Exploring Tescos Supply Chain Management - Case Study Example

The paper "Exploring Tesco’s Supply Chain Management" is a good example of a management case study. This particular essay article explores Tesco’s supply chain management. The paper discusses the issue from two perspectives. The first perspective covers operation management where three factors; operation design, strategy and management are discussed. From the second perspective, improvements that Tesco introduced in their supply chain are discussed. Before the paper discusses the above-mentioned factors, an overview of the Tesco supermarket chain and the overall supermarket industry in the UK is discussed. Other important factors such as procurement and reputation from the Horsemeat scandal are also highlighted in the paper. After an analysis of all factors, the paper makes a comprehensive conclusion that also gives recommendations to how the company can sustain its current supply chain for future development.

• An Overview of Tesco PLC

This a British multinational company that specializes in grocery and as a retailer in general merchandise. It is headquartered in Cheshunt, United Kingdom. According to the latest recent statistics, it is the largest retailer in the world by profit margins and the second-largest based on revenues. Worldwide, Tesco has retail stores distributed across 12 countries in Asia and Europe. In the United Kingdom, it is the leading retail store with an estimated market share of 29.7 percent. Some of the Asian countries where the retail shop is found include Thailand and Malaysia. Tesco was established in 1919 by Jack Cohen where it started operating as a group of stalls in the market area (Zhao, 2014, p. 184). In 1924, Tesco acquired its name after the founder combined the last initials of his name to form the name. In 1939, Tesco had opened approximately 100 stores across the UK. Till 1990, Tesco had only majored in the retail of grocery. But during this particular period, the company diversified into various commodities which included; electronics, clothing, furniture, stationery and software. Tesco not only diversified into other goods but also began offering services such as internet and financial services. Tesco recorded tremendous growth from the 90s to its current non-reputable position. It is stated that the company expanded from 500 stores in the mid-90s to its current status where it has over 2500 number of stores worldwide. To put an icing on the cake, Tesco is listed on the London Stock Exchange with a larger margin of market capitalization.

With this particular overview, there is a clear reason why most scholars want to study Tesco’s supply chain management. Due to its tremendous growth and expansion over the last 15 years, it is a direct indicator of how its supply chain is operating (Morris, 2004, p. 4). For a retail business, its backbone is the supply chain. This specific article, therefore, seeks to address specific strengths that are exhibited by the supply chain of Tesco. Factors to be addressed in the analysis include the management of inventory to avoid any wastage through the process. Customer feedback has proven to very important in operating retail businesses. This factor will also be analyzed to determine the effect of their feedback on the success of the supply chain. Other elements of the supply chain that will be scrutinized include production, location, supply and transportation. When all these factors are ensured and followed strongly, the success of the supply chain becomes a surety (Dey, LaGuardia & Srinivasan, 2011, p. 1239). In a nutshell, Tesco’s strong supply chain management team ensures that the giant retailer achieves a smooth flow of goods to their customers and from their suppliers (Sparks, 2010, p. 4).