BM563 Operations and Service Management: Tesco's Practices Analysis

This report provides a detailed analysis of operations management practices at Tesco, focusing on supply chain management as a key operational function. It critically examines how Tesco's supply chain impacts efficiency, evaluating the use of technology such as big data analytics and RFID in managing operations. The report assesses the supportive functions linked to operations management, including operations, finance, and marketing, and evaluates their contribution to Tesco's organizational success. It also addresses challenges such as raw material scarcity and forecasting demand, particularly in the context of events like COVID-19 and Brexit. The analysis incorporates resource-based theory to identify valuable resources and competitive advantages, highlighting areas for improvement in Tesco's operational strategies. Desklib offers similar solved assignments and study resources for students.

BM563 operations and
service management

TABLE OF CONTENTS
INTRODUCTION................................................................................................2
MAIN BODY.......................................................................................................3
One operation management practice in Tesco...................................................................................3
Critically analysing the operation management practices and its impacts for achieving efficiency...5
Evaluating the use of technology in managing operations.................................................................6
Describing the supportive functions which are linked with the operation management practice and
evaluating success in organisation.....................................................................................................7
CONCLUSION.....................................................................................................9
REFERENCES.....................................................................................................9

INTRODUCTION
Operations management is being defined as carrying out the business practices in the
best efficient manner by optimum using all the available resources in an organisation.
Operations are mainly recognised for converting the raw material into the finished goods and
services by using all the resources for maximining the profits and revenues for the firm. It is
very important as it supports by controlling , planning and managing the production ,
manufacturing and providing the services. Tesco the multinational retailers providing various
food and non-food product to large number of consumers by operating in the dynamic
market. It also provides the banking, finance and insurance services to consumers. This report
provide details about identifying the one practices of operations management in Tesco.
Further critically analysing the operation management practice impacts the efficiency in the
organisation. Also evaluating the technology used in the process further evaluating the results
achieved. Lastly describing the supporting functions linking up the operations management
practices which helps in achieving organisational success.
MAIN BODY
One operation management practice in Tesco
Operation management is mainly defining about the action mainly taken as for
achieving the maximum efficiency by converting the raw material to the finished goods , this
mainly helps ion maximising the profits and revenues for the firm by operating in the
dynamic market. The operation management practice selected for the Tesco is the supply
chain management. It is the process of managing the flow of goods and services as by
transforming the raw materials to the finished products as for fulfilling the consumers
requirements and the needs which helps in achieving and attaining competitive advantages
for sustaining its position in the market (Dai and Liu, 2020). Supply chain management
mainly helps in handlining all the business functions as by planning, processing , executing
the flow of goods from supplier to consumer. It is the most important part of operations ion
the retail as it helps in controlling all the manufacturing processes involved in the Tesco
company as for producing its products to the large number of consumers , which results in
improving the quality creating the strong loyal consumer base.
By applying the resource-based theory helps in identifying the available resources in
the company which helps in supplying products to the ultimate consumers . as the process of
supply chain is mainly linked with the internal characteristics as the resources for optimum

supplying the products results in achieving the greater performance (Supply Chain
Management Theories, 2022). Various resources used by the company includes tangible and
intangible resources. This mainly helps in creating competitive advantage for the firm by
supplying the products to the ultimate consumers.
Resources valuable rare Imitable organised Competitive
advantage
Human
resources
yes no yes no Less
competitiveness
Financially
strong
yes yes no yes Strong
competitiveness
Brand image yes yes no yes competitiveness
Company
culture and
structure
yes yes no yes competitiveness
Research and
development
department
no no yes no Less
competitiveness
Distribution
network
yes yes no yes Highly
competitive
Thus , by the above table it can be analysed that human resources for the company are
valuable but not rare as these are imitable in nature , where other organisation also recruits
the skilled and competent personnel for working in the efficient manner. This hinders in
achieving the competitiveness and impacts in following and adopting the proper supply chain
management in the company . also, the company acquiring the strong financial position helps
in supplying effectively as of all the raw materials and processing into the finished products.
further with the strong brand image , culture and structure of the company helps in
establishing the competitive advantage.
Further the lacking areas as of not compatible valuable resources in the research and
development in company impacts in occurring more cost and supplying less benefits in the
term of innovation (Tesco Company’s Global Supply Chain Management, 2022). With the

