Supply Chain Management: Analysis and Strategies for Tesco

This report provides a comprehensive analysis of supply chain management (SCM), specifically in the context of Tesco, a UK-based consumer goods company. The report begins by defining SCM and emphasizing its importance in managing the flow of goods and services from raw materials to the end consumer, ensuring a balance between supply and demand. It then delves into key areas such as managing relationships within the supply chain, including strategic, internal, and transactional relationships, highlighting the benefits of reduced costs, waste, and improved efficiency. The role of information systems in SCM is explored, emphasizing the use of web technologies to enhance communication and collaboration. The report also covers procurement and outsourcing, discussing the pre-purchase, during-process, and post-purchase activities involved, and their impact on cost reduction and innovation. Furthermore, it examines the concept of sustainable supply chain management, focusing on social, economic, and environmental considerations, and how companies can reduce their negative impacts. The report concludes by outlining ways to improve SCM, such as promoting clear communication, leveraging technology, ensuring timely payments, and regularly reviewing performance. It also addresses strategies to mitigate supply chain risks, including implementing contingency plans, assessing suppliers, and improving cybersecurity, as well as how to make SCM more sustainable.

Supply Chain
Management

Table of Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
TASK..........................................................................................................................................................3
Meaning and Importance of Supply Chain Management.........................................................................3
Managing relationships in the Supply Chain Management:.....................................................................3
Information and Supply Chain Management:..........................................................................................4
Procurement/Outsourcing in Supply Chain Management........................................................................4
Sustainability and Supply chain Management.........................................................................................5
Ways to improve Supply Chain Management..........................................................................................5
Ways to mitigate Supply Chain Risk and Reduction in Cost...................................................................6
How a Supply Chain Management can be sustainable?...........................................................................7
CONCLUSION..........................................................................................................................................8
REFERENCES..........................................................................................................................................9
Books and References:............................................................................................................................9

INTRODUCTION
Supply chain management can be defined as a management of movement of goods and
services which includes methods and procedures to transform raw materials into the finished
goods and their distribution to the end consumer. This management and ensures the maintenance
of equilibrium between demand and supply (Alkahtani, M. and Et.al., 2021). A company
required supply chain management with the purpose of reduction in wastes as much as it will be
possible and to enhance the quality of the customer experience. This report is going to prepare in
the context of supply chain management of the company Tesco. It is a London based company
specialized in the consumer goods. In 1919, Tesco was introduced by Jack Cohen. The British
Company expanded their business operations at global level. It has diversified into areas such as
retailing of furniture, toys, clothing, books, financial services and many more.
MAIN BODY
TASK
Meaning and Importance of Supply Chain Management.
Supply chain management or SCM is meant as a management of flowing goods and
services develop from raw material to finished goods sold to customers (Frederico, G. F. and
Et.al., 2019). SCM is a process moving and storing the materials used in production process store
that produced goods until they sell and tracking where finished goods so that manger can utilize
such data to drive upcoming sales. The process of supply chain management involves every part
of business operations that includes purchasing, logistics, technologies, or data. It incorporates
materials, manufacturing facilities, suppliers, wholesalers, financers, consumers, retailers into a
seamless system. In the context of Tesco, SCM helps to gain competitive advantage by making
Importance of Supply Chain Management:
 SCM supports the strategic plans and helps to develop the infrastructure for the business
to enable its future growth even at international level.
 SCM allows customer to receive finished products rapidly as the promises of company
also in a best way.
 SCM enables the business and maintain the balance of supply of products and the
demand of products.
Managing relationships in the Supply Chain Management:
Relationships in the supply chain covers a lot of area in supply chain management it
includes strategic relationships, internal relationships, tactical relationships, and transactional
relationships and many more. Supply chain relationship management is important for a long
journey because it makes supplier for the free movement of ideas and feedback.
Benefits of effective relationships in Supply Chain Management:

