BM563: Operations and Service Management Analysis for Tesco PLC

This report provides an in-depth analysis of Tesco's operations and service management practices. It begins with an introduction to service operation management and its significance, followed by an examination of operation management practices, including the Just-in-Time (JIT) method and supply chain strategies. The report explores the impact of these practices on organizational efficiency, highlighting Tesco's use of technology for improved information access and decision-making, and the importance of supplier relationships. Supporting functions, such as purchasing and supply chain management, are also discussed. The report emphasizes the role of lean management, technology integration, and collaborative efforts in enhancing Tesco's supply chain and overall operational success. The analysis covers various aspects, including the use of technology, supply chain management, and the supporting functions linked to operations management, concluding with an assessment of Tesco's strategies and their impact on the company's performance and customer service.

BM563 OPERATIONS AND
SERVICE MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Operation management practice..................................................................................................3
The impact of operation management practice over the organization in efficiency....................5
Use of technology in the process.................................................................................................6
Supporting functions linked with operation management practice.............................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

EXECUTIVE SUMMARY
The aim of the report is to decipher the idea of operation management, with this regard
importance of operation management has been evaluated. The report revealed significance of
Just in Time method and also evaluated supporting functions of operation management. the
report presented wider picture of operation management in context of Tesco PLC.

INTRODUCTION
Service operation management is linked with delivering service to customer, it includes
the understanding the needs of the target audience as well as managing the process which
provides service. Effectively managing the operation is important for handling the labour cost
and enhancing the experience of customer. With addressing the six driver of performance,
executives may move further and turn out the service operations as the key source of competitive
advantage (Benzaid and Taleb, 2020).
This report will help to identify the operation management practice. It will analyse the
impact of operation management practice in regard to the organization efficiency. Further it
would be discussing the use of technology can be integrated with the process and supporting
function linked with operation management and how they deal with organizational success.
MAIN BODY
Operation management practice
Operation management defines administration n of business practices to form higher
level of efficient ways within organization. It is concerned with converting materials as well as
labour into goods and services in effective manner to maximize the profit of organization.
Operating practices are the methods of conducting business and providing the service, in
includes day to day practice which is required by business in order to check safety of process and
employees. With practices like stock control, delivery and supply chain management, Tesco use
stock control method in JIT as the inventory system. There use of continuous replenishment
system illustrates the best use of JIT inventory system, orders are received from the various sales
counter at several stores and sent to head office. Further it is shared with supplier for stock
renewal through automated order process. The strategy for innovative supply chain management
is necessary for consolidating supply chain (Williams and Caley, 2020).

Supply chain management to increase the more sales get to the target audience the global
strategy is used by the organization to carry out the positive outcomes. With the efficient supply
chain the company can cut down the excess cost and the product will deliver faster to the
consumer. The major elements of the supply chain are forming the strategy, production,
distribution, returns, sourcing raw materials. The valuable image of the company is depending
upon the useful supply chain, and controlling, manufacturing process brings the better service
quality to the customers. Also, it reduces the risk of recalls and lawsuit while helping to create
the powerful consumer brand. Similarly, control in shipping procedures enhance the customer
service and avoids costly shortages and inventory oversupply. The supply chain management
gives various opportunity to companies to increase the profit margins and specifically it is
important for large and international operation companies.
In similar way Tesco global supply chain are managed by vertical integration, lean
thinking and complexity management. The broad range of strategies are used to optimize control
and delivery of its inventory in working environment defined by complex logistics. The supplier
of organization makes deliveries with proper scheduling of time for maintaining the optimal
inventory level in their grocery stores and storehouse. Moreover, it determines for the amount of
goods which is to be shipped at their several stores to maintain the availability of goods to
respective customers. Tesco applies to carry out its global supply chain for the long term
partnership with established suppliers. The collaborative relation with supplier work as to supply

their products at stores, and this approach bring Tesco to strengthen their supply chain relations
and share risk associated with packaging, shipment cost and unstable exchange rate. For
improving the supply chain in more efficient way the company may introduced the lean
management solution and applied to supply chain successfully. The path breaking method and
systems such a primary distribution, point of sales data, continue renewal and RFID technology
make the supply chain more effective. Providing the quality service to the consumer helps to
reach to target audience in the marketplace and with maintaining the flow of goods and service
quality improves the brand image. Such practices in the organization is mandatory in order to
form the better working place for the working people and the consumer as well. These will help
to get the business to high level and increases the competitive advantage (Obwegeser, Nielsen
and M. Spandet, 2019).
The impact of operation management practice over the organization in efficiency
Operation management includes managing the process to ensure that business operates
in efficient and stable terms of using the least amount of resource which is required to
meet the customer needs to the highest standard. The operation management set the
practices which is used by organization in order to gain the efficiency in production. It
is concerned with handling the process of production and such business operations in
the effective terms (Akalegbere and CICA, 2022). Tesco supply chain came under the
pressure, they were able to leverage the strong supplier relation and distribution ability
for maintaining the goods which would be easily available to customers. The supply
chain management strategies help the Tesco to be more productive in the market. While
their channel of distribution also increased with time and it deals in variety range of
products as well-known company in order to fulfil the needs of customers (Zurich and
Documentation, 2018). The supply chain management can affect negative and positively
but Tesco maintains better relation with its suppliers and set out the goals to reach out
the more target markets. By using some strategies, it gained the more relation with
suppliers, enhance their goodwill, also it helps in purpose of quality level which
maintains and supports Tesco objective of supplying high quality goods to the
respective consumers. Another term is the distribution of goods to several outlets where
they make single use of lorry for distributing the same goods to all the outlets in UK.
The positive impact of this is to enhance the efficiency, reducing the arrangement cost