strong distribution network of the company helps in supplying and processing the products of
the company, it supports in supplying the company products to reach consumers in quick and
easy manner as by keeping low cost and achieving more profit margins by keeping low cost
(Noor, 2022.). Further the intangible assets of the company is hard to imitate by the
competitors which helps in building the brand reputation in the dynamic market. Thus, with
using this theory helps in determining the valuable resources for procuring goods and helps in
achieving the optimum converting from the supply chain management prospect by ensuring
the delivery of products to the end consumers by effectively managing all the supplies with
optimising the internal and external resources of the company for attaining the competitive
positions .
Critically analysing the operation management practices and its impacts for achieving
efficiency
Supply chain management process of the company mainly helps in ng the efficiency
as it support the company in producing quality products and which are perishable in nature.
Tesco supply chain management is mainly comprising of the various inputs , technology,
finance (Evans and Mason, 2018). Its is the process which mainly start with obtaining the raw
material from the supplies by processing to the finished goods and efficiently supplying to the
end consumers. As for maintaining the purchase and the raw material using the control
management systems helps in supporting all the outlets of the products this supports in
maintaining the quality level for optimising stock of the company. Further for distributing all
the goods of the company as the outlets of all their stores are mainaly places at all the global
level as for providing the large number of goods to the consumers for satisfying the basic
needs. Using truck hep[s in reducing the distribution costs (Nunes, Causer and Ciolkosz,
2020). Moreover, the company handles all the outlets by supplying all the raw materials and
the company uses for electronic data identification technologies helps in increasing the fast
and efficient products to large number of consumers. Further by establishment the flexible
layouts at various stores helps in creating loyal consumers also the online mechanism
impacted the offline stores as by purchasing all the products from online stores.
More over this supply chain management of the Tesco helps in achieving efficiency
in the following benefits as, it helps in improving the customer satisfaction for obtaining the
raw materials and the processing for fulfilling all the demands by addressing all the needs
with supplying in right time at right place. Also, it helps in reducing the operating cost in the

company by frequently managing the production by maintaining the stocks with the control
systems and reducing the inefficiencies in reduction helps in reducing the storage costs which
results in improvising the flow of cash. With the effective supply chain management process
helps in efficiently procuring and sourcing about all the supply chain for meeting the
standards (Wieland and Durach, 2021). Thus, the supply chia management helps in attaining
efficiency in the Tesco as it results in achieving the competitive advantage. Whereas various
disadvantages faced by the supply chain as the scarcity of raw material hinders in processing
and supplying the good efficiently the consumers at the right time and at the right place , also
company faced the difficult as by forecasting the future demand of the goods during the covid
and Brexit impacts. further with changing the attitude of consumers impacts the supplying of
various products for adopting the changing needs.
Evaluating the use of technology in managing operations
Supply chain management in the Tesco plays important role for producing the quality
products to large number of consumers. As for reducing the wastage the company is planning
as buy reducing the wastages with improving the efficiency by cutting the food packaging
and shipping the products directly to the consumers. Further the company in improving it
supply chain with adapting big data automated technology software’s this has helped the
company in increasing its products and its revenues. Using the big data analytics helps in
improvising the supply chain with improvising the investing managing systems. This has
supported the company in storing and shelving the stock according to the temperatures for
better preserving and supplying the products to the ultimate consumers. By investing into the
shelf management system has helped the company in improving the supply chain operations .
also, by investing into the RFID technology it helps the company in managing and tracking
the inventory to be processed for producing various products and services to large number iof
consumers in the dynamic market. It mainly helps in accurately couniting all the products and
tracking all stock of the products available in the stores of the supermarkets which is mainly
acquired for distribution and the storing for the final purpose.
By adopting and acquiring this technology in the Tesco helps in reading all the tags
in seconds which minimises the time for reading the barcodes by managing all the inventory
with advanced options. Further more it is also used for reducing the consumers charge backs
of all the accuracy claims and assist the company by identifying the fraud caused in the e-
commerce platform for operating the online stores which helps in growing the company and

