Operational Management Practices of Tesco: Supply Chain Management and Technology

The report evaluates the operational management practices of Tesco, focusing on supply chain management and technology. It examines the impact of supply chain management on the organization, the teams involved, and the supporting functions. The report also discusses the theories behind supply chain management.

OPERATIONS AND
SERVICE
MANAGEMENT

EXECUTIVE SUMMARY
The aim of the report is to determine the operational management practices Tesco plc ltd. In
order to improve the operational practices of the organisation in effective as well as efficient
manner. it involves the supply chain management practices of the Tesco plc. Ltd. The report
evaluated that with the assistance of the supply chain management the organisation is able to
acquire the success in the domestic as well as international marketplace. Moreover, the report
highlighted that the organisation that the supply chain management equally contributed in
increasing the economy of the company. Along with that the study shade a light on the
technological benefits that the organisation revived in effective manner. With the advancement
in the technology the organisation is able to decrease the expenses of the company and able to
deliver speedy service to the supplier as well as consumer.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Introduction to the organization...................................................................................................4
Supply chain management practice within the Tesco..................................................................4
Teams in the supply chain of the Tesco......................................................................................5
Impact of the supply chain on the Tesco.....................................................................................6
Technology embedded in the Tesco supply chain management process....................................7
Supporting function link to supply chain management...............................................................9
Supply chain management theories.............................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Operational management refers to the business practice which control and manage the function
of the organization in effective as well as efficient manner. With the assistance of the operational
management the organization is able to accomplish the goal along with that the company is able
to boost the productivity and profitability of the institute in effective as well as efficient manner
(Anand and Gray 2017). The operational management practice involves the quality management,
supply chain management, supply chain, capacity and queue management. The present report is
based on the multinational organization that is Tesco which is leading the market of the UK since
many years. The present report will examine the supply chain management practice within the
Tesco with the approaches and relationship with the suppliers. Basically, the aim of the report is
to improve the operational practices of the organisation in adequate manner. Along with that the
report will highlight the impact of the supply chain management on the organization for the long-
term success. Along with that the report will reflect the supporting function.
MAIN BODY
Introduction to the organization
TESCO is a UK based retail company which is engaged in retail products selling to the
customer. It is the third largest retailer in the world measured by gross revenues. Along with UK
it has notched up its presence in more than 11 countries and offering a wide range of products to
its customers. More than four thousand stores are only in UK and Ireland including franchise
stores. For better results it is effectively instructs and directs its employees towards
organizational goals (Barnes. 2018). Having more than 4,70,000 employees are currently serving
the company and for their management a well-structured HR management scenario has been
installed by it. The entity is rigorously concerned about learning and development since with the
evolution of new industrial revolution ones can't sit stagnant in the dynamic business
environment.
Supply chain management practice within the Tesco
In order to increase the availability in the domestic as well as international marketplace the
organization expend its supply chain network all over the world. Along with that the
organization utilized various concept in order to acquire the success in the marketplace. In order
to increase the profitability of the company the organization bifurcated the supply chain in the
realistic manner. For instance, the organization hold the 3 billion the cases of commodity and

services in the stores which are available in domestic as well as international marketplace. In
order to deliver the right product to the right customer the organization determine the value and
potential of the supplier and productivity (Brown, Bessant and Jia. 2018).
The organization supplies the product to the customers or the suppliers with the assistance of the
different means of transportations such as ships, train, lorry and plans in the organisation
worldwide supply chain. In order to increase the supply chain of the company the organisation
focused on improving the quality of the product and services to is to be delivered to the buyers in
order to fulfil the needs and wants. The excellent supply chain of the company is based on three
component that is to increase the availability of the product and services to the potential
customer in effective as well as efficient manner. Along with that the organisation reduce the
waste of the while ensuring the quality and freshness of the grocery product. In order to improve
the quality of the product the organization supply the products as per the demand of the areas
covered by the organization that give assistance in reducing the waste of the product which is not
required in the particular marketplace. Moreover, the organization build the strong business
relationship with suppliers in context to maintain the partnership for the forthcoming challenges.
Along with that the company focused on improving the efficiency and performance of the
employees for the smooth supply chain.
Teams in the supply chain of the Tesco
For the welfare of the organization bifurcated the supply's chain team in the four group as per the
skills and knowledge of the individual person which is mentioned as:
 The development and blueprint team: this team determines the availability of the
resources for the potential customers by reducing the food waste. In order to ensure that
the organization innovate the tools and techniques which drive the competitive
advantages in the marketplace. Along with that the team focus on the various analytical
method of problem solving which are related to the supply chain (Chary. 2017).
Moreover, due to that the team is able to deliver the cost benefits to the company in
effective manner. For instance, in the past year the organization obtain the 100 million
pounds economic benefits. Apart from that it gives assistance in improving the supply
chain of the company in the international marketplace.
 The supplier ordering team: this supply team mage the suppliers of the company in
order to deliver the right product to the targeted market as well as the customers. The

