about supply chain management on TESCO

1. OPERATIONS
MANAGEMENT
BALAJI S
CEG,ANNA UNIVERSITY

3. TESCO
• BRITISH MULTINATIONAL GROCERY AND GENERAL MERCHANDISE
FOUNDED IN 1919 BY JACK COHEN.
• OPENED ITS 1st STORE IN 1929.
• 3rd LARGEST RETAILER IN THE WORLD MEASURED BY PROFITS NEXT
TO WALLMART.
• 2nd LARGEST BY REVENUE.
• IT HAS STORES IN 12 COUNTRIES ACROSS ASIA AND EUROPE.

4. TESCO
• FOUNDER : JACK COHEN
• CAPITAL :WELWYN GARDEN CITY,UK
• CEO :DAVE LEWIS
• NO.OF LOCATIONS :6,814
• PRODUCTS :SUPERMARKET
HYPERMARKET
SUPERSTORES

5. TESCO
VISION:
DEDICATED TO DELIVER FRESH AND QUALITY GROCERIES AT
LOWEST PRICE
MISSION:
OFFER CUSTOMERS A WHOLE NEW SHOPPING EXPERIENCE
FOR A QUALITY PRODUCTS

6. FIELDS OF TESCO
• BANKING
• TELECOM AND INTERNET SERVICES
• FILM MAKING
• PETROL
• SOFTWARES
• PHONE SHOPS
• CAFES AND RESTAURANT
• YOUR BEAUTY SALOON

7. INTERNATIONAL OPERATIONS
BUSINESS EXPANSION IN OTHER COUNTRIES BY JOINT VENTURES
WITH LOCAL PARTNERS.TESCO HAS THEIR OPERATIONS IN
CHINA JAPAN
INDIA PAKISTAN
MALAYSIA USA
TURKEY THAILAND
TAIWAN SOUTH KOREA
POLAND FRANCE

8. SHARE VALUE AMONG COMPETITORS
• TESCO 30.6%
• ASDA 16.6%
• SAINSBURY’S 16.3%
• MORRISON’S 11.1%
• SOMMERFIELD 5.4%
• WAITROSE 3.7%
• ICELAND 1.85

9. Sales

10. SUPPLY CHAIN MANAGEMENT
INITIATIVES
• POINT OF SALE SCANNING
• CENTRALISED ORDERING AND DISTRIBUTION
• AUTOMATED WAREHOUSE COUNTROL
• ELECTRONIC DATA INTERCHANGE

11. SUPPLY CHAIN PRACTICES IN TESCO
ADOPTED PRINCIPLE OF TOYOTA PRODUCTION SYSTEM
JUST IN TIME
JIDOHKA
MUDA,MURA,MURI (JAPANESE TERM) FOR WASTE ELIMINATION

12. TOYOTA PRODUCTION SYSTEM

13. MUDA ,MURA,MURI

14. SUPPLY CHAIN ANALYSIS

15. CREATING AND CAPTURING VALUES IN
SUPPLY CHAIN
• TESCO DID NOT HAVE TO CHANGE ITS SUPPLY CHAIN DUE TO ITS NEW
STRATEGY BUT MORE OF EXPANDING ITS CAPACITY AND
WORKFORCE.
• BECAUSE COMPANY ALREADY HAD ONLINE CHANNEL FOR FOOD,ITS
WAS NOT DIFFICULT FOR NON FOOD PRODUCTS.
• TESCO DEFINED CUSTOMER NEEDS AND EXPANDED THE RANGE OF
PRODUCTS.
• THE NEW EXPANSION OF PRODUCT LINE IMPROVED THE SUPPLY
CHAIN WITHOUT MAKING DRASTICAL CHANGE.

16. SOURCING IN TESCO
• NATIONAL BUYING TEAM,
• REGIONAL BUYING TEAM,
• ROLES:NEGOTIATING,PLACING ORDERS AND CHECKING QUALITY OF
PRODUCTS,
• SMALLER HUBS IN ASIA AND AFRICE,
• PROCURED RANGE OF NON FOOD ITEMS FROM CHINA.

17. LOGISTICS AND WAREHOUSES
• TESCO HAS 24 DISTRIBUTION CENTRES IN UK AND OTHER PLACES.

18. CROSS DOCKING IN TESCO
• MATERIALS ARE MOVED DIRECTLY FROM RECEIVING TO SHIPPING
AND ARE NOT PLACED IN STORAGE IN WAREHOUSE.

19. CONTINUOUS REPLENISHMENT
SUPPLIERS DELIVERY STORES POINT OF
SALE
SALES RACKS

20. KEY SUCCESS FACTOR FOR TESCO
• INCREASE IN INTERNAL DEMAND
• GOVERNMENT SUPPORT
• REGULATORY POLICIES TO PROMOTE HEALTHY COMPETITION
ENVIRONMENT
• HIGH BARGAINING POWER OVER CUSTOMER AND SUPPLIER
• CHANGES IN SOCIAL FORCES
• GOOD INFRASTRUCTURE FOR ONLINE
• GOOD SUPPLY CHAIN MANAGEMENT

21. CONCLUSION
• SUPPLY CHAIN MANAGEMENT IN TESCO IS AN LONG TERM GOAL.
• IT IS IMPORTANT FOR TESCO TO HAVE AN OPERATION STRATEY
BECAUSE IT ESTABLISHES THE TYPE OF GOODS AND SERVICES THE
COMPANY WILL OFFER ITS TARGET MARKET AND TESCO HOW GOING
TO GET ADVANTAGE OVER ITS COMPETITORS.
• TESCO MADE GOOD PLANNING AND CONTROL OVER ITS CAPACITY
,SUPPLY CHAIN AND QUALITY.

22. THANKYOU
BALAJIS
CEG,ANNAUNIVERSITY