Tesco's Supply Chain Management Practices

Tesco's SCM relied heavily on the concept of 'Process Improvement' and was guided by its core purpose of creating value for customers so as to earn their lifetime loyalty. The key period for Tesco's supply chain initiatives was between 1983 and 1996; during this time, the company introduced several systems including point of sale scanning, centralized ordering, centralized distribution, automated warehouse control and electronic data interchange (EDI). Graham Booth (Booth) was Director, Supply Chain, Tesco between 1985 and 2002. He felt that it was necessary to have replenishment triggered by customers, for which, using the same set of suppliers along with cross dock distribution centers (DC) and vehicles supplying to all store formats would be ideal...

In the East European Markets, Tesco's logistics and supply chain were not well developed and relied heavily on deliveries from suppliers. This was a viable proportion for the large stores but not for the smaller ones.

As Tesco planned to expand smaller stores in Eastern Europe, developments in the supply chain became necessary. In Thailand and Korea automated DCs have been operational. For Tesco to gain an edge over other multinational retailers entering these markets, it was necessary to build viable supply chain solutions...