Logistic Operation

Topics: Supply chain management, Logistics, Supply chain Pages: 12 (3192 words) Published: March 11, 2013
Logistics Operation

Executive Summary3

Company profiles:3

Tesco Plc:3


Analysis of logistic operations of TESCO:4

Logistics in practice:4

Logistics replenishment policy:5

Transportation model for national and global operations:6

Analysis of logistics of operation of SAINSBURY:7

Logistics practices:7

Logistics replenishment policy:8

Transportation model for national and global operations:8

Comparative analysis of the two companies:9

Recommendations to TESCO and SAINSBURY:10


Report on “Comparative analysis of logistic operations- TESCO and SAINSBURY”

Executive Summary

In the current challenging industry, any organization strives for supplying the finalized products and goods to the consumer prior to they tend towards the rivalry products. Retailing is an important segment of financial activities of both developing and developed national economies along with retailing and valued aided and wholesaling. Logistics is the significant function in any organization which plays responsible role in each and every aspect of movement as well as material storage over their journey from dealers to end customers. Major operations include in logistics of an organization are inventory management, transportation policies and emerging of IT systems.

In the light of above, the following report is intended to perform the critical evaluation of two companies in retailing industry and comparison between them. For this evaluation, Tesco and Sainsbury which are the two leading players across the UK retailing market are selected. As a part, various operations adopted by these two companies and its contribution towards the business productivity and sales are discussed. Subsequently, replenishment policies and transportation mode strategies are also described in detailed. Finally, in these aspects comparative analysis is performed between Tesco and Sainsbury and based on identified challenges faced by them, proper recommendations are presented.

Company profiles:

Tesco Plc:

TESCO PLC is one of the leading retailers across the globe. This company mainly deals with the retailing business and its related activities in UK, the Czech Republic, Malaysia, Poland, Slovakia, South Korea, United States, India, Hungary, China etc. it also offers various other services such as insurance services through its subsidiary, retail banking, and retaining services which offer in store that include phone shop or customer restaurant, optician, pharmacy etc. presently, it maintains over 180 opticians. This company stores and distribution networks provides the opportunities for customers to choose the products whenever it suits them from more than 770 stores, close to where they live. Currently, it maintains the 45 stores that provide the offer of grocery Click & Collect. In the year 2011, this company acquired 77 stores of Mills Group in UK. In the year 2012, this company obtained Mobcast.


Sainsbury PLC is one of the major grocery and retailing related firms. This firm is administered three kinds of business segments such as financial services, retailing and property investments. From March 17, 2012, this firm operated over 10,000 stores including 440 convenience stores and 572 supermarkets. By this Company, some investment properties held which includes joint ventures with The British Land Company PLC and Land Securities Group PLC. This firm includes click and collect services which enables the consumers to place common products orders via online through 2pm for compilation the next day from over 900 stores. The general merchandise website of this firm provides more than 6,000 own brands and branded products. In the year 2011, this firm obtained two companies such as Global Media Vault Limited and online entertainment company.

Analysis of logistic operations of TESCO:

Logistics in practice:...

References: 1. Amanda Bremnar and Amelie chazal. 2012. Sainsbury: identify a wholesale or retail organization to study that uses 3PL contract logistics, available at: http://www.slideshare.net/AmlieChzl/presentation-sainsburys
3. Clarke, P. 2002. Distribution in Tesco, Presentation for Tesco UK Operations Day 2002 [online] available from www.tesco.com/corporateinfo/ (12 Jan 2010)
5. Deborah Bates. 2010. More efficient logistics boost profit for Sainsburys, available at: http://www.driverhire.co.uk/News/Industry-News/Industry-News/Archived/More-efficient-logistics-boost-profit-for-Sainsburys/
7. Gustafsson K, Jonson G, Smith DandSparks L. 2006. Retailing Logistics & Fresh Food Packaging: Managing Change in the Supply Chain, London: Kogan Page
9. King, J. 2000. B2B exchanges Tighten Buyer seller Data Links, Computer world, Vol. 34 (10), pp. 42 March 2000.
10. Latika Supasansanee and Patthaveekarn Kasiphongphaisan. 2009. Master Thesis Logistics Management in Retail Industry, Jonkoping international business school.
11. Liam O 'Brien. 2004. Digital disaster: supply management, available at: http://www.supplymanagement.com/analysis/features/2004/digital-disaster/
13. Mishra R K. 2004. Role of Information Technology in Supply Chain Management, Sambhalpur University [online] available at: http://www.indianmba.com/Faculty_ Column/FC461/ fc461.html [16 Jan 2010]
15. Smith, W B. 2000. Outsourcing supply chain information technology, Logistics Spectrum Jan-Mar pp. 14-22.
16. Tesco PLC. 2009. Preliminary Results 2008/09, Additional Information [online] available from http://www.tescoplc.com/plc/ir/pres_results/analyst_packs/ap2009/ prelim09/prelim09.pdf [14 Jan 2010]
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