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1. Describe the key logistics processes and supply

chain functions used to create value for Tesco's global
supply
chain (10 marks).
2. Differentiate between Tesco's logistics and
marketing channels and the important role in managing their
vast
profuct range and customer base (10 marks).
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1. Describe the key

logistics processes and supply chain functions used to create value
for Tesco's global
supply chain (10 marks).
 Tesco supply chain has proven excellence due to their focus on
these three objectives:

1. Increasing the availability for their customers

2. Ensuring fresh and clean food along with reduced waste

3. And improving the overall efficiency by building a stable

business while also maintaining a partnership
with the
suppliers

So, the hey logistics process which they use to meet the above
objectives are:

1. Regional distribution centre: They have established composite

distribution centre from where they
manage the supplies of varying
temperature ranges. From there, they ensure daily delivery service
to all
their stores nearby.

2. EPOS System: They have established electronic point of sale

system in which whenever a sale of any
product occurs at the store
then it gets updated in the Tesco information system and this helps
Tesco to
maintain the availability of all the SKUs at the store
level and so, the store doesn't need to reorder but the
Tesco
itself manages their inventory.

3. Pick to Zero: In their distribution centre, for the

fast-moving products, they work on the philosophy of
maintaining
minimum inventory at the distribution and maintaining the stock at
their trunking station. So
the delivery of the product is divided
into four parts and depending upon their shelf life and cost,
specific
products are delivered in different cycles throughout the
day. This let Tesco to use the same space in their
distribution
centre multiple times.

2. Differentiate between
Tesco's logistics and marketing channels and the important role in
managing
their vast profuct range and customer base (10
marks).

Purpose of Marketing channel is to find new market and customer

base which itself is a challenging task
and matter of rejoice when
you get new business.

But more important is managing operation of a business and

fulfilling customer requirement on time. In
current business it is
is often it is dependent on multiple vendor, sub contracter,
channel partners etc. The
layers from manufacturing product to
retail is multiple. And each of these layers on time delivery and
quality is of great concern in estimating finished product,
shipment and distribution, and retailing and
keeping optimize
inventory.

Now specific to Tesco where the product base itself is huge.

Different product has different product life
cycle. On the other
hand different product has different customer segment and
volume.

Apart from these Tesco had thousand of store, warehouse and

regional distribution center. It is impossible
to run the show
without technology support, like inventory management, and logistic
managment.

Other aspect is to efficiently pass the change information as

early as possible to depth of the business
chain. Without latest
technology and access of information to all layers if they are not
directly contracted is
important to track the progress and inform
estimation of future.

Different product have different selling cycle. So product

should be ready in stock as soon as the demand
starts. Over stock
is also not intended which consumes warehouse rental and may impact
losses due to
unexpected slow demand.

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Questions viewed by other students

Q: describe the key logistics processes and supply chain

functions used to create value for Tesco's global supply chail
differentiate between Tesco's logistics and marketing
channels and the important role in managing their vast product
 range and customer base

A: See answer

Q: Que/ What do you think are the main logistics challenges in running
the Tesco operation?

A: See answer

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