Supply Chain Management Increasingly Positioned Essay

Pages: 8 (2519 words)  ·  Bibliography Sources: 10  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business

, 2012). Its financial evolution in the past years is important in the context of the internationalised economic crisis. Specifically, as players in the business community were downsizing, reducing their operations or even going bankrupt, Tesco continued to develop its operations and consolidate its leadership position.

The success of the British retailer is based on a wide array of elements, revolving mostly around a powerful managerial and business model. As part of this model, one should also pin point to the strategies implemented in regard to Supply Chain Management.

Tesco's Supply Chain is a separate construction, wholly owned and operated by the firm. In other words, the company has its own distribution system and network, and the risks posed from the existence of other players in the supply chain are decreased. Throughout their entire Supply Chain Management processes, Tesco follows the objective of maximising the efficiency of its operations, as well as serving the needs and wants of their global consumers. These objectives in turn help the company create more value, become more competitive and overcome its own limitations. At a more detailed level, the means in which the Supply Chain Management attains these objectives include, among others, the following:

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Tesco uses Supply Chain Management operations to operate more warehouses, which are placed in strategic locations that best serve the globe wide stores of the company. By operating its own warehouses, Tesco is not dependent on other providers of logistics services and it can ensure the continuous provision of its stores with the necessary products.

Aside from the physical warehouses, Tesco Plc. is also creating its dotcom warehouses and is expanding its network of such warehouses. Recently, the firm has received the approval to create its fifth dotcom warehouse in Crawley, West Sussex (Supply Chain Analysis, 2012).

Essay on Supply Chain Management Increasingly Positioned Assignment

The company uses its supply chain system to reduce waste in the products. The food products are the most sensitive ones, and the most perishable ones. Their rapid rate of decay -- especially in fresh produce -- causes financial losses for the firm, but also customer dissatisfaction and complexities along the supply chain, due to the need to dispose of the items and replace them. In order to address this issue, the company is developing new packages that help better conserve the products and keep them fresh for increased periods of time. The measure positively impacts the company and the customers.

Tesco has committed to completing its supply chain operations in a manner which is as environmentally responsible as possible. By 2025 for instance, the company aims to become a zero-carbon business operator. In this endeavour, the company has set specific milestones. In 2012 for instance, it aims to lower its carbon emission levels to levels no higher than those they registered in 2006/2007 (Supply Chain Analysis, 2012).

All in all, the Tesco Supply Chain Management is highly developed and it seeks to attain objectives on multiple fields of the business operations. In order to do so, the organizational leaders continually develop the supply chain management in order to best respond to the challenges in the micro and macro environments (Fernie, 2004, p. 110). Through this commitment, the company ensures that its SCM adds more value and helps it overcome its boundaries.

4. Conclusions

The current project has focused on the importance of the Supply Chain Management (SCM) in the context of the changing environments within and outside of economic agents. The Supply Chain Management is often perceived as the totality of efforts and methods utilized by the firms to ensure that a product is created and then transferred to the final consumer. In a different formulation, Supply Chain Management ensures that the company completes all the operations which transform the commodities into financial results.

The processes in the Supply Chain Management are complex and they include both practical and physical operations, as well as the handling of data and information. The physical operations are the more obvious ones, whereas the data related processes are more salient, yet equally important. Based on the analysis conducted, it is concluded that the challenges impacting the business climate are tremendous, and the single means in which a Supply Chain Management system can be successful is through continuous development and improvement in an effort to continually adjust to the emergent challenges in the environment.

This business model was adopted by the managerial team at Tesco Plc, the greatest retailer in the United Kingdom, as well as a leader of the global retailing industry. In a time when the other economic agents were registering downfalls in their business operations, Tesco continued to flourish and further consolidate its leadership position. An important role in this was played by its Supply Chain Management system.

Tesco's SCM is highly complex and multifaceted. It deals with various aspects of the business operations, such as cost reduction, customer satisfaction, inventory management or produce management. All these efforts ensure that the company is able to meet the challenges of the new millennium, to create more value, to become more competitive and to push the boundaries of its own performances.


Beyer, S., 2010, Supply chain performance measurement and e-business supply chain management: including a practical excursus on the Intel case: operations strategy -- Supply Chain Management, Grin Verlag, ISBN 3640658426

Cazier, J.A., Poluha, R.G., 2007, Application of the Scor model in Supply Chain Management, Cambria Press, ISBN 1934043230

Emmett, S., Crocker, B.., 2006, The relationship driven supply chain: creating a culture of collaboration through the chain, Gower Publishing Ltd., ISBN 0566086840

Fernie, J., 2004, Logistics and retail management: insights into current practice and trends from leading experts, 2nd edition, Kogan Page Publishers

Kannt, A., 2002, Supply Chain Management and design at global companies, BoD -- Books on Demand, ISBN 3831144834

Overbeck, S.., 2009, Supply Chain Management -- a critical analysis, GRIN Verlag, ISBN 3640376951

2012, Benefits of Supply Chain Management, Business Software, last accessed on February 22, 2012

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