Analyzing Tesco's Operations Management Practices: A Detailed Report

This report provides an analysis of Tesco's operations and service management practices. It begins with an introduction to operations and service management, emphasizing its role in customer satisfaction and identifying Tesco as the case study. The report then identifies supply chain management as a key operation management practice within Tesco, detailing its elements such as inventory, transportation, IT, and sourcing. It analyzes the impact of this practice on Tesco's efficiency, using value chain analysis to examine inbound logistics and operations. The report explores technology's role within the process, particularly IT integration. Finally, it discusses the supporting functions linked to this practice, including infrastructure, human resources management, and technology. The report concludes by summarizing the key findings and emphasizing the importance of providing effective services and utilizing technology for competitive advantage. The report also includes references to support the analysis.

Operations & SERVICE
MANAGEMENT

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).

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.

Supply chain
management
 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.

SUPPLY CHAIN
MANAGEMENT

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.

Value chain Analysis

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).

4. Supporting functions are linked to this operation management
practice and evaluate how can they assist with ensuring
organizational 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

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
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