligence,
etc.
 Vertical Integration: This supply network could be determined as elimination of
contractors as well as mediators in production process as well as undertaking
ownership of different stages used in production process. For instance, it includes
suppliers, retail stores or locations, manufacturing units, etc. in order to minimise
cost of production as well as serving customers with quality products at lower prices
(Sanders, 2020).
 Partnership: This supply network is basically referred to forming partnership with
another business organisation in order to enhance and improvise existing supply
chain of company. Referring to respective business organisation, General Mills,
Mars, Kellogg’s, Princes, etc. are some major suppliers of TESCO plc which
facilitate company in lower inventory levels as well as higher inventory turns.
 Tradition/Contractual: This supply chain includes a contract among different
businesses engaged in supply chain including buyers as well as sellers. For instance,
Tesco plc has signed contract with their suppliers on the basis of pricing and
discounts over volume in order to run their business in an efficient manner. In
addition to that, it facilitates in acquiring input at a lower price as well as producing
final good with lower cost of production.

Lean vs Agile
This supply chain or network includes most appropriate manner of supplying products and
services to their customers in the most effective manner with consideration of minimum waste
and sufficient flexibility. It further facilitates in preventing delays in supplying products to end
customers in the consumer market (Waters, 2019).
On the other hand, Agile supply network includes analysis and evaluation of competitor’s
move in order to consider the same for effective strategies and changes in pricing as well as
inventory levels. The primary aim of agile supply chain lies in determination of market demand
in order to manage and modify supply chain in order to cope up with the same.

Referring to respective business organisation, Tesco plc uses lean supply chain in order to
contribute maximum benefits and values to their customers in the market.
Supply Chain Objectives
 Minimising cost to company in serving products to customers
 Speedy delivery
 Efficiency and productivity
 Meeting customer demands
The innovation of respective business organisation lies in introducing self-checkout counters
in order to support customers in their shopping experience.
Efficient supply chain management facilitate in supplying products and services at lower
cost whereas responsive supply chain allows respective organisation to meet long-term customer
needs.
De-coupling point
This point in supply chain is defined as separating the inventory unit from the operational
unit in order to ensure effective manufacturing unit. For instance, respective business
organisation considers de-coupling unit in order to ensure that no stage of manufacturing is

affecting another stage of the same in carrying out business operations and activities
(Mukhopadhyay, 2020).
Selecting a supplier
 Initial Qualification: The initial step in selecting a supplier includes analysing initial
qualification of supplier including price, quality, responsiveness, etc. in order to select the
same.
 Agree measurement criteria: It includes agreement of both the parties in order to
confirm selection of supplier.
 Obtaining information: It includes acquiring necessary and required information and
knowledge.
 Make selection: The final step includes actual decision-making regarding selection of
supplier.
Bullwhip Effect
It states that exchange of distorted information from one end to another in a supply chain
could lead to various negative effects including excessive inventory investment, lost revenues,
ineffective transportation, etc. Therefore, it could lead to heavy losses and degradation of
efficiency for respective business organisation.
Quality Management
It is basically referred to set of activities and practices organised by a business organisation
in order to improvise and enhance quality of different elements of business including products,
procedures, systems, etc. in a business organisation.
Quality Management theory
The theory of quality management states that a business organisation can build or achieve
success with effective employee engagement and common aim towards improvement of quality
in carrying out business operations and activities.
Dimensions of Quality
 Performance: It includes aspects associated with performance of products or services
offered to customers in the consumption of the same.

 Features: It includes core characteristics or features of a product or service offered by
respective business organisation. For example; colour, weight, dimensions, material
composition, etc. of a product (Aleksandrova, Vasiliev, and Letuchev, 2018).
 Reliability: This aspect includes how reliable a product is for a consumer to be used for
their own needs and requirements. For example; A weighing machine showing extra 5 lbs
than actual weight is less reliable.
 Assurance: It includes expertise and mastery of employees of businesses in carrying out
their assigned tasks and activities which result in completion of tasks in an efficient
manner.
Tools of Quality Management
 Flow chart: It determines a presentation of steps to be carried out in process of quality
control.
 Fishbone: A visual presentation which facilitates in determining cause of the problem
occurred in quality control.
 Scatter: Graphical representation of information which facilitates in understanding the
root cause for degradation of quality.
Quality Characteristics
 Functional: This aspect is aimed at functionality of product or service behind purpose of
customers in purchasing the same.
 Appearance: It includes designs, colours, graphics, presentation, etc. of products among
customers. For example; packaging of groceries offered by respective company.
 Reliability: IT includes that the product or service could be trusted or not. For example;
product offered by Tesco plc is original or make which a question mark on reliability
towards the same (Galkina, and Sorokin, 2020).
 Durability: It includes duration of use of product offered by respective organisation.
 Contact: It includes providing assistance to customers in order to enhance their shopping
experience. For example; Helpdesk and helpline of Tesco in order to entertain customer
complaints and feedbacks.
Total Quality Management
TQM is defined as a management approach oriented upon active participation of entire
workforce in improvising and enhancing quality of products as well as procedures of a particular