Tesco is leading one of the largest supply chains in the market of the UK in effective
manner. The team is responsible for delivering the product ads per the demand, taste and
preferences of the customers.
 The store managing team: this group is responsible for managing the stock in the
supermarket as per the willingness of the customer in the market. Along with it determine
the requirement of the product and series in the company.
 Security and loss prevention team: this team of the Tesco ensure the security and safety
of the customers and employees working within the company. The team operated healthy
environment and culture in the organization (Heizer and et.al 2017) . With the assistance
of this the organisation is able to manage the prevention and targeted customers in the
marketplace.
Impact of the supply chain on the Tesco
The Tesco is the retail company that involve the supply chain management as the operational
management of the organization because it gives assistance to the company in managing the
quality of the commodity and requirement of the stock in effective as well as efficient manner.
The supply chain of the company decreases the cost and expenses of the organization. With the
management of the supply chain the organization is able to improve the communication ad
demonstrate the value of the company in the marketplace. Due to the proper supply chain of the
organisation make sure that the employees are performing well in the organisation with the
relevant skills and knowledge that boost the growth of the company in appropriate manner.
Along with that the organisation is able to satisfy the large numbers of the customer available in
domestic as well as international market. Moreover, with the requirement of the product and
services in the supply chain the organisation determine the taste and preferences of the customer
that allow the organisation to deal with the forthcoming challenges. Apart from that the company
is able to deliver better experience to the buyers that further improve the brand value of the
company (Jäntti and Cater-Steel. 2017). By the management of the supply chain the organisation
is able to deliver the competitive advantages in the marketplace and save the inventory cost
along with the precious time. With the help of the supply chain management the organisation is
able to manage the relation with the customers as it involves the direct services to the client and
it also increases the efficiency of the company.

Along with that the organization is able to deliver proper time to the production of the company
with the management of the quality. Beside all this the company is able to monitor the flow of
the product and services in the marketplace. Due to the management of the supply chain the
organization is able to manage the quality and quantity of the company. Along with that it allows
institute to develop the plans of action in order to lead the company. The Tesco company is able
to deliver the competitive advantages in the marketplace. The Tesco is able to execute the
strategy in appropriate manner. Due to the supply chain the Tesco is able to create awareness
among the people and resolving the issue in the particular time period. Apart from that the Tesco
is able to represent the value of the company in the marketplace with the uniqueness (Liu and
et.al 2019).
Technology embedded in the Tesco supply chain management process
The Tesco organization involve the advance technology in the process of operational
management for the effectiveness of the company. In the modern era as the people are shifting
toward the digital transformation the organization is also moving toward the technology in
effective as well as efficient time in order to meet the needs and wants of the consumer in
effective as well as efficient manner. With the assistance of the digital transformation the
organization is enhancing the experience of the customer which result in improving the value of
the brand in the marketplace. As per the record the company is starred utilizing the technology
in 2003 in order to increase the capability of the company.
RFID technology: it is renowned as the radio frequency technology which the Tesco
organisation utilized in the 2003 for the welfare of the organisation in effective manner. By the
utilization of this technology the organisation is able to maintain the inventory of the company
along with that able to control the unnecessary function from the stores in or to reduce the cost.
The technology allows the Tesco to increase the scale of the growth and reduce the cost or the
expenses of the company (Singha and et.al 2018). According to thee analysation of the
company the Tesco acquire the growth with the assistance of this technology and able to deliver
the fast response, incrementalism in the availability of the stock. In this technology the
organization deliver the unique identity and security to the people or suppliers. Along with that
the organization is able manage the essential aspects of the supply chain which worked as the
competitive advantage of the company in the domestic as well as international marketplace.
Moreover, due to that the organisation is able to enhance the performance of the employees that

