Report: Has Improvement Of Retail Logistics Made Us Loyal Customers 1.0: Introduction In this report I will be analysing how the retail logistics of Argos and Tesco has influenced us to stay loyal customers to the companies. Due to the lack of time given I have only been able analyse two retailers however if I had more time I could’ve analysed retail logistics further. Supply Chain Management: Supply chain management is the flow system into the organisation. There are two flows within the supply chain, physical and information flow. The physical flows in the opposite direction information flow. Supply chain management involves aspects of inventory, distribution, purchasing and supply. (Wild, 2001) Tesco’s and Argos are two very different …show more content…
Distribution was centralised so that all business activities involving the distribution of goods to stores was done from all depots connected to computer network so everyone could keep an eye on it to see what was happening throughout and manage the supply chain more carefully. Tesco was focusing on to a build a foundation for vertical collaboration within the supply chain. (IGD, 2010) 3.1.3: They are main leaders who are using bio fuels to help the environment and reduce carbon emissions whilst transporting goods and doing daily business operations. (TESCO PLC, 2014) They transport goods using the rail network and they are using fuel which doesn’t harmful carbon emissions. Tesco quoted there main purpose is to “create value for customers to earn their life time loyalty” (TESCO PLC, 2014) 3.1.4: Tesco’s overall logistics has impacted on customer loyalty massively because there has been a slump in profits and sales over the last few years. (ROBINSON, 2014) Tesco sales figures have down by 6% in the last twelve months and shoppers are going to other supermarkets in the big four. (ROBINSON, …show more content…
IGD, 2010. TESCO SUPPLY CHAIN ANALYSIS. [Online] Available at: http://supplychainanalysis.igd.com/Hub.aspx?id=15&tid=1&rid=2 [Accessed 1ST AUGUST 2014]. INMAN, P., 2014. THE GUARDIAN. [Online] Available at: http://www.theguardian.com/business/2014/jan/17/high-street-sales-jump-unexpected-christmas-surge [Accessed 2ND AUGUST 2014]. logistics, T., 2008. total logistics. [Online] Available at: http://www.total-logistics.eu.com/logistics-clients/logistics-clients-portfolio/portfolio-argos.html [Accessed 1st August 2014]. NEWS, B., 2013. Home Retail Group reports Argos sales rise. [Online] Available at: http://www.bbc.co.uk/news/business-22363631 [Accessed 28TH JULY 2014]. ROBINSON, M., 2014. Tesco posts falling profits for the second year running as shoppers head to rivals. [Online] Available at: http://www.dailymail.co.uk/news/article-2605772/Tesco-annual-profits-slump-150m.html [Accessed 3RD AUGUST 2014]. TESCO PLC, 2014. TESCO WINS TOP AWARD FOR CUTTING CARBON EMISSION. [Online] Available at: http://www.tescoplc.com/index.asp?pageid=17&newsid=960 [Accessed 26TH JULY 2014]. Wild, R., 2001. essentials of operations management. 5th ed. henley on thames : cengage learning
Online Stores Tesco wants go into other markets because they would be bringing in more customers, which are going to increase profit. They also have another aim which is to expand internationally because they already operate within the Europe. They have to set themselves new aims and objectives that are harder to achieve as it’s the expanding further.
Tesco PLC's Expansion in North Bracknell Introduction: Tesco PLC is an international supermarket not only selling high quality goods but has now also become one of the biggest job markets. As well as this Tesco has been running sub-projects to increase the level of customer care. [IMAGE] Tesco's main aims are shown by the steering wheel provided by their website (www.tesco.com). Tesco want to have good quality for value to earn their customers loyalty while still making a profit. I will be investigating the Tesco Superstore, petrol station, pharmacy and coffee shop in North Bracknell (Warfield).
