Derby Business School: Tesco Supply Chain Strategy Report (6LO503)

This report provides a comprehensive analysis of Tesco's supply chain strategy over the past 3-5 years, examining its evolution from direct delivery to the stores to managing complexity and embracing digital technologies. It details Tesco's strategic focus on customer availability, waste reduction, and supplier partnerships, highlighting its competitive advantages in the grocery retail industry. The report also critically evaluates the key internal and external environmental challenges faced by Tesco, including increased costs, supply chain complexity, customer demands, and market volatility. Furthermore, it explores Tesco's approach to sustainable supply chain management, emphasizing its commitment to environmentally and financially viable practices. The report concludes by assessing Tesco's success in addressing these challenges and its future strategic direction, including its investments in digital technology and its focus on optimizing product design and management for sustainability. The report is structured to include a PowerPoint presentation and a detailed management report, incorporating academic models and frameworks. The report emphasizes the importance of supply chain strategy in enhancing productivity, cost-effectiveness, and distribution speed, ultimately contributing to Tesco's competitive position in the market.

Supply Chain Strategy

TABLE OF CONTENT
INTRODUCTION......................................................................................................................4
TASK-1......................................................................................................................................4
Explaining the supply chain strategy of Tesco of over last 3-5 years....................................4
TASK 2......................................................................................................................................6
Key environmental challenges...............................................................................................6
TASK 3......................................................................................................................................8
Sustainable chain supply chain management.........................................................................8
TASK 4 –IN PPT.....................................................................................................................11
CONCLUSION........................................................................................................................11
REFRENCES...........................................................................................................................12

INTRODUCTION
The present report is based on the topic Supply Chain Strategy that means that it so
the network that is used by the organizations, activities, individuals, technology and resources
which plays an important role in the sale and creation of the product. The chosen firm of the
report is Tesco it is the multinational retailer of groceries and general merchandise which has
its headquarters in England. The report will discuss about the supply chain strategy of Tesco
has pursued over the last 3-5 years. Along this it will also explain about the environmental
challenges (external and internal) that affected the supply chain strategy of the organization
during the last 3-5 years. It will also give information about the successful Tesco at the time
of addressing these challenges further it will also include sustainability of company’s
competitive advantage and its strategic direction. Lastly it will also include the PPT for
strategic supply chain operation, where effective varied focus will be discussed towards
supply management used by Tesco within longer time frame.
TASK-1
Explaining the supply chain strategy of Tesco of over last 3-5 years
Supply chain strategy means they are important for increasing the roles in the Tesco
to achieve its competitive position which also include distribution, productivity, speed and
cost. Mainly this focuses on the strategy that is how to make the chain complete (The use of
supply chain management at Tesco. 2021). It means the chain that is related to the process,
distribute and purchase which is known as supply chain along with this the controlling and
monitoring of supply chain is known as supply chain strategy. The supply chain strategy of
Tesco is very strong as compared to its competitors which help them to achieve all the
competitive advantage in the industry of groceries. It is the management that is related to the
management of chain in terms of inventory management, channel management, payment,
financial, inventory along with this it also includes the sales force management. Tesco uses
this because it helps them to achieve major strategic advantage of the company that is related
to both efficient use of capital and customer service. The supply chain strategy of the
company is going from last half decade and it is categorized in five phrases that are:
 Direct delivery to the stores: the supply chain of Tesco has no range that is
regarding the price or retailers. Tesco has the minimum control over its products as

