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Tesco supply chain
- 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
- 13. MUDA ,MURA,MURI
- 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.