Analysis of Operation and Service Management at Tesco: A Report

This report provides a comprehensive analysis of operation and service management practices within Tesco, a major international supermarket chain. It begins by identifying supply chain management as a key operational practice and examines its impact on the organization's efficiency, focusing on elements like enhancing product accessibility, maintaining product quality, and improving overall productivity. The report delves into Tesco's inventory management, transportation strategies, and IT integration, highlighting how these contribute to effective supply chain operations. It then evaluates the influence of these practices on Tesco's efficiency using value chain analysis, looking at inbound and outbound logistics, operations, and marketing and sales. The report also explores the role of technology in streamlining processes, emphasizing the integration of IT for better communication and automation within the supply chain. Finally, it discusses the importance of supporting functions like infrastructure, human resource management, and technology in ensuring organizational success, concluding with how these functions assist Tesco in enhancing its operations and management capabilities.

Operation and service Management

TABLE OF CONTENT
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
1. Identify one operation management practice within a chosen organization......................3
2.Analyse how this operation management practice impacts the organisation in regards to
efficiency................................................................................................................................5
3. Technology could be embedded in this process or evaluate how this has already been
achieved..................................................................................................................................6
4. Supporting functions are linked to this operation management practice and evaluate how
can they assist with ensuring organisational success.............................................................6
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................8
Books and Journals................................................................................................................8

INTRODUCTION
Operations and service management is considered as a process which is related to
providing effective services to its user in order to satisfy them. It includes identifying the
requirement of services by its targeted customer, handling process in order to provide
services for accomplishing objective in future period of time. And also they bring
modification in services for satisfy consumer at marketplace. This report is carried upon
TESCO. It is the international chain of supermarket which is situated in UK. This company
was founded by Jack Cohen in the year of 1919. They focus on providing effective service to
its user for satisfying them. The supply chain management is the main aim for operation
management of organization in an effective manner. And also analyze how this practice
imposes direct impact on productivity of company. Moreover, there are various supporting
elements that are related with entire practices of operation management as well as assess how
it helps in success of business organization (Bowen, D.E., 2016).
MAIN BODY
1. Identify one operation management practice within a chosen organization
Supply chain management: Supply chain management is considered as a process in
which there is integration among demand as well as supply among various sector of business
organization in an effective manner (Cao and Zhang, 2016). It is necessary to make
cooperation as well as coordination with different channel partner which included customer,
intermediaries and many more. In addition to this, the process of operation management in
context of Tesco is depending on mainly three elements which are going to be mentioned
below:
 Enhancing the accessibility of goods for the user in order to satisfy them.
 It is necessary for business organization to focus on superior quality product and
services for its customer and eliminate wastage of food during the period of time.
 It is necessary to increase overall productivity of organization through bring stability
in business and managing affiliation with dealer.
Inventory: The order of inventory take place in once a week as well as TESCO focuses

on eliminating wastage of food by distributing issues related to stock to its delivery
centre.
Transportation: Transportation plays an important role for delivery of product and
services to its user at right time. Apart from this, there are approx 40 billion goods which are
delivering by using transportation during the period of time. They make contribution for
eliminating the carbon emission by 15%.
IT: In context of Tesco they adopt the software in order to collect effective information in
order to understand the needs and wants of customer in an effective manner. It helps them
in increasing sales as well as profitability in future period of time (Chotipanic and
Issarasak, 2017).
Sourcing: TESCO outsource their product from various countries in order to bring
superior quality goods and services for its customer in order to satisfy them. There are around
70 Nations through which Tesco is dealing. Tesco always maintain supply chain management
in order to distribute their product to its customer in right time and they also emphasize on
eliminating the wastage which imposes direct impact on the environment. There are three
kind of supporting team in relation to Tesco which is going to be mentioned:
Planning: The focus is on effective supply chain in order to manage the speed and entire
productivity in order to deliver the goods which include vegetables, clothes as well as food.
Logistics: It is connected with Logistic provider for distributing their appropriate services
in various markets in an effective manner.
Business efficiency: The main purpose of Tesco is to increase business efficiency by
maintaining sourcing in fast manner.
Supply chain process in Tesco:
Purchasing process of TESCO
In context of Tesco, there is different website which is used for purchasing from the
company during the period of time. They check the message of different supplier and giving
them approval in order to transfer their product in timely manner. Therefore it is the duty of
Purchase Manager for giving approval to the messages that is coming from various sources

