Tesco

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General info about Tesco

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Tesco

  1. 1. Tesco has 5,380 stores in 14 countries across Asia, Europe and North America and is thegrocery market leader in the UK (where it has a market share of around 30%), Malaysia, the Republic of Ireland and Thailand
  2. 2. International operations
  3. 3. Tesco entered Turkey in 2003 and uses the trading name "Kipa". Tesco remains focused on building infrastructure in Turkey to complete its expansion plans and has already introduced the Tesco Express format into Turkey. There are plans to increase therate of expansion as basic infrastructure is built. The first Tesco Extra in Turkey opened in Izmir, Turkey, Tesco Kipa Extra Balçova in September 2010
  4. 4. Some local suppliers of TescoCARRIGALINE FARMHOUSE CHEESE LTD. CONNOLLY MEATS LTD. THE COUNTRY COOKING COMPANY IN FOR LUNCH LOVELY LEE EGGS WILD ORCHARD
  5. 5. Working with suppliersTesco value long-term relationships and have more than 1,500 suppliers with whom we have been working for five years or more. *They committed to sharing customer views withsuppliers as well as listening to suppliers to understand their perspective.For example, during 2007 we developed a system in theUK called TescoLink through which suppliers can access data such as store level sales of their products.
  6. 6. * They have regular dialogue with their suppliers and try to develop confident and honestrelationships so that concerns can be resolved and they can work together effectively. * They also use formal processes to understand suppliers views and identify how we can work together better.
  7. 7. Supplier Viewpoint Tesco carry out an anonymous survey, calledViewpoint, to understand what suppliers think of us and identify areas for improvement across the business. For example, They used Viewpoint to survey 200 suppliers in South Korea in 2007. Theyranked us first of their three leading customers and said we were strong on fairness in work processes, communications, information sharing and trust in trading. Tesco identified areas of improvement, which are reflected in our 2008 Community Plan projects.
  8. 8. As you know Tesco is a global company so they have many stores at many countries this mean they have to have good relationship with thiscountries goverments and other agencies such as health agency,tax departments etc..
  9. 9. Tesco: Network Re-design for Sustainable Growth A new warehouse network As part of an ongoing network optimisation programme in the UK, Tesco has made significant infrastructural changes over the last few years, involving a number of new warehouse openings, site closures, and management transfers. Tesco moved out of the Crick regional distribution centre and the Wincanton-operated Middleton 1 depot to take on more network capacity at a new compositedistribution centre at Livingston and a new purpose-built RDC at Lichfield. Tesco has also opened up a new national distribution centre at Goole for slow-moving grocery and general merchandise non-food lines.
  10. 10. Delivering an integrated transport solutionWithin the transport network, there has been clear focus on driving efficiencies by developing theprimary consolidation network, whilst the trucking stations continue to play a key role in allowingdepots to concentrate on their own store pick and delivery operations. This set-up naturally allows for better productgrouping, so that products arrive together into store on one dedicated delivery.
  11. 11. Tescos Environmental Targets On the environmental agenda, some of Tescos challenging targets include: **Tesco’s own distribution fleet aims to reduce emissions per case by 50% by 2012*Tesco is a signatory of the Carbon Trust and is now involved in a trial to measure its carbon footprint across five major foodcategories covering tomatoes, potatoes, orange juice, light bulbs and washing detergents. *Tesco has a commitment to reduce packaging by 25% on bothbranded and non-branded products over the next 3 years. In order to track progress against its commitment, Tesco has rolled out a packaging scorecard to suppliers.
  12. 12. Technology solutions to drive service •New technology developments help Tesco to achieve itsefficiency goals and has included the first phase in the roll out of Advanced Shipment Notifications (ASN’s) across the supply chain and pallet-level RFID trials between distribution centres and stores in Northern Ireland. *Tesco Link has become the primary IT system for thesharing of supply chain information and the development of collaborative supplier relationships, providing Tesco suppliers with EPoS data, in-store and warehouse availability levels and service level performance information.
  13. 13. The scale of the challengeMoving up to two billion cases of product, the Tesco distribution network holds over 76,000 SKUs and 95% of volumes are delivered via centralised distribution. Re-designing the supply chain infrastructure toensure sustainable future growth is a key challenge with 29 warehouses and over 2,000 vehiclestravelling 659 million kilometres across the primary and secondary transport operations.
  14. 14. Specific characters of network ( Commercial ) *İts very hard to control *Many several companies *Complicated realations
  15. 15. Impacts of Changes Tesco can survival depends on the local per capita income level and consumers market situation. In general when a regions per capita income levelbetween $500 -1000,supermarket industry will enter the local market.
  16. 16. * The situation of local industries developmentwill affect Tesco.Because Tesco has a widely range operate,so if various industries in the region are underdeveloped, they can not purchase locallyand have to transfer goods from further afield orestablish a local distribution center,it will increase the cost of delivery of goods* The local transport facilities and the level of per capita car possession.it is very important for Tesco’s turnover,Because like Tesco this kind of supermarket they always settle suburban areas.
  17. 17. Management of network and individual relationships Tesco should be trusted to their consumers,and try their best to meet consumers needs. They give commitment, such as applying the safe food, reasonable price and comfortable serviceand so on. If they reach their commitment in the long term, it will be turned into the trust. Trust which develops through social interactionbetween individuals is more important. They will get more and more clients. Certainly it will be highly profitable.

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