 Reduced Costs: Maintaining relationships between existing suppliers can help to
determine the low cost factors in managing supply chain. It will helps to reduces cost
factors, makes able to face challenges, reduces issues in quality, no more delays. Overall
it focuses on to serve better with quality products and services to the customers
 Reduced Wastes: When movement of goods between buyer and supplier are ineffective
it will lead to increase in wastages. When contracts are made upon terms and conditions
such as clear cost of materials and resources between buyer and supplier, it will help to
reduce more wastes, helps in reduction of prices and improves the overall services.
 Improved efficiency: When relationship develops between supply and organization
communication will also improve. When dealer acquires more information about the
organization and are more familiar with whom they are working with that will help to
increase the efficiency of service. Issues related orders are reduced but in case if the
issues may rise the strong relationship between both of them will make it easier to solve
such problems.
Information and Supply Chain Management:
Information system will also affects the Supply chain management. It will influences the
processes such as sourcing, delivering, planning and many more levels of stretching from
organizational tactics to strategies. It has been evaluated the use of services in information
technology that affects the current status and future direction of multi components in supply
chain management of with multi component production. Information system helps to start the
real time information in the supply chain management but it cannot be attained without an
integrated software system in the process of supply chain. By such information system it enables
the members of supply chain to collaborate and communicate information with the purpose of
customer satisfaction (Huo, B. and Et.al., 2019). Web Technologies allows the company to turn
out to be more active to deal with customers and suppliers over the internet in real time. For this,
the respective company’s SCM have to restructure its shape and create a unified value system
and then business applications are developed by them through supply chain structure for the
better and efficient use of supply chain. It has been evaluated that implementation of the supply
chain information system in Tesco company enables maximization in the competition and
profits.
Procurement/Outsourcing in Supply Chain Management
Procurement refers to all the activities which involve to acquire the best products from
the best vendor on best terms which involves a process that arise before a purchase is made, as it
is made and after the actual business deal has been completed.
Pre-purchase procurement involves:
 Establishing the requirements of the company.
 Conducting examination on results provided by potential suppliers.
 Developing strategies that owns best opportunity for the success of the company.
Procurement during a process involves:
 Creating a purchase order.

 Negotiating terms and conditions with the chosen suppliers (Hussain, M., Jusoh, A. B.
and Gillani, S. A., 2020).
 Fulfilling the end of the contract.
It has been evaluated that in supply chain management the role of procurement will enable
Tesco to increase their profits. This has been completed by balancing cost reduction, assurance
of supply, supplier quality, unlocking the innovation of supplier (Jamil, F. and Et.al., 2019). It
could be complicated when stakeholders find different ways to determining collaboration with
suppliers, strategic cost savings, better spend of management and partnership between suppliers
in order to create differentiation in the competitive market place by creating margins.
Sustainability and Supply chain Management
Sustainable supply chain management is a management which is highly focused on the
awareness of the company regarding social, economic, environmental and most importantly
make necessary changes in order to reduce the negative impact of it. It is a process in which it
includes the power sources from warehouses to the transportation unit of goods and services
further than manufacturer of the product. In the warehouse it may involve reviewing of
sustainability strategy as a whole in the process which may include practices of sustainability of
all which delivers raw materials associated in the production plant which is liable for recycling
the process of diminishing wastage. It has been considered that sustainability in order to make
awareness about the green. When an organization focusing on to create ecofriendly environment
in every section that helps to enhance their goodwill and reputation of the company.
Ways to improve Supply Chain Management.
 Promote clear and consistent communication: In the organization, the base of any
relationship is a very clear and consistent communication in order to deal. Develop
effective and long-term relationships with buyers and suppliers company must
communicate with them on the basis of equal partnership (Zhang, T., Zhang, C. Y. and
Pei, Q., 2019). When an organization is totally understand the concept of extension about
the internal environment that is supplier then it will be helpful to acknowledging the
corporate relationship with the clients.
 Technology makes supplier relationship management simple: In order to maintain the
record of information about the supplier or vendors by making a investment in the
software of supply management will be a very great method for the companies. As
considering the Tesco Company, it will provide various ways to recall the orders of
purchase, update contact information, submit invoices, request for quotes and many
more. In other words, it can be taken as a great solution in order to create transparency in
the relationship with suppliers also to track audit of many activities which will help to
resolve any issues.
 Realize that timely payments are crucial: For the companies, it is very vital to take into
consideration about to pay supplier on time as it can harmful to lose any supplier. By
doing this it will prove to the reliable customer that it is easy to work with them.
 Regularly review performances and deliverables: When company review the
performance on the daily basis of their suppliers it will stimulates the responsibility of

