Tesco : Retail & Logistics Mgt

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The business world nowadays is very different from the past. It is fast changing, challenging and full of opportunities. In order to sustain the business, the companies need to minimize costs, maximize profits and make the business environmentally sustainable. The management of the organization achieve these goals through supply chain management has recently focused (Fawcett, et al., 2007). Tesco is one of the World’s leading retailer with operations in United Kingdom, Korea, Poland, Czech Republic and Slovakia, Hungary, Malaysia, Japan, China and the United States. She became increasingly significant on the international stage. The supply chain transformation has underpinned to this retail success story. Tesco adopted a common…show more content…
Firstly, map of the traditional value stream. Secondly, value stream flow was designed. Finally, Tesco turn up from flow principle and began to look at synchronization and aspects of lean manufacturing and supply (Fernie & Sparks, 2009). “Tesco moved to a lean supply system using the flow system multiple daily orders were send to suppliers allowing for multiple deliveries, reducing stock holding through cross-docking and varying availabilities and quality (Fernie and Sparks 2009, pg., 155). Tesco initialed to change the supply chain pattern to fit in various countries. The success infrastructure and the processes of supply chain were embedded in new enter countries. For example, Hungary, Ireland, Korea, Poland and Czech Republic, major RDC was built in these countries. The composite model had been effectively implemented, even with the same logistics service partners (Child, 2002). However, in some occasion, Tesco needed to rethink the supply system and adopting advanced information technology as the springboard to step forward. For example, Oracle Retail Warehouse Management System was deployed in Korea in 2004. Successful implementations transplanted to other countries. (Oracle Corporation, 2012) Similarly, Micro Focus was selected to upgrade the supply chain management systems (Continuous Replenishment Application) to create a common model across all countries and support to move into US market in 2007 (Micro Focus, 2011). Summarizing

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