Supply Chain Management : Tesco And Safeway

Supply Chain Management: An International Journal, Volume 7, Number 5, 2002, pp. 271 – 282;

Success for many organizations depends on the firm’s ability to balance product and process changes while exceeding customer expectations for improved cost delivery and quality. In lieu of these issues firms have started to implement principles of supply chain management. Supply chain management mainly involves managing the flow of incoming materials, manufacturing operations, and downstream distribution has to be in alignment that is responsive to change in customer demands eliminating a surplus of inventory.

The supply chain management is considered as a management concept from past two decades as the customers are concerned about timely and safe delivery. The competitiveness has been increasing among the companies to deliver the products as quickly as possible to the customers all around the world. This has made the supply chain management as a vital tool for the management. This is also measured as a competitive parameter for the companies.

Supply chains manage the movement of products from the acquisition of raw materials through production and finally distribution to the end user. A properly designed supply chain can create many opportunities to drive down cost and increase revenue opportunities. In order to create a supply chain that is sustainable and flexible it is necessary to identify and align company goals and initiatives with the manufacturing and distribution of products.

Supply chain management is a practice that involves the planning, supervision, and implementation of strategies and controls to direct the movement of goods and services provided to customers. The intent of this essay is to incorporate a synopsis of existing literature and to provide the reader with a general understanding of how supply chain management correlates with the organizational design and structure of modern firms. The essay comprehensively reviews the components of supply chain management and their integration with functional areas within an organization. The information presented in this essay

A Customized Textbook, Supply Chain Management SCHM2301, ISBN9781308037400 Copies are on reserve in the library

Kroger and Safeway belong to the supermarket industry. In the supermarket industry, the business environment is quite competitive. Besides the traditional grocers, there are now many different types of retailers all fighting to obtain a share of the food wallet. Customers have a huge selection of where to buy their groceries. Not only do the customers have the choice to pick supermarkets around the neighborhood, they also have the option to shop at alternative retailers, such as national discount chains and warehouse stores. From an operating perspective, supermarkets are a homogenous group, meaning similar to each other. Factors that contribute to the differences among the supermarket are geography and store formats. The supermarket industry is faced with the challenges of maintaining market share and profits while attempting new strategies and store formats in an effort of trying to make the store stand out from the other retailers. Major demographic and consumer lifestyle changes have affected not only how consumers shop but also where they shop. Traditional supermarkets have been in a decline since shoppers now spend less and how frequently they shop in a particular store. While some supermarket operators continue to attempt to cut costs so they can offer reduced everyday prices, they find this to be a tough approach when competing with low cost operators like Wal-Mart and Costco.

Over the past ten years, the internet has drastically changed how consumers shop. Tesco now allows consumers to place orders online and to have those items delivered right to their front door. Self-checkout points have now given

In addition to its low direct costs linked with economic transactions. Also the company has reduced its agency costs, therefore being efficient. Tesco is also known for its high degree of Complementarities; however the Internet has helped the company to use its distribution channel through internet for only a partial range of goods and products, that are able to be stored, processed and transmitted in a digital format. Add that the Internet can provided the company with exchange of information for goods and to track the deliveries and most important is providing in-line customer services. Therefore reducing the costs and increasing the speed and the quality of data transfer. To conclude, in a way to be able to deliver products to its clients, each company should benefit from the interned but also build a complementary physical logistics system. Tesco also is using the Lock-in strategy: “Stay safe online policy” that protects its users by giving them tips and commands to use. We can take the example of “Keeping a watchful eye” which lowers the threat of fraud by providing an amount of complicated tools through the suspicious activity on the account of each user. Many actions taken by the company aimed to have loyal customers that are able to rely on Tesco’s services and depend on it due to its precision and honesty information. And

Q1) In today’s business environment, no enterprise can expect to build a successful product, process, or service advantage without affiliating their strategies with those of the supply chain system in which they are heavily linked. The literature examined for the purpose of this essay identifies the many different definitions of Supply Chain Management and the overall effectiveness of supply chain management to a business in the twenty first century. This essay also highlights whether supply chain management is a passing fad or a fundamental change.

Supply Chain is a system of organizations, people, activities, information and resources related to the transfer of products or services from suppliers (supply chains) to customers. Supply chain operations involve converting natural resources, raw materials and components into a finished product to be delivered to the end customer. In complex supply chain systems, the products used can re-enter the supply chain at any point where the residual value can be recycled. Supply chain links the value chain. Supply chain management includes all planning and management related to supply, procurement, conversion, and logistics management activities. Equally important is that it also involves coordination with partner channels such as vendors, intermediaries, third-party service providers, and customers. Essentially, supply chain management integrates supply and demand management within and outside the company. Supply chain management is an integrated function with the primary responsibility for connecting the core business functions and business processes within companies into a high-performance and engagement business model. It covers all of the logistics management activities outlined above, as well as manufacturing activities, and it promotes collaborative processes and activities with marketing, sales,

Supply chain is the logistic network among suppliers, manufacturing centers, warehouses, distribution centers, retail and customers. It is about the flow and inventory of raw materials, manufactured goods and fished goods. The core logistics supply chain management is to satisfy customer needs. In order to meet requirements it is necessary to minimize enterprises operating cost. It can make enterprises more competitive, and is the key point of success supply chain management. However due to the supply chain simultaneously connect suppliers, manufacturers, distributors and even customers, is a complex network, each link have hidden many risks, is easily affect the supply chain companies. Therefore, the use of the necessary control measures to ensure the smooth operation of the supply chain become preconditions to earn profit.

Fundamental to any business organisation is the need to have an effective supply chain strategy (Aronsson, Hakan & Maria, 2006). This is achieved mainly by how an organisation can develop and implement its supply chain strategy. Development and implementation of these strategies may differ from one institution to another, but the general idea is the same across all organisations (Brewer, & Thomas, 2001). This article, therefore, shows the general importance of supply chain strategy to any organisation.

This report aims to illustrate the ways in which grocery retailer, TESCO PLC, utilizes Supply Chain Management (SCM) and logistics processes in order to enhance customer value; and to identify other models of good business or management practice evident in the company’s performance and which appear to contribute to a competitive advantage.

The supply chain is one of the primary ways in which an organization adds value to the consumer. Value is gained through this process in several ways. It can come from design, quality, price, or efficiency. Furthermore, supply chains can be optimized for tactical considerations such as turnover rates or economic, strategic decisions such as location or product life cycle management, or even strategic factors such as creating long term partnership or maintaining sustainable practices. Through any combination of these factors, an organization can create a competitive advantage in regards to its operating environment. Thus the supply chain can be one of the most complex aspects to running an effective organization. This analysis will provide an overview and conduct a brief literature review that will highlight some of the factors that MedCom will have to consider to create a competitive advantage in operations management.