Essay - What is the Food Supply Chain Strategy of Tesco Superstore...

What is the food supply chain strategy of Tesco Superstore (UK) that has made them so successful?

What ***** the Food Supply Chain Strategy ***** has Made Tesco ***** (UK) So Successful?

Even in today's shaky global economy, consumers will still purc*****e groceries but *****y are buy*****g fewer high-end items and becoming more selective in their choice ***** stores. In this environment, retail grocery stores that have the most efficient operations will likely manage to weather the storm while their competitors fall by the wayside. One such ***** store ***** is *****, whose superstores have become a familiar landmark throughout ***** United Kingdom in recent years. The purpose of the essay is to research and report on the food supply cha***** practices of Tesco with a view to underst*****nding why it has been successful (e.g. ***** chain management, procurement, logistics etc. etc.). The characteristics of the different food products (e.g. milk, frozen meat, tinned tomatoes, corn flakes etc.) and markets will be considered with a view to understanding ***** ***** supply chain ***** ********** configured as is and why it is successful ***** to identify what lessons can be learnt for other retailers concerning the strategy ***** employs ***** achieve *****s current levels of success. To this end, this paper provides a re***** ***** the relevant literature to achieve these goals, following by a summary of the research and recomm*****ations concerning ways in which Tesco could further improve their chains in the conclusion.

Review and Discussion

Recent trends in retail grocery s*****res include the introduction of so-called "*****" (typically between 2,325-4,650 squ***** meters in size) ***** were orig*****ally introduced during ***** mid-1960s and concentrate primarily on grocery *****ing (Bromley & Thom*****, 1993). According to these authors, "Development was most active ***** 1977 and 1990; by the early 1990s, 600 such stores transacted 20 per cent of the British grocery trade [and] a Tesco Su*****store is *****n example" (Bromley & Thomas, pp. 7-8). The company's superstore c*****figurations provide a number ***** advantages for Tesco's supply chain management as well as for the customers it serves ***** the U.K., Asia and ***** United States. As Parnell and Lester emphasize, "Distribution and ***** chain efficiencies enable the retailer to offer exceptionally low prices ***** are difficult for rivals ***** match. Its wide product assortment--especially in superstores where both groceries and general merchandise ***** offered--generates store traffic and supports a one-stop shopping experience for ***** consumer. And, its cost-control-oriented corpor*****te culture, which includes a reli*****nce on low-cost, part-time labor, keeps costs down" (p. 14).

According to the corporation's Web site, Tesco has followed a *****-established and consistent strategy ***** growth that ***** contributed to its success in the United Kingdom. This consistent ***** has been due in large part ***** ***** ***** ability to track ***** trends ***** provide responsive solutions to them, including the addition of financial services, non-food and telecoms ***** its offerings, as well as ***** expansion into overseas markets including Central Europe, *****, and the United States (About Us, 2009).