which helps in taking effective decisions which will be beneficial for success as well as
growth of organization (Chung, Kim and Choi, 2019).
2. Analyse how this operation management practice impacts the organisation in regards to
efficiency
Impact on Tesco:
The entire practice related to operation management of business organization which
imposes direct impact on efficiency which can be explain by using value chain analysis of
Tesco that is going to be mentioned below:
Inbound logistics: Inbound logistics is considered as a process in which carrying,
storage as well as in receipt of raw material into business organization. There are various
elements which are undertaken for conversion of material into finished goods. In reference of
TESCO, they execute several techniques related to quality control in order to reducing waste
or damages of product and services during the period of time. In addition to this, there is also
need of execution of several rules as well as regulation related to quality control that helps in
increasing efficiency and eliminating cost for its customer (Johnstone, 2016).
Operations: This process is related to conversion of raw material into finished good
that help in increasing sales as well as level profitability level in future period of time. In
context of Tesco, the production department focuses on providing effective services to its
customer in order to gain competitive advantage over rival firm at marketplace.
Outbound Logistics: In this phase of value chain analysis the finished good is
transfer to its customer in order to satisfy their need. There are different kind of facility which
is given by company to its customers such as parking facility, trolley Collector in order to
gain competitive advantage of rival firm at marketplace. Therefore, the main focus is to
deliver the finished good to its user for increasing sales as well as profitability level in future
period of time.
Marketing and sales: In this process there are various marketing tool which is used
by companies such as advertising, sales promotion, personal selling in order to attract large
number of buyer at market place. In addition to this they also offer attractive packages or
discount to its user in order to differentiate their brand from its rival firm (Kim, Kim and
Kim, 2017).

3. Technology could be embedded in this process or evaluate how this has already been
achieved
Integration:
In dynamic business environment it is necessary for organization to implement advanced
technology for success as well as growth of the company. The organization faces many
problems as well as issue due to regular changes in environment. For this purpose they
implement latest technology in order to deliver innovative and specific product and services
to its customer for gaining competitive advantage of rival firm at Marketplace. In context of
Tesco they deliver the product as per the need and wants of consumer that help in increasing
sales as well as profitability level in future period of time. In reference of supply chain
management the IT follow the technique which is not traditional in relation to making
effective strategy for organization.
It has been stated that the internet is used by Tesco in order to deliver the information
among different business partner as well as in organization in order to generate entire system
of automation in an effective manner (Krivanek and Fiedler, 2017). In addition to this, they
focus on effective communication channel for integrating different channel of distribution in
order to deliver product and services to its final user in successful manner. The entire
communication system is linked with different partner of organization around their virtual
firewall that helps in performing different function of supply chain management in an
effective manner (Kumar,Tiffany and Vaidya, 2016).
Technology is changing and taking place at every part of business sector. No work
can be carried out without the use of technology in this modern world. The exchange market
and market share has being also increase the importance of technology which depicts that
with help of technology people can make their decision properly. Moreover, it also seen that
Tesco is using technology in most efficient manner so they productivity and profitability of
firm increases. This is helpful as people can us this technology for virtual shopping too. The
chosen firm has adopted the technology for their business activities and operations. This also
shows that this can be used by anyone through smart devices or wireless devices.
Furthermore, it is also seen that they can use this as their strategy and tactics in market. RFID
technology has been used and also they are planning to establish new self-checkouts
machines through which it will be easier for customers as well. Main motive of Tesco is that
they want to manage and handle the products volume as well as services which further result
in positive output. It can be observed by use of wireless devices that Tesco is already using in

functioning of the different functional areas electronic shelf labeling is another up gradation
that has been adopted by firm. Adopting a new change is not easy and which required
appropriate level of skills and knowledge.
Market is dynamic in nature and use of technology is getting more advances with
changing period of time. Thus, it has become necessity for business to adopt the updated
technology in their business so those customers are able to engage in the sales funnel with
proper measures.
Supplier management- Vendors has been always an integral part of business as they
are the sources through products reach to customers easily. Manager of Tesco make ensures
that supplier management is carried out effectively. Without proper use of supplier
management it is not possible to make decision during the distribution process. It is time
consuming process but is effectively used by organization so that they get the appropriate
supplier for their business. It is the process through which firm assures that maximum value
is being achieved for the money spent by organization to its supplier. This will help them in
establishing a positive relationship with their suppliers and in market. In relation with Tesco,
as they deal in variety of products and which shows that they have broad range of suppliers.
Thus, it also means that they have maintained and managed long term relationship with their
vendors which can be used by them when giving order outside or within the country (LAN
and WANG, 2016).
4. Supporting functions are linked to this operation management practice and evaluate how
can they assist with ensuring organisational success.
In an organization, supporting function play vital role in business as they Assist Company to
enhance their operations and management capabilities at wider level. So, types of supporting
functions are being mentioned below-
Infrastructure- Each and every firm have infrastructure which includes,
management, policy and procedures, decision making etc. It also involves planning and
controlling activities which are essential part of business. In relevance with Tesco, it is
important for them to have proper infrastructure so that cost and expense of business do not
exceed at higher price (Liu, Zhu and Chen, 2017).
Human resources management- Another function of firm is HRM which is required
by every management so that they are able to maintain and manage their policy, procedures