business organisation. For instance, core values of TQM include customer-focused, process
centred, continuous improvement, communications, etc. Moreover, the determined concept of
management states that participation as well as involvement of employees in quality
improvement ensures effective and efficient completion of the same.
Chart of Inspection
It presents a visual presentation of monitoring, analysing, testing, examining, etc.
activities in order to improvise and enhance Quality control in a business organisation. In
addition to that, it includes X-bar and S-chart in the meaningful process of quality control in
respective business organisation.
 Testing: It includes examining and analysing existing standards of quality in order to
improvise the same in an effective manner.
 Specification: This event of quality control determines requirements of quality of a
product offered by a company or business in order to enhance the same further.
 Control charts software: These software’s facilitate in preparing graphical
representation of information related to quality control process of respective business
organisation. For instance, it determines changes in a procedure over a particular period
of time.
 Quality meetings: Meetings and discussions organised in order to review and monitor
performance as well as quality check of products.
GAP Theory
This theory is aimed at understanding of customer satisfaction in context of gaps in meeting
customer expectations and requirements. For instance, there are various different gaps
determined in this particular theory which are as follows:
 Knowledge Gap: This particular classification of gap includes lack of sufficient
information or knowledge with respective business organisation regarding customer
needs and demands. For instance, it includes lack of interaction, ineffective
communication, inability to maintain effective relationship, etc. For instance, Tesco plc is
unable to determine upcoming future demand of consumers in order to update their
product portfolio with the same.
 Policy Gap: It includes inability of respective business organisation in developing
suitable policies and strategies in order to meet customer needs. For instance, lack of

customer-oriented approach, poor service or product, irregularity in upgrading service
levels, etc. are some major policy gaps. For example; lack of effective management
which leads to policy gap in maintaining quality (Nizar, Nurdyansyah, and Wahyuni,
2020).
 Delivery Gap: It includes situation where actual delivery does not match with planned or
desired standard for the same. For example; low quality groceries served to customers
which does not match the actual standard of products of company.
 Communication Gap: Ineffective communication and interaction with customers in
order to acquire knowledge of gaps in quality. For instance, inability of company in
customer service.
Quality Costs
 Appraisal: Monitoring and inspection activities carried out in business operations and
activities in order to determined quality requirements.
 Prevention: Activities and practices in order to prevent poor quality and promoting
upright quality.
 Failure: It includes activities organised in situation where defects in quality are observed
before serving them to customers.
Six Sigma Concept
It includes five stages which facilitates in effective quality control process which are as
follows;
 Define: This stage includes defining desired goals and objectives to be achieve with
consideration of effective quality control practices and activities.
 Measure: It includes determining and measuring requirements in achievement of
desired goals and objectives.
 Analyse: Consideration and analysis of other available options in context of
estimated total life cycle of the product.
 Design: Designing and developing a sample or prototype in order to process with
further execution of the same.
 Verify: It includes decision-making on the basis of outcomes of application of
prototype which facilitates in ensuring effective implementation and use of the same
(Yu, Park, and Hong, 2020).

CONCLUSION
From the above report assessment, it could be concluded that both Supply Chain
Management as well as Quality Management plays a crucial role in growth and development of a
business organisation. For instance, the primary importance behind consideration of effective
supply chain management lies in minimising cost to business in order to serve customers with
quality products at lower prices. On the other hand, Quality management is generally taken into
account to improvise and enhance overall quality of business elements which facilitates in
attaining satisfied and loyal customer base.

REFERENCES
Books and Journals
Aleksandrova, S. V., Vasiliev, V. A. and Letuchev, G. M., 2018, September. Digital technology
and quality management. In 2018 IEEE International Conference" Quality
Management, Transport and Information Security, Information
Technologies"(IT&QM&IS) (pp. 18-21). IEEE.
Copacino, W.C., 2019. Supply chain management: The basics and beyond. Routledge.
Galkina, E. E. and Sorokin, A. E., 2020. Quality management and sustainable economic
development. Russian Engineering Research, 40(7), pp.577-578.
Langley, and et. al., 2020. Supply chain management: a logistics perspective. Cengage Learning.
Mukhopadhyay, M., 2020. Total quality management in education. SAGE Publications Pvt.
Limited.
Nizar, A., Nurdyansyah, N. and Wahyuni, A., 2020. Quality Management of Islamic Education
in Hasan Langgulung's Perspective. Proceedings of The ICECRS, 6.
Nunes, L. J. R., Causer, T. P. and Ciolkosz, D., 2020. Biomass for energy: A review on supply
chain management models. Renewable and Sustainable Energy Reviews, 120,
p.109658.
Sanders, N. R., 2020. Supply chain management: A global perspective. John Wiley & Sons.
Waters, D., 2019. Supply chain management: An introduction to logistics. Bloomsbury
Publishing.
Yu, G. J., Park, M. and Hong, K. H., 2020. A strategy perspective on total quality management.
Total Quality Management & Business Excellence, 31(1-2), pp.68-81.