vendor and helps in reduction of post as well as it improve both internal and external
customer satisfaction (Khan, S. A. R. and Yu, Z., 2019). When company try to frames the
expectations of supplier and sharing the results with them it will provide a regular
feedback to the vendors that may exceed expectations and develops value to the firm.
Ways to mitigate Supply Chain Risk and Reduction in Cost.
Supply chain management always gets challenges and risk in the course of flowing goods
from one to another (Nguyen, X. and Le, T., 2020). The risk may include both internal and
external which may disrupt in the process:
Internal Risks:
 Planning Risks
 Mitigation and Contingency Risk
 Business Risk
 Manufacturing Risk
 Disruptions in internal manufacturing operations
 Changes in process or personnel
External Risks:
 Demand and Supply Risks
 Environmental Risk
 Supplier facility and compliance issue
Mitigating Supply Chain Risk:
 Implement a logistics contingency plan: The requirement to implement the
contingency plan has become relevant, during covid-19 crisis which affected supply
chain management on a global scale (Sawik, T., 2020).
 Maintain a great communication channels so that employees may know what are
the job roles and responsibilities in the result of supply chain disruption.
 Established response to crisis team to make decisions for the emergency.
 Assessing and monitoring new and existing suppliers: Assessing the new suppliers and
monitoring the existing ones is important to both understanding the exposer to supply
chain risk and mitigating that risk. When you make a partnership with the new suppliers
it must be assess them against such mentioned factors:
 Capability to measure needs
 Experiences of their other customers
 Commitment to quality standards
Assessing the new suppliers will ensure the best position to deal with dealers to improve
the level of service as well as it reduces the cost and risk of supply chain.
 Improve cyber supply chain risk management: Digital technologies and internet play
an important role in optimizing the supply chain operations but it will also come with
threats of cybersecurity such as hacking, malware, phishing and ransomware.

Environmental risk factors also influences these defenselessness (Xu, M. and Et.al.,
2019). To strengthens the defense of cyber security Tesco will try to implement the
following strategies:
 Keep up to date company’s antivirus, firewall software solutions and anti-
spyware. With the same hand company must try to look for advanced cyber
security measures such as network access control, or DNS filtering.
 Work with those retailers in the network of supply chain management to develop
a amalgamated recovery plan to ensure continuity of company.
 Establishing backup control as a safeguard.
How a Supply Chain Management can be sustainable?
Supply chain management is a process of combination of financial and environmental
practices results in a complete life cycle of supply chain process that is from product designing to
the selection of materials which also includes production, agriculture, manufacturing, raw
material, transportation and many more. Through sustainability customers become brand loyal
and by giving feedbacks and reviews about the product or its quality and they acknowledges
more about that why it needs them to buy and what are the benefits that sustainable product will
give to minimize is the waste of material.
Ways to Supply Chain Sustainability:
 Communicate expectations with the concentration on sustainability: It is very
important in the SCM that managers must communicate effectively their culture and
values to the potential customers and suppliers. This may involve business relationship
which focuses on sustainability (Le, T., 2020). Through a code of conduct this may
proceed.
 Develop training and capacity building programs: In supply chain management, it is a
great start to focus on the sustainability about the process of products and services which
needs various training and development of the employees also conduct capacity building
programs. It can be done through by sharing information through capacity building
programs, annual conferencing, or annual training models and many more. A manager
can encourage their peoples to identify their efforts and give a practical demonstration of
benefits of sustainability initiatives.
 Drive performance improvement: In order to improve the performance and to measure
its growth organization needs and understanding of baseline performance of their
suppliers which may help to create an audit campaign. It is essential for the organization
to be focused on the on-site audit program and make a survey on the issues of behavior.
When an organization needs to execute an audit program, an individual request to take
appropriate action on the outcomes by taking appropriate course of action which may
include certain expectations and results also it may eliminate the vendors if it is required.
 Map your supply chain: Companies have to understand that sustainability affects their
supply chain process. For the improvement in the sustainability of supply chain
management, managers need to make it to the inventory suppliers. Examining the

