BUS301 Supply Chain Analysis: Walmart and Tesco Comparison

This report provides a detailed analysis of the supply chain management (SCM) strategies of Walmart and Tesco. It begins with an introduction to SCM and its importance, highlighting the use of technology like AI, machine learning, and robotics. The report then examines the overall design of the supply chains, discussing external macro factors influencing decision-making. It explores micro factors such as customers, suppliers, competition, employees, media, and shareholders. The report also delves into the procurement strategies employed by both companies, emphasizing Walmart's use of business intelligence and Tesco's internal and outsourced data. Finally, it covers production strategies and operations, including the impact of SCM on production efficiency and the integration of technology. The report concludes by emphasizing the benefits of technology and sustainable practices in supply chain and logistics, drawing on examples from both Walmart and Tesco.

3/29/2020
Running Head: SUPPLY CHAIN 0
Supply Chain
Report
Student name

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Table of Contents
Introduction................................................................................................................................1
The overall design of the supply chains.....................................................................................1
Micro factors..............................................................................................................................1
Procurement strategy..................................................................................................................1
Production strategy and operations............................................................................................1
Conclusion..................................................................................................................................1
References..................................................................................................................................2

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Introduction
An organization is based on various management systems including Supply Chain
Management (SCM). Most of the firms have used inside SCM systems, which is costly in
terms of other expenses. Thus, it is necessary to manage a supply chain system using
technologies, which is more accurate and fast from other systems. Inbound and outbound
logistics have affected the profit of an organization (CeMAT, 2019). This report will analyse
two supply chains, which are from Walmart and Tesco PLC. In this report, the main focus on
the overall design of the supply chains. It will discuss about the external macro factors'
impact on the decision-making process of the companies as well. Besides, this report will
explain the procurement strategy in the companies as well. In the later sections of this report,
operations and product strategy will discuss using different types of examples.
The overall design of the supply chains
The Supply chain system provides strengths to a firm in their businesses. Many good
examples in the world are successful in the market based on their SCM and other
procurement strategies. Besides, Walmart has adopted new technologies for managing supply
chains, such as artificial intelligence (AI), machine learning (ML), robotics, and many more
(Bloomberg, 2019).
In addition, the supply chain system was developed in the US, which has followed by many
other countries. Besides, many firms have based on the online businesses in the present era,
which were taken helped from this system to manage their supply chain process. Thus, it is a
basic need in the many businesses that are supplying products and services to customers
(Caniëls & Bakens, 2012).
inside the speedy-paced enterprise international nowadays, every company is pursuing
excessive performance, growth productiveness, maximizing income whilst minimizing its
charges. So, intending to strive for these achievements, companies need to follow records
structures to assist in both inner and external managers. As we recognize that our facts
technology is becoming sophisticated once in a while, there may be a machine known as
supply chain management (SCM) (Daniel, 2019).
In addition, Walmart has used various concepts to improve its supply chain system that is the
base of the whole company. besides, the company has included RFID technology and

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barcodes for every product, which is better for the identification and details of the product. It
provides better monitoring of the supply chain system (Fearne, et al., 2012).
Moreover, SCM systems capable of manipulating organizations which produce extra
complex merchandise and to have hundred or even thousands of providers from a distinctive
form of goods and products (Flashglobal, 2019).
Source: (Enprode, 2019)
Moreover, Walmart will include more robotics and automation in the supply chain and
logistics systems to improve their performance and productivity. Most of the systems have
used for managing different services including vendor management and customer
management (Gilmore, 2018).
However, Walmart has included technological innovation in early-stage because they know
about the disruptive innovations that make changes in the market as well as business
processes. Most of the things can be optimized using business analysis as well as data
analytics. It is the best way to manage the supply chain (Laudon, & Laudon, 2016).
Most of the companies have used third-party logistics (3PL) for managing their supply chain
process. It is a huge process and it makes huge impact on the cost and time of the system as
well. Thus, 3PL is the best option for many companies, as many systems and employees are
required to manage all the operations. The founding father of Tesco was Jack Cohen, the son
of a Polish Jewish tailor who offered groceries in markets of the East quit from the year of
1919s.

