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C A S E 	 S T U D I E S
RETAIL
GROCERY
€	64	BILION
TESCO
IMPROVED	WAREHOUSE	PERFORMANCE	AND	ON-SHELF	AVAILABILITY	AT	CENTRAL	EUROPE	DISTRIBUTION	CENTRES
CUSTOMER
Tesco	PLC	(stylised	as	TESCO)	is	a	British	multinational	grocery	and	general	merchandise	retailer	headquartered	in
Cheshunt,	Hertfordshire,	England,	United	Kingdom.	It	is	the	third	largest	retailer	in	the	world	measured	by	profits	and
second-largest	retailer	in	the	world	measured	by	revenues.	It	has	stores	in	12	countries	across	Asia	and	Europe	and	is	the
grocery	market	leader	in	the	UK	(where	it	has	a	market	share	of	around	28.4%),	Ireland,	Hungary,	Malaysia,	and	Thailand.
"	The	existing	approach	was	frustrating	for	suppliers	and	their
carriers	as	booking	or	rearranging	a	delivery	time	slot	was	a	time
consuming	manual	process.	Our	existing	system	didn’t	support	our
suppliers	or	make	them	feel	like	partners	in	our	operations.	"
Jim	Dickson,	Supply	Chain	Development	Manager	
TESCO	Central	Europe
CHALLENGES
Goods	receiving	process	at	retail	warehouses	and	DC’s	in	Central	Europe	were	managed	by	basic	spreadsheet-based	tools
No	central	system,	several	country	specific	solutions	with	a	complicated	approach	for	suppliers	and	their	carriers:
Poor	visibility	for	carriers	on	the	length	of	time	trucks	would	need	to	wait	for	unloading	at	the	DC
Hard	for	carriers	to	plan	additional	deliveries	or	optimise	truck	utilisation
Difficult	to	manage	capacity	plan	due	to	the	existing		approach
Movement	of	operations	from	a	country	specific	to	a	central		management	structure
Due	to	fixed	delivery	slots,	it	was	hard	for	TESCO	to	allocate	warehouse	personnel	efficiently:
Suppliers/Carriers	could	not	always	meet	the	fixed	delivery	slots	they	were	given.
Around	40	percent	of	trucks	arrived	on	site	before	the	scheduled	time	in	the	hope	of	catching	an	earlier	slot.
Existing	approach	was	not	able	to	support	promotion-driven,	sudden	peaks	in	demand:
Suppliers	often	found	it	hard	to	get	the	slots	they	needed	to	deliver	extra	goods	at	short	notice.
SOLUTION
Since	2014	TESCO	has	been	managing	the	inbound	goods	processes	at	its	distribution	centres	using	the	slot
management	of	MERCAREON.	This	allows	clear,	accurate	and	trustworthy	information.	Carriers	are	much	more	likely	to
comply	with	the	scheduled	time-slot.	The	improved	internal	operations’	planning	makes	it	easier	for	the	retailer	to	ensure
that	warehouse	personnel	are	available	to	unload	trucks	as	they	arrive.
RESULTS
INTEGRATION
Simple,	straightforward	integration
with	existing	systems
SIMPLIFYING	PROCESSES
User-friendly	for	suppliers	and	their
carriers:	log	onto	the	system	(24/7),
enter	relevant	PO	number	and	book
preferred	delivery	slot	from	those
available
CARRIER	SATISFACTION
Carriers	know	exactly	how	long	the
truck	is	going	to	be	on	site	(helps	to
plan	further	deliveries)	due	to
dynamical	adjustment	of	delivery
slot	according	to	the	size	of	the
order.
SIMPLIFICATION	OF	RELATIONS
Simplified	relationships:	one	point
of	contact	between	supply	chain
teams	and	bigger	suppliers	for	the
whole	region.	Help	for	suppliers	to
improve	their	day-to-day	delivery
performance.
Transporeon	GmbH
Stadtregal	/	Magirus-Deutz-Str.	16
DE	-	89077	Ulm
information@transporeon.com

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