Logistics Essay

2532 WordsDec 26, 201111 Pages
Business Logistics Tesco’s Operation Management Background Information The chosen organisation which will be discussed is ‘Tesco’ (a well known supermarket chain in the UK). Tesco’s also have operations internationally. The report will show how Tesco’s manage their internal & external processes in regards to logistics. Background information about Tesco’s is that they are one of the leading food retailers in the UK and they provide retailing services through a variety of channels. This includes store formats such as Tesco Express, Superstore, Metro, Extra and Homeplus. They also use e-commerce with tesco.com and Tesco direct (Datamonitor, 2010). A description about ‘operations management’ by (Slack et. al, 2009, p.2) is that “Operations management is about how organisations produce goods and services”. Tesco’s produce some of their goods and offer services such as financial services & broadband services (Datamonitor, 2010). To understand how well Tesco’s manages their logistics operations, a defined description by (IGD, 2009) states that “Supply chain management (SCM) focuses on the movement of goods and the flow of information from one point in the supply chain to another...” Tesco’s manages their supply chain relatively well. As well as having their own distribution network, they have outsourced by using a ‘Third Party Logistics’ such as transport management systems (TMS) to optimise how their products reach customers. This has also helped them make sure that deliveries are done on time to meet demands of customers and ensure that they can keep track of deliveries to maintain the organisations level of productivity. An example of a company which Tesco’s had used in 2007 is ‘Isotrak’ who provide a service to help improve transport management through the use of software products and offer help to solutions when needed (Isotrak, 2007).

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