and speed of distribution. The shipping is evaluated in aspect of distance, product type,
weight, and urgency of supply. It is cost centred process and resource centred as well,
and availability of resource in influences supply chain.
By following the operation management theory, lean manufacturing helps to increase the
productivity and minimizing the waste in manufacturing operation. The lean principle see waste
in any circumstance will don't add value for which customers are paying for. Similarly, Tesco
introduced recycling sites for selected stores, which provide mix of recycling benefits from glass,
mixed can, cardboards and plastic bottles. Additionally, it works in partnership with local
assembly to provide recycling opportunity for customers. While working with suppliers has
introduced to decrease the food waste in their supply chain for positive future aspects
(Keskinocak and Savva, 2020). Another way of reducing the wastage in partnership with
supplier involves supplying fruit and veg at great value and helping suppliers make distribution
of extra food to charity. With the help of supporting communities, they work with food bank and
charities of several locations to check out the food is delivered to people who are in need. Food
connection scheme link up local charities to their stores which is the biggest kind in UK because
it provides approx. two million meals in a month to charities and such community group.
Use of technology in the process
Positioning the supply chain management practice and technologies add value to
business, revenue growth, cost optimization and time to value reduction are such benefit
manufacture and retailer can accept. The use of technology influences both indirect and direct
business impact. Using the technology provide the certain advantages to Tesco and increase the
stability in managing their services. Technology improves access to information in which all
such gathered data is made available to the all supply chain partners. When it comes to power to
check through complete ecosystem, the visibility make sense (Leimeister, 2020). Visibility like
consumer behaviour or network wide visibility over important supply chain activities and
demands both internal and supply chain partners. Mobile technology allows organization to take
look on inventory status, product movement, warehouse activity and much more in which
satisfying the demand of customer will be provided in more positive way. Supply chain
technology make the task easy for evaluation of data, insights on circumstances like demand,
warehouse restriction etc, and to form the decision which have effects the direct and indirect on
overall performance of the supply chain. Such technology helps to make fast decision and take

less time and smart decision helps to better understand the trade-offs included with scenario
response (Zijm, and et.al., 2019). It enhances the agility and for the executives it is the easiest
way to address the problems and introduce new potential much faster while having the sufficient
knowledge of insights.
In order to collaborate, two or more organization performance is more suitable for get the
better results. It is the process where two or more organization work cooperatively to share the
common goal. Supply chain inserts the system and technology which enable, evaluate, monitor
collaboration among individuals, organization or departments for easy flow of information. For
instance, Tesco can master this degree of collaboration on regular basis to exceed different
financial indicators, with involvement of high inventory turns, service level and cost savings
(Yan, and et.al., 2022) Supply chain technology is more important which belong to the customer
happiness, loyalty and owning the challenged controlled by Omni channel customer. Customer
intention is to check out for the availability of good which they are looking for. Stores carry out
the all the required items as per customer requirements which so that they can get the availability
of product and easy to make purchase.
For example, Tesco has various stores at different location in which it focuses for the
customer to provide them all the items they are willing to purchase. By providing them better
service with availability of products will form good image towards customer and more customer
will beneficial for profit advantages to the organization. Most efficient and systematic supply
chain is the fastest way to provide product to the retail shelves. The storage technology allows
Tesco for producing shipping direct from produce suppliers to the stores declining the need for
extra packing (Benjaafar and Hu, 2020). Overall, Tesco make use of their supply strategies as
well as adopt the technologies to get the better working culture which reflect positively to their
customers. Also, they make relation with more suppliers in order to provide the necessary
product and service to reach more target audience. Whereas maintaining the various range of
variety products at several locations will refer to more customer attention.
Supporting functions linked with operation management practice
The operating management practice which considered is the supply chain management, it
is the operation which is involved in procurement of raw material and transformation into
finished goods with distribution to the end customer. Good supply chain management insures the
maintaining of balance between supply and demand. For reducing waste, maximizing the profits,

