Sustainable Procurement: Supplier Evaluation Criteria for Tesco and Effects of COVID-19 Pandemic and New Technologies

Sustainable
procurement
Student Number –
Module Number –
Word Count – 3000

Table of Contents
INTRODUCTION..........................................................................................................................3
MAIN BODY..................................................................................................................................3
Supplier evaluation criteria for Tesco................................................................................3
Effects of COVID-19 pandemic and new technologies on Tesco’s supplier selection....6
Effect of Tesco's stakeholder relationships and institutional pressures on their supplier
................................................................................................................................................9
Selection and impact of supplier selection on the firm’s corporate reputation..............9
CONCLUSION............................................................................................................................10
REFERENCES.............................................................................................................................11

INTRODUCTION
In order to conduct business in the modern landscape where the outside environment has
become increasingly disruptive, there are many important management functions which must be
followed with impeccable accuracy to assure that firms stay healthy and afloat in their respective
target markets. Among these functions, procurement has a major role to play as it refers to the
sourcing and obtaining of goods and services which are often made under the conditions of
scarcity in order to develop finished goods or render a service not native to the business. The
procurement process is a very crucial part of the supply chain network that every modern firm
possesses and it has a key role to play in sustainable operations as the consequences that carry
over to the environment and stakeholders by procurement are very heavy and widespread
(Guarnieri and Gomes, 2019). This report will cover the process of procurement and associated
measures of sustainability through development of a supplier selection criteria, effect of COVID-
19 pandemic and stakeholder relations on the chosen criteria.
MAIN BODY
Supplier evaluation criteria for Tesco
Tesco is a British multinational PLC which operates in the retailed grocery market of UK
and is the current market leader of this industry which it managers to do so with the huge
widespread range of it supermarket and stores all over the region. It was initially established in
1919 by Jack Cohen and has been headquartered in Welwyn Garden City, UK and has grown
from strength to strength over the years to eventually dominate and become part of the 'Big 4' of
the retail industry of UK which is a group of supermarket chains which control most of the
market share between themselves such as Tesco, Sainsbury's, ALDI and Morrison's. The
company for a long time has been planning to undertake rigorous social work and contribute to
the society at large due to being the market leader of the retail segment. The concept of
sustainability is in major trend in the modern business landscape as businesses have realized that
merely functioning for profit is not enough and due care of the environment and all involved
stakeholders is essential for the long term stability and profitability of the business (Osang,
Umoren and Owolabi, 2021). The mission and overall vision of Tesco are also both rooted in
achieving long term sustainability in all of its routine and special operations in the field of retail

as the missions comprises of ensuring that the food products available at Tesco's stores and
supermarket chains are of the best possible quality and promote better health for their customers
while also helping contribute to society by taking care of the weak and marginalized. When it
comes to the analysis of the broad vision which has been communicated by Tesco to its
stakeholders being 'to be the most highly valued business by: the customers we serve, the
communities in which we operate, our loyal and committed colleagues and of course, our
shareholders', it is evident that the satisfaction and long term brand building is the major goal
of the company.
For the achievement of this vision which has been set forth by Tesco, the process of
supply chain management and logistics plays a major part as it only through these processes and
their optimization towards increased sustainability can the company supply better products at
better prices without damaging the stakeholders in any way. Procurement forms a major part of
this above mentioned process as it relates to the majority of buying and purchase decisions of the
company and in order to keep the stocks of its supermarket shelves filled with its product lines
which are in the thousands, proper procurement is needed on a routine level. When analysing the
process of procurement in order to help build a better sustainable business avenue for the
company, it is very important to study the role of suppliers which is the most important element
which affects the success or failure of a firm's supply chain operations including procurement in
its entirety (MenaVan Hoek and Christopher, 2018).
According to Aynaci, Muhammet Boğaç, and Mehtap Dursun, 2021, the rampant
competition which exists in the current business scenario has made it compulsory for firm’s top
focus on innovative products and new unorthodox ways of going about their businesses. The key
to survive in such tough conditions is to provide great quality products while keeping proper
communication flow between all entities and stakeholders and determination of suppliers
governs all these processes (Aynaci, M.B.and Dursun, 2021). After careful evaluation and
discussion with industry experts operating in different fields related to procurement, important
criteria which were identified for supplier selection and evaluation were quality offered, the
prices being charged, geographical location and delivery time among many others.
According to Anastasia Belyh, 2020, even one normal problem which can occur in the
process of procurement such as a supplier delivering wrong goods or missing established
deadlines for making important raw material available can be disastrous for a company as the