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Source: (Enprode, 2019)
Besides, Walmart has collaborated with many firms that are working fine at the national and
international level including flipchart and many others. A corporate venture is a new
technique to reduce competition in the market (Manuj & Mentzer, 2008).
Micro factors
There are many factors in the industry that makes a huge impact on the business of an
organization. Thus, it is necessary to know about all the risks because of different processes.
In addition, it is necessary to know about the micro environment of the company to take
proper decisions for future (Moorty, 2017).
Moreover, there are many good factors in the Walmart that makes it unique in the industry.
The company has included technologies for managing their supply chain system. Many
logistics systems have used for handling the product delivery and other processes. In
addition, most of the things can be used for managing internal processes.
There are mainly six components, which makes a huge impact on decision making, which
areas:
Customers:
Customers are an important part of a business. Thus, most of the companies have focused on
their clients using different practices. Also, Walmart has started home delivery as well as
pickup and delivery. Most of the things can be managed using technologies and it can be used
for attracting customers as well (O'Brien & Marakas, 2005).

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Supplier:
Supplier management is considering in the inbound logistics. Most of the things can be used
for improving supplier management. In addition, SCM system has used for managing
different supplier that is good for the business as well. Suppliers are important part of a
logistic system, as all the processes are depending on the products as well. Most of the things
can be optimized using advance supply chain system as well.
Source: (Enprode, 2019)
Competition:
Retail business is facing a high level of competition. Thus, it is necessary to identify new
entrants in the market. Most companies have used collaboration with larger companies to
improve their productivity and profit as well (Perkins, 2017).
Employees:
Walmart has provided good services to their employees using proper HR policies and general
policies. The company has worked on the prerace of the employees to manage their business
processes. The retention of employees is a key difference in other companies. Tesco has
provided proper training and awareness in the employees to complete their duties (Ramdas,
2014).

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Media:
Social media sites have used for marketing by both companies. However, customers have
focused on offers and discounts as well. Besides, many customers have used different types
of promo codes as well (Rouse, 2010). Walmart has used social media sites for marketing as
well as other processes. It is a good platform for advertising as well as data collection.
Shareholders:
Shareholders are important for the company. thus, it is the best way to manage shareholders
using different types of benefits (Rubin, 2018). Tesco has supported by its shareholders in the
governance of the whole system. It will improve system performance and efficiency as well.
Source: (Karayan, 2017)
In addition, shareholders can use their resources for improving business profit and revenue.
Tesco has implemented new strategies for improving their business growth. It makes more
changes in their business functions as well.
Procurement strategy
It is a basic need for a system to manage the supply chain. Also, the procurement strategy has
used for managing various things that are related to the company as well. Walmart has used a
business intelligence (BI) system for managing all the things. Most of the things can be used
for managing all the things (Wu, et al., 2013).
Besides, all the processes can be used for managing all the things. Decision making is
necessary for the manging purchase and sales of the company as well. The supply chain

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system has used for data analysis that provides better knowledge about the whole system.
Walmart has used the SCM system for the procurement process as well (Tradegecko, 2019).
Source: (CeMAT, 2019)
Walmart is always at the top of the supply chain system. Thus, the company has improved its
position based on technological innovations. Walmart has changed the competition between
other competitors using the right strategies and business growth. Tesco is also in a good
position. Many changes in the market can be managed using business models and strategies.
The company has involved many changes in the procurement strategy. It is the best way to
manage all the processes. Tesco has used internal data as well as outsource data for decision-
making process, which is good for the company as well (Slade, 2017).
Production strategy and operations
The SCM system has used for managing production and other operations of an organization.
Walmart has considered data of the SCM system for production and operation management.
Besides, there are many good things in the system, which has used for managing all the
things in a better way. Moreover, basic processes can be improved using the SCM system.
Tesco has supplied proper products in a proper quantity in its grocery store, which is based
on the demands of the stores as well.

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Source: (Karayan, 2017)
Tesco has 4331 retailers with 470,000 employees throughout 14 different countries including
the United Kingdom itself and other nations which might be the United States, Malaysia,
Czech Republic, Thailand, Poland, South Korea, Slovakia, China, Japan, Republic of Ireland,
India, Hungary, and Turkey.
Moreover, there are many benefits of the SCM system in the production strategy, which is
necessary to reduce the extra cost of the unnecessary production of products. Besides, many
products have considered in fewer sales processes. Thus, it is necessary to know about the
data as well. Walmart has used data and information for various decision making, which is a
good way to save money and time. Reporting is necessary for decision-making processes.
Furthermore, vendor management is easier with the SCM system. Most of the giant retail
organization have used SCM system for managing their business. It will provide them better
cost-cutting. Also, there are many good things in the company, which can be used for
managing all the things (Rouse, 2010).
Moreover, Tesco and Walmart have created a good image in the retail industry based on their
various quality factors. Besides, it will improve the basic processes using management and IT
strategies, which is good for the customer's as well. Most of the users are interested in the
company because of their quality services including logistics and supply chain. Most of the
companies have followed various processes to improve the results as well.

