(Solved) Case Study on Tesco Plc

pg. 1
TESCO PLC
(Case study)
This case study is about the Tesco food retailer with a sales turnover of more than 567.5 billion.
There describe the key logistic processes at Tesco & the main logistics challenges in running the
Tesco operation. And there describe earlier how Tesco was performed faces issues & the current
situation of the Tesco food retailer.
Tesco is the UK's biggest food retailer offering a variety of services for food and nonfood products to
include insurance, entertainment, electrical goods and many more. It employs over 440,000 people around
the world with over 280,000 in the UK. It has over 2,000 stores in the UK and a growing number of stores
abroad in countries such as Thailand, China, Hungary and the United States.
Tesco is the biggest private sector employer in the UK and offers a competitive package of pay
and benefits for all jobs, whether as assistants or managers in stores and depots. More specialized
roles such as finance and HR are based at its head offices based in Hertfordshire.

pg. 2
1. Describe the key Logistic processes at Tesco
The logistics are the function of supply chain management consists of the tasks involved in
moving & positioning inventory throughout the supply chain. And they are mentioned logistics is
about material & about information flow. In the logistics there are five functions in the process.
They are inventory handling / material handling, procurement, warehousing / storing,
transportation & distribution.
According to the inventory handling, there is a huge product range & it is impossible for the
individual store to recorder across the whole range (store based ordering). Instead, sales of each
product line are trashed continuously through the till by means of electronic points of sales
systems. As a customer’s purchases are scanned through the bar code trader in the till, the sale is
automatically recorded for each unit.
Procurement currently stands at 65000 stock keeping units depending on the size of the stores as
Tesco broadens its presence in the ‘non food’ market for electrical good, stationary, clothing &
the like this massive range is supported by 3000 suppliers who are expected to provide service
levels (correct time & quantities) of at least 98.5 percent by delivering to Tesco within a half
hour time ‘windows’. Volumes are equally impressive. In a year; some 2.5 billion cases of
product are shipped from suppliers to the stores. Cumulative sales are updated every four hours
on Tesco information exchange. This a system based on internet protocol that allows Tesco & its
suppliers to communicate trading information. Based on the cumulative sales, Tesco places
orders with its suppliers by means of electronic data interchange.
The warehouse building comprises 25000 square meters divided into three temperature zones
from(25 c),2 c(chilled)and 12 c 9 semi ambient).Each distribution centre secures a group of
between 100 and 140 retail stores. Currently stands at 65000 stock keeping units depending on
the sites of the store as Tesco broadens its presence in the ‘non food’ market for electrical goods,
stationary, clothing and etc.
According to the transportation, delivery vehicles for composite depots can use insulated.
Trailers divided into chambers by means of movable bulkheads so they can operate different
temperatures. Deliveries are made as agreed, scheduled times. Ambient goods such as cans &
clothing are delivered through a separate grocery distribution network which relies on a stocked