reducing the stock outages. Moreover, RFID help in reducing the cost of operations by
completing an identifying all the discrepancies for accurate processing and supplying the
products to the ultimate consumers. Thus, by applying the technology system in the Tesco
helped in various ways as by accurately counting and identifying all the stock which helps in
improving the financial impacts results in achieving growth in the company. Also, the
efficiency of supply and processing all the products in store and on the online stores is
maximised with carrying the information which results in processing fasters by identifying all
the bottlenecks. Embedding this technology helps in tracing all the products through the
supply chain processes in stores of Tesco, which creates huge value for protecting the brand
and preventing from loss of various products. Also by adopting the point of sales into the
offline stores of Tesco helps in executing the payment as of the cash flow received by selling
various products to the consumers by applying the sales tax . this is mainly used for recording
all the transactions for efficient managing the raw materials and forecasting the availability of
the future products to efficient producing goods to large consumers in the dynamic market.
Further the company is transforming as of using the extranet technology as for tightening the
supply chain of the company which helps in supplying the information ton the supplier by
sharing the trading data.
Describing the supportive functions which are linked with the operation management practice
and evaluating success in organisation
Supply chain management is mainly responsible for managing the flow of goods by
transforming the raw materials to the finished products. Various supportive functions which
help in effectivity managing the supply chain operations and helps in proper flowing of
products to the ultimate consumers as:
Operation function: The operation function helps in overseeing the use of raw materials and
planning for the demand before the good are mainly produced in the future. This function
helps in forecasting the demand of raw materials. Further, It mainly helps in taking various
decisions for planning, forecasting, producing , selling with coordinating the inventory
available at all the stages.
Finance function: This function helps in reducing the cost by optimally utilising the
resources available (The 5 Functions of Supply Chain Management, 2022). as it helps in
achieving the stability and flexibility by lowering the cost which helps in improving the
efficiency by investing into acquiring the raw materials for producing the optimum products.

Marketing function: With using the marketing function helps in promoting the products by
improvising the relation with better communication and supports in collaborating by
increasing the efficiency and attaining strong competitive advantage. This helps in achieving
success by successfully implementing the supply chain processes in the company for
providing the end products to the consumers.
Logistics function: This function plays important role in supplying the products as it
coordinates planning, purchasing, procuring, warehousing, transforming the products to the
ultimate consumers by remaining all the hindrance (Hashim and et.al., 2021). further, This
helps in distributing products to the ultimate consumers in quick and easy manner by
lowering cost.
Purchasing function: As for supplying the end products to the consumer purchasing
function play the most important role in acquiring the raw materials. The main responsibility
of this function is for procuring and delivering the finished products to the consumers (Eggert
and Hartmann, 2021). Also, it helps in selecting the suppliers by negotiating and placing the
order for the raw materials for adequately managing the needs and requirements of the
consumers with producing the optimum level of goods.
Customer services : This function helps in satisfying the consumer it is the last step function
in the supply chain as it mainly helps in interaction with the consumers for addressing their
needs as for providing the end products.
Resource management function: This function in supply chain helps in producing the goods
by optimising the available resources with the right activities. Further, This helps in
managing the efficiency by working as for optimising each resource used for efficient
managing the supply chain operations (Guan and et.al., 2020). Also, the human resources
helps in achieving competitive advantage by maximising its efficiency with reducing cost for
increasing profits by supplying the products. As for offering high quality products educating
employees is the role of HRM for coordinating the supply chain processes.
Transportation function: Transportation mainly helps in distributing the products from one
place to another as by fulfilling the needs and requirements of the consumers at the right time
by serving the quality products (Haldar, Karmaker and Hossain, 2019). Moreover, This
mainly helps in supplying the raw materials at the right time for processing and producing the
end products from the suppliers to the warehousing and lastly delivering to the consumers by
distributing effectively.

Warehousing function : This supports the supply chain by storing various raw materials for
producing various finished products. this helps in storing by inspecting , verifying products (7
Areas of Supply Chain, 2022) . this mainly helps in handlining products for fulfilling
requirements of the consumers by distributing products at right time at right place.
CONCLUSION
From the above report it can be concluded that the transformation process of the
company helps in addressing the preferences and needs of the consumers , which is mainly
defining about transferring the input and output and the subsystems used for processioning
and warehousing the raw material to finished goods. The sup[ply chain management selected
as the practices for producing the good to the ultimate consumers by handling all the
distribution processes. As this process mainaly includes sourcing, processing, logistics
management, conversion and procurement. This report has provided with the details of
managing the supply chain in Tesco an its impacts for achieving the efficiency in the
workplace . further more, the company is using the big data by collecting with the automated
software.

REFERENCES
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Evans, B. and Mason, R., 2018. The lean supply chain: managing the challenge at Tesco.
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Hashim, M and et.al., 2021. Unlocking the sustainable production indicators: a novel tesco
based fuzzy AHP approach. Cogent Business & Management, 8(1), p.1870807.
Noor, O., 2022. IoT and RFID in Supply Chain: Benefits, Barriers and Analysis. Journal
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Nunes, L. J. R., Causer, T. P. and Ciolkosz, D., 2020. Biomass for energy: A review on
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Wieland, A. and Durach, C. F., 2021. Two perspectives on supply chain resilience. Journal of
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