Tesco is a UK based Supermarket Company which was founded in 1919 by Jack Cohen, since then it has grown to become a multinational company which specialises in a lot more than just groceries, this has improved the overall profit of the company. The overall employees recorded at the end of 2015 was 476,000+, this shows that is a source of employment for nearly half a million people in the UK. The supermarkets are no longer just in the UK they also have shops based in Malaysia, India and Poland, this presents that they are increasing the size of business to a multinational company and is also a good source of jobs for people in poorer countries. In the world over 75million people travels
Tesco also has various and wide range of products and that is to meet customers’ needs of whatever customers intend to buy, nearly whatever customer intends to buy would find it underneath one ceiling (at Tesco). On the top of selling groceries Tesco sells others products such as, books, CDs, DVDs to buy, DVDs to rent, games, flowers, electronics, cosmetics, etc.
Tesco’s objective is to be the ‘champion for customers’, and they want to achieve this by being number one in customer satisfaction. They want to grow globally and by doing this they ‘create value for customers to earn their lifetime loyalty’. Tesco is
Tesco is trying to gain as high profits as they can because company investors or shareholders might thing about investing more money in to the business because of its success and development. Tesco wants to make its investors satisfied because it may affect business future.
Tesco is the largest retailer in UK. It is a public limited company which sells multinational grocery, health and beauty product, household items and toys etc. Since Jack Cohen founded Tesco in London’s East End at 1919 and now it has sprouted branches in 12 countries with over 7,800 stores include franchises. Tesco hire over 530,000 employees and they serve over tens of millions customers per week. Tesco
Tesco currently has strong financial, technical, and physical resources and moderate organizational capabilities. Financial Resources -.. Tesco maintains a strong financial forecast, as shown below. Revenue growth for Top Drive segment Q3 2011 was 83.6 million. Increase derived from sales increase, operating days for rental fleet, and after-market sales and service.
However, it can learn from Costco’s success and commitment to offering lower prices and better values on a consistent basis by eliminating virtually all the frills and costs associated with conventional wholesalers and retailers, including salespeople, fancy buildings, delivery, and billing and accounts receivable. In addition, to selling high volumes of a handful of items (Shaw 2017). This way Tesco can pass on dramatic savings to its customers which will make a compelling reason for them to return (Woolf 2015).
Marks & Spencer is one of the UK's foremost retailers of clothing, foods, homeware and financial services, boasting a weekly customer base of 10 million in over 300 UK stores. Marks & Spencer operate in 30 countries worldwide, and has a group turnover in excess of £8 billion. It has specific values, missions and visions. It’s main vision is ‘to be the standard against which all others are measured’, it’s main mission is ‘to make aspirational quality accessible to all’, and it’s main values are quality, service, innovation and trust. (www.marksandspencer.co.uk).
* To make the business people value the most * Maintain market dominance * To be as strong in food as in non food * To have loyal and committed staff In order for Tesco to fully globally expand as a business then their major concern in relation to the 4 p’s would be place and promotion.
Supply chain management is basically refers to the fundamental supply chain analysis of the organization which predominantly describes functionalities from source to the delivery point. In this process of delivery, supply chain management framework divides in four categories: In Planning the products and suppliers evaluated and selected, Sourcing pull the information process including contracting, ordering and expediting, Moving is a physical process from suppliers to end user and Paying is the financial process including payment and performance measurement.
Although Tesco is claiming they are not doing anything wrong they are making it very difficult individual shop owners and local convenience stores to survive. Some of the new store openings even became very violent due to extreme opposition in the past.
Bibliography: Lawson, A. (2013). Analysis: Is Asda’s five-year strategy the right one?. [Online] Retail-week.com. Available at: http://www.retail-week.com/sectors/food/analysis-is-asdas-five-year-strategy-the-right-one/5054989.article [Accessed 23 Jan.
Slack, N., Johnston, R. and Brandon-Jones, A. (2011).Essentials of operations management. 1st ed. Harlow, England: Financial Times Prentice Hall.