also improve the productivity of the company. The organisation invests the money in technology
which later result in increasing the speed of respond.
With the assistance of the advance technology the organisation avoids the tagging on the
cartoons and containers which contain the product of the Tesco. In context to that the
organisation started putting the radio frequency identification tags on the cargo or the containers
which make easier for the organisation to deliver the right product at the rift stores within the
short period. Thermoformed the organisation is able to supply the productivity in short period
and at lower cost (Zijm, and et.al 2019). With the advancement of this technology the company
is able to Balance the inventory in the different stores. Moreover, it results in improving the
relationship with the suppliers.
E-commerce: in the pandemic situation of the Covid 19 in which the people are not allowed to
move one place to another for the exchange of the services. The organization operated the
business from the online stores with the assistance of the technology available in the
marketplace. For the comfort of the consumer the organisation provides wide range of the

product on the online stores. In context to that the organisation provide the facilities of the
mobile app where the user or the buyers are allowed to shop the product from the online store.
Apart from that the company provide the website links for the flexibility of the consumer. It
boosts the sales of the company and increase the productivity and profitability of the
organization.
Supporting function link to supply chain management
With the supply chain management, the organisation improves the quality of the work. Along
with that it contributed in the success of the company in adequate manner. The Tesco is able to
build the strong relationship with the customers and enhance the experience of the particular
person.
Customer services: it is one of the best functions that the company link to the supply chain. The
organisation enhances the interest of the consumers and satisfied them with the services by
delivering proper information to the individuals' person. Along with that the organisation collect
the feedbacks from the consumer so the company is able to deliver the prefect grocery product
and services to the consumer. Along with that the company determine the problem of the
individual buyer and resolve in the appropriate time for increasing the value of the company.
Marketing: it is also essential function that keep the supply chain management effective for the
organization. With the assistance of the marketing the Tesco is able to deliver the information to
the supplier and develop the healthy culture in the partnership. Beside all the company is able to
build unique image in the marketplace (Zurich and Documentation, 2018).
Supply chain management theories
Resources based view: the theory indicated that in supply chain management the resources of
company should be available as per the requirement of the productivity or the services of the
corporation. According to the theory of resources-based view supply chain management suppose
to include only those resources which will add values in the productivity of the company. due to
that the Tesco has the opportunity to create values in the domestic as well as international
marketplace.
Strategic choice theory: The theory specifies that for the success of the business enterprise the
manager of the company need to develop various plans of action which allow to organisation to
smoothen the flow of supply chain. Along with that it will make sure that the company is

contributing in accomplishing the goal in adequate manner. In general, the manger takes
appropriate decision for welfare of organisation. ‘
Knowledge based theory: it refers to plans of action which is formulated on the bases of
information, knowledge and skills available in adequate manner. in the process of supply chain,
the manger considered the knowledge and skill as the essential element for the success of
enterprise. This theory widely used by the competitors of Tesco in order to deliver tough
competition in the marketplace.
CONCLUSION
From the above report it will be concluded that the organisation is able to lead the retail market
of the united kingdom in appropriate manner. In the supply chain management, the organization
is maintaining the healthy relationship with the suppliers of the company. The present report
highlighted the supply chain management practice that is contributing In the production and
profitability of the Tesco company in fruitful manner. Along with that the report analysed the
impact of the supply chain management on the leading organization that is Tesco. Furthermore,
the report also reflected the advancement of the technology in the supply chain management that
allow the organization to deliver to the competitive advantages in the market

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