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In addition, there are many changes in the basic processes, which can be used for accuracy
and productivity in the systems. It can be better using technology. Walmart has provided
better pickup and delivery services to its customers. It has based on the logistic system as
well. Besides, Artificial intelligence (AI) based devices has improved the speed of the whole
process.
Tesco has considered digital transformation and sustainable development as well, which are
the most important parts of the system as well. Also, Tesco has included waste management
systems to reduce additional cost and sustainable development. It is beneficial for their
business, as investors are interested in sustainable projects in the present era.
Furthermore, there are many benefits of technology in supply chain and logistics. Moreover,
there are many changes in the industry because of emerging technology. Moreover, the AI-
based system has used for managing all the things. Besides, most of the functions have used
for improving the performance of the system. It will improve the basic processes of the
system. Besides, the international market has based on competitive strategies as well
(Enprode, 2019).
Moreover, most of the things can be managed using emerging technologies. Besides, most of
the business processes can be managed using basic processes. It will be beneficial for
managing all the processes. Most of the technologies have used for manging using all the
processes (Flashglobal, 2019). Besides, most of the internal processes can be optimized using
innovations and technologies. There are many benefits of the SCM system in both
companies.
Thus, Walmart has used a new system for managing their businesses using technologies and
innovations. The business process model has used for improving their business processes as
well. It is helpful in the design of new processes in the company as well. Therefore, Tesco
has included new IT-strategies used for improving all the processes (Gilmore, 2018).
Walmart has considered digital transformation for managing all the processes in their
business. It will be more beneficial for their supply chain and logistic system (O'Brien &
Marakas, 2005).
Walmart has successfully developed new market in the various countries based on the
different approaches. It will help in the business growth. Corporate venture is a new concept
for reducing competition in the market. Moreover, the company can manage stakeholders in
better ways. It will make huge impact on the businesses processes of the company as well.

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Tesco has adopted new approaches for marketing and advertising for business growth as well
(Perkins, 2017).
Furthermore, there are many other benefits have provided by the company to their customers
for creating their branding better in new market place. In addition, there are many other
benefits of the system that can be used for managing all the processes in a better way.
Moreover, Walmart has used different types of logics for improving their productivity and
accuracy. Lowest price is a factor that affect the customers. However, most of the customers
have used this approach for managing their needs. Moreover, company can provide better
products and services for managing all the things in a good manner, as pickup and deliver
services can be most of the processes.
Conclusion
In conclusion, Walmart has used emerging technologies for managing their supply chain,
which is good for their overall revenue and profit. This report has discussed the design of the
supply chain that is the backbone of the whole system. Besides, BI has used for improving
decisions about business processes. Besides external macro factors have affected the
decision-making process of the company as well. A procurement strategy is helpful in the
different things in an organization. Tesco has used this approach to manage their business in
various marketplaces. Moreover, the SCM system has provided benefits to the company that
is helpful in the various operations and production strategies. Finally, Walmart and Tesco are
using proper supply chains for managing their businesses in the market. It is the best
approach to adopt technological innovations, which will provide benefits in short terms as
well as in the future.

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References
Bloomberg, 2019. Walmart Is Testing a Fulfillment Service for Vendors to Match Amazon.
[Online]
Available at: https://www.supplychainbrain.com/articles/30207-walmart-is-testing-a-
fulfillment-service-for-vendors-to-match-amazon
[Accessed 3 January 2020].
Caniëls, M. C. & Bakens, R. J., 2012. The effects of Project Management Information
Systems on decision making in a multi project environment. International journal of project
management, 30(2), pp. 162-175.
CeMAT, 2019. Why Walmart's supply chain is one of the world's best. [Online]
Available at: http://blog.cemat.com.au/walmarts-supply-chain
[Accessed 5 January 2020].
Daniel, D., 2019. supply chain management (SCM). [Online]
Available at: https://searcherp.techtarget.com/definition/supply-chain-management-SCM
[Accessed 10 October 2019].
Enprode, 2019. Supply Chain Management and Procurement. [Online]
Available at: https://www.enprode.com/CAPABILITIES/Supply-Chain-Management-and-
Procurement
[Accessed 30 September 2019].
Fearne, A., Garcia Martinez, M. & Dent, B., 2012. Dimensions of sustainable value chains:
implications for value chain analysis. Supply Chain Management: An International Journal,
17(6), pp. 575-581.
Flashglobal, 2019. Walmart: 3 Keys to Successful Supply Chain Management any Business
Can Follow. [Online]
Available at: https://flashglobal.com/blog/supply-chain-management-walmart/
[Accessed 5 Jaunary 2020].
Gilmore, D., 2018. Supply Chain News: Walmart and Amazon by the Numbers 2018. [Online]