environmental and social challenges is the most important factor that have to be prioritize
in the efforts list.
 Baseline supplier performance: Suppliers are the sources to collect data for the
managers (Singh, S. R. and Et.al., 2021). There is a code of conduct which is
incorporated by the companies and which is highly focused on the self-assessment which
relates to certain areas of the organization. Baseline performance of suppliers is a start
which objects to improve the sustainability for the upcoming campaigns and recognizing
areas where improvement needs to attain.
 Join industry collaboration: There is the purpose when an organization collaborated
with another organization is that to face any kind of challenges or complexities in the
process of supply chain. When the environment is free from the competitions and
organizations are working to set standard and practices regarding performance after
sustainability it make sure that the supplies are to be examined on the same facts.
CONCLUSION
From the above studies it has been concluded that it has been concluded that supply chain
management provides a way for any business to lower down the costs of business operations. It
helps the business to form a competitive advantage without requiring to lower their prices of
goods and services and ensures to deliver their services and products in a speedy way to their
customers. Overall when supply management is effective itself a direct improvement to the
services of customers.

REFERENCES
Books and References:
Alkahtani, M. and Et.al., 2021. E-Agricultural Supply Chain Management Coupled with
Blockchain Effect and Cooperative Strategies. Sustainability, 13(2), p.816.
Frederico, G. F. and Et.al., 2019. Supply Chain 4.0: concepts, maturity and research
agenda. Supply Chain Management: An International Journal.
Huo, B. and Et.al., 2019. Supply chain quality integration: A taxonomy
perspective. International Journal of Production Economics, 207, pp.236-246.
Hussain, M., Jusoh, A. B. and Gillani, S. A., 2020. Exploring the Emerging Trends and Issues in
Supply Chain Management: A Case of Pakistan. International Journal of Psychosocial
Rehabilitation, 24(2).
Jamil, F. and Et.al., 2019. A novel medical blockchain model for drug supply chain integrity
management in a smart hospital. Electronics, 8(5), p.505.
Khan, S. A. R. and Yu, Z., 2019. Introduction to supply chain management. In Strategic Supply
Chain Management (pp. 1-22). Springer, Cham.
Le, T., 2020. Performance measures and metrics in a supply chain environment. Uncertain
Supply Chain Management, 8(1), pp.93-104.
Meier, K. J., 2020. Additive manufacturing–driving massive disruptive change in supply chain
management. Journal of Work-Applied Management.
Nguyen, X. and Le, T., 2020. The impact of global green supply chain management practices on
performance: The case of Vietnam. Uncertain Supply Chain Management, 8(3), pp.523-536.
Sawik, T., 2020. Supply chain disruption management. Springer International Publishing.
Singh, S. R. and Et.al., 2021. Impact of energy and carbon emission of a supply chain
management with two-level trade-credit policy. Energies, 14(6), p.1569.
Xu, M. and Et.al., 2019. Supply chain sustainability risk and assessment. Journal of Cleaner
Production, 225, pp.857-867.
Zhang, T., Zhang, C. Y. and Pei, Q., 2019. Misconception of providing supply chain finance: Its
stabilising role. International Journal of Production Economics, 213, pp.175-184.