Tesco

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Case Length : 19 Pages

Period : 2000-05

Organization : Tesco

Pub Date : 2006

Teaching Note : Not Available

Countries : UK

Industry : Retail

Tesco's Supply Chain Management Practices

Abstract: This case discusses the best practices in supply chain management of UK based retailer - Tesco. Effective supply chain management can be termed as one of the factors that helped Tesco emerges as a market leader in the retailing industry in the UK. Tesco introduced lean management solutions into its supply chain successfully. It adopted path breaking techniques and systems like point of sales data, primary distribution, continuous replenishment and adopted RFID technology to make its supply chain more efficient.

Issues:

» Analyze the SCM initiatives adopted by Tesco

» Understand the role of SCM in retail industry

» Evaluate the importance of using new technologies like RFID in supply chain

Keywords: Tesco, Supply Chain Management, RFID Technology, Lean Management, Primary Distribution, Point of Sales Data, Continuous Replenishment, Cross Docking, Step Change Program, Procurement, Radio Barcodes, Inventory Management, Store Format, RFID Enabled Supply Chain

Customer focus and commitment to value has propelled Tesco into a leadership position developing a dynamic 'virtuous circle' comprising scale, efficiency and innovation within the supply chain."- Stuart Ross, Director, Supply Chain & Distribution, Tesco, 2005.

"Tesco, the UK-based grocer, is an example of a success story. They have learned how to go beyond Wal-Mart. They came to Dan Jones ten years ago and asked, "How would Toyota run a grocery business?" And they've been working hard to become the Toyota of the grocery business ever since."- James Womack, Co-Author, The Machine that Changed the World, and Lean Thinking, 2005....