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Re Evaluating Tesco Beef Supply Chain

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Submitted By mtoto
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Introduction
Strategic Supply Chain Management At Tesco Commerce Essay
Tesco plc is a UK multinational with diversified retail operations in 14 countries in Europe, America and Asia. Tesco is the 3rd largest retailer in the world with £ 62.5 billion sales in 2009, having 4811 stores worldwide and 472000 employees. The core business is grocery items and main market is UK with c70 % of total annual sales. Tesco offers more than 70000 food and non food products and services by using different store formats as shown below in the diagram.
The diagram shows different type of store formats and product and services offered by each format. The above complex structure makes supply chain operations even more complex to manage. This paper attempts to explore how the complex supply chain is managed at Tesco and looks at different supply chain practices implemented by Tesco. The paper discusses the supply integration practices adopted in the industry and looks at Tesco’s approach towards integrating the supply chain. Finally, the paper suggests some recommendation for improving Tesco supply chain.
2 Tesco Supply Chain Analysis
Supply chain has been defined by many authors in different ways; in the context of Tesco’s supply chain the definition given by Stevens is most appropriate: “A system whose constituent parts include material suppliers, production facilities, distribution services and customer linked together via a feed forward of materials and the feedback of information”(Stevens, 1989). Tesco uses point of sales, club card information to replace material with information and hence is able to offer cheap products at a very fast speed. A typical supply chain involves customers, operations and suppliers. Tesco supply chain is analyzed by using a model developed by Evans and Danks (1998) which adds supply chain integration as the fourth dimension.
2.1 Customer Service

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