all of it is organized by its suppliers and they have full control. All the stores are
working according to the suppliers.
 Vertical and lean supply chain collaboration: Tesco is using this strategy from last
20 years that it focuses on reducing the waste that happened at the time of supply
chain that follows the lean supply chain along with its concepts and practices (Kshetri,
N., 2018). Tesco was successful at the time of transparency that is making of value
stream in the form of efficient and simple manner. This was all made to focus on the
demand of the customers which was based on replenishment that of ordering system.
Further they have also started making the agreement to its suppliers that to support
JIT environment and technology developments.
 Managing complexity: Strategy of the Tesco is very complex that focuses on the
orientation towards the global supply chain management. Mainly Tesco focuses on
their customers and solving their issues at the time of distributing the products
through online modes. They have to face several complexities at the time of managing
the issues. From the last 4-5 years Tesco is making everything possible along with its
strategies that to manage everything that is regarding the supply chain management
(Saberi, S., and et.al., 2019).
The supply chain of the Tesco focuses on the three factors that includes
1. For their customers by increasing their availability.
2. Reducing their waste in the food by giving freshness and quality which will result in
increasing the sale and scale of the business.
3. They mainly focus on improving and maintain the partnerships with their suppliers
which will result in improving the overall efficiency of the business.
Further from the last few years Tesco is focusing on building its digital technology by
investing and developing their customer experience with the made of maintaining their
competitive edge along with increasing grocery landscape of the digitalized UK (Koberg, E.
and Longoni, A., 2019). Tesco is known for its efficient supply chain strategy in the world
which helps them play an important role in contributing the success of the organization along
with its profit margins by taking one step ahead from its competitors in the grocery retailers.
The supply chain strategy included by company signifies focus towards intended
strategy, and further strategies which have been practically implemented. It can be further
included that supply chain strategy plays strong role towards bringing keen domain growth

among productive services, competent scale parameters to bring on revenue rise actively.
Intended strategy is based on bringing new range of performance rise within supply chain
management structure scope arenas, which enhances determinants functionally. Also further
it can be understood that supply chain structure strategy brings on focus towards as per long
term structured domains which keenly brings on brand value rise. Practically external
competition factors come in for bringing on informative aspects into shape, where consistent
scope and larger functional expansion has to be practically worked on. Furthermore strategic
impact as per external and internal factors have strong role to play, for wider range of
strategies management in supply chain parameters (Six Top Supply-Chain Strategies for
2020, 2020).
This can be also further understood for further analysis, where Tesco need to also
effectively implement varied functional targets where technical domains has scope for higher
yielding synergies. Supply chain strategies are widely synchronized at Tesco, where
resourceful investments need to further evolve towards best functional parameters and also
bring on best practical implementation. The accurate implementation can be also
informatively build on towards keeping up benchmarks connected to larger varied domains,
where Tesco has high future potentialities towards supply chain management overall growth.
TASK 2
Key environmental challenges
The analysis of TESCO 3-5 years supply chain strategies within business internal and
external challenges bring on varied scale focus towards keeping up wider determinant focus
towards company business operations profoundly. The global business environment comes
up with varied challenges that have brought huge scale impact on supply chain strategies
profoundly within retail industry standards. Retail Company Tesco with its wide number of
stores has been informatively conducting best strategic management for encompassing new
range of working innovation, wider scale competencies. It can be analysed that company
supply chain management strategies within recent horizons bring on competitive focus
towards paradigms, for higher scale innovation and raised up performance growth domains.
The brand internal and external challenges can be analysed as Internal challenges:
Internal challenges

 Increased cost factor throughout supply chain factors has been analysed to be one of
the most crucial factor which has increased challenge within business operations
profoundly, towards bringing best dynamic change. With increased costs factor also
comes in risk factor for larger varied overall risks factor among business operatives,
towards quest operational goals as per long term revenue targets. Supply chain
complexity has been also increased due to multiple channels within market, which
competently brings on varied scale functional efficacy targets. Tesco has been
working within varied services and products, within global scope where it has various
chains within world which makes complexity factor rise (Lee, Zhang, and Abitbol,
2019).
 Risk in supply chain investments creates pressure, new range of scaled fundamental
investments worked on for varied scale determinants where innovative business
designs comes with varied impact on overall supply chain domains. Resources such
as new machinery, technology and training of human resources are also huge
investments which have to be strategically formed as per competent long term results
effectively. The risk in supply chain factors also comes in with varied external
business factors where there has to be effective varied scale competencies worked on
towards attaining varied targets.
External factors
 Customer’s demands have strong impact on bringing long term advanced impact for
varied scale multiple chains, within market domains for imperative functional
expansion and larger goodwill targets. Tesco with its wide range of target customers
faces extensive rise in customers raising innovation demand factor, where speed and
quality derivatives has to be focused on for market stability. Risk in supply chain has
to be also analysed with stronger risk supply chain factors, where demands on supply
chain analysis is also widely crucial. Further for market stability, customer demands
factors have to be functionally analysed for working towards leveraged competent
working scenarios.
 Impact of supply chain volatility can be understood as one of the other essential
concern which has been competently working towards bringing new range of work
demands (Krémer,, 2019). This also can be understood with aspects where impact of
supply chain volatility, within external business world comes in as one of the most
competitive domain where Tesco needs to focus on actively. External business world

