Tesco Scm
COMPANY OVERVIEW:
As one of the world’s most innovative retailers Tesco operates 2,291 stores globally and employs 296,000 people. As a company they focus on "Creating value for customers, to earn their lifetime loyalty" and strive to "be energetic, be innovative and be the first for the customer". They look to "use their strengths to deliver unbeatable value to their customers
Tesco's SCM Initiatives
Tesco's SCM relied heavily on the concept of 'Process Improvement' and was guided by its core purpose of creating value for customers so as to earn their lifetime loyalty. The key period for Tesco's supply chain initiatives was between 1983 and 1996; during this time, the company introduced several systems including point of sale scanning, centralized ordering, centralized distribution, automated warehouse control and electronic data interchange (EDI). Graham Booth (Booth) was Director, Supply Chain, Tesco between 1985 and 2002. He felt that it was necessary to have replenishment triggered by customers, for which, using the same set of suppliers along with cross dock distribution centers (DC) and vehicles supplying to all store formats would be ideal...
Managing the Supply Chain
As of 2005, Tesco had 2,365 stores across the world, 1,780 of which were in the UK operating on 24.2 million square feet of retail area. In the UK, Tesco operated primarily through four types of stores (Refer Exhibit III for Tesco's store format). The company's international operations were spread in 12 countries across the world. The sheer size of Tesco's operations called for high efficiency in supply chain. Even if the service level was at 99.9%, it still meant six million service failures...
In the East European Markets, Tesco's logistics and supply chain were not well developed and relied heavily on deliveries from suppliers. This was a viable proportion for the large stores but not for the smaller ones.
As Tesco planned to expand smaller stores in Eastern
As one of the world’s most innovative retailers Tesco operates 2,291 stores globally and employs 296,000 people. As a company they focus on "Creating value for customers, to earn their lifetime loyalty" and strive to "be energetic, be innovative and be the first for the customer". They look to "use their strengths to deliver unbeatable value to their customers
Tesco's SCM Initiatives
Tesco's SCM relied heavily on the concept of 'Process Improvement' and was guided by its core purpose of creating value for customers so as to earn their lifetime loyalty. The key period for Tesco's supply chain initiatives was between 1983 and 1996; during this time, the company introduced several systems including point of sale scanning, centralized ordering, centralized distribution, automated warehouse control and electronic data interchange (EDI). Graham Booth (Booth) was Director, Supply Chain, Tesco between 1985 and 2002. He felt that it was necessary to have replenishment triggered by customers, for which, using the same set of suppliers along with cross dock distribution centers (DC) and vehicles supplying to all store formats would be ideal...
Managing the Supply Chain
As of 2005, Tesco had 2,365 stores across the world, 1,780 of which were in the UK operating on 24.2 million square feet of retail area. In the UK, Tesco operated primarily through four types of stores (Refer Exhibit III for Tesco's store format). The company's international operations were spread in 12 countries across the world. The sheer size of Tesco's operations called for high efficiency in supply chain. Even if the service level was at 99.9%, it still meant six million service failures...
In the East European Markets, Tesco's logistics and supply chain were not well developed and relied heavily on deliveries from suppliers. This was a viable proportion for the large stores but not for the smaller ones.
As Tesco planned to expand smaller stores in Eastern