reducing cost with providing at a time delivery of product, supply chain would be efficient.
There are five function of supply chain management which would be essential for Tesco to get to
know about making change in their operations with better efficiency.
Purchasing
In the process of manufacturing raw materials play key role for producing goods and
products, it also requires the coordination with suppliers for delivering the raw materials without
any delays. The purchasing activity will have the significant impact on sales and profit of Tesco.
When sourcing the process of raw material, it is mandatory to ensure the quality is suitable for
company. The function of supply chain management is to check the quality of materials which
are being used, regularly testing such items to ensure consistency (Chen, Dong and Shi, 2020).
Whereas raw material of inconsistent quality can affect the production of finished goods. The
small mistakes in purchasing negatively affect to the reputation of organization. Excessive
purchasing leads to unnecessary usage of space as well as blocking of money.
Operations
Operation team engage with demand planning and forecasting, it set out the ball rolling
for inventory management, production and shipping as well. If demand is under anticipated the
establishment would not be able to meet the demand of customer so leads to the revenue loss. It
can be said that operation is the risk function of supply chain. The managers are eligible for
planning production in relation with demand. It is important to check the functioning of
machines to get the production of goods on time. Also, it is important to check the other items
such as packaging materials, sticker, labelling are ready for products are to be delivered to the
customers.
Logistics
This function requires the major coordination; it needs area for the storage for the time
until it shipped for delivery. The department ensures that all the products will reach to its ending
delivery point without any bugs. The vehicles can get delay due to mechanical issues which
bring delay in product service and it could negatively select towards customers. For dealing with
such kind of issues the department can make use of better sources and provide the solutions to
their issues. The improved and on time service quality will form the effective working
organization and faster service to the customer will be in favourable terms.
Resource management

Managing resources is the challenging task in circumstances where same machinery
being used for different products. Resource manager carry out the orders of each item and
allocate machine for them, rather than making use of single machine various machinery will be
required for enhancing the manufacturing. Arranging the equipment’s for labelling and
packaging if goods is the part of the department. Overall, with adapting to modern use of
technology it would improve the working process and solves the purpose of negative aspects.
Information workflow
Information sharing and distribution keeps the other function of supply chain
management in line, lack of information workflow and communication leads to break down of
entire chain with mismanagement. The use information or data must be in flow with both
direction as concerned with logistics (Heinonen and Strandvik, 2020). Information from
downstream includes all details of orders in hand as well as market trends. Such details are
important for checking the quantity and availability of raw material. The developing trends help
to structure the sales forecasting, without such forecast methods organization will not be able to
plan for production.
CONCLUSION
In this report it has been identified one operation management practice for Tesco and analysed
the impact of operational management practice in term of effective ways to the organization, for
an entity, their operation management is an essential aspect which makes them thrive. in the
report some aspects such as JIT were also taken into consideration. It has been discussed about
technology used in the operational practices and which organization use to bring more efficiency.
Apart from this it has been summarized about the supporting functions such as purchase, logistic,
operations, information workflow resource management in context of the organisation.

REFERENCES
Books and journals-
Akalegbere, G. C. and CICA, C., 2022. Operations management in organizations
articule. American International Journal of Business Management (AIJBM). 5(1).
pp.20-33.
Benjaafar, S. and Hu, M., 2020. Operations management in the age of the sharing economy:
What is old and what is new?. Manufacturing & Service Operations
Management. 22(1). pp.93-101.
Benzaid, C. and Taleb, T., 2020. AI-driven zero touch network and service management in 5G
and beyond: Challenges and research directions. IEEE Network. 34(2). pp.186-194.
Chen, J., Dong, J. and Shi, P., 2020. A survey on skill-based routing with applications to service
operations management. Queueing Systems. 96(1). pp.53-82.
Heinonen, K. and Strandvik, T., 2020. Reframing service innovation: COVID-19 as a catalyst for
imposed service innovation. Journal of Service Management.
Keskinocak, P. and Savva, N., 2020. A review of the healthcare-management (modeling)
literature published in Manufacturing & Service Operations
Management. Manufacturing & Service Operations Management. 22(1). pp.59-72.
Leimeister, J. M., 2020. Service Management und Service Operations.
In Dienstleistungsengineering und-management (pp. 279-342). Springer Gabler, Berlin,
Heidelberg.
Obwegeser, N., T. Nielsen, D. and M. Spandet, N., 2019. Continual process improvement for
ITIL service operations: A lean perspective. Information Systems Management. 36(2).
pp.141-167.
Williams, S.J. and Caley, L., 2020. Introduction to Public Service Management and Service
Operations. In Improving Healthcare Services (pp. 1-13). Palgrave Pivot, Cham.
Yan, X., and et.al., 2022. On-demand service platform operations management: a literature
review and research agendas. Modern Supply Chain Research and Applications.
Zijm, H., and et.al., 2019. Operations, logistics and supply chain management. Cham: Springer.
Zurich, B. L. L. and Documentation, X., 2018. Service operations and management. Master of
Science in Engineering. p.380.
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