has to be analysed functionally by using models, strategic working management
theories for identifying new challenges and resource planning structure. Unrealistic
assumptions also comes in as one aspect where Tesco within recent competitive years
has been lacking structural focus, which further relates to competent scope and new
pace towards shaping new functional targets.
 High scale competition factor involved within retail industry brings on competent
innovation demand, among new range of vision oriented targets for larger varied
business goals and to yield towards faster functional business avenues. With global
business market expanding towards new leveraged paradigms; it also further brings
on demand to bring on wider supply chain tools, use of artificial intelligence for faster
completion of business targets.
Furthermore, based on above analysed discussion it can be further evaluated that
TESCO as biggest retail company within UK has been investing towards overcoming
challenges effectively. This further functionally brings on varied addressed scope towards
performance related competencies, where successful business innovation also leverages up
new quest domains effectively (Lee, Kwon and Ruan, 2019).
 Tesco within recent years also pools in best resource planning for strategic
management growth in building best supply chain strategies innovatively, and scaling
up targets for reaching out of products to customers. The company has adopted
demand driven planning and business operational models based on real demand
insights and accurate functional shipping. Building an agile and best competitive
innovative supply chain structure has enabled brand to raise performance benchmarks
profoundly within business domains for terrific growth.
 Tesco further optimises product design and management for supply, manufacturing,
and sustainability, to accelerate profitable innovation within longer time periods
towards keeping up performance benchmarks. It can be also analysed that Tesco
further synchronises wide range of diversity paradigms, to yield towards new range of
functional revenue standards as per business demands and revenue growth.

TASK 3
Sustainable chain supply chain management
Sustainable chain supply chain management can b understood as one of the most essential
aspect which further involves new advanced complete supply chain lifecycle factors
effectively. It further brings on focus towards environmentally and financially viable
productive supply chain practices within competent innovative business. Tesco as one of the
best functional largest retail company has been heading towards bringing best materials
growth factors, by using sustainable business targets profoundly. Sustainability in supply
chain structure involves raw materials extraction, use of less emissions technologies and best
sustainable corporate functional usage. Furthermore, development of sustainable products
and resources also enable brand value to rise competently, bring on best working targets and
also evolve towards competent domains. Sustainability factors have been followed at Tesco
supply chain strategies, for larger working goals connectivity and determining new range of
preferences as per customers preferences (follows (Tesco Expands Sustainable Supply Chain
Hub, 2021)
 Launched in 2010, Tesco Knowledge Hub has been working towards reduced energy
costs factors, with high focus on latest resourceful environment impacts on products
and services. The aims is to cut around 30 percent of carbon emissions form supply
chain by 2020, where resource planning has been done innovatively to keep up
working targets profoundly (Jiang, Wang, and Guan, 2020).. The company private,
online services has further enabled brand to conduct functional goals targets
imperatively for reducing carbon emissions. This also further heads on focus towards
uses of CSR policies for best sustainable supply chain structural goals, which
correlates with dynamic business benchmarks and also expands towards functional
scenarios. The brand optimism has also functionally enabled company working
phenomenon to rise, towards technical innovation and also to deliver wider
benchmarks among commercial goals. Tesco heads on further focus for expansion as
per new range of CSR sustainable business practices for further empowerment.
 Sustainability also brings on demand for communicating expectations among business
partners, stakeholders externally as well as internally which plays strong role for
implementing value growth innovatively. This also specifically heads on focus
towards training and development investments done by company for bringing on
sustainable business growth parameters, which enable usage of best eco friendly