and discipline in the enterprise. In relation with chosen firm, they also have use human
resource management through which they are able acquire the most efficient way. Through
this use of supporting function, firm is able to boost up their performance.
Technological- Market is rising and changing its environment which also open gate
for technology and new innovation. Every firm is adopting technology as mostly in the
business to attract more customers and make goodwill in the market. Tesco, use this function
in most appropriate manner and which helps them in facing competitors as well as rivals. It is
crucial to use technology such as chosen entity use updated online management system of
their websites. This helps them to connect and be in touch with customers at wider level.
Critical success factors- Then comes the critical success factors which is also
considered to be as supporting function for firm. In this the critical factor of success in
creating the awareness for band before the selling of product. This is helpful as it helps them
in promotion and advertising of product as well as brand. Tesco always use this factor in
most efficient so that they use their resources and in most effective way. With help of this
critical factor, it also becomes easy to make decision appropriately. Tesco has been able to
facilitate better management of lifestyle of products and creation of efficient system of
deliveries enhancement of core range and introduction of product quality. This has become
possible with accurate and reliable information. Manger of firm always is active towards their
business growth & overall development (Pollitt, Birchall and Putman, 2016).
Customer loyalty- For every enterprise customer is the assets of business as they
generate profit and sales. It is necessary to maintain loyalty of customer so that relationship is
being developed between both the parties. If loyalty of customer is low than it is not possible
for chosen enterprise to carry out and run their functions or operations in market. In context
to selected enterprise, they have been able to maintain a positive relationship by focusing on
the concept of CRM and providing quality of products to them.
After a brief analysis of above matter, it is seen that supporting functions are essential for
business because they help in running the business smoothly. If loyalty of customer is low
than it is not possible for chosen enterprise to carry out and run their functions or operations
in market. In context to selected enterprise, they have been able to maintain a positive
relationship by focusing on the concept of CRM and providing quality of products to them
(Velasco and Ruiz, 2017).

CONCLUSION
From the above mentioned report it has been analyzed that it is necessary for
company to provide effective services to its customer for satisfying them. In addition to this,
they focus on assessing the need of services by its user and manage the procedure for offering
effective services in order to achieve goal in upcoming time period. Beside from this, there
are different functions as well as activity that must be understood through Value Chain
analysis which is divided into two parts primary activity as well as supporting activity.
Beside from this, operation management imposes direct impact on productivity of
organization in future period of time. Technology plays an essential role for conducting
operation management in an effective manner in order to gain competitive advantage of rival
firm at market place. At last, there is various supporting function that is related to operation
management practices and also helps in assessing for success of company.

REFERENCES
Books and Journals
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Cao, J. and Zhang, S., 2016, July. IT Operation and Maintenance Process improvement and
design under virtualization environment. In 2016 IEEE International Conference on Cloud
Computing and Big Data Analysis (ICCCBDA) (pp. 263-267). IEEE.
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shopping malls. Property Management.
Chung, S.B., Kim, D.S. and Choi, J.H., 2019. Development of Service Evaluation Criteria in
Tramway Operation. Journal of The Korean Society of Civil Engineers, 39(4), pp.551-559.
Johnstone, S., 2016. Labour and management co-operation: workplace partnership in UK
financial services. CRC Press.
Kim, S., Kim, C. and Kim, J., 2017, September. Reliable smart energy IoT-cloud service
operation with container orchestration. In 2017 19th Asia-Pacific Network Operations and
Management Symposium (APNOMS) (pp. 378-381). IEEE.
Krivanek, R. and Fiedler, J., 2017. Main deficiencies and corrective measures of nuclear
power plants in ageing management for safe long term operation. Nuclear Engineering and
Design, 323, pp.78-83.
Kumar, S., Tiffany, M. and Vaidya, S., 2016. Supply chain analysis of e-tailing versus
retailing operation–a case study. Enterprise Information Systems, 10(6), pp.639-665.
LAN, B.X. and WANG, T.S., 2016. Optimization Model and Algorithms for Large-scale Rail
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Liu, G., Qiu, H., Zhu, L. and Chen, Y., 2017, March. Architecture and experiment of remote
monitoring and operation management for multiple scales of solar power plants. In 2017
IEEE 2nd advanced information technology, electronic and automation control conference
(IAEAC) (pp. 2489-2495). IEEE.
Pollitt, C., Birchall, J. and Putman, K., 2016. Decentralising public service management.
Macmillan International Higher Education.
Velasco, L. and Ruiz, M., 2017. Provisioning, Recovery, and In-Operation Planning in
Elastic Optical Networks. John Wiley & Sons.
Yi, H.U.O., 2017. Study on Incentive of Operation and Management for Large Green Public
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