products. Mapping supply chain factors within sustainable business operations
functionally enable Tesco to further expand towards new range of derivatives and
quality check benchmarks. This fundamentally calls for more significant chain of
environmental friendly productive services, where sustainable business targets are
widely crucial. Tesco within supply chain structure also uses best eco friendly
products for competent innovation as per green supply chain business targets, to yield
towards functional work goals for higher revenue rise. This further heads on focus as
per latest retail industry performance horizons, functionally generate varied scaled up
targets (JEON, KIM and YOUN, 2019).
 Environmental, social and economic performance throughout supply chain also
functionally calls up for wider scale productive business services for wide customers
and stakeholders demand completion. Tesco Company conserves resources,
optimises new scale resources for ecological development and promotes higher
corporate sustainable values within business framework. It can be also analysed that
supply chain sustainability is also focused on by completing focus onwards cost
effective= technologies, usage of best competent domains to harness scaled up
functional targets within longer business goals (He, Yang and Li, 2020).Using
performance management also further enables sustainability factor to bring on
competent rise towards new range of operatives as per eco logical business functions.
Tesco uses best technologies to further bring on trained management structure,
leverage new resources planning and also invest towards optimum functional work
targets.
 Just in time, supply chain management involves placing materials in right place at
time in ethical and sustainable format for competent scale functional goals. The
manufacturing strategies within supply chain management fundamentally also evolve
focus towards new informative targets, exceeding best functional end goal targets
profoundly. Tesco within retail competitive industry aims for functional effective
supply chain growth effectively towards quest parameters and also to potentially
evolve towards gaining best sustainable efficacy within longer run. Streamlining best
resources as per planned structure will enable functional productivity to rise, also
expand towards keeping up best goals profoundly active.
From the above analysis statements, it can be understood that Tesco as one of the best
premium retail company has varied new scope for further larger work goal expansion

innovatively. Sustainability transformation, also calls for further focus towards new usage of
mapping, checking best sustainability methods are integrated within supply chain. Further,
there is scope for competent eco friendly products growth and to uplift new standards for
training employees in workforce. There should be further stability worked on towards
competent diversity measures for CSR activities, which further harnesses stakeholder’s
commitments and also expand best resources outputs (Fritschy and Spinler, 2019).
Tesco has also scope for further keeping best quality benchmarks , within supply chain
structure to deliver higher sustainable productive domains towards new quest. This also
potentially calls up for varied pace, new technologies to further head on advanced scale
efficacy imperatives informatively. Sustainability also calls for being ethically responsible
within long term business targets, to potentially deliver targets within business scenarios
(Gong, Chen, and Wilding, 2019).
TASK 4 –IN PPT
CONCLUSION
From the above analysed aspects within report, it can be concluded that supply chain
management strategies used by Tesco are based on vertical lean supply chain collaboration,
higher developed managing complexity for best retail services. Further, research concluded
rising increasing prices of technologies, higher functional wide expansion is the internal
factors. External factors such as higher complexity volatility in supply chain management and
competitive business environment are challenges, where Tesco heads on profound focus
towards best targets. Study has also concluded further Tesco within sustainable business
operations head on commercial targets, where eco –friendly products and sustainable goals
are worked on. Data driven supply chain approach will further enable company to bring on
long term strategies within varied scale operatives, for leveraging best performance goals
functionally to bring on dynamic growth. The project has concluded supply chain strategies
have been imperatively worked on towards effective completion of performance domains,
bring on keen resources cost effective expansion at Tesco.

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